This report focuses on non-participating highly innovative SMEs in the ICT sector with the aim to clarify the reasons for not participating in European research programs and to suggest ways forward for the new ICT-FP8/Horizon 2020 to remedy the situation. This was done by launching an online questionnaire completed by 829 entities, of which over 600 were innovative ICT SMEs, and carrying out in-depth interviews with 47 of these.