The short answer is “yes” (participation) and “no” (funding).
Participation is open to international organisations and legal entities established in third countries after the minimum conditions laid down in the ‘Rules for participation’ have been met, as well as any conditions specified in the specific programmes or relevant work programmes.
more…
Industrialised third countries (such as Australia, New Zealand, Canada and the USA) can participate in FP7, but with their own funding. EU funding is only granted in exceptional cases, generally when specifically set out in the relevant work programme.
more…