26. 11.83 Official Journal of the European Communities No C 321/1 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Decision adopting the first European strategic programme for 
research and development in information technologies (Esprit) 
COM(83) 258 final 
(Submitted by the Commission to the Council on 25 May 1983) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the Euro­
pean Economic Community, and in particular 
Article 235 thereof, 
Having regard to the proposal from the Commis­
sion, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the Community has as its task, by estab­
lishing a common market and progressively approx­
imating the economic policies of Member States, to 
provide throughout the Community a harmonious 
development of economic activity and closer rela­
tions between the States belonging to it; 
Whereas the Council adopted a resolution on a 
Community policy on data processing (') on 15 July 
1974; 
Whereas the Heads of State and of Government, 
meeting in Strasbourg on 21 and 22 June 1979, 
declared that the dynamic complex of information industries, based on the new electronic technologies, 
offered a major source of economic growth and 
social development; 
Whereas the Commission has proposed to the 
Council in its communication COM(82) 865 a strat­
egy in the domain of science and technology and a 
framework programme for the period 1984 to 1987; 
Whereas the proposed framework programme calls 
for an action programme of research and develop­
ment in information technology; 
Whereas the Council has adopted, by Decision 82/ 
878/EEC (2), a series of pilot projects in the field of 
information technology; 
Whereas the response of industry, universities and 
research institutions to the pilot projects phase has 
been of very high quality and shows a high degree 
of interest and it would be necessary to provide ade­
quate resources to assure continuity to the actions 
about to be launched, and to proceed to the imple­
mentation of a full-scale action programme; 
Whereas a full-scale programme of research and 
development in information technology should have 
the broad goals indicated in the Annex hereto, but 
be capable of revision at various levels of detail to 
reflect changing industrial priorities; 
(') OJNoC86,20. 7. 1974, p. 1. (2) OJ No L 369, 29. 12. 1982, p. 37. 
No C 321/2 Official Journal of the European Communities 26. 11. 83 
Whereas adequate dissemination of, and access to, 
results of projects of Community interest is essen­
tial to the pursuit of the aims of the Community; 
Whereas it is necessary for the execution of the pro­
gramme that the Commission be assisted by a 
Management and Consultative Committee; 
Whereas the importance of the action may require 
an extension of the programme adopted by this 
Decision; 
Whereas the Treaty does not provide the necessary 
powers, 
HAS DECIDED AS FOLLOWS: 
Article 1 
1. A programme of research and development for 
the European Economic Community in the field of 
information technologies, as defined in Section A of 
the Annex, hereinafter referred to as 'the pro­
gramme', is hereby adopted for a period of five 
years, as from 1 January 1984. 
2. The programme shall comprise projects carried 
out by means of contracts, to be concluded with 
undertakings, including small and medium-sized 
enterprises, universities and other bodies established 
in the Community, and the coordination of research 
and development activities carried out under the 
programmes of the Member States and of the Com­
munity. 
3. In principle, the contractors will be expected to 
bear a substantial proportion of the costs which will 
normally be shared 50% by the contractors and 
50 % by the Community. 
Article 2 
The Community shall contribute to the performance 
of the programme within the limits of the appropri­
ations entered to this end in the budget of the 
European Communities. 
The overall amount of the appropriations represen­
ting the Community's contribution to the perform­
ance of the programme is estimated at 750 million 
ECU, including the staff required estimated at 83 A 
staff, 17 B staff and 50 C staff as indicated in Sec­
tion B of the Annex. Article 3 
The Commission shall see that the programme is 
properly performed. In particular, it shall decide 
upon implementing procedures for the programme, 
on the definition of the detailed objectives and on 
the type of projects to be undertaken. It shall estab­
lish each year and update as required a working pro­
gramme. 
Article 4 
The Commission shall be assisted in the ac­
complishment of the tasks referred to in Article 3 by 
the Management and Consultative Committee in 
the field of information technologies, created by 
Council Decision ... (')• 
Article 5 
With regard to coordination activities, the Member 
States and the Community shall exchange all appro­
priate information to which they have access and 
which they are free to disclose concerning R&D 
activities in the domains covered by this Decision, 
whether or not planned or carried out under their 
authority. 
Information shall be exchanged in accordance with 
a procedure to be defined by the Commission after 
consulting the Committee referred to in Article 4, 
and shall be treated as confidential whenever 
requested by the supplier. 
Article 6 
1. The programme shall be reviewed after 30 
months. The Council and the European Parliament 
shall be informed of the results of this review. 
2. The programme may be extended for a second 
period of five years, following a proposal by the 
Commission to be transmitted to the Council in 
conformity with the appropriate procedures. 
3. At the end of each five-year period of the pro­
gramme, the Commission, after consulting the Com­
mittee referred to in Article 4, shall send the 
Member States and the European Parliament a report 
on the performance and results of the programme. 
(') See draft Council Decision COM(83) 143 (OJ No 
C 113,27.4. 1983, p. 4.). 
26. 11.83 Official Journal of the European Communities No C 321/3 
ANNEX 
SECTION A 
AREAS OF ACTIVITY 
The programme contains areas of R & D activity and infrastructure actions. 
The areas of R & D activities are: 
1. Advanced microelectronics capability 
The main objective is to provide the technological capability to design, manufacture and test 
very high-speed and very large-scale integrated circuits (ICs), that will be needed in the next 
two decades. 
A concurrent objective is to stimulate R & D on novel materials and devices for special 
applications. The activities to be pursued include: 
— computer-aided design, manufacture and test for very large-scale integrated circuits 
(VLSIC), 
— silicon IC process steps to 1-micron feature size, 
— integration of process steps, leading towards computer-controlled VLSIC fabrication, 
— process steps for submicron feature sizes in silicon and other semiconductor materials, 
— techniques for interfacing ICs to their environment, 
— research into optical information processing and transmission, notably integrated opto­
electronics, optical switching and storage, 
— novel information and image presentation display technologies, 
— novel organic and inorganic materials for electronics and optical technologies. 
2. Software technologies 
Software technology aims at providing the sound engineering practices, the methods and 
tools that are needed in the software development process, the management principles for 
information technology as well as the scientific knowledge underlying them, and aims to 
integrate them into a consistent technology. It is founded on mathematics, economics and 
traditional engineering practices. 
A combination of three complementary research approaches will be addressed. The first 
approach stresses the scientific foundations and covers such areas as formal mathematical 
techniques, taxonomy and metrics, including empirical techniques and modelling. This 
approach to software development aims at a better scientific understanding and is predomi­
nantly theoretical research work. 
The second approach focusses on the software production process. It considers software 
development as an industrial activity in which large groups of (professional and specialized) 
software engineers create complex software systems, supported in operation — in many ver­
sions and variants — for large markets and over a long period of time. Work in this area 
relates to all parts of the software life cycle and addresses activities like requirements ana­
lysis, specification, design, implementation, verification and validation, maintenance and 
enhancement; of particular importance will be the full integration of methods and tools and 
the phase-to-phase continuity. Main R&D activity in this area concentrates on methods and 
tools and on their integration into complete systems for software production. The aim is the 
mastery of the technical production process of software goods. 
The third approach is concerned with software development process as an economic activity 
in its own right. It focusses on software as a product, investigating the mutual dependencies 
between commercial goals of an enterprise and the technical characteristics and performance 
No C 321/4 Official Journal of the European Communities 26. 11. 83 
requirements of the software product. It addresses also the problem of producing applica­
tion-specific software, and the way in which the knowledge about the application domain 
may influence the tools and methods for software development. 
The aim of this approach is to provide the techniques and criteria for organizing, managing 
and optimizing all parts of software application engineering and production process. This 
entails R& D in: 
— theories and methods for program development, 
— methods and tools in software engineering, 
— economic and industrial software production. 
3. Advanced information processing (AIP) 
The objective is to set the basis of industrial exploitation of the transition from data process­
ing to knowledge processing systems that is the key to the next computer generation. Impor­
tant objectives on this road include the provision of more user-friendly interfaces to non­
expert users, and the exploitation of VLSIC for a major increase in information processing 
power. 
The main thrust of R & D will be in the following topics: 
— information and knowledge engineering, including expert systems, 
— pattern-recognition techniques and their application to interfaces with the environment, 
particularly intercommunication between human and machine, 
— information and knowledge storage, including novel hardware technologies and ad­
vanced software techniques, 
— computer architecture, particularly for parallel processing, leading to novel processing 
machines of advanced capability, 
— design objectives and methods, of embedding trustworthy AIP concepts into VLSIC. 
4. Office systems 
The objective is to carry out systems research on the information systems that will support 
the wide range of non-routine tasks performed by humans in the office environment. The 
activities to be pursued include: 
— office system science, as prerequisite and support to the structural and functional analy­
sis and description of office procedures, definition of standards and the design of 
adapted office products and systems. 
— office work-stations, document description languages, document creation and distribu­
tion man/machine interfaces, 
— office communication systems including local area networks and their interconnection, 
integrated interactive text-voice-image-video communication and value-added func­
tions, 
— office filing and retrieval systems with emphasis on ease of access to and retrieval of 
'Knowledge', content- and structure-addressable data bases, office document languages, 
— human factors, encompassing all aspects of the interactions between man and infor­
mation-handling systems. 
5. Computer integrated manufacture (CIM) 
The objective is to establish the technology base for progressive introduction of computer 
aids in all phases of the manufacturing process leading ultimately to integrated 
manufacturing. 
26. 11. 83 Official Journal of the European Communities No C 321/5 
The main emphasis is placed on manufacturing elements as they are needed for discrete 
batch manufacturing, as this is technologically the most demanding problem. 
The main thrust of the R & D will concentrate on: 
— integrated system architecture for CIM systems, including data base management sys­
tems and incorporation of AIP (advanced information processing) concepts, 
— computer-aided design and engineering (CAD and CAE) systems of modular structure, 
— modular computer-aided manufacture, test and repair systems and their integration with 
CAD, CAE, 
— software and operating systems, including command languages for generation of con­
trol programs (starting from design, production or test simulation data) for automated 
assembly, for robot operations, or for computer numerically controlled machine-tools, 
— imaging and control systems for the real-time capture and processing of 3D images and 
for generating appropriate responses, incorporating AIP techniques, 
— VLSIC design and fabrication for CIM subsystems, sensors, etc., 
— demonstration models of CIM subsystems leading to complete CIM demonstrators for 
experiments in real life situations. 
6. Infrastructure actions 
The infrastructure actions consist of a number of specific measures aimed at establishing the 
conditions required for successful execution of cooperative R & D on a Community level 
and for drawing the maximum benefit from Esprit as a whole. 
These infrastructure activities include in particular: 
— coordination of Community and Member States' research and development pro­
grammes, acquisition of information, both within Esprit and from the world at large, 
and its appropriate dissemination, 
— coordination and documentation of standards within Esprit and their relationship with 
national and international standards, 
— an information exchange system (IES) to ensure ease of communication to serve the 
good technical execution of R & D projects as well as their management and the appro­
priate dissemination of their results. Progressive implementation and upgrading would 
have to enable direct computer communication and distributed software development. 
SECTION B 
PERSONNEL 
Category 
A 
B 
C 1984 — Temporary posts 
Scientific 
staff 
47 
4 
— Administra­
tive staff 
4 
5 
31 Total 
51 
9 
31 Complement 1985 — Temporary posts 
Scientific 
staff 
32 
2 
— Administra­
tive staff 
— 
6 
19 Total 
32 
8 
19 General 
total 
83 
17 
50 
No C 321/6 Official Journal of the European Communities 26. 11.83 
APPENDIX 
SECTION I 
BACKGROUND 
PURPOSE OF PRESENT COMMUNICATION 
1. In 1982 three communications were sent to the Council (') which: 
(a) analyzed the importance of information technology (IT) and introduced Esprit; 
(b) outlined the concept of a pilot phase for Esprit and provided the main lines of an 
overall programme; and 
(c) provided a basis for a Decision on pilot projects. 
2. The Ministers of Research, meeting in June 1982, welcomed the concept of Esprit and, at 
their meeting in November 1982, approved the principle of a pilot phase. A Decision was 
adopted by the Council on 21 December 1982 to fund the pilot phase to a level of 11,5 
million ECU, representing 50 % of the first-year costs (2). 
3. The level and quality of the response to the call for proposals for pilot phase, and the sup­
port received from industry, are clear indication that the definition and implementation of 
a full-scale programme is now required. 
4. The purpose of the present document is to provide the basis for a Council Decision for 
such an overall programme in which the pilot projects will be incorporated. 
ROLE AND IMPORTANCE OF IT FOR THE COMMUNITY 
5. Europe's rise to historical and world importance has throughout been closely associated 
with its scientific and technological achievements. Although not without problems, tech­
nological advance represents an essential ingredient of further development of human 
societies; future progress will largely depend on the timely acquisition of new technologies 
and their appropriate and skilful use. 
6. The new technologies of information (IT) will be one of the dominant sources of techno­
logical advance for the rest of the century. They offer an answer to many pressing problems 
of today and the chance of industrial renaissance in Europe by qualitative growth creating 
new products, processes and services and thereby new export opportunities and employ­
ment. 
7. For Europe's high value-added economies IT is of vital importance, and indigenous capa­
bilities will have to be acquired in key areas in order to be capable to compete, and also to 
cooperate, with the USA and Japan on equal terms. 
8. European industry, however, is no longer leading technological development and innova­
tion as it once did, and world conditions make it increasingly difficult to maintain 
(') COM(82) 287: towards a European strategic programme for research and development in information 
technologies; .... 
COM(82) 486: laying the foundations for a European strategic programme of research and development 
in information technology: the pilot phase; 
COM(82) 737: proposal for a Council Decision on a preparatory phase for a Community research and 
development programme in the field of information technologies. 
(2) OJ No L 369, 29. 12. 1982, p. 37. 
26. 11. 83 Official Journal of the European Communities No C 321/7 
economic and industrial strength in the face of the rising cost of energy and raw 
materials together with mounting international competition. 
9. Given Europe's dependence on imports, the strength of its industry in providing export 
goods, and all related factors are therefore central policy issues. 
10. Information technology is highly R&D intensive and technology becomes quickly obso­
lete. This means that R&D investment is so high that a selective approach is inevitable. 
11. The realization of economic growth and of the potential benefits of IT have important 
Community dimensions. This applies specifically to a more efficient use of scarce technol­
ogy assets and resources for medium to long-term R & D in IT. 
12. Although the Community's efforts in this field are considerable, they need to be signifi­
cantly increased in key areas as well as made more effective. 
13. The mobilization of Community technology potential in this field will depend on the col­
lective commitment of governments, industry, research institutes, universities, trade unions 
and the general public towards the goal of providing industry with the technological assets 
needed for long-term viability arid strength. 
IT AS A FACTOR OF ECONOMIC CHANGE 
14. Information technology is perhaps the fastest developing area of industrial and business 
activity in the Western world. Its markets are large, its applications varied and pervasive, 
and its potential for increasing efficiency immense. IT will be the driving force of econo­
mic growth for at least the rest of the century, and is therefore a major factor in economic 
affairs. 
15. Information technology is an appropriate industry for Europe's comparatively high-
labour-cost economy. It can contribute to improved operational performance and lower 
costs in several other industries. 
Information technology has high value-added and a large export potential. Furthermore it 
is knowledge-intensive, consumes little energy, has limited raw material requirements, and 
poses no known environmental problems. 
16. IT is already a major industry in its own right, comparable in size ($ 237 billion annual 
sales worldwide in 1980) and value added to the automobile and steel industries. 
However, it differs from these mature industries by offering broadly based opportunities 
for growth. Its overall growth rate — including more mature products such as telegraphic 
and non-digital telephone equipment — is expected to be 8 to 10 % per year in real terms. 
The size of the Community IT market is about 30 % of the world market, although the per­
formance of Community-based IT companies is disappointing and their presence in lead­
ing markets negligible. 
17. Some 6 % of the Community's gross domestic product (GDP) is produced by the IT core-
industries, i.e. 
— computers including peripherals, 
— computers services including software, 
— components; 
and by a further 29 % the industries which apply IT in a major way including: 
No C 321/8 Official Journal of the European Communities 26. 11.83 
— telecommunications, 
— office automation, 
— factory automation, 
— consumer products, 
— defence applications, 
— financial and insurance services. 
18. Another 20 % of GDP is derived from other industrial sectors with a high information con­
tent such as services and retailing, and those which increasingly use computer aids in 
design, manufacturing, quality control, distribution and maintenance, such as automobiles 
and textiles. 
19. The remainder of the economy is also significantly affected in its performance by IT 
although not so directly. For example, even agriculture can greatly benefit from satellite 
observation followed by computer analysis of the data to optimize crop production. Con­
sidering the size of the agricultural sector, even a small effect is of great economic 
importance. 
20. Telecommunications; office automation and factory automation play a particularly impor­
tant role since these IT applications provide a crucial infrastructure for the whole economy. 
21. As a manufacturing sector the IT industry has been one of the fastest growing industries 
world-wide in the last decade, a decade which has seen general recession otherwise. 
Growth is expected to continue at about 8 to 10 % overall until 1990 by which date, with a 
total turnover of some $ 500 billion (at 1980 prices), IT will then be the world's largest 
manufacturing sector. 
22. Information occupations (') are becoming the single most important part of employment. 
The US Bureau of Statistics estimated that in 1980 nearly 50 % of the employed civil work­
force were in 'Information', which included not only manufacturing but all occupations 
concerned with information. European figures are similar. IT manufacturing alone 
employs 5 % of the total Community work force, i.e. about five million persons. 
23. Four million jobs may depend on IT-related performance in the Community. 
If the market in the Community for IT products had developed at the same rate as that in 
the USA and Japan, supplying this additional demand could have provided perhaps 
2 000 000 more jobs. 
A similar number of jobs are at risk in the future if Community industry does not improve 
its competitiveness by applying IT as effectively as is being done by its competitors world­
wide. 
IT AS A FACTOR OF SOCIAL AND CULTURAL CHANGE 
24. Information technology is inextricably associated with social and cultural progress. 
5 000 years ago the first major innovation in IT was made, by recording information by 
means of symbols. Since then, the transition to alphabetic writing, printing and recently 
computer editing are major milestones. 
(') This includes activities like TV broadcasting and the press that, although not encompassed by the term 
'information technology', are heavily dependent on it. 
26. 11. 83 Official Journal of the European Communities No C 321/9 
25. Information technology has so far been mostly concerned with the perfection of compara­
tively simple high-speed information processing, for example, calculations and printing. 
However, even simple cognitive processes such as recognizing a voice are still very difficult 
with present techniques. 
26. With the forseeable advances in \T, fairly advanced forms of machine intelligence are, for 
example, no longer out of reach and it is quite evident that this will introduce as important 
socio-cultural and political changes as have other major innovations of this century. 
27. The opportunities for social and cultural evolution are enormous as IT removes social and 
educational barriers which have their origin in access to information and knowledge. 
Evidently this entails, as does any new product, risks which need to be carefully considered 
and may require cautious evaluation and choice. 
28. The evolution of IT is happening throughout the world and offers opportunities to all 
societies to maintain and develop their cultural identity. Developing countries can, with 
the help of direct satellite broadcasting, educate and inform their population. 
Community Member States will find it easier to use each others' languages as well as their 
own as machine translation advances. Education and training will be made more efficient 
and cheaper. 
29. Success in the long term will be determined by the skill of nations and regions in grasping 
the opportunities whilst controlling the risks. 
For this to be achieved, speeding up the advance of IT is necessary but not sufficient. Edu­
cation and training, the questions of the changing nature of work, privacy and cross-border 
data exchange and many other important issues need to be considered. The Commission 
services have already addressed several of these issues, proposed actions and implemented 
measures. 
SITUATION OF THE COMMUNITY IT INDUSTRY 
30. The Community is becoming rapidly more dependent on IT imports. In 1975 it still had a 
trade surplus in IT products. By 1980 the trade deficit had reached $ 5 billion and, accord­
ing to certain sources, the $ 10 billion mark was passed in 1982. 
31. The problem of the trade deficit is compounded by the fact that Community imports are 
primarily high-technology products — such as central processing units and computer 
memories — from the United States and Japan, while its exports are the more mature, 
lower technology products. 
32. The Community IT market is lagging behind the US and Japanese markets by several 
years. This is shown by the per capita sales of IT products in the Community being only 
60% that of the USA. 
33. The Community IT industry is relying increasingly on importing technology or on licensed 
manufacturing, distribution and maintenance for its profits. This is reflected in an impor­
tant product and technology lag. 
34. Because the rate of introduction of new generations of technology has been so rapid, and 
each generation has made such improvements in productivity, it has been estimated that 
the average life of high technology IT products is only three years. Products such as micro­
processors and other key components, products and services throughout the economy are 
simply not competitive on the international market unless they incorporate the latest ad­
vances. 
35. At the same time, the threshold investment in R & D for enabling technologies continues to 
increase demanding larger and larger markets for an economically viable return on invest-
No C 321/10 Official Journal of the European Communities 26. 11.83 
ment. Digital exchanges have required R&D investment of about $ 1 billion. To amortize 
this investment, $ 14 billion in sales are necessary, which exceeds the size of any one mar­
ket of a Member State as projected for the next decade, a market for which there are many 
competitors. 
36. Similar constraints apply in varying degree to many IT sectors, and in particular to the ena­
bling technologies required to develop leading edge products and services. 
REMEDIES 
37. European companies, in some cases stimulated by government action, have already taken 
up the challenge posed by the subject and the increasing strength shown by US and 
Japanese firms. There is evidence that the level and scale of resources committed in Com­
munity countries to R & D are too small to be effective and often not adequately focussed 
towards internationally competitive innovation. 
38. In particular, long lead-time R&D subjects are neglected in favour of short-term R&D. 
Short-term R&D serves well for catching up but is not able to establish a leading position 
in specific sectors. 
39. The present way of managing technology assets and resources in the Community does not 
seem to be sustaining indigenous industry in this field and, what is even more worrying, 
may not perform the vital role of developing the technology base for the innovations of the 
1980s and 1990s when the competition between industrialized regions for export opportun­
ities to pay for energy and raw material is likely to be fierce. 
40. The centre piece of mid- to long-term strengthening of the Community IT industry is 
research and development. In this area the Community has resources which are adequate 
to compete with the USA and Japan, but the way these are at present managed makes them 
not effective enough. Strategic long-term planning and the concentration of resources 
through the definition and funding of technology goals on a Community scale has a good 
chance of redressing the situation gradually but in a lasting manner. 
41. The Commission shares the views of industry that present efforts in R & D must be made 
more effective and at the same time significantly increased over a prolonged period. 
42. The current rate of decline is fast and is accelerating. There is, therefore, a need to begin 
taking effective action as soon as possible. 
43. Extensive concertation with the leading IT companies, small- and medium-sized enter­
prises (SME's), academia and Member States' administrations has resulted in the defini­
tion of the long lead-time R&D programme called Esprit: the European strategic pro­
gramme for research and development in information technologies. 
44. The main drive for Esprit has come from industry. In order to reverse the trend of increas­
ing reliance on importing technology, a joint programme of R & D has been proposed by 
industry whose goals are to: 
— reduce duplication of pre-competitive R&D, 
— ensure that research teams achieve critical size and sufficient stability over time to be 
able to focus on key areas and achieve results, 
— reduce the timelag effect caused by reliance on imported technology. 
26. 11. 83 Official Journal of the European Communities No C 321 /11 
45. Industry has made clear its willingness to put up half of the necessary funds, and even 
more important, to share its most precious technical manpower resources — this is particu­
larly true for those companies who have major facilities and will participate in an inte­
grated way in large-scale strategic projects. 
46. The reasons for industry to approach the Community for the remainder of the funds, and 
the interest for the Community in providing them, is that: 
(1) by working together on the enabling technologies, the foundations for common stan­
dards and the creation of a Community IT market can be achieved. Progress on this 
can only take place on the broad front which the Community offers; 
(2) there is a need to avoid wasteful duplication of national efforts (')• 
47. The natural starting point for Community industry to begin to redress the balance is with 
improving the technology base for the late 1980s and 1990s by pre-competitive generic 
R&D. 
48. The reasons for choosing an R& D programme are: 
(1) it can be started immediately; 
(2) new technology is vital for competitiveness; 
(3) industry can collaborate on pre-competitive research without impeding its ability to 
compete for markets. 
49. Esprit will have the appropriate scale and thrust to make a major impact on the availability 
of advanced know-how in information technologies. It will reinforce the efforts of industry 
and academia on a selective basis in relation to strategic technology where the Community 
approach offers important advantages. This will provide technology push. 
Research and development is, however, not the only aspect which offers important advan­
tages of Community scale. Education and training, technology transfer, standards and cer­
tification, creation of leading-edge markets, improvement of the business environment for 
small and medium-sized companies and other aspects, offers opportunities for a selective 
Community approach to improve the market environment (2). 
In addition to these infrastructure measures, there are solid economic arguments which 
indicate that a Community approach should be urgently applied to several IT sectors. This 
is true in particular of telecommunications, but also of other sectors which have a major IT 
component. 
50. Section II of this document will explain the content and thrust of Esprit in the light of its 
contribution to industrial performance. 
(') For example, several Member States are working in 'the office of the future' without profiting from each 
other. Any products resulting might be optimized for a national market but are unlikely to benefit from 
the size of the Community markets. Given that such a project is concerned with clarification of proce­
dures and concepts, and identifying standards for interfaces and communications, the Community 
dimension enhances the chances of other countries adopting European standards. 
(2) The Community has already launched several actions in IT which address specific aspects complemen­
tary to Esprit. . 
— pluriannual programme for data processing, including measures to facilitate the introduction of IT, 
— Insis/Caddia, fostering the introduction of IT in Community institutions and Member State admin­
istrations, 
— microelectronics programme, supporting the advance in specific design and IT manufacturing 
techniques. 
No C 321/12 Official Journal of the European Communities 26. 11. 83 
SECTION II 
ESPRIT SPECIFIC OBJECTIVES AND SECTORS OF ACTIVITY 
FUNDAMENTAL TECHNOLOGICAL DOMAINS: THE NEED FOR SELECTIVITY 
1. The overall strategic goal of the Esprit programme is to provide the European IT 
industry with the technology base which it needs to become and stay competitive with 
the US and Japan within the next decade. 
2. Because of the rapid growth in the demand for information and communication in all 
walks of life, IT is crucial to the entire economic tissue. Very soon close to 70 % of the 
economy will be affected, in one way or another by computers or other IT products. 
3. Over the last two or three decades technology has enormously developed the potential 
to provide improved forms of communication. This technological push is still with us 
and is still full of vigour. 
One can identify in this process a number of broad trends, amongst which are: 
— a continuing decrease in the size, power consumption and cost of electronic 
equipment, coupled with an enormous increase in its functional power and relia­
bility, 
— increasing physical distribution of information processing functions, allowing 
remote access and cooperative operation through wideband communication links, 
— the build-up of information data bases in electronic form, available to a wider 
and wider audience in industry, service and home, 
— increasing levels of interaction between man and machine across the input/out­
put interface. 
4. Extrapolating these trends, the 1990s will see previously separate information systems 
and services merging with each other through wide area and local networks. Public 
networks (such as Integrated Service Digital Network (ISDN)), will distribute data 
over wideband links, including satellites, and reach into the home, the office and the 
factory via digital subscriber links. Local area networks will connect into wide area 
networks through gateways. 
5. People will interface with these networks through terminals or workstations, gaining 
• access to an enormous range of services for business, education, entertainment and 
person-to-person communication. 
6. During the 1990s and beyond, all information systems will exhibit more and more 
characteristics of machine intelligence. This will be apparent in the adaptable be­
haviour of machines — in the ability to handle knowledge rather than data; to under­
stand speech; to accept printed or written texts and graphics; above all, to be much 
more responsive and helpful to the humans who wish to use the information systems. 
Machines built for purposes such as transportation, industrial activities, defence and 
medicine, will possess much more sophisticated capabilities and behaviour. They will 
be increasingly alert to their environment and able to adapt their operations according 
to changes of circumstances. 
26. 11. 83 Official Journal of the European Communities No C 321/13 
7. In short, there will be a progressively tighter interaction between man and machines at 
all levels and in all sectors of economy and society. There are two obvious implica­
tions in these facts and trends: 
— one is that more and more people will have to learn how to use this technology, 
— the other is that the products of the technology will have to become easier and 
easier to use, and better integrated into the entire pattern of our daily lives both at 
work and at home. 
The first implication has far-reaching consequences for education and training, but is 
outside the scope of the present communication. The second one provides the clue to 
the challenges that the technology must master in the next 10 years. 
8. Let us analyze this in more detail. 
Moving closer to the user implies that the level of the 'man/machine interface' must 
be raised. Computers and other IT systems capable of communicating with the user in 
a variety of more 'natural' ways than presently possible must include the capability of 
understanding natural language, speech and handwritten material, although probably 
still with some limitations. Communication will become more interactive, where the 
user will explore with the system the various ways in which it can help him do his job, 
perform his task, solve his problem or provide him with the relevant information he 
needs. The pattern of man-machine communication will increasingly move away from 
detailed, specific commands for performing minute operations to descriptions of lar­
ger units of work to be done, leaving the system to figure out the detailed sequence of 
instructions it needs to carry out the task. As the system becomes more 'intelligent' 
and undertakes to perform more ambitious or less specific tasks, it may, in fact, dis­
cover ambiguities or contradictions in the desires of the user and need to carry out a 
clarifying dialogue with the user to resolve them. At the same time the system will 
need to understand more about what it is doing in order to explain to the user why it 
arrived at a certain result, and how to proceed further in case the result is not satisfac­
tory to the user. 
9. There are three other important requirements. One is that users must be able to access 
conveniently all of the relevant sources of information which they need to solve the 
particular problem at hand, at the time they need it, and regardless of where it is physi­
cally located. This by no means implies centralized processing or centralized data 
bases. On the contrary it establishes the requirement for interconnected local and wide 
area networks and all possible forms of distributed processing. It should be emphas­
ized that, in order for this interconnection of all IT services to be at all possible, it is 
mandatory that standards be established for their interfaces. A second requirement is 
system reliability. As everybody becomes dependent on them to carry out more and 
more tasks, these systems must increase their reliability in a major way. System mal­
functions should not cause an entire factory or economic unit to stop operations. The 
difficulty is compounded by the fact that more people will be using these systems, and 
that these people will be less and less sophisticated professionals, therefore more likely 
to misuse the systems or to try to use them in ways which were not foreseen by the 
systems designer. At the same time making the system easier to use also makes it more 
complex internally, thereby again increasing the likelihood of hardware or software 
errors or malfunctions. Furthermore, the need for systems to interface with a larger 
number of systems and facilities again increases their internal complexity, with the 
same effect on reliability. 
A third requirement is improved security. As more information becomes available 
to more people, and as the number of interconnections grows dramatically, protection 
of that information must be considerably strengthened. 
No C 321 /14 Official Journal of the European Communities 26. 11. 83 
Each of the key factors discussed above (higher level of interfaces, more intelligent 
processing, interactivity, interconnection, reliability and security) presents major tech­
nological challenges to overcome ('). 
Taken together they represent a formidable challenge which Esprit plans to attack. 
All of the above factors require considerable progress in sophisticated software sys­
tems. This increased software complexity, coupled with the interactivity and reliability 
requirements, in turn implies considerable increase in processing power. This can only 
be achieved through major advances in components (microelectronics) and systems 
architecture (the combination of hardware and software into systems). 
This is why Esprit places particular emphasis on these areas. In addition, the two areas 
where IT will have the greatest impact on economic life — the office and the factory 
— have been selected as the two basic application areas and technology test-beds on 
which to concentrate. 
These heavily interrelated (2) areas are considered in more detail below. 
12. The three of them address the key technologies that are at the very core of IT and pro­
vide the capability to address any IT system requirements: 
— Advanced microelectronics is the technology which provides the physical struc­
ture for any information system. It implies a capability to design, manufacture 
and test VLSIC devices in silicon and other semi-conductor materials. It also 
embraces research into optoelectronics, optical digital processing systems and dis­
play systems. 
— Software technology addresses the medium that controls the behaviour of any IT 
system and aims to integrate into a consistent technology the scientific under­
standing, sound engineering practices, methods, tools and management tech­
niques that are needed for its development, production and maintenance. 
— Advanced information processing refers to the architectural combination of hard­
ware and software required to bring about the qualitative leap forward from 
today's data processing to the knowledge processing concept that is the key to the 
next computer generation. It will provide inter alia the basis for the development 
of systems for high speed real-time signal processing (e.g. for speech input), of 
expert systems (3) and of knowledge-based information systems generally. 
(') A concrete example will help to clarify the size of such challenges: let us take a high level interface capa­
ble of understanding and synthetizing human voice. 
A practical implementation of such a machine would have to rely on efforts cutting across a wide spec­
trum of scientific disciplines such as mathematics, computer science, semiconductor technology, theory of 
information and linguistics. It would require the development and verification of special algorithms for 
pattern recognition, a suitably tailored process architecture capable of high speed, high accuracy analog-
to-digital and digital-to-analog converters, and ultra high speed computing power. 
If we imagine addressing the problem of real time recognition (0,5 second maximum response time) of 
just a limited vocabulary of words through the development of a special integrated circuit, the minimum 
circuit performance requirement to achieve this would be gate delays of not more than 100 pico-second 
and a density of some 50 000 components per chip. If we address the problem of continuous speech 
recognition in terms of a typical data processing measuring unit, this would require a processing power 
equivalent to 1 000 million instructions per second (MIPS). 
To manufacture a chip with the above characteristics we would need to master 1-micron minimum feature 
bipolar process in production, as compared with 2 to 3 micron of today. This would in turn require a full 
spectrum of technological improvements (shallower emitter base structures, thin (0,5-micron) epitaxy 
techniques, purer materials, etc.). 
To obtain data processing speeds of the order required for continous speech recognition, starting from the 
30/50 MIPS that can be achieved today, not only such circuit density and speed improvements as men­
tioned above will have to be reached, but a completely new approach to computer architecture is 
required. 
(2) For the purpose of presentation and discussion it appears more practical to group the various activities 
identified into reasonably homogeneous sectors. It has to be stressed, however, that this division is inci­
dental and not intrinsic to the nature of the work. It would be wrong, if not disastrous, for the whole 
programme, to try and treat them as separate domains. 
Figure 1 at the end of this Section II graphically illustrates the interrelationship between R&D domains 
and the main application areas in IT. 
(3) These are systems containing a data base and associated software that enable a user to conduct an appar­
ently intelligent dialogue with them in a user-oriented language. 
26. 11.83 Official Journal of the European Communities No C 321/15 
This sub-programme is central to the long-term theme of machine intelligence, 
perhaps the most potent concept underlying information systems of the future. 
The mastery of these three technologies is the key to any application, and is a major 
factor in the competitiviness of the IT industry. 
The two additional areas proposed are selected because of their growth potential and 
impact on other large industry sectors and on the width of the technology spectrum 
underpinning their development. 
— Office systems are a significant and fast-growing IT application area in them­
selves, and have a major strategic importance for the efficiency of business and 
commerce throughout the Community; they require advances across the widest 
spectrum of technologies and represent, therefore, the best test-bed for the out­
come of R & D in the three key technological areas above. Furthermore, develop­
ments in office systems will have a direct read-across to the whole service sector 
and to the field of home automation. 
— Computer-integrated manufacturing (CIM) has major strategic importance for the 
whole of the hard-pressed manufacturing sector in the Community, in particular 
the small batch manufacturers of discrete parts (70 % of goods manufactured in 
the Community are small series). 
CIM involves the complete integration of the manufacturing process through 
computers, sensors and automatic control systems at all levels and at all stages. 
As such, it is an excellent test-bed for R&D into man/machine and machine/ 
machine intercommunication. 
ESPRIT SPECIFIC ACTIONS 
14. To ensure the acquisition by the European IT industry of a technological capability 
adequate for the goals pursued, a major R&D effort is needed at the same time in all 
sectors indicated; this will require a pooling of all available resources throughout the 
Community. 
15. Industry must be the main actor and driving force of this exercise but it will have to be 
capable of relying, on the one hand, on the contributions of academia and, on the 
other hand, on the active participation of future users and the support of the public 
authorities at national as well as at Community level. 
16. National programmes have played an important role in support of R & D in IT and 
related technological domains, but they also create some undesirable side-effects of 
market fragmentation and dispersion of resources. 
17. The first pole of action that Esprit proposes is to enhance their effectiveness and 
reduce these negative effects through a systematic consultation of all parties inter­
ested, during the planning and the execution of such programmes, aimed at achieving 
selectivity of attack and improved overall efficiency. 
18. Effective coordination, however, cannot take place in a vacuum without the cohesive 
action of a concrete objective of common interest which unites all participants and 
focusses their attention. 
19. Hence the second pole of action of Esprit: the pursuit through concurrent and cooper­
ative efforts of a number of very ambitious technological objectives that will be of 
benefit to the whole Community and that could not be achieved in the same time scale 
and to the same extent without a joint approach at Community level. 
20. In order to identify and select the specific R&D domains meeting these requirements, 
the services of the Commission have had resort to the contribution and advice of 
No C 321/16 Official Journal of the European Communities 26. 11. 83 
leading scientists and engineers from industry, university and research institutions 
from all over the Community. 
Some 200 such persons responded and contributed to this work over a period of 
almost one year; the outcome of this activity, contained in several reports totalling 
more than 1 000 pages, is briefly outlined in paragraphs 26 to 37 below. Part A of the 
Annex to the draft Decision spells out the main boundaries and objectives of the pro­
posed work. 
21. In analyzing and selecting concerted and cooperative R & D actions to be undertaken 
by companies that are competing with each other in the marketplace, care has been 
taken to ensure that these were sufficiently upstream of the product (i.e. of precom-
petitive nature) whilst not too far away from potential application to lose contact 
with the projected needs of industry and society (i.e. of 'enabling' character). 
22. Discussions on the content of joint cooperative research work led furthermore to the 
analysis of the conditions that would make such work possible. It would in theory 
have been conceivable to gather research teams in a few public or private laboratories 
and concentrate the bulk of the research work there. In spite of the objective difficul­
ties in moving people from one country to another, this is expected to some extent to 
take place spontaneously for smaller projects requiring little infrastructure. 
It would certainly not be possible for projects involving two or more of the larger 
Community organizations and their research infrastructures. 
23. Technology, however, offers the possibility of overcoming the effect of geographical 
separation, making it possible for research and development teams and individuals 
working in collaboration with each other on the same or in related projects, but in 
laboratories and installations in different countries, to liaise with each other and with 
those responsible for the overall coordination and management of the programme. 
24. Amongst the proposed actions has therefore been included the establishment of an 
adequate infrastructure ensuring the availability of such an information exchange sys­
tem, to be progressively set up to serve the needs of all involved in Esprit. 
PROPOSED R&D WORK 
25. The process of selection outlined in the preceeding paragraphs was applied at various 
levels down to the identification of the detailed objectives of research work within the 
key strategic areas. 
26. It is, however, worth recalling here, before presenting an outline of the proposed 
research work, that the closer we get to the details of work the shorter becomes the 
validity of the forecast. In other words, whereas there are no doubts about the strategic 
importance for the next 10 years of the five broad areas identified and of the size of 
the overall effort necessary to catch up with the competition, the detailed R&D objec­
tives have a much shorter expected validity and reliability. 
Throughout the execution of the actual Esprit R&D work programme, a continous 
monitoring and feedback of the results achieved both in the Community and else­
where in the world is necessary and this process may lead to the need for major adjust­
ments from time to time. This is foreseen by the management structure of the pro­
gramme. 
27. In the light of the above it is possible to propose the following main research work: 
26. 11.83 Official Journal of the European Communities No C 321/17 
27.1. Microelectronics 
27.1.1. The requirements for microelectronic subsystems for application in IT all demand 
advances in current performance either in speed of operation or low power consump­
tion or lower cost. An important factor to meet these requirements is to increase the 
functional density of integrated circuits in silicon, the material on which the majority 
of integrated circuits will continue to be based for the foreseeable future. 
Scaling down from present state of the art 3-micron-feature production processes to 
processes based on 1-micron dimensions, with corresponding improvements in inter­
connection technology, will give a speed increase of 10 times, a power consumption 
reduction of 10 times, and an improvement by a factor of 8 in packing density. The 
packing density improvement will result in production cost reductions of the same 
order, while the speed and power consumption will provide faster and cheaper system 
performance. 
27.1.2. To achieve the goals, R&D projects will be aimed at achieving the following techno­
logical objectives: 
— 1 micron to 0,5 micron bipolar, MOS and mixed MOS/bipolar technologies, 
— packaging and interconnection techniques for VLSIC capable of handling up to 
5 watts power, with up to 250 K gates and 400 pins outs per chip unit, and of 
transferring signals with no more than 0,1 nano-second gate delay, 
— improved material quality, 
— interface technology suitable for combining high voltage and/or high power with 
high-speed data processing capability on the same physical substrate. 
27.1.3. Progress towards the VLSIC goal depends as much on the management of design 
complexity as on the development of silicon technology. Existing design tools are far 
from adequate to exploit the full potential of VLSIC. The programme initiated by the 
Commission in Council Regulation (EEC) No 3744/81 (') has made a start which 
needs to be extended into a comprehensive computer-aided design (CAD) system 
under Esprit. 
27.1.4. Thus, included in this technology drive is a total initiative building on Regulation 
(EEC) No 3744/81 in the following areas: 
— architecture: data structure, interfaces, new methods verification, 
— testing: test data generation, testability design factors, data verification, 
— modelling: numerical, physical, analytical, table, 
— simulation: device level simulation (forward/reverse), timing, functional simula­
tion, 
— languages: high-level language development, high-level to low-level interface, 
data base communication upwards and downwards, 
— layout: includes data base standards, modular packaging, libraries, user friend­
liness, placement, routing, tracking. 
CAD for complex VLSIC will require the support of very powerful computing tools; 
the production of these tools will depend on the development of a powerful discip­
lined software technology. 
27.1.5. Under the broad heading of microelectronics are also included non-strictly silicon 
VLSIC-related technologies like optical signal processing technologies as well as 
research on new organic and inorganic materials. 
(•) OJ No L 376,30. 12. 1981, p. 38. 
No C 321 /18 Official Journal of the European Communities 26. 11. 83 
One of the major requirements for the application of IT will be an adequate telecom­
munication infrastructure of broad band communication links capable of carrying 
integrated data, text, graphics and images. Public networks are already being devel­
oped to provide the service using optical fibres as the transmission medium. Other 
areas, such as local networks, offices and process control are about to adopt this tech­
nology. Research is required to achieve integrated optoelectronic circuits for modula­
tion/demodulation and transmission/reception, together with optical couplers and 
switches as well as low loss fibers transmission media. 
27.1.7. Integrated optoelectronics will require submicron geometry structure on new materials 
such as gallium arsenide and indium phosphide and their tertiary and quaternary 
alloys. These are of interest as well for very high speed logic circuits due to the greater 
mobility of electrons in the material. 
Research on such new materials will therefore be promoted. 
Finally included in the same physical technology drive is research on integrated 'intel­
ligent' sensors for improved automation as well as on improved image presentation 
technologies, for which close interaction with the activities in the areas of computer-
integrated manufacturing and office automation is envisaged. 
27.2. Software technology 
27.2.1. In information technology systems, the importance of software has been increasing 
steadily, and its share in the overall development cost is rising continuously. Projec­
tions indicate that, in the next decade, costs for software may rise to 90% of the overall 
system development cost. 
A competitive industrial capability for software production will impinge on more than 
just the information technology industry: a wide range of industrial products will 
depend critically, for competitiveness on the world market, on information technol­
ogy, either for their development or manufacture, or because information technology 
components embedded in them provide an increased functionality. 
27.2.2. For the development of software, just as for the development of hardware, sound engi­
neering practices based on scientific knowledge are required. 
\ 
Software technology aims to provide that knowledge, the methods and tools needed in 
the software development process and the management principles for information 
technology, and aims to integrate them into a consistent technology. It is founded on 
mathematics, management science, economics and traditional engineering practices. 
27.2.3. Research on software technology in Europe lacks community of thought and unity. 
Research teams in industry, universities and research institutes communicate to a 
limited extent through conferences and technical publications but their programmes 
are not coordinated or structured towards a common approach. Technology transfer 
between research and practical applications is much slower in Europe than in Japan 
and the US. 
A persisting aversion to early standardization prevents an inter-working of products. 
The future demand for software will not be satisfied in quantity and quality unless a 
coordinated European approach is taken. 
27.2.4. Traditionally, there have been different perceptions on what the main emphasis is in 
research in software technology and they have given rise to different individual 
approaches. 
27.2.5. One approach stresses the scientific foundations and covers such areas as formal, 
mathematically based techniques, taxonomy and metrics, including empirical 
26. 11. 83 Official Journal of the European Communities No C 321 /19 
techniques, and the discipline of modelling. This view considers software develop­
ment as an intellectual activity. It aims at a better scientific understanding. 
27.2.6. A second approach focusses on the technical production process and considers soft­
ware development as an industrial activity in which large groups of (professional and 
specialized) software engineers create complex (to build, not use) software systems, 
supported in operation in many versions and variants for large markets and over a 
long time. Work in this area orientates itself by the life-cycle model of software and 
addresses activities like requirements analysis, specification, design, implementation. 
Important aspects are full integration of methods and tools and of phase-to-phase 
continuity. 
Research objects in this area are methods and tools and their integration into complete 
systems for software production. Aim is the mastery of the technical production pro-
» cess. 
27.2.7. A third view is concerned with the overall organization of the software development 
process as a commercial and entrepreneurial activity, and focusses on software as a 
product, investigating the mutual dependencies between commercial goals of an enter­
prise and the technical characteristics of the software produced. 
This view also addresses the problem of producing application-specific software, and 
the way that knowledge about the application domain influences tools and methods 
for software development. Among the aims are quantifiable criteria to make choices 
concerning organization, method and tool support for technical development, and 
computer-assisted methods and tools for managing the software development process. 
27.2.8. All these views are legitimate and important in their own right but substantial progress 
towards a mature industry of software can only be made if they are applied in combi­
nation. They have therefore all been reflected in the definition of the three main 
research themes chosen. These are: 
(1) Theories and methods for program development 
Projects related to this theme will deal with the fundamentals of the development 
of software and of systems including software. They are to yield theories and 
methods on which the industrial development process can be based. 
(2) Methods and tools in software engineering 
This theme deals with industrial applications of the above, its projects aim at 
building tools and methods for using these tools in an industrial environment. 
(3) Economics of industrial software production 
Projects related to this theme will emphasize the economic viewpoint of the prod­
uction of software systems by the industry. Software and systems will be consid­
ered as products, resulting from planning and production, and being marketed, 
supported, etc., these activities being performed according to the rules of an 
industrial process. 
27.3. Advanced information processing (AIP) 
27.3.1. Today's computers can solve instances of problems when given a solution in the form 
of a program. These traditional systems, designed to assist man in the process of col­
lecting and processing data, are about to reach their limits as valuable tools and we are 
about to experience the fundamental change from data processing to knowledge pro­
cessing that is the key to the next computer generation. 
27.3.2. The level of specialized education that is required to interact with the present genera­
tion of machines and their relatively rudimentary interface to the outside world will 
No C 321/20 Official Journal of the European Communities 26. 11. 83 
soon become intolerable bottlenecks in the development and diffusion of information 
technology. 
27.3.3. To help man to overcome the problem of managing an ever-growing volume of more 
and more interrelated information, advanced systems will be needed that will perceive 
information directly in the form in which it is being generated, relate it to knowledge 
previously acquired (stored) and create new knowledge using rules and inference. 
Advanced information processing (AIP) addresses the automation of the perception 
and processing of signals and the automation of reasoning processes with the aim of 
combining these two functions in one single system capable of a form of 'intelligent 
behaviour'. 
27.3.4.' There have so far been only few and only moderately successful attempts to exploit 
'artificial intelligence' (AI) research results for practical applications. 
However, some of the conditions for industrial exploitation of AI are now changing. Ad­
vances in microelectronics and new processor and system architectures make it feasi­
ble to employ and further improve computational techniques in artificial intelligence. 
The point has been reached where practical research and development can be taken up 
in both main areas: signal perception and processing and knowledge representation 
and inference. 
In addition, work on cognitive ergonomics will have to lead to design principles for 
man computer systems that are geared to full support of the user in the communica­
tion process and do not suffer from the artificial limitations imposed by the present 
inadequacies of the computing equipment, its architecture and software. 
27.3.5. In recent years, experimental systems and prototypes, for instance for mathematical 
problem solving and geometric reasoning, for learning and simple dialogues, have 
been developed that show a considerable potential for enhancement. Europe lags 
behind in this area. 
27.3.6. The goal of this programme is to reach a stage at which the industrial exploitation of 
the technology of advanced information processing is possible in the Community. For 
this, research and development in the following main areas is necessary. 
27.3.7. Information and knowledge engineering 
Research and development that is required to reach a stage at which industrial prod­
ucts can be based on expert system technology includes: 
— selection of forms of representations for knowledge-based systems, 
— methods of capturing data and deriving facts from data — special hardware and 
algorithmic structures will have to be developed, 
— synthesis of new and efficient hardware/software architectures to support know­
ledge-based systems, 
— design of knowledge base systems (KBS) in specific areas, and check on their 
practical behaviour and utility, 
— design and evaluation of tools for design and implementation, methods for 
design, exploitation and evaluation of expert systems. 
27.3.8. Signal processing and external interfaces 
The interface of an AIP system must provide certain functions in the signal processing 
and recognition area so that it can gather direct information. A further aim of the 
research programme is therefore signal understanding to enable computers to 
26. 11.83 Official Journal of the European Communities No C 321/21 
transform sets of observed data into knowledge to be extended to include the for­
mulation of rules for the recognition of the world environment. 
Research into architectures and interfaces with desirable characteristics will further­
more have to be based on results of studies on natural systems and applied psychol­
ogy. Models of cognitive behaviour of individuals and social behaviour of groups 
must lead to design guidelines capable of practical use. 
Research areas include: 
— studies of human behaviour to identify desired design features and undesired 
weaknesses in interface products, 
— studies of alternative formal representations of knowledge about the external 
world, 
— algorithms and architectures for signal analysis, 
— selection of 'candidates' for recognition with associated probabilities, 
— role of inference in human recognition processes, 
— extraction of the semantics of inflexion, intonation, etc. of human speech. 
27.3.9. Information/knowledge storage and usage 
In knowledge bases information is stored that embraces judgement of significance and 
value, together with rules for interpretation; meta-rules may control the application of 
rules. In pointer structured data bases or relational data bases, access methods perform 
de-referencing of access criteria; methods for automatic de-referencing in knowledge 
bases are not clear yet. 
The main work will be to establish the interfaces, languages, hardware and software 
technology which are required for the construction, distribution, functional partition­
ing and hierarchic (or other) structuring of data bases and knowledge bases, including 
formulation of inference and data query accesses, at levels ranging from human visible 
to those internal to the new generation of systems. 
27.3.10. Computer architecture 
The completely new economics of logic, storage cells and their interconnection 
brought about by VLSIC make it promising to look for new processing and data hand­
ling models with, e.g., the following properties: 
— few cell types with a high degree of replication, 
— computational locality in (groups of) cells, 
— short and regular control and data flow, 
— minimal use of high fanout/wire or routes, 
— highly contextual inter-cell/group/node communication, 
— high degrees of asynchronous concurrency among cells/groups/nodes. 
Furthermore, in order to exploit very highly parallel architectures that are made econ­
omically available by VLSIC, research is needed to develop algorithms that allow for 
parallel evaluation and languages and environments and support this. 
27.3.11. Design objectives and methods 
Rigorous approaches to specification and design that can be turned systematically into 
provably correct implementations, auditing of actual systems in use and high level 
consistency checks are areas in need of work. Technology assessment of risk rules, 
expert system validation mechanisms and methods of formal proof must also be 
studied. As continuous operation of systems must be provided, fault tolerance and 
No C 321/22 Official Journal of the European Communities 26. 11. 83 
online monitoring and repair techniques of systems at all security levels need to be 
provided: computer system security has to be improved to counter penetration 
attempts. 
In the area of VLSIC design, circuit complexity is growing to a level very hard to mas­
ter. Formal design methods and tools need to be developed to allow rapid design of 
complex chips. Only with 'silicon compilers', which incorporate substantial engineer­
ing knowledge and enable designers to specify their circuits at a high level of abstrac­
tion from the physical implementation, will it be possible to develop chips of increas­
ing complexity for information technology. 
27.4. Office automation 
27.4.1. The real long-term challenge for office technology is to support the wide range of 
non-deterministic tasks performed by 'knowledge workers' (the vast majority of the 
white-collar population), not just the mechanization of a narrow spectrum of structured 
repetitive tasks like typing. 
For the next 20 years office automation is expected to: 
— represent the largest single potential market for information technology estimated 
at 100 billion ECU per annum worldwide by 1990 compared with a projected 
29 billion ECU for the manufacturing and process industry sectors together, 
— account for most of the potential improvement to overall business efficiency 
while the productivity of production sectors will probably experience lower 
growth rates than in the past, 
— bring about fundamentally new solutions in the work breakdown between man/ 
machine and man/man. 
27.4.2. The signs are that the USA and Japan can dominate this market and increasingly 
export successfully from a homogeneous home market into Europe which is far from 
unified. 
This attack is supported by booming research into the advanced concepts on which 
future system growth will depend (natural languages, decision-making support, etc.). In 
the USA, leading companies invest individually more on this subject than European 
industry and academia combined while the Japanese fifth generation computer system 
programme is aimed at just such applications. 
27.4.3. To concede this potential business to non-European competitors means not only the 
loss of major market growth for European office automation suppliers but leaves the 
whole of European commerce and industry dependent on non-European sources in an 
area where socio-cultural considerations are high and would be best addressed 
domestically. It means the introduction of business practices and operational stan­
dards in line with foreign strategies and the loss of a major opportunity to capitalize 
on the special and diverse characteristics of European culture to provide a more effi­
cient and more attractive work environment. 
The definition of objectives for office automation and their translation into opportuni­
ties is highly dependent upon local cultural considerations and is made diffucult 
because we lack a related scientific discipline. To understand the interplay of human 
factors, technical possibilities and their educational, sociological and industrial conse­
quences requires skills seldom previously encountered in industrial organizations. 
Technology alone is not sufficient. Human beings are intimately involved with the sys­
tems to be developed and attempts to introduce them without taking account of the 
cultural background and the expectations of the users will result in failure. 
26. 11. 83 Official Journal of the European Communities No C 321/23 
27.4.4. While research on hardware technology will still be needed to provide adequate sup­
port to office system concepts, it is becoming clear that architectural and software con­
siderations will require utmost attention from the research community before informa­
tion technology can be widely accepted in the office. 
Beyond this, it is the impact of the integration of man and information technology 
which is the most critical unknown factor in determining the rate of introduction of 
new office equipment. 
Interfacing man and computer networks will change the world dramatically. There­
fore, it would not make sense to start intensive research and development on man/ 
machine interfacing without also studying its impact on the individual (e.g. education, 
self-respect of the human being), on the professional environment (e.g. number of 
jobs, quality of work), and on society (e.g. impacts on the educational system and on 
the democratic process). 
27.4.5. With this perspective, five main research areas will have to be considered: 
— office system science, as prerequisite and support to the structural and functional 
analysis and description of office procedures and the design of adapted office 
products and systems; definition of standards. 
Three main research areas which cover the three basic office activities (creation/distri­
bution, transmission, and storage/retrieval of information); 
— office work-stations; document desciption languages, document creation and dis­
tribution man/machine interfaces, 
— office communication systems, including local area networks and their inter­
connection, integrated interactive text-voice-image-video communication and 
value-added functions, 
— office filing and retrieval systems with emphasis on ease of access to and retrieval 
of 'Knowledge', content and structure addressable data bases, office document 
languages. 
And a fifth area: 
— human factors, encompassing all aspects of the interactions between man and 
information handling systems. 
27.5. Computer integrated manufacturing (CIM) 
27.5.1. One of the main reasons for selecting this particular subject area is its expected signifi­
cant market prospects ('), and its expected positive impact on manufacturing produc­
tivity. 
27.5.2. The general objective of computer-integrated manufacturing (CIM) is to establish the 
technological base for progressive introduction of computer aids in all phases of the 
industrial production of goods. Fully integrated production is the end result. Future 
manufacturing systems will integrate functions like computer-aided design (CAD), 
computer-aided manufacturing (CAM) and computer-aided testing (CAT) through the 
creation of a common data base acting as the backbone of the computer-integrated 
manufacturing (CIM) system. 
27.5.3. The generic term CIM will be used to describe this general concept of productive and 
flexible discrete parts manufacturing which is consequent on the complete integration 
of computers and/or automatic control systems at all levels of factory operation. 
The main areas of R & D activities selected are: 
(>) General Electric Corporation (USA) is reported to forecast a 29 billion ECU world market per year by 
1991, and a recent report by Creative Strategies forecast a 760 million ECU market in western Europe for 
robotics by 1986. 
No C 321/24 Official Journal of the European Communities 26. 11. 83 
27.5.4. The integrated system architecture area covering: 
— identification and development «f overall integrated system structures for data 
base systems for engineering data of total product models and manufacturing 
data of plant, machines and tool models, 
— data base management systems aiming at ensuring the required data communica­
tion between the components of the integrated manufacturing system and the 
data bases. 
27.5.5. The system and general software area covering: 
— computer-aided design/computer-aided engineering systems aiming at an 
improved design process both in respect of shorter design time and accuracy, and 
at establishing total product models for subsequent use in various stages of the 
manufacturing process, 
— computer-aided manufacturing systems aiming at formulating modular CAM sys­
tem structures allowing for all types of applications in all sectors of industry, 
— computer-aided testing/computer-aided repair, aiming at cost-effective improve­
ment of product quality, 
— command languages aiming at developing software modules capable of generat­
ing control programs from design/production/test simulation data for robot man­
ipulators, computer numerically controlled machine tools and flexible manufac­
turing systems. 
27.5.6. The machine control area covering: 
— automated assembly and assembly operating systems aiming at establishing fully 
automatic assembly systems, 
— robot operating systems where future areas for robot applications will pose differ­
ent requirements from those being met today, 
— imaging (global and control) where future systems will require the use of complex 
imaging 'sensory input' for CIM applications in such areas as assembling, 
machining, testing, etc., 
— computer numerically controlled machine tools (CNC machines) where new 
application areas within metal-forming and other mechanical engineering indus­
tries are expected to take place. 
27.5.7. The component area covering: 
— sensors, where progress is considered necessary for the future development of 
advanced automated manufacturing systems, 
— microelectronic sub-systems aiming at integrating entire control sub-systems onto 
single chips. 
27.5.8. Models of operation are furthermore proposed as a stimulus for keeping the recom­
mended R&D programme properly goal-oriented, and as consequence of the multi-
vendor nature of CIM development and manufacture. 
It is suggested that a number of pilot plants/advanced development centres be imple­
mented in order to demonstrate advanced computer-integrated manufacturing 
systems. 
The pilot plants/advanced development centres would eventually form the basis of 
more permanent research centres or centres of excellence, where further research and 
development could evolve and also offer an industry advisory service. These centres 
would also serve as test benches for experiments and evaluation of computer-inte­
grated manufacturing techniques and for training and education. Work at the centres 
should be undertaken as a collaborative effort between private companies and univ­
ersities or other public research institutions. By locating such centres in different 
Member States, long-term cooperation between researchers from within the Com­
munity and elsewhere would be facilitated and enhanced. 
26. 11.83 Official Journal of the European Communities No C 321/25 
27.5.9. Pilot plants/advanced development centres should initially be established for at least 
three important activities, such as: 
— production of heavy, precision machined parts or sub-assemblies for machine 
tools or engines, 
— batch production of electromechanical products such as household appliances 
and IT peripherals, 
— production of high precision components or subassemblies such as medical 
instruments. 
The pilot plants/advanced development centres will also provide 'on the job' training 
and education for both engineering and managerial personnel. 
INFRASTUCTURAL MEASURES : INFORMATION EXCHANGE SYSTEM (IES) 
28. As stated in paragraphs 22 to 24 above, cooperative research work on as large a scale 
as the one planned within Esprit cannot simply rely on the concentration of research 
teams and infrastructure in a few privileged centres. 
Even if theoretically conceivable, the problems that such a solution would entail 
would outweigh the benefits of collaborative effort. 
29. In order to ensure effective cooperation between different participants established in 
geographically separated locations, it is necessary to establish an infrastructure that 
will ensure information exchange capabilities meeting the needs of all involved. 
30. All participants in R & D projects, and indeed many others including 'Member States' 
administrations, will need ready access to documentary information about Esprit 
itself, about the various technical areas concerned, and about corresponding activities 
elsewhere. This leads to a requirement for easy access to regularly updated data bases. 
31. The administrators of projects will need ready access to project management informa­
tion, project management tools and software packages, and need a rapid and efficient 
message system, as well as text-preparation facilities. The initial facilities established 
for the pilot phase of Esprit will need to be progressively enhanced. 
32. Those involved with the development and use of software will need access to software 
development tools in a progressively more integrated environment, and those involved 
with computer-aided design (CAD), and with graphical information will need access 
to powerful tools for the creation, management and transmission of such information 
by means of advanced peripheral devices (digitizers, displays, plotters, etc.) 
33. Most of the research teams, whatever their field, will also need remote access to other 
computing facilities and environments, often on different models of machine. 
34. The functional requirements for an information exchange system meeting all these 
requirements were defined by a joint working group set up by the Commission and 
industry. 
35. The particular feature of IES in the context of Esprit is that it will be a working tool 
for research work, not a research topic in itself. The implementation of the IES must 
be open to quick incorporation of the latest technique resulting from R & D but must 
be based on mature and proven technologies and services. 
36. Based on an assessment of facilities already available or likely to be available in the 
short to medium term,-and on the need for the system to be capable of evolving in step 
with user requirements and to profit from technical progress, the basic requirements 
identified were: 
— computer-based message and conference services, 
No C 321/26 Official Journal of the European Communities 26. 11. 83 
— common text-preparation facilities, 
— information retrieval (documentary and other), 
— integrated software development environment, to include facilities for file transfer 
remote execution of programs, and all aspects of software life-cycle management, 
— graphics facilities, initially via facsimile, and in particular digital facsimile but not 
excluding the later transfer of graphical information directly between computer 
systems, as coding methods and transmission capabilities evolve. 
37. The multiplicity and diversity of these requirements, and the inherent lack of precise 
estimates of data volumes, numbers of users, etc. and their rate of growth over the next 
10 years, lead to the necessity for the system to be flexible, evolutive and firmly based 
on European and international standards. 
THE SIZE OF THE ESPRIT EFFORT 
38. The preceding paragraphs have indicated: 
— the technology objectives, 
— the selective criteria used in drawing up the programme, 
— the five main inter-related topics plus the proposed IES infrastructure. 
A careful analysis of the resources necessary to carry out the programme and achieve 
the objectives has been carried out. The resources required are summarized below and 
related to the wider context. 
39. The main boundary conditions taken into account are the present level of existing 
financial and human resources in industry and university, the current level of public 
expenditure in Member States and the overall level of investments in R & D work of 
our main competitors. 
Also considered essential from an industrial point of view is the breakdown between 
development, product-oriented R&D work and longer term precompetitive R&D. 
40. Community IT industry produces goods and services worth some 40 billion ECU per 
year and is estimated to spend some five billion ECU per year in R & D, which corres­
ponds to some 10 % of the overall R&D expenditure in the Community. 
If the same proportion is maintained within public expenditure, some additional 2 to 
2,5 billion ECU a year are spent on R & D in IT, bringing the total expenditure 
on IT R & D to seven to eight billion ECU per year in the Community. 
This corresponds to approximately 20 % of the world effort in this domain. 
41. If one considers that the aims of Community industry must be to attain a proportion 
of the world market equivalent to the Community's share of such a market, i.e. 30 %, 
the figures in the preceding paragraph lead to the conclusion that whereas Community 
IT industry is already making large efforts in R & D, and indeed is in some cases 
spending a greater proportion of turnover on R & D than its major competitors, this 
effort is not sufficient in relation to the volume of expenditure in R & D by its compet­
itors, nor in relation to the size of the market aimed at. 
This relative paucity in size impinges furthermore on the nature of work leading com­
panies to privilege shorter term product oriented, when not plain trouble-shooting, 
activities at the expenses of the long-term strategic R&D that will underlay the next 
generation of products. 
26. 11. 83 Official Journal of the European Communities No C 321/27 
42. A substantial increase, and a substantial rationalization, are therefore going to be 
necessary. The former will require a fairly long time to build up; the latter can be 
undertaken immediately. 
43. Although Esprit is designed to promote such rationalization, rather than to bring in a 
decisive increase in financial resources, the size of the effort it will mobilize must be 
proportionate to the impact it intends to achieve. 
Such an impact can be broadly measured in terms of market and actual current level 
of expenditure. The total amount of industrial investment in research and develop­
ment on IT in the Community can be estimated at some five billion ECU per year: of 
this a negligible fraction is spent in Europe on long-term precompetitive R&D activi­
ties as compared with the 5 to 10 % of our main competitors. 
44. To be meaningful and stimulate the new strategic thinking that must underly the defi­
nition and execution of the R & D programme, a Community intervention would have 
to stimulate a joint long-term effort in precompetitive R & D of the same order of 
magnitude (i.e. of at least 5 to 10 % of the current overall industrial effort). The conclu­
sions that were reached after consulting with industry, governments and academia, 
taking into account the physical limitation of a realistic and gradual build-up of capa­
city, indicated that an initial effort of precompetitive long-term R&D reaching some 
2 000 man-years/year from the third year onwards could confidently and effectively be 
aimed at. The following table illustrates how resources for activities, started during the 
first phase will build up during the first five years (1984 to 1988) and tail off during the 
subsequent years. When the second phase of the programme will be planned a similar 
pattern of distribution of resources is expected for the years 1989 to 1993 that will 
maintain at least for the first three to four years of the second phase (or possibly 
slightly increase in real terms) the yearly deployment of resources. 
45. The conversion of these figures into budget estimates, according to current industry 
practice, leads to an estimated overall investment for the first five-year phase of some 
1 500 million ECU. This would broadly correspond to 6 % of the total industrial 
R&D investment in IT in the Community; very much in line with that'of our main 
competitors and well within our possibilities. On the basis of an average 50 % contri­
bution, the budgetary load for the Community would be 750 million ECU, including 
the costs of the management of the programme and access to and use of Information 
Exchange System. 
ESPRIT PROGRAMME 
Resource summary (man years) 
Activities started during first phase (1984 to 1988) 
Projects starting in year: 
0 
1 
2 
3 
4 
5 
Total man years Pilot 
projects 
0 
230 
230 1984 
1 
325 
420 
745 1985 
2 
327 
551 
547 
1425 1986 
3 
192 
629 
766 
328 
1915 1987 
4 
125 
540 
670 
428 
204 
1967 1988 
5 
30 
519 
545 
450 
276 
92 
1912 1989 
6 
20 
140 
256 
180 
140 
736 1990 
7 
68 
85 
125 
278 1991 
8 
45 
105 
150 1992 
9 
80 
80 1993 
10 
60 
60 Total 
999 
2 679 
2 668 
1 530 
790 
602 
9 268 
No C 321/28 Official Journal of the European Communities 26. 11.83 
OPERATING SYSTEMS 
& APPLICATIONS PROGRAMS 
COMPUTER-AIDED DESIGN 
MEMORY AND STORAGE 
MECHANISMS 
THEORIES 
METHODS 
& TOOLS MATERIALS 
DIGITAL SWITCHING & TRANSMISSION 
OFFICE SYSTEMS 
SCIENCE 
DISPLAYS 
UJZ eg &-HUMAN-MACHINE 
INTERFACE INFORMATION 
STORAGE & RETRIEVAL 
INTELLIGENT SENSORS 
NOVEL PROCESSING ARCHITECTURES 
I I 
SILICON PROCESSING 
ALGORITHMS O O O 
UJ 
cc z cc 
1X1 
< 
Q. EXPERT 
SYSTEMS 
KNOWLEDGE REPRESENTATION 
Figure 1 UJ 
CO 
<LU 
<w 
Zz 
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uj< 
OS 
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Impression of R & D topic interdependencies 
26. 11. 83 Official Journal of the European Communities No C 321/29 
SECTION III 
PROPOSED ACTIONS 
How will Esprit be run? 
PROPOSED ACTIONS 
1. Mounting a 'technology push' across the Community capable of achieving technical par­
ity with, if not superiority over, our main competitors within the next 10 years represents 
an ambitious objective that will require a joint effort of the size mentioned in the preced­
ing section. Only a programme of sufficient scale will draw on all in the Community who 
can make an effective contribution to the R & D and to its exploitation: large and small 
industrial firms, research institutions, universities and individuals. 
In this way it will be possible to obtain a concentration of human and financial resources 
proportionate to the goals. 
2. Esprit is designed to this end to be a programme through which: 
(a) Adequate funds will be made available to launch in the Community cooperative pro­
jects of precompetitive industrial R&D falling within agreed strategic technological 
lines and having directly identifiable Community interest and character. 
(b) Systematic consultation will be promoted between Member States administrations, 
academic institutions, industry and the Community on the definition, appraisal and 
adjustment of R & D activities, either directly or indirectly related to those identified 
by the Esprit technical programme, with a view to achieving the optimum coordina­
tion of efforts and utilization of resources amongst all those involved in IT through­
out the Community. 
(c) Infrastructural and organization facilities will be set up to ensure careful selection, 
effective execution, proper monitoring and management and adequate dissemination 
of results of the actions. 
3. . The programme is primarily an industrial one, hence funds will be provided by industry 
in the first place; Community contribution will be essential to achieve the desired con­
centration in time and size. 
4. The definition of the strategic technical objectives will be based on industrial inputs tak­
ing into account wider national and Community interests and will be supported by sys­
tematic analysis of the sectors. As for the R&D projects for which financial support is to 
be provided, Esprit is designed to ensure the best coverage of the selected spectrum of 
key technologies as well as of their possible spin-offs and forerunners. 
5. In this perspective industrial R & D is acknowledged to rest essentially on two broad 
classes of projects: 
5.1. Projects that rely on large infrastructure and resources, both human and financial, and 
that presuppose the capability of substantial investments in a subsequent phase of appli­
cation oriented R&D. For such activities to be fruitfully conceived and undertaken, there 
must be a clear and constant strategic perspective to ensure continuity of actions and the 
breadth necessary to reap the long-term benefits. Such medium to long-term 'system 
driven' R&D activities, that will be referred to in this document as type A projects, will 
No C 321/30 Official Journal of the European Communities 26. 11. 83 
represent the strategic backbone of Esprit. The share of the overall effort represented by 
this type of project will reflect the contribution of the contractors involved in basic R&D 
in the information technologies in the Community. 
5.2. Besides these there is a second wide range of projects that will require relatively much 
smaller resources. Such activities, that will be referred to as type B projects, could range 
from very long term, speculative R & D to relatively shorter term very specifically 
oriented R&D. These tend generally to rely very much on flexible infrastructure and on 
individual thinking rather than on a system approach, and are expected to account for a 
significant share of the overall effort under Esprit. 
6. In order to create the conditions for the optimum development of both these types of 
activities, the Esprit programme, designed to span a period of 10 years, is now proposed 
for an initial phase of five years, with as a rule, a yearly updating of the detailed work 
programme, and an overall review milestone after 2 Vi years. This structure of programme 
will guarantee a long-term perspective to the larger projects, flexibility to the smaller, and 
the possibility whenever required of altering course in the light of results and technology 
evolution. 
7. To this end it will be necessary to establish a close consultation between the Commission 
and the Member States as well as continuous monitoring of the sector to provide timely 
identification of technology objectives and trends; the organization of the administrative 
infrastructure to ensure the updating of the work programme and its matching to real 
needs; objective and accurate appraisal of work; contract administration; coordination of 
the various projects, and the dissemination of results. 
8. These activities will be carried out by the Commission with the advice of the Manage­
ment and Consultative Committee (MCC) established by Council Decision and whose 
members will be nominated by the Commission in agreement with the Member States' 
Governments. The composition and main tasks of such Management and Consultative 
Committees are spelt out in the draft Council Decision establishing such Committees, 
that is the subject of a recent proposal of the Commission ('). 
DETAILED DEFINITION AND UPDATING OF OPERATIONAL WORK PROGRAMME 
9. The technical Annex to the draft Decision indicates, in Section A, the main outlines of 
the proposed R&D work, as well as some of the main avenues of attack and objectives 
that can already be identified. 
The indications given therein are, in the Commission's opinion, sufficiently clear and 
detailed to define the overall envelope of work, its broad size and expected impact, when 
compared with the present state of the art in Europe and in the world. This work pro­
gramme is, however, not intended to provide a definition and evaluation of concrete 
R&D projects. 
10. In such a fast-moving sector as IT where the average life of a product is three years, it 
would be illusory and misleading to try and define ab initio detailed activities and time 
schedules for the next five years to come; a meaningful operational work programme 
needs continuous monitoring and would have to be revised at least once a year. It is 
furthermore to be expected that particular events may occur that could lead to the need 
for revising some actions at short notice at any time during a year. 
To cope with this and other possible emergencies it seems necessary to have a lighter 
mechanism than a Decision by the Council. Such a mechanism should from the outset 
(') COM(83) 143 of 16 March 1983: communication from the Commission to the Council on structures and 
procedures for common policy in the field of science and technology (OJ No C 113, 27. 4. 1983, p. 4). 
26. 11. 83 Official Journal of the European Communities No C 321/31 
ensure the continuous decision-making process necessary and react quickly and effi­
ciently when an immediate decision is needed. 
11. This is why it is proposed that a more detailed programme of work necessary for the day-
to-day implementation of the programme be established, and updated as required, by the 
Commission after consulting the Management and Coordination Committee. 
As a rule such a work programme will be established every 12 months covering the 
detailed activities of the first year (') and a decreasing refinement of the activities of the 
subsequent four years. A draft will be submitted and discussed with the Management and 
Coordination Committee three months in advance of the 12-month period to which it 
refers and adopted at the latest within the first month of such a 12-month period. More 
frequent revision or partial modifications that are required would be possible at any time. 
A rolling plan could in this way be established, within the general programme, that would 
enable Esprit to be kept up-to-date and effective in the light of the experience directly 
acquired through the technical achievements of Esprit projects, through advances by 
competitors and through the practical response of the main actors in Europe and outside. 
12. A first preliminary draft of such a more detailed work programme is being prepared by 
the Commission, with appropriate consultation, that will take into account the up-to-date 
information resulting from a series of preparatory studies (launched at the end of last 
year) that will be available as from June 1983. A final draft work programme covering the 
years from 1984 to 1988 will be ready by September 1983. 
13. To prepare the ground for the formulation of the opinion of the Management and Coor­
dination Committee on this first programme as soon as Esprit is adopted, close consulta­
tions have been started with the Member States's administrations through the Senior 
Executives Committee (SEC) established for the pilot projects and are planned to con­
tinue until the formal definition of the programme. 
14. Furthermore, given the ambitious long-term objectives and the complex and evolutionary 
nature of its technical goals, a programme like Esprit is expected to need revisions and/or 
changes in its broader lines over a period of years. 
For this reason, although the programme is designed to space 10 years, it is now proposed 
for a first phase of five years. Before the end of the fourth year of execution of this first 
phase, a new proposal will be prepared concerning the second phase of the programme in 
the light of the experience and results acquired to date. 
The choice of proposing a five-year programme in a framework of a 10-year perspective 
has several reasons of which the most important are: 
— that Esprit is expected to give short-term benefits while addressing mid- to long-term 
objectives which require a continuity going beyond five years irrespective of the level 
of fundings, 
— the impact of Esprit depends as much on anticipation and learning of cooperating in 
R & D as on the excellence of the research work. This implies the need for continuity 
over a longer period. 
The option to propose immediately a decision over 10 years was not chosen in the light of 
the practical impossibility of giving even broad programme details beyond a time horizon 
of five years in this rapidly evolving domain. 
(') 'Years' are to this effect 12-month periods starting with the first month after the adoption of this pro­
gramme by the Council. 
No C 321 /32 Official Journal of the European Communities 26. 11. 83 
FINANCIAL SUPPORT 
15. Given the different size and requirements of the projects involved (A & B type projects), 
and in many cases also their different operational nature and in order to obtain the best 
from all contributors, different procedures for their inclusion in the Esprit programme 
would appear to be required particularly with respect to the percentage and nature of sup­
port and the criteria for eligibility. 
16. For projects of strategic character (type A projects) the Commission proposes that the 
degree of financial contribution by the Community shall be 50 % in the form of a subsidy. 
The remaining 50 % should as a rule be provided by the industry itself. 
i 
The degree of financial participation by industry is considered to be a test of the degree to 
which industry believes in the need for the work. Whenever, therefore, there are financial 
interventions from national authorities, given the variation from country to country in the 
ways in which governments support industry, the Commission will examine the situation 
on a case by case basis, bearing in mind the general principle. 
17. The smaller projects (type B) raise different issues. In principle, the Commission consi­
ders that for the smaller projects, the norm should also be a 50 % contribution by the 
Community. 
Possible variants are, however, envisageable along the lines of the following examples: 
(a) Where a request for industrial support comes from SMEs, or others with very limited 
finance available, Community support well beyond 50 % may exceptionally be con­
sidered. In such cases particular arrangements concerning the access to or the exploi­
tation of the results are also envisaged. 
(b) In exceptional cases, where a research proposal is submitted by academic institutions 
which fail to secure an industrial partner or sponsor because the work proposed is 
too advanced for industry to assist in its early stages, if the Commission is satisfied 
that the technical features of the work are so outstanding that it should be supported 
despite the lack of industrial support, the proposal can be initially funded up to the 
level of 100%. 
However, in this case, a phased approach would be envisaged by which the project 
could be launched with the understanding that industry would take over a reasona­
ble part of the financing after the project has achieved agreed milestones proving the 
validity of the chosen approach. 
PROJECT SELECTION 
18. In order to be eligible for aid, projects will have to be proposed by companies or organi­
zations established and, as a rule, currently carrying out R&D work in the Community 
and will have to be carried out in the Community. 
Proposals will be submitted to the Commission in reply to an open invitation published 
in the Official Journal of the European Communities. 
19. The following main criteria would as a rule be applied to the evaluation of all projects, 
other than technical soundness: 
— industrial strategy contribution in the light of Esprit objectives, 
— Community dimension, 
— technical and scientific, as well as managerial capability to carry out the proposed 
programme of work, 
— measures envisaged and approach to accessibility and exploitation of results. 
26. 11. 83 Official Journal of the European Communities No C 321 /33 
20. Within the general principles above, the following specific orientations are envisaged 
(concerning the various elements of the process of project selection). 
20.1. For larger projects (type A) the participation of at least two companies not effective subsi­
diaries of each other and not established in the same Member State will be a mandatory 
requisite of eligibility. 
There are no specific restrictions to the form of such co-participation which can range 
from prime contractor/subcontractor relationship to a joint venture set-up for the dura­
tion of a specific project. 
20.2. For the smaller projects (type B) such multinational participation, although not manda­
tory, shall be considered a major factor of preference all other things being equal. 
In order to maintain the Community dimension in cases in which proposals from one 
single Member State are to be considered, suitable arrangements to ensure adequate dif­
fusion of, and access to, the results of the research work would have to be negotiated. 
21. There will be a periodical open call for proposals for all projects. All projects submitted 
within the deadlines will be examined on their own merit and a selection made within the 
limits of the budget allocated. 
22. All other things being equal, the main factors determining the allocation of funds and, the 
choice of projects will be the overall technical quality of the proposal and the capability 
of the proposer to deliver the results: where many good competing projects are available 
the principle will be to grant adequate support to the very best rather than dilute the sup­
port amongst all the good ones. 
PROGRAMME MANAGEMENT 
23. The overall responsibility for the management of the programme will rest with the Com­
mission. At the same time, the advice and consultation of the Member States, of industry 
and the academic world will be indispensable if coordinated effective actions have to 
take place. Advice and consultation of the Member States will be provided by a Manage­
ment and Consultative Committee (MCC) nominated by the Commission in agreement 
with the Member States' Governments. 
24. In parallel with this formal advisory structure, the Commission will establish consulta­
tions with industry and whenever appropriate with academic and research institutions. It 
will organize them in such a way that large and small IT firms as well as users and aca­
demic and research institutions will have the opportunity of expressing their views and 
suggestions to the Commission on all major matters related to the content, structure and 
execution of the programme. 
To this end, the Commission has the intention of setting up Industrial as well as Scien­
tific Advisory Boards. 
25. Apart from the more traditional financial and technical monitoring of contracts, the pro­
gramme management will ensure; 
— that projects are invited and selected in conformity with the agreed strategic objec­
tives, 
— that the objectives and the programme of work are monitored and updated in order 
to maintain their strategic validity, 
— that all qualifying companies, research institutes and universities are given the 
opportunity to make a contribution and that optimum use is made of available scien­
tific resources, 
— that coordination is established and maintained between the various actions and 
research projects, 
No C 321/34 Official Journal of the European Communities 26. 11. 83 
— that information concerning ongoing and planned activities and their results are 
brought to the attention of all potential beneficiaries, 
— that information concerning or affecting standardization issues are given adequate 
diffusion and consideration. 
An organization with advanced data processing and communications facilities will be set 
up requiring a kernel of administrative staff to ensure continuity of action and basic 
infrastructure, plus a number of scientific staff. 
Through this infrastructure it will be possible at any point in time to have management 
information on all activities under way, completed or planned, to appraise the effective­
ness of particular measures taken, and to define early corrective actions whenever this 
appears necessary. 
The timely updating of files and access to data will be possible through a connection to 
the Information Exchange System that is going to be set up to serve the communication 
need of all participants in Esprit as briefly described in Section II, paragraphs 28 to 37. 
DISSEMINATION OF INFORMATION, ACCESS TO, AND EXPLOITATION OF, 
RESULTS 
27. Esprit is a programme of precompetitive research. That means that as a rule the results 
cannot be immediately applied in the market place and will normally require a further 
phase of R & D beyond that covered under the programme, before marketable products 
or processes result. 
28. On the other hand a primary justification for Esprit is in the synergetic effect that it will 
have through focussing a 'critical mass' of research efforts on selected key strategic tech­
nological objectives. It is designed to provide Community industry with the technological 
tools that will enable it to improve its competitiveness on the world market. 
To meet these requirements, adequate dissemination of information on work that is being 
planned or under way as well as on its possible results and their exploitation is going to 
be of fundamental importance. This will take into account the different kinds of informa­
tion, the various groups to be served and their vested interests. At the level of the scien­
tists directly involved in research, the Commission intends to organize or promote a series 
of workshops per research topic, during which information concerning research work 
could be exchanged on a fairly informal basis. Participants would have to be invited and 
would have to undertake to contribute actively by presenting their activities and their pro­
gress. Qualified observers from establishments not directly involved in Esprit work, but 
having a legitimate interest in participating, could be invited. This would represent a con­
crete infrastructure to ensure that those who are involved in a particular kind of research 
work in Europe keep in contact with each other and are informed of each others' results. 
In this way future cooperation and a de facto coordination of efforts would be effectively 
promoted. 
29. Apart from this more specifically technical solution addressed to the main actors of 
research temselves, a wider clearing house infrastructure is going to be established by 
which systematic information on work in progress and intellectual property rights that 
will have to be notified by the contractors would be collected and made available, e.g. 
through special conferences or over the Information Exchange System that will be set up 
to serve the needs of all participants in Esprit. 
To this end the Commission will retain as a rule the right to publish or make known free 
of charge appropriate reports on the results of work carried out within Esprit. 
30. Access to, and exploitation of, results raise other issues. Esprit is characterized by the fact 
that: 
26. 11. 83 Official Journal of the European Communities No C 321/35 
— industry itself pays a significant and substantial share of the cost of the work, 
— the major objectives of the work will only be achieved when and if industry itself 
exploits commercially and profitably the results. 
These conditions existed when the Esprit pilot projects were under consideration and 
they are, in principle, the same that apply to other projects financed by the Community. 
31. The guidelines for these projects are that ownership and the right to exploit any informa­
tion and industrial property rights resulting from the work under any contract (foreground 
information) will normally reside with the contractors. 
32. The detailed arrangements between the contractors participating in the same projects will 
be left to the interested parties to agree, the Commission only ensuring that competition 
rules are not infringed. Whatever the arrangements between these contractors, they must 
ensure that each participant in the same project, for the whole duration of the project and 
for the purpose of fulfilling its share of the work, has guaranteed and privileged access to 
the results of the work done by the others. 
33. In order to benefit from the overall synergetic effect that a Community action is designed 
to favour, access for a project team to foreground knowledge generated by another team 
working on a different project within the Esprit framework shall also be arranged under 
privileged conditions in as far as such information enables better or quicker results to be 
obtained from the project which needs it. 
34. Furthermore, to promote improved competitiveness in Community industry as a whole, it 
is necessary that other industrial companies in the Community which did not participate 
in a specific project, but which have the ability to use its results and wish to do so, should 
have the opportunity to acquire the rights. The terms should be negotiated on a commercial 
basis taking into account the contributions of the originating parties as well as those of 
the Community. 
35. To this end, if the originating party does not wish to exploit part or all of the results of the 
research, without a legitimate reason, there will be adequate provisions to ensure that the 
Community can require him to grant licence either to exploit the results of his work or to 
carry the research work further. 
PERSONNEL AND INFRASTRUCTURE 
36. Esprit is a carefully and selectively targeted programme with specific objectives, not an 
'aid programme'. As a consequence, the Commission will require sufficient qualified staff 
resources to assure an effective, responsible and transparent management. 
37. The overall programme is designed to extend over 10 years based on a five-year initial 
decision. After a three-year build-up (including the pilot phase) the number of persons 
working in Member States within the framework of Esprit will reach almost two thou­
sand. 
38. As anticipated already in Section II, for organizational purposes we will distinguish here 
five R&D areas plus one infrastructure activity. R&D activities cutting across one or 
, more of the areas will include: 
— a comparatively small number of major strategically oriented projects which will 
require complex planning and coordination, and 
— a much larger number of relatively small projects, which in spite of their larger num­
ber will not require a proportionately larger staff as they will require simpler monitor­
ing and coordination procedures. 
No C 321/36 Official Journal of the European Communities 26. 11.83 
39. As a consequence, the project-related staff requirement can be broken down as follows: 
(a) head coordinator: \ \-
(b) staff unit (budget planning personnel): 3 A; 
(c) sub-programme coordinators: 6 A; 
(d) project and contract managers (!) for large projects: 30 A; 
(e) project and contract managers (') for small projects: 24 A. 
40. The success of Esprit will rely also on the effectiveness of adequate infrastructural activ­
ity that will require additonal specialized personnel. 
The envisaged break-down of such personnel is as follows: 
— continuous monitoring of the IT sector and adjustment of Esprit objectives: 6 A, 
— assuring dissemination of the results within the agreed conditions: 6 A, 
— providing reports to Parliament, Council and the Member States on work 
progress and adjustments of the programme: 2 A, 
— informing and consulting industry, SMEs, user groups, trade-unions and the 
general public: 5 A. 
41. The overall Esprit team, according to this estimate, will need 83 A. 
The nature of the programme is such that all or most posts can be temporary posts. 
42. The organization and management of Esprit with this comparatively small number of 
staff represents a challenge in itself because: 
— Community R&D needs to be transparently managed and accounted for, 
— industrial strategic orientation demands high flexibility, rapid response and strong 
focus on critical enabling technologies, 
— IT is a fast moving and rapidly changing sector, 
— Esprit features horizontal and vertical integration of R & D between companies, 
research centres and industrial users for the execution of the R&D, 
— Esprit includes closely linked, but rather diversified, subjects requiring an inter­
disciplinary approach, 
— access and dissemination of results needs to be rapid but carefully managed. 
43. This is brought home, e.g. by the following: 
(a) Comparable Commission programmes which are comparable in size, although not in 
complexity and are not as interdisciplinary, have 1 A per 0,5 to five million ECU a 
year. In the Esprit estimate, each A has, on average, responsibility for some 20 mil­
lion ECU over the 10-year framework, i.e. about two million ECU per annum. 
(b) In project management of this character, an allocation of 10 % of the total research 
workforce to R& D management and administration is considered to be a reason­
able figure. The above estimate represents less than 5 % of the number of researchers 
active after completion of the build-up. 
44. The above figures represent the minimum required to fulfill all essential central manage­
ment tasks in a way that is compatible with the institutional duties associated with the 
execution of Esprit and that is best suited to contribute to its technical success. 
(') The tasks of project and contract manager include technical monitoring of the projects, assessment of 
results as well as all questions related to the administration of contracts.