COMMISSION OFTHE EUROPEAN COMMUNITIES
COM(88 )647 final
Brussels ,29November 1988
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5e*1iéaSMSUI-IAI I\\ 6MMI13
FIRST REPORT ON THE STATE OF SCIENCE
AND TECHNOLOGY IN EUROPE
(presented bythe Commission )

1
FIRST REPORT ONTHE STATE OFSCIENCE AND TECHNOLOGY
INEUROPE
HIGHLIGHTS
1. This report isafirst response tothe request ofthe
European Parliament for regular reviews bythe Commission ofthe
state ofscience and technology inEurope .
Itdraws onwide-ranging sources ofinformation and assessment ,
notably :the Parliament itself ,the science and technology
administrations inthemember states ,thecommittees specifically
established toadvise the Commission onresearch requirements ,
the views ofthe independent evaluation panels onCommunity
programmes ,systematic monitoring ofthescientific and technical
press and scientific meetings ,aswell asongoing work inother
international organisations .
The Commission intends to update the report during 1989 .
Thereafter itshould bepublished attwo-yearly intervals .
2. The main aim ofthe report istoprovide afactual
basis for further reflection ,both inside and outside the
Community institutions ,on Europe 's needs in science and
technology and how best they can besatisfied .Itdoes not ;
however ,attempt toidentify atwhat level orinwhich framework
atnational orattransnational level action inspecific fields
could most beneficially betaken .
3. The tentative picture emerging from this first report
can besummarised asfollows :
(i)Agood deal hasalready been done toimprove
the European situation byincreased efforts inspending on
research anddevelopment and inimproving industrial performance
through innovation .But the efforts are still unbalanced and
fragmented .Three Member States (Germany ,France and the United
Kingdom )account forthree-quarters oftotal spending onRand D
intheCommunity ;andregional variations areacute .Cooperative
transnational actions (Community programmes ,EUREKA ,COST ,ESA ,
CERN etc )account for only asmall percentage ofthe total
research effort ;
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(ii ) European efforts are incase well below
those ofour major competitors (the USA and Japan )who are both
spending more and also taking action to remedy their own
weaknesses .Europe 'sposition isalso threatened bythe new
efforts ofemerging science and technology powers (the NICs in
particular );
(iii )Europe faces three main challenges :
° to increase its capacity to develop and
pursue , where necessary , its own
technological and economic options ;
° to strengthen its international
competitiveness ,especially inthose fields
which will take onincreasing importance in
the future ;
tomeet the social need for improved quality
oflife .
(iv) Europe has the resources tomeet these
challenges .Itisrich inscientific talent and organisational
•ability .And inits present economic situation itcan afford to
invest more inR&D .The question ishow toget the best out of
these resources and inwhich areas tofocus the effort .
(v) Getting the best out ofEuropean efforts
entails addressing aseries ofissues :ensuring that science and
technology are understood and accepted atall levels ofEuropean
society ;overcoming imbalance and fragmentation by better
coordination and byensuring anadequate basis for technological
progress inthe less-favoured countries and regions ;encouraging
the spread oftechnology skills throughout society ;attracting
more private sector finance and facilitating the diffusion of
technology throughout industry ;encouraging the links between
industry and universities faswell asexploiting the scope for
international collaboration in those areas where there are
evident mutual benefits .
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<vi)Asfarasresearch areas areconcerned ,the
report highlights five areas ofmajor relevance totheEuropean
economy :
-information technology and telecommunications -a
particular research effort isneeded toimprove the
situation oftheEuropean semiconductor industry .
-newmaterials andtechnologies foruseinmanufacturing
industry -superconducting materials areparticularly
promising .
-aeronautics ,where Europe faces a particular
compétitive challenge .
-biology and biotechnology which offer the prospect of
major transformations inindustry and agriculture as
well as in the medical field .Specific efforts ,
however ,are needed onbasic plant biology ,gene ¬
mapping ,neurobiology and biotechnology applications .
energy ,where Europe remains highly dependent on
outside sources ofsupply -fusion isimportant for the
longer-term and carefully targetted research onnew and
renewables and energy saving technologies in the
shorter-term .
Interms ofthequality oflife there are major research needs in
the fields ofenvironment ,health research and industrial ,road
and nuclear safety .In environment some of the research
requirements have aglobal dimension .Europe has the capacity as
well asthe need tomake amajor contribution tothe study of
Global Climate change .
Underpinning these efforts inspecific fields Europe must sustain
and develop its capacity inbasic research toprovide the
seedcorn fornew technological openings .
There follow summaries ofeach chapter ofthe report .
44.

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I:SCIENCE AND TECHNOLOGY AND EUROPE 'SECONOMIC AND SOCIAL NEEDS
5. Despite substantial progress inrecent years ,Europe
remains weak inanumber ofthe science-based sectors which are
growing rapidly world-wide .This specific weakness reflects a
technological dependence inkey areas .Electronic components is
aparticularly important case .
The more traditional sectors ofmanufacturing industry continue
toaccount for higher shares ofGDP than inthe USA and Japan .
Some ofthem have made real progress inmodernising through the
application of new technologies . Textiles isone example .
Others ,such asthe paper and board processing industry ,orparts
ofthe machine-tool industry have been less successful .Even
those that have radically improved their position through
automation and innovation (eg .automobiles )face increasing
competition . One successful company strategy inanumber of
industries has been toseek the capture ofthe top-end ofthe
market through technology .
Major efforts continue tobeneeded toimprove the technological
position ofEuropean industry and toseize the opportunities
offered by scientific and technological advance . Progress
towards completion ofthe Internal Market will help tocreate the
right framework conditions .But itneeds tobeaccompanied by
specific efforts inthe RTD field .
6. Improvement inthe quality oflife -the environment ,
health ,safety -are also increasingly important concerns
throughout Europe .Developments inscience and technology are
opening upnew opportunities for tackling these problems inan
effective and economic manner .
7. Europe needs a broadly-based scientific and
technological capability to respond to the twin needs of
increased competitiveness and abetter quality oflife .This
means being able tochoose and todevelop its own technological
options where this seems appropriate .Afundamental research
capability isparticularly important . Fundamental research is
increasingly recognised internationally asthe provider ofnew
openings and ideas and akey factor inconditioning the pattern
ofeconomic and social development longer-term .
8. The acquisition and maintenance ofsuch abroadly-based
scientific and technological capacity is,however ,increasingly
expensive :science isdeveloping atanaccelerating pace with
ever shorter periods oftime over which todepreciate investment
inR&D . This underlines the importance of the most cost -
effective solutions to the organisation of R&D ,avoiding
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fragmented efforts .Italso means that thebroadest possible
market isneeded for the commercialisation oftheproducts ofresearch and development .
II:EUROPEAN SCIENCE AND TECHNOLOGY INACOMPARATIVE PERSPECTIVE
9. European efforts have tobesetagainst thechanginginternational environment .Our main competitors (the USA and
Japan )have been making their ownadjustments tochanging needs
while newplayers arebecoming increasingly important orcould be
soover thecoming years (theNICs ,theSoviet Union ,China ).
10. European spending onR&D isstill well below that of
theUSA inabsolute terms andbelow theUSAandJapan asashare
ofGDP .USspending involume is1.75 times that ofthe Member
States oftheEuropean Community combined ,andresearch intensity
(R&D spending asaproportion ofGDP )isonly 1.9% inthe
Community compared with 2.8% inthe USA and 2.6% inJapan .
Germany alone has aresearch intensity (2.8% )comparable to
Europe 'scompetitors .Even when defence spending isexcluded US
expenditure remains significantly higher than the European
average .
Inboth the USA and Japan business also invests and carries out
more ofthe R&D than inEurope .
Both theUSA and Japan have larger numbers ofresearch scientists
and engineers intheir labour forces ;the growth inJapan has
been striking .
The United States
11. The high level ofdefence R&D intheUSA ,half ofwhich
iscontracted out toindustry ,isapotent factor inmobilising
resources .The precise level ofspin-off tothe civil sector
from military R&D ingeneral and from SDI inparticular ,ishard
toassess .But there have been undoubted major benefits inthe
fields ofmaterials ,aircraft engineering ,vehicle technology ,
computer technology and systems engineering .The shift during
the 1980s ofmuch military R&D towards development work tailored
tothe needs ofmore fundamental and applied research has ,
however ,raised some concern inthe USA about reduced industrial
impact .

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12 . This has coincided with worries about the
competitiveness ofUSindustry and UStechnological dependence ,
notably vis-ci-vis Japan .The Reagan Administration has taken
initiatives toencourage American industry tocooperate inthe
face ofthis challenge and toincrease the transfer ofknowledge
from Federal programmes toindustry .These have been combined
with amore restrictive approach tothe wider availability ofthe
results ofresearch .
13 . Athird concern in the USA isthe prospect of a
shortfall ofperhaps 500,000 scientists and engineers by2010
because ofdemographic trends and the pattern ofuniversity
enrolment .One issue isthe encouragement offoreign students
(especially those from the Pacific Basin )tostay oninthe USA
after graduation .Atthe post-doctoral level there are likely to
beincreased pressures to "poach "skilled R&D personnel from
abroad ,especially from Europe .
Japan
14. The importance of basic research continues to be
recognised inthe USA :itisthe only sector ofFederally-funded
civil R&D tohave increased inrecent years .InJapan ,where
economic success has been founded essentially onthe absorption
and transformation offoreign technology ,efforts are now under
way tobuild up acapacity inbasic research ,reflecting a
perception that this will be essential in opening up new
technological options for Japan inthe longer-term and enabling
ittostay one step ahead .Already Japan has strengths in,for
example biotechnology ,new materials and neuro-computing .
This interest inbasic research ,and the need torespond to
concern about the closed nature of the Japanese science and
technology system ,has led tonew openings ininternational
collaboration ,including the Human Frontier Science Programme .
Emerging Science and Technology Powers
15 . The most dynamic NICs are planning asubstantial growth
inR&D spending and strategies for the development oflarge cadre
ofhighly qualified personnel ,asthey themselves face challenges
from other industrialising countries .Korea inparticular is
making efforts inthis direction .Other emerging science and
technology powers include Taiwan ,India ,Brazil and Israel .
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China ismaking particular efforts toimprove its science and
technology capability and major research programmes have been
launched ." ~ ~ ■–- -- –. -.
Developments inthe Soviet Union ,which has the largest
scientific establishment in the world and significant
achievements in,for example ,aspects ofspace technology ,
mathematics and theoretical physics ,will depend heavily onthe
success ofthe policy ofrestructuring (perestroika )and its
impact onthe deployment ofscientific resources tothe civil
economy .
Ill :MOBILISING EUROPE 'SRESOURCES
R&D spending (public and private )
16. Within Europe there are major national differences in
levels ofinvestment inR&D ;inthe relative importance ofthe
public and private sectors ;and inthe distribution ofresources
among research sectors .
Three countries (Germany ,UKand France )account together for
over three-quarters oftotal public and private spending onR&D
inthe European Community . Germany has byfar the highest
research intensity and the highest number ofresearchers inits
labour force .Industry also plays abigger role inboth the
financing and execution ofR&D inGermany than elsewhere .Inthe
less favoured Member States the public sector isbyfar the
predominant source ofR&D finance .
17. Regional disparities are larger still .The gap inR&D
intensity isofthe order of12:1 between the Member States
themselves and much greater atasub-national level . This
technology gap between the developed and the less-favoured
regions ismuch wider than the economic gap .
Government policies and public funding
18. Inthemajority ofMember Sates public R&Dbudgets have
grown during the 1980s ,although there has been some recent
tailing off .
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19. Defence R&D isparticularly important inthe United
Kingdom (around 50% ofthe total public finance ) .and France
(34%),and toalesser extent Germany (12.5% ). Elsewhere the
shares are much smaller and insome cases negligible .The wide
differences indefence R&D make coordination ofnational policies
ondual-use technologies particularly difficult .
20 . Some countries give particular emphasis tothe public
funding ofbasic research (Germany ,France and the Netherlands in
particular ). Inothers ,public expenditure constraints ,the
rising cost ofbasic research ,increased emphasis onmeasurable
cost-effectiveness and urgent need toimprove competitiveness
have led toanew emphasis onindustrially-oriented research .
European Coopération and Coordination
21. Transfrontier cooperation inEurope ,involving industry
aswell asuniversities ,has increased significantly inthe past
few years .The experience has been overwhelmingly positive .The
Community 'sown cost-sharing programmes have been overscribed ,
reflecting awidely felt need for collaboration ,especially ata
time when pressures onnational budgets have been growing .The
experience ofEUREKA -213 announced projects involving 800
organisations ,two-thirds of them industrial -is further
evidence ofthis thirst for atransnational approach .
22. The share ofthe total European research effort that is
handled through these cooperative ventures remains ,however ,
small . The total cost of projects supported through the
Community 'sprogrammes is equivalent to about 4% of total
estimated ECpublic and private spending oncivil research .Even
taking into account the other major European ventures -EUREKA ,
ESA ,CERN ,EMBL etc .-the vast bulk ofresearch continues tobe
financed and carried out atnational level ,alarge share ofit
through national budgets .
23. The need to identify precisely where excessive
duplication and overlap occur among these national efforts is
pressing .Efforts are being made within CREST toimprove the
information base and to "confront "national policies . Inthe
light offurther progress inthis forum ,the Commission intends
tofocus particular attention onduplication and overlap inits
forthcoming reports onthe state ofscience and technology .

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IV:RESEARCH ISSUES FOR THE FUTURE
24. The research needs of Europe reflect the three
challenges described inChapter I:
toimprove international competitiveness ,notably in
thecontext ofthecompletion oftheInternal Market ;
torespond tothe needs ofsociety byimproving thequality oflife ;
toincrease the Community 'scapacity todevelop and
pursue ,where appropriate ,its own technological options ,
drawing ontheopportunities offered byasolid fundamental
research capability .
The following isnot anexhaustive list . Itconcentrates on
areas where particular efforts are needed tocomplement orto
supplement ongoing orplanned activities byindustry and by
public bodies (national and transnational ).
Improving Competitiveness
25. There are significant research needs infive ares :
information technology and telecommunications ,industrial
materials and technologies ,aerospace ,biological sciences and
energy .
26. The European information technology industries are in
better shape than atthe beginning ofthe 1980s . But the
negative balance oftrade inITproducts islarge (13.4 milliard
US$ in1986 ),reflecting dependence inthe fields ofelectronic
components inparticular .
Research isneeded togive Europe the capacity tomaster and
develop the next generation ofmemory chips based oncircuity for
feature series below 0.5 micron .Asignificant cross-border
collaborative project (JESSI )iscurrently under discussion among
European manufacturers .
Progress isalso needed insoftware and advanced information
processing and inperipherals (flat panel displays and optical
storage technologies )where Europe 'sposition isweak .
More basic research isrequired onquestions such asthe security
and reliability ofcomputers ,computer languages and machine ¬
learning ;aswell asprenormative work toprepare theintegration
ofITsystems designed for awide range ofservices (intelligent
banking and financial services etc.).
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27 . Intelecommunications Europe 'srelatively favourable
position could -bethreatened by -continuing weakness inthe
electronic components sector ,the spiralling costs ofR&D and new
technological and market challenges (such asthe digitalisation
ofnetworks ,developments inbroadband networks ).
Research •isneeded onawide front ,including better network
management systems ;specific electronic and opto-eletronic
components ;new materials and software tools .
28. Asignificant research effort will also berequired in
the development ,coordination and integration oftechnologies for
the application ofITand telecommunications ,including language
technologies .
29 . Manufacturing industry currently provides 30% of
Community GNP and employs 75% ofthe industrial work force of
some 41million .Ageneral need istoensure the diffusion and
application ofavailable new technologies bythis sector .In
parallel amajor research effort continues tobenecessary to
open upnew technological possibilities for European industry and
tosolve particularly pressing problems .Areas ofparticular
interest include :
* techniques for quality control (which can cost upto
25% ofcompany turnover )
* techniques for shapinq ,joininq and assembly
* surface treatment toprevent corrosion (which can cost
upto4%ofGNP )
* powder technology ,which isaparticularly large and
high-value market
* other high-value materials ,such asmetal composites
(already being developed for ceramic-reinforced light
alloy pistons )
Aconcerted research effort on superconducting materials is
particularly necessary . Large financial resources are being
mobilised inthe USA and Japan .
° norms and standards .Prenormative work isneeded ina
number ofareas ,including lasers .
30. Inaeronautics the European industry has had major
successes ,capturing (1980-1986 )23% ofthe civil and 27% ofthe
military world market .But sharply increasing competition can be
expected over the next 10-15 years ,not only from the USA but
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also from Japan and industrialising countries such asKorea and
Brazil .The -USremains in-a-particularly favourable position
because ofthelarge home market andthespin-off from military
programmes .
The future commercial success ofthe European aeronautical
industry will depend heavily onadvanced technology .Inorder to
prepare forthe1990s andbeyond Europe theneed isforbroadly -
based collaborative efforts focussed onaerodynamics and flight
mechanisms ,materials ,acoustics ,computation ,airborne systems
and equipment ,propulsion integration and design and
manufacturing technologies .
31. The future market for biotechnology products is
difficult toquantify precisely ;but worldwide the biological
sciences are recognised tooffer the prospect ofmajor economic
and social impacts (through environmentally "clean "
transformations ofagricultural and industrial productivity ;
progress inpharmaceuticals ,chemistry and medical science ;
improved understanding ofthe brain ,with its implications for
computer design as well as its impact onpsychology and
psychiatry ).
Four areas ofresearch merit particular attention :
* basic plant biology .Without abetter understanding of
key structures and functions within plants itwill not be
possible to make significant advances in application
technology ;
° gene-mapping ofcomplex organisms .For agriculture and
industry the detailed mapping ofthe genes ofimportant
microbial plant and animal species is an essential
complement to the work on basic plant biology . For
medicine ,abetter understanding ofthe human genome isas
necessary tothecontinuing process ofmedicine asknowledge
ofhuman anatomy istoitspresent state .This islaborious
and expensive work . Major international efforts are
underway .Europe hasexperience onwhich tobuild ;
* neurosciences ,where efforts are already under way to
coordinate some national actions ;
° industrial and agro-industrial applications .
Particular research efforts will be needed by the
pharmaceuticals industry tomaintain its good competitive
position ,inthe face ofgrowing competition and the cost
and time-scale needed for the development ofnew products .
Research isalso needed onimproved food technologies and on
nutrition itself .
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32. The energy markets are currently slack ,with plentiful
supplies onworld markets .But Europe remains .heavily dependent -,
onthird countries for supplies ,particularly ofoil ,which is
still the largest single element inthe Community energy balance .
There is acontinuing need toensure adequately diversified
energy supply and efficient energy use and toreduce asfar as
possible the impact ofenergy supply and use onthe environment .
Two lines ofresearch remain ofparticular importance :
* controlled nuclear fusion ,which offers the prospect in
the next century of an environmentally acceptable ,
practically inexhaustible ,geographically independent source
ofsupply .Europe isalready playing aleading role ;
* research onselective non-nuclear energy technologies
and technologies for improving energy use which offer the
best prospect ofexploitation onawide scale .
Improvincr the Quality ofLife
33. Science and technology have fundamental roles toplay
in devising rational and effective environmental policies .
Continuing research efforts inEurope are needed under three
interdependent headings :
-understanding the basic phenomena
-detection and interpretation ofenvironmental changes
-prevention .
Ascientific approach tounderstanding the complex interactions
of the many complex sub-systems (the stratosphere ,the
atmosphere ,soil ,inland water ,the sea )would have been
unthinkable afew decades ago . But progress in basic
mathematics ,inanalytical techniques and technologies (including
remote sensing from space ),together with the huge capacity to
handle information through advanced computing ,now makes this
possible .
Some ofthe problems are particular toEurope inaregional sense
and require European level efforts .Action isunder way both
through the Community programmes ,COST as well as EUREKA
projects .Good coordination among these projects isessential .
The most complex issue of global climate change and the
"greenhouse effect ",however ,isanissue with truly global
dimensions . Europe has the capacity tomake animportant
contribution tothe International Geosphere-Biosphere Programme
(Global Change ).
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34. Inthe field ofhealth ,Europe isfaced with sharply
rising health care costs (aworld-wide phenomenon );a"greying "
ofits population ,with the consequent increase inage-related
diseases ;and growing problems posed ,inparticular ,byAIDS and
cancer .
European research inthe medical field suffers from particular
fragmentation .This isanarea where the value ofconcerted
action across national frontiers has already been clearly
demonstrated .The essential need isfor more ofthe same in
tackling the problems described above ,aswell ascontinuing
research onmedical technology .
35. Inthe field ofindustrial technologies and materials
increasing attention will have tobegiven tosafety issues .R&D
hasanimportant role toplay inthedevelopment ofcommon safety
standards inparticular fornew technologies such aslasers .
The potential contribution ofR&D tolong-term road-safety
through the development of the "intelligent "car and the
infrastructure tosupport it,isalso considerable .Cooperative
efforts are already under way inEurope toaddress these issues
(the DRIVE programme inthe Community ,and PROMETHEUS and other
projects inside EUREKA ). There isanobvious need for good
coordination among .All these projects toensure optimal resource
allocation .
36. Continuing attention will need tobepaid also towork
onthe safety ofnuclear fission .Inaddition toresearch on
reactor safety ,the safety ofthe fuel cycle ,radioactive waste
management and storage ,the safety ofdismantling nuclear plants
atthe end oftheir lives ,aparticular effort will berequired
toincrease public confidence about radiation protection .,This
requires both research work itself and efforts bythe scientific
community topresent the issues inawav which isaccessible by
the general public .
37. Bioethics are attracting growing attention world-wide .
Aparticular effort isneeded atCommunity level inparticular
because oftheimportance forthe Internal Market ofaharmonised
regulatory environment . Ethical ,societal and juridical
considerations must accompany science and precede technological
development .

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Fundamental Research -the Essential Underpinning
38. Fundamental research is continuing to open up
significant new opportunities through progress inmathematics ,
physics ,chemistry and the earth sciences .
The theory ofnon-linear mathematics -pioneered inEurope -has
pervasive applications ,opening upprospects such asthe all-
optical computer ,advanced modelling of climatic change or
significant improvements inthe functioning of the internal
combustion engine .
Inphysics there are strong points inthe European situation ,but
also some weaknesses :the efforts on laser science and
technology ,for example ,are not onapar with those inthe USA ,
despite some significant multinational efforts .
Europe occupies agood position both inbasic chemistry and on
the market for chemistry-based products .But there isaproblem
inrecruiting asufficient number ofhigh quality students .
Inearth sciences good European coordination isbeing assured by
the European Science Foundation . Inoceanography the USA is
leading the field . Some aspects ,such asthe study ofthe
coastal zone ,the interface between the ocean and the atmosphere
will bepursued through the Community 'sMAST programme and the
EUREKA project EUROMAR .
Earth observation from space isofmajor potential significance
for the earth sciences .
39. Within Europe there are already several multinational
ventures for the common pursuit ofBig Sciences (CERN ,ESO ,ESA ,
EMBL ,ESF ,etc.)*. There isgrowing collaboration amongst
them ,which must develop further .Increased collaboration with
Community programmes isalso desirable soastomaximise the
industrial and commercial spin-offs .Space research isone area
ofparticular importance .
40. There are also outstanding questions related toaccess
to advanced middle-size research devices in Europe and the
development ofexpensive scientific instrumentation .Given the
cost ofsophisticated facilities itisnot feasible toimagine
CERN -European Centre for Nuclear Research
ESO -European Organisation for Astronomical Research
inthe Southern Hemisphere
ESA -European Space Agency
EMBL -European Molecular Biology Laboratory
ESF -European Science Foundation

15
that they canbeavailable inevery European country .Particular
attention will beneeded toprovide aframework forcooperationamong national teams .
V:KEY ISSUES FOR SCIENCE AND TECHNOLOGY POLICY INEUROPE
41 . Alongside the research needs themselves there are some
broader policy questions ofparticular importance :
(i)the balance ofeffort between fundamental andapplied
research across Europe
One theme ofthis report isthat asound capacity in
fundamental research isessential toEurope inits pursuit of
technological and economic independence .This isanarea where
public authorities have aparticularly important role .But in
the funding and execution ofbasic research industry too has
evident self-interest . Inthe USA much ofthis research is
funded byindustry .
(ii)the links between industry and the universities
These have been growing world-wide ,with industry driven
increasingly totap scientific knowledge and universities driven
byfinancial constraints .The trend isadesirable one ,with two
caveats :namely ,that itshould not jeopardise the pursuit of
fundamental research inuniversities and that restrictions onthe
dissemination ofresearch results should beminimised .
(iii )broadening and deepening the technology culture
The most successful economies inrecent years have been
those that have sought actively todevelop onabroad base the
human skills required both toresearch ,todevelop ,toapply and
tousetechnology .Japan isthebest example .Europe asawhole
isinaweaker position .There isshortage firstly ,ofskilled
manpower trained touse thenewtechnologies ;while theoutput of
research scientists and engineers todevelop and apply the
technologies isinsufficient inmany countries . Anadded
difficulty is that the brightest and the best inEurope are
often attracted across the Atlantic .Particular attention will
beneeded toways ofincreasing the supply ofskills and to
provide anenvironment inEurope that isattractive tohighly
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qualified scientists . This means removing the barriers to
mobility ofresearch workers between European countries .
(iv)Public acceptability ofscience and technology
Public concern about new technologies isoften based onfear
ofthe unknown .Itisimportant both for democracy and for the
pursuit ofscientific knowledge that popular understanding ofthe
issues should be improved . This will help toensure that
informed choices are made and asound regulatory environment
established .The information effort inmany European countries
isstill inadequate .
(v)Encouraging the private sector toinvest more
Industrial investment inR&D isstill too low inmany
European countries . The venture capital markets are
insufficiently developed in many countries and they are
essentially national . Action isneeded atnational and at
transnational level to improve the access to finance for
innovation .
(vi)The Diffusion ofTechnology
Aswell asopening upnew frontiers through research and
development ,Europe needs to exploit more rapidly the
technologies that are already coming onthe market orare about
todoso.Here Japan inparticular has ahead-start .Some
Member States (inparticular Denmark )have made considerable
efforts topromote awide diffusion oftechnology .Others less
so.Community-level action has ahelpful role toplay (notably
the SPRINT programme ). But more could be done to spread
information about available technologies and the results of
research and development .
(vii )Policy Coordination and (viii )Cohesion
Particular efforts are needed toimprove the coordination of
science and technology policies inEurope .Atthe same time
steps must betaken toimprove the RDT fabric inthe less -
favoured regions soastoenable them toachieve alevel of
excellence comparable tothat ofthemore developed .This cannot
bedone without the provision ofinfrastructure and trained
personnel . Regional and social policy instruments could be
appropriately used tothis end .
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(ix)Cooperation with Third Countries
Science and technology are increasingly international
commodities and further internationalisation isinevitable .The
issue ishow best toorganise cooperation insuch away that it
can bea"positive-sum "game inwhich everybody benefits .The
approaches must depend onthe situation ofindividual countries
orregions .
The European Community has aparticular interest inclose science
and technology links with other EFTA countries where good
relations are already established through COST ,bilateral
agreements aswell asEUREKA .
There isscope for improved cooperation with the USA .Itwould
also beappropriate totake advantage ofJapanese openings to
examine the scope for mutually beneficial cooperative ventures ,
especially those involving expensive ,long lead-time research .
Asfar asdeveloping countries are concerned Europe has arole to
play intackling the specific problems ofmedicine ,agriculture ,
energy and the environment which they face . The wider
consequences for the LDCs ofscientific advances inmaterials and
biotechnology are also of significance and will need
consideration inEurope aswell asataninternational level .
Further reflection isneeded onthe potential scope for RTD
cooperation with the Soviet Union and Eastern Europe ,given the
new developments inrelations across the European continent ;and
also onthe appropriate form for scientific cooperation with the
NICs .
(x)Avoiding technological protectionism
The longer-term benefits ofRTD cooperation atan
international level can only befully realised ifthe transfer of
knowledge and technology is facilitated . But the
"industrialisation "ofresearch and the growing importance of
science totrade flows has increased the pressure torestrict
flows ofinformation inorder topreserve competitive edge .
Policy developments inthe USA inthis respect will need tobe
carefully monitored .
18

FIRST REPORT ON
THE STATE OFSCIENCE AND TECHNOLOGY INEUROPE
MAIN REPORT
MAIN REPORT Pages
INTRODUCTION -background 1-3
-objectives
-structure
-inputs
I. SCIENCE ,TECHNOLOGY AND EUROPE 'SECONOMIC AND SOCIAL 4-10
NEEDS
(i)Science ,technology and the economy 4
(ii)Science ,technology and the consequences ofgrowth 7
and change
II.EUROPEAN SCIENCE AND TECHNOLOGY FROM ACOMPARATIVE 11-31
PERSPECTIVE :TRENDS INOUR MAIN COMPETITORS
(i) Comparative trends inScience &Technology 11
(ii ) Trends inthe USA 19
(iii ) Developments inJapan 25
(iv ) Achanging international environment 28
III .MOBILISING EUROPE 'SRESOURCES 32-48
(i) Atanational level 32
(ii) European cooperation both atCommunity level 42
and outside the Community (notably ,EUREKA )
(iii ) Policy coordination 46
IV .RESEARCH ISSUES FOR THE FUTURE 49-86
1. IMPROVING COMPETITIVENESS 50-72
Information Technologies and Télécommunications 51
Industrial Materials and Technologies 57
Aeronautics 61
Life Sciences and Technologies 62
Energy 67
19

2.IMPROVING THEQUALITY OFLIFE FOREUROPE 'SCITIZENS 73-80
TheEnvironment 73
Health Research 77
Safety 78
Bioethics 8Q
3.FUNDAMENTAL RESEARCH -THE ESSENTIAL UNDERPINNING 81-86
Mathematics 83
Physics 83
Chemistry 84
Earth Sciences 85
V. KEY ISSUES FOR SCIENCE &TECHNOLOGY POLICY INEUROPE 87-102
The Balance and Organisation ofResearch 87-90
(i) The balance between basic and applied research 87
(ii) The links between industry and universities 88
Education and Information 90-93
(iii ) Broadening and deepening the technology culture 90
(iv) The public acceptability ofscience &technology 92
Industry and the Private Sector 93-96
(v) Encouraging the private sector toinvest more in 93
R&D
(vi) The diffusion oftechnology 95
Policy Coordination and Cohesion within Europe 97-99
(vii ) Increasing coordination among national policies 97
(viii ) Improving thecohesion oftheCommunity 97
The External Aspects 99-102
(ix) Encouraging cooperation inRTDwith third countries 99
(x) Avoiding technological protectionism . 101
20

ANNEXES
1. INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS
2. INDUSTRIAL TECHNOLOGIES AND MATERIALS
3. AERONAUTICS
4. BIOLOGY
5. NON-NUCLEAR ENERGY
6. CONTROLLED NUCLEAR FUSION
7. ENVIRONMENT
8. HEALTH
9. FISSION ENERGY-SAFETY
10 .BASIC SCIENCE
11 .SPACE
12 .SCIENCE &TECHNOLOGY POLICIES AND TRENDS INTHE MEMBER STATES
13 .REGIONAL TRENDS INSCIENCE &TECHNOLOGY
14 .COMPARATIVE TRENDS INTHE USA ,JAPAN AND EUROPE .

FIRST REPORT ON
THE STATE OFSCIENCE AND TECHNOLOGY INEUROPE
INTRODUCTION
The Background and Objectives
1. In its most recent report on the technological
challenge facing Europe *■,the European Parliament invited the
Commission togive anaccount ofthe European situation inthe
various fields of science and technology as abasis for
considering future policy requirements .
2. The importance attached bythe Parliament tothis issue
reflects awidespread recognition ofthe vital role which science
and technology must play inthe future ofEurope 'seconomy and in
the construction of aprosperous and successful European
Community .That recognition isenshrined inthe Single European
Act itself .
3. During the past few years real progress has been made
in tackling the constraints on European success . European
governments have launched ,both inside and outside the framework
of the Community ,new initiatives to foster transnational
cooperation among researchers inuniversities ,industry and the
public sector itself . Atthe Community level there has been a
new emphasis on research and development oriented towards
improving industrial competitiveness (ESPRIT , BRITE in
particular )aswell as the quality of life . The current
Framework Programme 1987-1991 provides for particular efforts in
these areas . Alongside the Community efforts ,EUREKA has
provided further evidence ofthe interest inand benefits from
transnational cooperation inEurope .
4. Against that background the aims of this first
preliminary report ares
° todraw upabalance-sheet ofprogress sofar in
Comparative study ofthe technology level ofEurope ,
USA ,Japan and the Soviet Union ,Michel Poniatowski ,
President ofthe Committee onEnergy ,Research and
Technology ,European Parliament ,15June 1987 .
22

2
improving Europe 'sposition inscience and technology ;
* toconsider the main research needs and opportunities
which require particular attention in the context of
reducing Europe 'stechnological dependence and improving
economic competitiveness and the quality oflife ;
° and toidentify the main science policy issues facing
Europe over the coming years .
The report isnot limited toareview ofCommunity activities in
the fields concerned ortothe planning horizon ofthe current
Framework Programme (1987-1991 );nor does it make specific
proposals for Community action .The aim israther toprovide the
factual basis on which to consider what needs to be done in
Europe ,without atthis stage attempting toidentify what should
bedone atnational ,what ismore appropriate for action ina
transnational framework or what specifically might most
effectively bedone atCommunity level .
5. The report highlights the importance for the future of
adequate efforts inbasic research alongside and insupport of
the application ofscientific knowledge and technical know-how to
the solution ofthe main economic and societal questions facing
Europe . It also addresses questions upstream of research
(education )and downstream (innovation and technology transfer ).
Itpays particular attention tothe opportunities and needs
arising from the completion ofthe Community 'sInternal Market in
1992 .
6. The Commission intends to update this first and
preliminary report during the course of1989 inthe light ofthe
reactions toitfrom the Parliament ,from national policy-makers
and from the wider scientific ,industrial und educational
community .Thereafter itwill publish similar factual analyses
attwo-yearly intervals .
The structure
7. The report has five chapters :
Chapter Irecalls briefly the central role played by
science and technology in economic and social
development ,and some ofthe central issues affecting
the links between basic research ,applied research ,
innovation and competitiveness .
Chapter IIsummarises recent policies and developments
outside Europe ,concentrating onthe USA and Japan ,but
also examining briefly the situation and prospects in
the Soviet Union aswell asthe emergence ofnew
23

3
science andtechnology powers •
Chapter III surveys actions taken ,nationally andtransnationally ,inEurope tomobilize itsresources in
the field ofresearch and technological development
(RTD ).
Chapter IVconsiders themain requirements forresearch
toimprove Europe 'scompetitive position ,notably in
thecontext ofthecompletion oftheInternal Market ;
torespond totheneeds ofsociety through improvements
inthe quality oflife ;and toincrease Europe 's
capacity topursue itsownscientific andtechnological
options where necessary ,byreducing itsdependence on
others .
Chapter Voutlines themain issues forscience policy
inEurope during the coming years .
The Inputs
8. The analysis inthe report reflects amultiplicity of
inputs .Itdraws heavily onthe advice ofthe special groups
established toadvise the Commission onR&D trends ,needs and
priorities (CODEST ,CREST ,IRDAC ,and the Advisory Committees on
thecoordination ofindividual research projects and programmes );
the independent evaluation panels on Community programmes ;
systematic monitoring ofscientific and technical literature and
professional meetings ;the views ofresearchers and research
users inindustry and universities ,aswell asconsultants ;
science and technology administrations inMember States ;the
advice of the Commission departments concerned ,both the
"customers "for and the "producers "ofresearch ;aswell asthe
European Parliament itself .Italso takes fully into account the
work in similar fields undertaken by other international
organisations ,such asthe OECD .
Except where otherwise stated ,the figures given are averages for
the European Community . Insome cases data for Spain and
Portugal are not yet available ;while data for Luxembourg are
limited .There are often wide variations around the average (see
Chapter III).
Some gaps indata available from theMember States have placed
limitations onthe depth ofthe analysis inChapter III of
national trends .These limitations should beremedied infuture
reports inthe light oftheongoing discussions andanalysis of
national policies within theframework ofCREST .Asstated later ,
the Commission intends toconcentrate inmore detail ontrends
andpolicies intheMember States infuture reports onscience
andtechnology inEurope .
24

4
ISCIENCE ,TECHNOLOGY AND EUROPE 'SECONOMIC AND SOCIAL NEEDS
Science ,technology and the economy
Economic Trends
1.1 . Initsanalysis ^oftheeconomic benefits ofcompleting
the Community 's internal market the European Commission
underlined the importance toeconomic growth and competitiveness
of economic sectors incorporating the results of advanced
technologies ,and drew attention to the weakness of the
Community 'sperformance inthese fields .
1.2 . For these "high technology "sectors (electrical and
electronic goods ;office and data-processing mechanisms ;chemical
and pharmaceutical goods )world demand has been growing ataround
twice the rate ofthat formanufactured products asawhole .Yet
these sectors account (1985 )for only 22.4% ofthe value-added of
the whole ofCommunity industry ,asagainst nearly 29% inthe USA
and more than 28% inJapan .Moreover ,the share has been growing
more slowly in the Community than ineither of its major
competitors :between 1979 and 1985 itgrew by3%ayear inthe
Community ,compared with 3.7% inthe USA and 17.1% inJapan .The
differences between Europe and Japan are particularly striking in
the case ofelectrical and electronic goods ,where Japanese
domestic demand grew bynearly 21% ,and European demand by3.5% .
Table 1.1
Evolution ofvolume ofdomestic demand byindustrial branch intheEC,theUnited States andJapan (1973-85 ,average annual rateofgrowth )
%
£UR USA
Strong demand sectors5.0 5.2 lí.!
Office anddata-processing machines 9.0 6.S 7.2
Electrical andelectronic goods 3.5 7.2 20.7
Chemical andpharmaceutical products 5.3 2.3 9.9
Moderate demand sectors 1.2 2.8 it
Rubber and plastic products2.8 5.4 2.0
Transport equipment1.7 2,7 5.2
Food ,beverages ,tobacco1.2 0.4 0.0
Paper andprinting products1.6 2.9 2.7
Industrial andagricultural machinery -0.1 5.6 5.6
Weak demand sectors -0.Ì 0.5 2.i
Metal products -o.s -0.4 3.4
Miscellaneous manufactured products -0,6 2,1 1.9
Ferrous and non-ferrous ores and metals 0.6 -1.8 2.0
Tcutilcs .leather ,clothing -0.2 2.0 2.2
Non -metallic minerals (construction materials )0.1 1.7 l.l
Me lh<r .«•J..ule4 U.IO.ho«..-fcKh ..OCCO court *ocbc-ocrt Itn.rtlMI .rtcrctcd t>T«*>« ">*»iV- (>>«Ou.ul IV.(rtuulc.c Jcm.ftJI ..~l6,krt.
iK«n JV.(–KékiknunJ )
Уо(|ПК1 .С(ИК1т«|НМ1
^TheEconomics of1992 ,European Economy n*35 ,March 1988 .
25

5
1.3 . Interms ofexports theCommunity hasalso been losing
ground inthe case ofelectronics and electrical equipment ,in
cars and other forms oftransport ,office machinery ,and
information technology .The only high growth sectors where the
Community hasmaintained afavourable position onexport markets
are chemicals and pharmaceuticals . Japan inparticular has
continued topush ahead inthe export ofhigh-technology
products .Between 1979 and 1985 Japan increased itsworld market
share bynearly 12% forelectrical andelectronic equipment ,by
over 9%forcars andby5.5% ininformation technology andofficeautomation ^.
1.4 . Atthe same time theCommunity hasbeen increasing its
dependence onimports ofsuch products .Imports from outside the
Community have been growing more quickly than intra-Community
trade inoffice machinery and information technology ,electrical
end electronic equipment ,machinery and transport equipment .
Again ,only the chemical and pharmaceutical industries among the
high growth sectors perform well . This increase intrade
dependence reflects anunderlying technological dependence in
certain sectors :inthe case ofinformation technology ,for
example ,European dependence on components has been increasing
despite the improvements intheperformance ofthe ITindustry as
xawhole .
1.5 . While inthe high growth industries Europe continues to
beunderrepresented ,traditional manufacturing industry remains
significant .The Community accounts for some 35% ofthe GDP of
the EC-USA-Japan triad ,but in1986 itproduced 44% ofthe cars ,
42% ofthe steel and 40% ofthe textiles and clothing ofthe
three combined . Anumber of the traditional sectors have
improved their position during the past few years bylarge-scale
investment innew technologies and major research efforts (Table
1.2.). Textiles and automobiles are two examples .Others ,such
asthe paper and board processing industry orparts ofthe
machine-tool industry ,have been less successful .Even those
that have improved their position through innovation and
automation (especially automobiles where productivity has grown
byover 30% 1980-87 )face the prospect ofincreasing world
competition .One successful company strategy .insome industries
has been toseek tocapture more ofthe top-end ofthe market
through theapplication ofnewtechnologies andtheir integration
into the products .
1.6 . Europe 'sinterest lies inboth reducing itsdependence
onthe third countries inthe high growth sectors and harnessing
Market share isdefined asthe export ofthe USA ,
Japan orEC-10totherest oftheworld compared with
exports ofOECD countries asawhole totherest ofthe
world .
26

6
the new technologies toimproving the competitiveness ofits
traditional industries .
The Characteristics ofthe Emerging Industries
1.7 . The characteristics of the emerging industries and
their contribution tooverall economic growth and development
have been the subject ofconsiderable enquiry during the past few
years ^.Recent trends inthese sectors intheEuropean Community
are analysed indetail in the forthcoming "Panorama of EC
Industry :1989 "which will shortly bepublished bythe Commission
and towhich reference ismade inmore detail inChapter IV
below .
One fundamental characteristic ofthe emerging industries isthat
they are heavily "science-based "or "science-related ",with their
products embodying to asignificant degree the results of
advanced research and development .Secondly ,they reflect the
emergence of new "generic "technologies with pervasive
applications .Thirdly ,they are calling onthe expertise ofan
increasing range ofscientific disciplines .Fourthly ,some of
the new fast growing sectors demand amuch closer and more
interactive relationship between fundamental research and
commercial production than has hitherto been the norm .
Biotechnological products and technologies have been described ,
for example ,as "growing directly out of the laboratories ".
Fifthly ,however ,the pace ofeconomic growth islinked tothe
diffusion ,application and modification of new generic
technologies bysmaller innovating firms ,alongside the major
enterprises with their large R&D resources and the contribution
ofuniversities and research institutes .
Technology and Economic Growth
1.8 . The importance of technology and the underlying
scientific disciplines togrowth ,trade and welfare iscertain to
grow rather than todiminish over the coming years . The
information technology revolution is far from over ,as
applications ofITpermeate industry ,households ,transport andcommunications .Ononeestimate ^theelectronics industry ,with
anoutput value estimated atUS$ 485 milliard in1985 (or4.7% of
Free World GNP )islikely toreach 8%by2000 ;another expects
the share oftelecommunications indeveloped countries 'GNP to
4 Forexample "Thecontribution ofScience andTechnology
to Economic Growth and Social Development ", OECD
SPT/Min (87)2 ,7October 1987 .
5Futurible .Paris Dec 1986 .
27

Table 1.2 .
Extra-EC Imports andExports byBranch ,Evolution Since 1980
(Index 1980 =100 ) 1982
Processed foodstuffs
Imports
Exports
Intra-EC trade
Chemicals
Imports
Exports
Intra-EC trade
Plastics-119
136
131
126
118
128198519871987 value
(billion ECUs )
155127 12.9
183159 13.2
185209 22.3
203185 19.7
187160 32.0
197206 44.9
Imports 118 186 184 8^Exports 115 178 157 14tIntra-EC trade 120 186 219 29.6
Leather
Imports 99 146 150 59Exports 119 211 216 3..9
Intra-EC trade144 210 234 5.2
Paper andboard
Imports 123 175 180 14.6
Exports 125 220 216 7.2
Intra-EC trade 125 187 234 15.1
Textiles
Imports 113 165 165 25.8
Exports 124 204 186 19.3
Intra-EC trade120 170 201 35.9
Footwear
Imports 116 181 173 2.8
Exports 143 271 216 3.6
Intra-EC trade119 151 201 5.6
Glass ,ceramics
Imports 112 162 145 2.3
Exports 122 186 164 6.5
Intra-EC trade108 143 183 9.3
Machinery
Imports135 226 236 60.5
Exports128 171 155 85.8
Intra-EC trade119 189 232 91.1
Transport equipment
Imports129 202 190 19.5
Exports139 181 159 43.8
Intra-EC trade135 172 239 64.9
Audio/video/photo equipment
Imports141 215 232 18.2
Exports139 222 207 14.6
Intra-EC trade124 202 252 16.7
Source :Eu
•rostat (rounded figures ).

7
grow to7-10% bythe early 1990s (compared with 5%inthe USA in
1985 ,and 3%inJapan and Europe ) Biotechnology islikely to
impact onalarge number ofeconomic sectors within the next
decade and its influence could spread rapidly thereafter ,
affecting the chemical and pharmaceutical industries ,agriculture
and food and energy .New materials could induce major savings in
resources and change the basis ofcomparative advantage between
traditional raw material producers and countries that depend on
imports .
1.9 . Inthis rapidly changing world economy ,growth and
competitiveness will depend increasingly on successful
interaction and feedbacks between the progress ofscientific
knowledge ("science push "), the identification of market
opportunities and needs ("market pull "), the pervasive diffusion
of knowledge of,access to and modification of available
technologies aswell asthe opening upofnew technological
frontiers .
1.10 . The Commission 'sanalysis ofthe costs ofnon-
Europe shows that progress inremoving market barriers within
Europe will ofitself play animportant role increating the
conditions for the Community toimprove its competitive position .
Itwill encourage some integration ofcompanies ,laying the basis
for pooling ofR&D resources toachieve the "critical mass "
required totake major new steps forward ingeneric technologies .
Itwill also encourage more competition and the consequent
encouragement ofinnovation .But ,the creation ofthe internal
market inalone will not solve the problems ofcompetitiveness .
Progress inthis direction must beaccompanied and encouraged by
adequate public policies onR&D that take account ofthe new
realities (the ever-closer links between science ,technology and
the market-place )and that create the right framework conditions
inwhich these links and interactions can best beestablished .
Science ,technology and the consequences ofgrowth and change
1.11 . Improving Europe 'sindustrial competitiveness isnot in
any case the only issue towhich science policy can and should
make amajor contribution .The pressures oftechnological change
also have important social consequences ,interms ofthe pattern
of employment and the distribution of wealth and economic
opportunity across Europe ,and consequent implications for the
Borrus ,Metal ."Telecommunications Development in
Comparative Perspective :The New Telecommunications in
Europe ,Japan and the US",Berkeley Round Table on
Industrial Economy ,California 1985 .
29

8
economic and social cohesion ofthe European Community .They
also raise issues ofanenvironmental andethical .nature ,aswell
asnewquestions forinternational relations .Thechallenge for
science policy istohelp find solutions fortheproblems posed
byscientific andtechnical advances aswell astohelp seize the
opportunities which they offer .
1.12 . The effect ofthe new technologies onemployment over
the longer-term isnot yet well understood .Anumber ofstudies
suggest that the net effect ofinformation technologies onemployment will be relatively small 7. And advances in
biotechnology and new materials could increase ,rather than
reduce employment . But itisobvious that there are major
strucural adjustments within any economy and adverse effects for
some regions and industries .Moreover ,Europe has been less
successful sofar than theUSA and Japan intranslating economic
growth into the growth ofemployment opportunities . High
unemployment may itself create resistance tothe diffusion of
technologies that are labour-saving and ,inthe absence of
policies tomitigate the effects ,encourage aLuddite approach to
new technology .
1.13 . Similarly ,there isarisk that technology will beseen
asthe cause and not the cure for environmental problems unless
public policies are focussed sharply on encouraging the
application ofscientific knowledge and technological resources
tothe solution ofthe problems ofatmospheric pollution ,waste
disposal and safety ,and toprevention ofenvironmental damage .
1.14 . Advances inmedical and biological sciences offer the
prospects ofmajor improvements inhealth and agriculture over
the coming years .But there are important ethical issues posed
bygenetic engineering ,and some evidence ofpublic concern about
the effects onthe environment and the risks tohealth ofcertain
experiments inbiotechnology .Aconsidered approach tothese
issues must beanintegral part ofEuropean efforts toensure an
adequate S&T base .
1.15 . The external aspect isalso ofmajor importance .The
mastery oftechnology and thepromotion ofscientific advance in
Europe have consequences not only for our competition with our
major industrial trading partners but also for the trade and
development ofthedeveloping countries .Biotechnology mayoffer
ustheprospect ofmore efficient agriculture inthe longer-term ,
producing crops that correspond more precisely tomarket
requirements and reducing the risks ofsurpluses ofunwanted
Forexample ,OECD Employment Outlook ,Paris 1986
Freeman &Soete :"Information Technology and Employment
-AnAssessment ",April 1985 .
30

9
products . It should also help to transform Third World
agriculture and medecine .The advance ofnew materials ,onthe
other hand ,islikely tohave consequences for those developing
countries that are exporters oftraditional materials .
1.16 . Through the Single European Act the Governments ofthe
Community 'sMember States have expressed their commitment tothe
protection ofthe environment and to amore economically and
socially cohesive Europe . They have also underlined the
importance ofthe external aspects ofCommunity policy inthe
field ofR&D .The final chapter ofthis report outlines how
these commitments can bereflected inand supported byscience
and technology policy itself .
The Changing Scientific Environment
1.17 . Science policy has also totake account ofthe other
factors ,namely :the accelerating pace ofscientific discoveries ;
the increasing cost ofresearch ;and the trend towards amore
pluridisciplinary approach toresearch ,inwhich the traditional
boundaries between sectors are breaking down and more integrated
systems are developing .
Chemistry provides avivid example .There has been anexplosive
growth innew compounds which are now doubling innumber every
6-7 years compared with every 40years inthe 1940s .Atthe same
time chemists are now using more and more sophisticated and
costly instruments and analytical aids (lasers ,spectroscopic
instruments ,the electron miscroscope ,synchroton light ,etc )and
calling increasity onthe help ofinformation technology .
All this means that financial resources have tobedepreciated
over ashorter space oftime and directed atanever-growing
number ofproblems . This has major implications for science
policy both atnational and atEuropean level .Itunderlines the
need for the most rational use ofresources (financial ,human and
physical )bythe avoidance ofduplication and pooling ,and it
poses more acute problems in the definition of research
priorities for public funding than in the past . Italso
highlights the importance for industry ofhaving alarge enough
market inwhich tosell the products ofresearch and thus to
achieve arapid depreciation ofexpenditure .
31

10
Science andTechnology arevital inimproving
Europe 'scompetitive position inthe context of
thecompletion oftheInternal Market .They also
have amajor contribution tooffer inmeeting the
societal needs ofthe European society for acleaner
and safer environment and better health care .
Themastery ofscience and technology isessential
toreduce technological ,andthus economic dependence
and toallow Europe tobeable ,where itwishes todo
so,tomake its own technological choices .
The translation ofthese economic and social needs
into specific requirements for research iscon¬
sidered ,sector bysector ,inChapter IV.
But science and technology are increasingly expensive
asscience develops atanaccelerating pace .The costs
ofresearch are placing anincreasing strain onthe
financial capacities ofindividual companies or
Member States .The resources devoted toscience must
beused tothe best effect .Further pooling of
these resources may offer major advantages .
32

11
II EUROPEAN SCIENCE AND TECHNOLOGY FROM ACOMPARATIVE
PERSPECTIVE :
TRENDS INOUR MAIN COMPETITORS
2.1 . The performance of Europe vis-ci-vis its major
competitors can bemeasured in terms of resource inputs
(financial and human )toscience and technology ,quantifiable
scientific and technological outputs ,and the administrative and
policy framework within which science and technology develop .
This chapter begins with ashort analysis ofthe trends in
inputs (how much isspent onR&D ,bywhom ,what scientific
personnel are available )and inproxy measures ofoutput (
patenting activitiy ,technological trade balance ,technologicalbalance -of-payments ).Thecomparison isbetween Europe® ,onthe
one hand ,and the USA and Japan ,onthe other .The chapter then
examines recent policy developments inthe USA and Japan before
concluding with ashort survey oftrends insome emerging science
and technology powers .
2.2 . The chapter draws heavily onavailable comparative data
drawn upbythe OECD ,onmore detailed data forCommunity Member
States assembled by the Statistical Office of the European
Communities ,and onacomparative study ofthe Community ,USA and
Japan ,prepared for CREST inthe context ofdiscussions onthecoordination ofnational R&Dpolicies inEurope ^. This latter
study forms the basis for annex 14.
Incommenting onpolicy developments the chapter concentrates on
recent trends .More detailed onthe structure and organisation
ofR&D inthe USA and Japan can befound inthe annex .
(i)COMPARATIVE TRENDS INSCIENCE AND TECHNOLOGY
Where possible ,data are given for the enlarged
Community onthe basis ofestimates for Spain and
Portugal .Inmost cases data for Luxembourg are not
available .
"The European S/T"Space "inthe International Context :
Resources and Conditions for Community
Competitiveness ",Working paper prepared for COPOL 88,
29Feb .1988 .
33

12
The level offunding
2-3 . Fully comparable data ontotal spending onR&D exist
only for1985 .These show that inabsolute terms total spending
(civil and military )inthe USA was 1.75 times that ofthe
European Community and 2.9times that ofJapan :
Table 2.1 .
Gross Domestic Expenditure onR&D
MioECU current (ppp )
EC (12 ) USA Japan
1981 48,072 * 76,722 25,136
1985 76,250 ** 134,645 48,056
*
**estimates
estimates
Luxembourgfor Belgium and
for Belgium ,
•Portugal .Excludes Luxembourg
Spain and Portugal .Excludes
Source : Commission services estimates and Table 2ofOECD "Main
Science and Technology Indicators ",Paris 1988 .
Interms ofspending asashare ofGDP the USA isalso inthe
leading position :
Table 2.2 .
Gross Domestic Expenditure onR&D as
apercentage ofGDP
EC(12) USA Japan
1985 1.9 2.8 2.6
Only oneCommunity country (Germany )hasanR&Dintensity ^- (2.8%
in1987 )that iscomparable tothat oftheUSA orJapan .
The level elsewhere varies between 2.3% (UKand France ),2.1%
(Netherlands )down to 1%orless for some smaller Community
10Share ofR&D spending inGDP .
34

13
countries .The USfigures are ,however ,bolstered bythe high
level ofspending ondefence R&D . Ifdefence expenditure is
excluded ,the share ofUSGDP devoted toR&D drops toabout 1.9% ,
that ofthe Community (where military R&D accounts for some 25%
ofthe total Government expenditure onR&D )falls to1.4% ,while
that ofJapan (where military R&D expenditure isprima facienegligible ^*)isalmost unaffected .
2.4 . In all three areas spending on R&D has grown
significantly throughout the 1980s ,but the growth has been more
marked inthe USand Japan than the Community .Between 1981 and
1985 ,R&D intensity rose byanaverage annual rate of1.8% inthe
Community ,by2.6% inthe USA and by4.1% inJapan .The Japanese
figure iseven more striking ,bearing inmind that the growth of
US spending during that period and subsequently has been
concentrated ondefence R&D .Ifdefence expenditure isexcluded ,
Japanese growth intotal R&D spending (public and private )is
estimated tohave been more than twice that ofthe USA and Europe
(9%asagainst 4%)*^.
Expenditure and Execution ;the contribution ofpublic and private
sectors
2.5 . In terms of the relative financial contributions of
public and private sectors toR&D ,the Community lies between the
USA (where the public sector share ishighest )and Japan .But in
most Community countries there isasignificantly lower level of
industrial involvement intheexecution ofR&D programmes than in
either the USA orJapan .
Around one-half ofUSspending on -.R&D isfinanced from public
sources ,and throughout the 1980s this government spending has
been growing steadily ,driven bysharp increases inmilitary R&D ;
private sector spending has been less buoyant .Butmore than 70%
ofR&D has continued tobecarried out byindustry ,given that a
large share ofmilitary R&D issubcontracted tothe private
sector .
Methods ofcalculating military R&D expenditure are not
uniform .Official figures may underestimate Japanese
military R&D spending compared with those ofEuropean
countries .
Estimate made inCOPOL study -see footnote 9.
35

14
InJapan ,onthe other hand ,industry both finances and carries
out the bulk ofR&D .Less than 30% ofJapanese R&D isfinanced
bythe public sector ,70% being financed and executed bythe
private sector ,especially industry ;and inthe natural sciences
the figures areeven further weighted towards industry .
Inthe Community around 45% ofspending isfinanced from public
sources .But only Germany and Belgium have shares ofR&D carried
out byindustry that are onaparwith Japan and theUSA .
R&D personnel
2.6 . The trends inthe overall levels ofexpenditure are
parallelled bythose asregards R&D personnel .The proportion of
research scientists and engineers in the labour force is
significantly higher inthe USA and Japan than inEuropean
countries ,even when allowance ismade for differences indata
coverage .Moreover ,the proportion has been growing much more
rapidly inJapan .Inabsolute numbers the USA has amuch larger
R&D workforce (825,000 in1986 )than either the Community (an
estimated 500,000 )orJapan (now upto400,000 ). But the US
figure has been relatively stagnant ,while that ofJapan hasincreased steadily andsharply *-*.
Itisworth noting that theUSfigure isless than half
ofsome estimates made ofSoviet R&D personnel bythe
USNational Science Foundation (seesource totable 2.3.)
36

Table 2.3 .15
Scientists and engineers inR&D asa
proportion ofthe total labour force 1965-86
1965USA
64.7Japan
-nos per
24.6Germany France
10,000 labour force .
22.7 21.0UK .
19.6
1970 64.1 33.4 30.8 27.3 n.a .
1975 55.3 47.9 38.6 29.4 31.1
1980 60.0 53.6 n.a . 32.4 n.a .
1984 65.1 62.4 49.1 41.2 34.2
1985 67.4 63.2 n.a . n.a . 32.8
1986 69.0 n.a . n.a . n.a . n.a .
Source : National Science Foundation ,International Science
and Technology Update 1987 .
Figures include all scientists and engineers engaged inR&D ona
full-time basis except Japan ,where data include persons
primarily employed inR&D ,and UKwhere data include only the
Government and industry sectors .
The output from R&D
a)applied research
2.7 . Three measures can beused together toprovide aproxy
for the "productivity "of applied R&D ,namely :patenting
activity ,and especially patenting inthe USA asthe largest
single world market ;the technological balance-of payments (ie .
receipts and expenditures related topatents ,royalties and
licences );and the balance oftrade inhigh-technology goods .
2.8 . Interms ofthe total numbers ofpatent applications
and those granted domestically ,Japan now ranks above the USA and
Europe .Interms ofthose registered with foreign patent offices
itranks third after the USA and Germany ,and the number of
37

16
foreign registered patents has been increasing steadily .In
terms ofthegranting ofpatents intheUSA ,theJapanese share
has doubled since the mid-1970s ,and Germany alone among the
larger European countries hasmaintained itsposition :
Table 2.4 .
USpatents granted toinventors invarious
countries ,1975 and 1985
1975 1985
Total 100 100
USA 64.9 53.8
Japan 8.8 18.6
Germany 8.4 9.6
France 3.3 3.3
UK 4.2 3.4
Other 10.4 11.2
Source :Derived from Appendix '.Table 6-11 ofScience and
Engineering Indicators ,1987 ,National Science
Board ,Washington DC .
The growing importance .ofJapan isunderlined ,moreover ,bythe
number ofcitations ofJapanese patents registered inthe US,
which provide anindication ofthe quality ofapplied researchoutput ^.
2.9 . The picture emerging from analysis oftechnological
balance-of -payments data isless clear cut ;but the trend has
been towards areduction inthe negative Japanese balance .In
1985 Japanese sales oflicences ,patents etc .were equivalent to
about four-fifths ofher expenditure inthe field *,and more
This isconsidered further inrecent work byPavitt &
Patel :Measuring Europe 'sTechnological Performance :
Results and Prospects ,Centre for European Policy
Studies ,1988 .
Table 48 of OECD "Main Science and Technology
Indicators 1981-87 ",Paris 1988 .
38

17
recent data suggest that the gap has closed about tozero .The
figures ontrade inhigh-technology goods ,asindicated inthe
previous chapter ,underline this growing technological strength :
Table 2.5 .
Export /Import ratios inselected high-technology goods .
1981 and 1986
1981 1986
Japan USA FRG Fr UK Japan USA FRG Fr UK
Office
mach . &
computers2.75 3.23 0.93 0.73 0.68 6.63 1.11 0.92 0.7 0.79
Comm .Equip .
fielectronic6.59 0.70 1.13 1.14 0.96 8.95 0.61 1.14 1.22 0.82
components
Scientific
Instruments6.59 0.97 1.42 0.76 1.01 6.75 0.61 1.49 0.78 0.88
Drugs 0.28 2.27 1.77 1.99 2.61 0.30 1.42 1.71 1.90 2.21
Electrical
Transmis­sion
Equipment4.32 2.3 2.07 1.49 1.44 4.56 0.97 2.00 1.21 1.23
Aircraft 0.08 3.76 0.78 1.19 1.56 0.09 2.48 0.78 1.56 1.91
&parts
Source :OECD "Main Science and Technology Indicators 1981-87 ",
Paris 1988 .
Inall sectors the Japanese ratio has been growing while the UStrade
position has been weakening .
39

18
(b)Basic Research
2-10 . Proxies for the output ofbasic research include ,
notably ,Nobel Prizes (for natural sciences and economics )and
numbers ofpublications ofscientific papers .Here Europe isin
amuch stronger position ,and that ofJapan much weaker but
already improving significantly .
Between 1946 and 1987 USscientists won 196 Nobel Prizes and
European ones (EC-12 and EFTA )105 ,while Japan had 5.
Compared with aggregate expenditure onR&D the shares ofUSA and
W.Europe inscientific publications are somewhat larger ,and that
ofJapan somewhat lower .The difference iseven more marked in
the share oftotal citations . But more significant isthe
increasing share ofJapan and the declining share ofthe USA ,
while W.Europe 's share of papers and citations has held
relatively steady ,with the decline of the UKshare being
compensated bythe growth ofthose ofFrance ,Germany and other
countries :
Table 2.6 .
Distribution ofpublished scientific work
1973 1982
Japan 7.1 10.1
USA 54.4 51.1
W.Europe 38.5 38.8
TOTAL 100 100
Source :Patel &Pavitt ,Research Policy n*16 (1987),Table 18
W.Europe here comprises Belgium ,Denmark ,France ,Germany ,
Finland ,Italy ,Netherlands ,Sweden ,Switzerland ,UK.
40

19
(ii )TRENDS INTHE USA
2.11 . In1986 the USbalance -of-trade inhigh technology
goods became negative for the first time ,reinforcing agrowing
concern about the ability ofUSmanufacturers tocompete onworld
markets ,the dependence ofthe USeconomy onoverseas suppliers
ofkey technologies and ,specifically ,the increasingly dominant
role played by Japan . The apparent discrepancy between
increasing expenditure on R&D and weaknesses in industrial
performance has prompted questioning inside and outside Congress
about the spin-off from defence expenditure ,about the
organisation ofR&D spending ,and has led tonew R&D policy
initiatives both domestically and internationally .
The Federal Budget -defence and civil expenditure
2.12 . Between FY1980 and FY1988 federal spending onR&Dgrew byanestimated 26%inconstant dollar terms*® .Butdefence
R&D expenditure grew by83% inreal terms while civilian R&D
expenditure fell by24% .Asaresult ofthese divergent budget
trends ,inFY1988 defence accounted for about 67% ofthe federal
R&D effort ,compared with 46% inFY1980 .
2.13 . Equally striking isthat the fastest growing element of
defence R&D has been development .Between 1980 and 1988 defence
development doubled inreal terms . During the same period
Department ofDefense funding ofbasic research spending actually
fell inreal terms
2.14 . For non-defence spending the picture isquite the
opposite .Astriking feature ofthe pattern ofrecent Federal
spending isthat ,while spending oncivil research has fallen
overall ,spending onbasic research has actually increased by
some 40% .notably inthe physical sciences ,mathematics and
engineering :
Figures are from "Research and Development FY1989 "
American Association for the Advancement ofScience ,
Report XIII ,1988 .
The attribution ofparticular projects toone category
oranother issubject toquestion :some "development "
projects ,for example ,have undoubtedly had amore
fundamental research element in them . The trend
towards development isnevertheless striking .
41

20
Table 2.7 .
DSDefence andNon-defence R&Dby
character ofwork
FT1980
ActualFT1988
Estimated
(budget authority inbillions )Percent Change
Current $ Constant
$
DEFENCE R&D 15.0 40.3 169 83
Basic Research 0.6 0.9 64 11
Applied Research 1.9 2.6 38 -7
Development 12.5 36.7 194 99
NON DEFENCE R&D 16.7 18.8 13 -24
Basic Research 4.2 8.6 107 40
Applied Research 5.0 6.5 29 -13
Development 7.5 3.7 -50 -66
Source : Table 3ofResearch and Development FY1989 .AAAS
Report XIII ,American Association for the
Advancement ofScience ,Washington DC1988 .
With the 1989 budget under pressure the Administration continued
topress for anincrease inbasic research of$600 millions .
42

21
2.15 . The breakdown ofFederal spending bycategory isgiven
inTable 2.8 .This demonstrates aflattening ofexpenditure in
the energy field ,rising expenditure onhealth research and
increasing expenditure ongeneral science :
Table 2.8 .
DSFederal R&D expenditure
1972 -1988 byarea
Constant 1982 dollars
FY1972 FY1986 FY1988
Defence 22.2 33.1 34.0
Non-defence 17.6 14.6 16 .1
Space 6.0 2.0 2.0
Health 4.4 5.1 6.0
Energy 1.3 2.1 1.9
General Science 1.6 1.8 1.9
All Other 4.2 4.0 4.2
TOTAL 39.8 47.7 50.1
Source : Table 1-4 ofsource toTable 2.7 .
The spin-off from military R&D
2.16 . It is difficult to analyse with precision the
industrial spin-off from military R&D .There have undoubtedly
43

22
been important spin-offs inthe fields ofmaterials ,aircraft
engineering ,vehicle technology ,computer technology andsystems
engineering from defence expenditure ingeneral and from SDI in
particular .Moreover ,the fact that 45%ofthework funded by
theFederal budget forR&D hascontinued tobecarried outby
industry has meant close industrial involvement inFederal
research efforts andthecontinuing availability ofready markets
for the products of industrial R&D . But the more defence
research has been tailored tothe needs ofspecific military
defence requirements interms ofweapons systems ,communications
equipment and soon,the more doubts have been expressed inside
the USA about the broader industrial benefits .The Administra ¬
tion has responded with anumber ofmeasures toincrease the
potential benefits toindustry and competitiveness from federal ¬
ly-funded research ,industry military R&D . These include ,
notably ,the Federal Technology Transfer Act of1986 and the
"Competitiveness Initiative "of27January 1987 ,which provide a
new framework for encouraging cooperation among Federal
laboratories and between them and universities and industry .
The European situation with respect tospin-off and dual-use
technologies isconsidered separately inChapter III .
Industrial R&D
2.17 . Table 2.9 .gives anestimate ofthe breakdown of
industrial R&D spending byarea .Computers are the largest
single area ,followed closely bythe automotive industry ,then
pharmaceuticals ,chemicals and aerospace .
44

Table 2.9 .
Industry Spent !in>>for KM )!>ybusiness Week
Croup ings
Indus try
Aerospace
App Iiances
Automot ive
cars ,trucks
parts ,equipment
Building Materials
Chemicals
Conglomerates
Containers
Drugs
Electrical
Electronics
Food and Beverage
Fuel
Information Processing
computers
office equipment
peripherals
software ,services
Instruments :measuring devices .
Controls
,Leisure Time Industries
Machinery
farm construction
machine tools ,industrial
and mining
Metals andMining
Miscellaneous Manufacturing
OilService and Supply
Paper
Personal and Home Care Products
Semiconductors
Steel
Télécommunications
Textiles ,Apparels
Tire ,Rubber
Tobacco
Total!986 (inmi ]liuns )
ZChauve
1986 from 1985
$3,583.9 217 .
128.2 137
7,401.7 157.
341.0 127 .
223.0 82
3,662.2 62
1,354.2 127 .
19.4 37.
4,721.0 177 .
1,864.0 162
2,586.3 52
610.7 127 .
1,958.4 -117 .
7,856.5 167.
249.2 12
1,615.2 92
468.0 172
1,092.5 27.
1,467.4 107.
681.7 -77.
487.2 102
203.9 152
1,692.7 . 112
699.5 -42“
349.4 12
794 .3 172
1,309.6 102
113.0 -117.
2,762.0 12
68.0 -82
549.8 62
22.5 42
$50,936.4 107.
Source :Based on"R&DScoreboard ,1986 " (Business Week .
June 22,1987 ).
NOTE :Based onSEC data forcompanies reporting 1986 sales
of$35million ormore ,and R&Dexpenses amounting toat
least $1.0 million or1.0percent ofsales .

23
Promotincr Industrial Coopération
2*18 * The Administrdtion has dlso taken new steps toencourage inter-firm cooperation .The first efforts inthis
direction were taken under theCarter Administration through a
limited relaxation ofanti-trust regulations .Then in1984 the
National Cooperative Research Act legalised the creation of
cooperative associations for the purpose ofprecompetitive
research .Asaresult anumber ofindustrial R&D consortia have
been established topool resources inorder tolay the
foundations forregaining UScompetitiveness .Those most hotly -
debated isSEMATECH ,aTexas-based consortium inthe micro ¬
electronics field which isreceiving Federal budget support
(Department ofDefense )inaneffort toimprove semi-conductor
manufacturing technology ,and torecapture part ofthe market
lost inJapan .
2.19 . The framework for greater efforts inR&D byindustry
also includes the long-standing Small Business Innovation
Research Programme which isintended toencourage R&D insmall
high-technology business and toincrease their involvement in
federal R&D programmes .Under the Small Business Development Act
of1982 all federal agencies with anextra-mural R&D budget in
excess of$100 million are required toassign upto1.25% of
their budget tothis goal .In1987 the total amount ofresearch
bythe companies aided under this scheme isestimated at $2
milliard .
2.20 . Itistoo early tojudge the success ofthe various
initiatives topromote cooperation within the USA .One ofthe
results of the philosophy underlying the Competitiveness
Initiative ,which isthe subject ofmajor controversy ,seems
likely tobereduced scientific openness asaresult ofsuch
measures as the granting ofexclusive licences byFederal
laboratories to contracting companies ,and more selective
admittance bythird country participants ,reflecting concern
about the potentially negative effects of "leakage "asaresult
ofthe openness ofthe USresearch community and society more
generally .
International Coopération inR&D
2.21 . Such concern also has also led toanew approach to
international collaboration inscience and technology . The
growing costs ofR&D and the severe budgetary pressures within
theUSA have militated infavour ofinternational collaboration ,
opening upthe prospect offoreign participation in mega-
46

24
projects "such as the superconducting supercollider ,some
elements inspace research ,aninternational approach tothe
sequencing ofthe human genome and soon .But concern about
"leakage "has also led toanemphasis inthe USapproach to
international cooperation on the principle of "symmetrical
access "to programmes ,facilities ,results and ,ultimately ,
markets ,aswell asonthe need for stronger measures toprotect
intellectual property rights .This new emphasis isreflected in
the recent agreement oncooperation inR&D between the USA and
Japan .
The Prospect ofGrowing Skill Shortages
2.22 . Afurther concern inthe USA isabout the longer-term
"output "ofscientists and engineers .Asnoted earlier ,there
has been nogrowth inthe share ofR&D personnel inthe labour
force for anumber ofyears .This seems likely tocontinue .
With adecreasing number ofcollege-age students inthe United
States and adeclining percentage of high school graduateschoosing tostudy science andengineering oneestimate*® suggests
ashortfall ofmore than 500,000 scientists and engineers by
2010 .Meeting this potential shortfall isseen torequire action
toencourage more women and minorities totrain inscience and
engineering ,on the one hand ;and further encouragement offoreign students tostudy andtostay intheUnited States*® ,on
the other .Atthe post-doctoral level ,moreover ,there will be
increasing pressures to "poach "skilled R&D personnel from
abroad .
Changing America :The new Face of Science &
Engineering .Interim Report ofthe Task Force onWomen ,
Minorities and the Handicapped in Science and
Technology ,Washington DC1988 .
See ,for example Picking upthe Pace -the Commercial
Challenge to American Innovation . Council on
Competitiveness ,Washington DC1988 .
47

25
(iii )DEVELOPMENTS INJAPAN
The Organisation ofResources
2.23 .Inthespace of30years (1955-1985 )theJapanese share in
the total R&Dexpenditure ofthe sixlargest industrial countries
rose from anestimated 1%to16% ,placing itsecond only tothe
United States ;and the number ofresearchers has become the
second largest inthe free world .Asnoted earlier ,thebulk of
this effort has been inthe civil R&D field ,although Japanese
methods of calculating military R&D expenditure may
underestimate the military effort relative tothat ofEuropean
countries .Certainly theJapanese have spent farfrom negligible
amounts onR&Doriented towards naval andairforce purposes .
2.24 .The private sector has accounted for byfar the largest
share ofthe increase inexpenditure ,notably inthe field of
natural sciences .Thus in1986 the public sector accounted for
only 17.6% oftotal R&D spending onnatural sciences and •for
about 25% of the R&D personnel . The private sector ,
correspondingly ,provided 82.4% ofthe funding and three-quarters
ofthe staff ,with -industry accounting for close to90% oftheprivate sector effort*^l .
2.25 . This private sector effort has taken place ,however ,
within the framework ofatradition oflong-term and "consensus "
planning and linkages between industry ,government Ministries and
agencies ,notably MITI ,which has played acrucial role in
coordinating actions between industry ,universities and other
government agencies and inhelping todefine long-term technology
priorities .Strategies covering 10-20 year periods are common
both inindustry and government ,and Japanese companies and
government agencies have developed acomplex network of
"outlooks "ondevelopments inR&D .Industry has also benefitted
from arange ofmeasures toencourage the allocation ofresources
toR&D (tax incentives ,subsidies and conditional loans )and from
concerted efforts to ensure the dissemination of R&D results
(each ofthe main Japanese Ministries responsible for research
appropriations -MONBUSHO ,theMinistry ofEducation ,the SCIENCE
AND TECHNOLOGY AGENCY and MITI itself -has anagency ofits own
concerned with dissemination andapplication ofR&D results ).
Estimate from the 1987 White Paper onScience and
Technology ,Science andTechnology Agencies ,Japan .
Estimates made byECDelegation ,Tokyo .
48

26
Applied versus basic research
2.26 . Historically ,the bulk ofthe Japanese R&D effort has
been concentrated on applied research and ,even more ,on
development ,supporting an industrial policy based on the
absorption and transformation offoreign technology .From the
middle ofthe 1960s particular efforts were made (notably through
the Large-Scale Project Programme )tobring together researchers
from private industry and those inuniversities togive Japan a
leading edge in applied technologies that were seen as of
strategic importance (notably information technology ). To a
certain extent ,aswill beargued below ,this emphasis has now
changed .But technology adoption isstill the main objective of
Japanese science and technology policy .Still today expenditure
on applied research and development dwarfs that on basic
research .According tothe 1987 Survey ofScience and TechnologyResearch inJapan^ 62.3% oftotal R&D spending in1986 was
oriented towards development work ,24.4% toapplied research and
13.3% tobasic research . Asmight beexpected the academic
institutions account for the major share ofthis basic research
and industry for the bulk ofthe development work . But the
importance ofindustrial basic research has been growing : in
1986 commercial organisations funded one-third oftotal basic
research expenditure inthe natural sciences .Much ofthis is
application oriented .
Table 2.10 .
Breakdown ofResearch Expenditure inthe Natural Sciences by
Sector &Type FY1986 %
Total BasicApplied Development
Research Research
Total 100 13.3
Commercial 100 6.1
InstitutesNational
Research 100
Institutions 13.8
Academie in- 54.2
stitutions 10024.4
21.6
27.4
37.462 .3
72.3
58.8
8.4
Source :asfootnote 22 .
The Present State ofScience and Technology inJapan -
Summary of the Results of the 1987 Science and
Technology Research Survey ,the Management and
Coordination Agency ,1987 .
49

27
These figures probably understate thetrends .There ismuch more
qualitative evidence ofanew preoccupation inindustry and
government with Japan 'sbasic research capacity asakeyfactorconditioning economic andsocial progress inthelonger-term .
2.27 . This preoccupation hasbeen outlined roost vividly in
the1987 and1988 White Papers onScience andTechnology from the
Japanese Science andTechnology Administration .These reports
demonstrate theprogress already made byJapan inestablishing
itsscientific credentials through thecontribution ofJapanese
scientists tomajor scientific journals ,but underline also the
weakness ofbasic research relative toindustrial technology .
These shortcomings derive inpart from thelimited experience of
fundamental research onthe part ofmost university -trained
engineers andscientists since thebrightest areoften snapped
upbyindustry before completing research degrees .The 1988Paper 23argues explicitly that Japanese research onbasic science
and technology ,though some of itisofhigh quality ,is
insufficient compared with research on application and
development .This ,itisargued ,reflects inpart alow level of
funding bypublic authorities .Itdraws attention also tothe
less than satisfactory level ofresearchers with masters or
doctoral degrees ;the fact that there are fewer science graduates
than engineers ;and there isalack oflarge-scale research
facilities and data-bases .
International Coopération
2.28 . Agrowing recognition ofthe importance for the longer -
term ofmore fundamental research ,ofthe increasing interactions
between basic research ,technology development and industrial
competitiveness ,and ofthe current Japanese shortcomings inthis
area have led toanew emphasis oninternational cooperation .
Measures have been taken tofacilitate the participation of
foreign research workers inJapanese programmes .The launching
ofThe Human Frontier Science Programme ,which isintended tobe
anew international framework for increased cooperation onbasic
research inthe field ofbiological sciences ,ispart ofthe same
drive tohelp remedy perceived shortcomings inscientific
capacity and atthe same time torespond tocriticisms ofthe
closed nature ofthe Japanese scientific and technological
system .One important issue for the future will betoensure
that the cooperation that ensues provides benefits toall the
parties concerned .
Trends and Future Tasks in Industrial Technoloqy -
Developing Innovative Technologies tosupport the21st
Century ,MITI ,September 1988 .
50

28
(iv)ACHANGING INTERNATIONAL ENVIRONMENT
2.29 . Apart from the changing preoccupations ofEurope 'stwo
main competitors (industrial competitiveness inthe USA ,basic
research inJapan ),other factors could also impact significantly
onthe international environment inwhich European science and
technology develop inthe longer-term .Particularly important
will bethe future direction ofthe Soviet economy ,onthe one
hand ,and the longer-term results ofscience and technology
policies inthe newly-industrializing countries (NICs )and China
onthe other .
2.30 . Inthe Soviet Union today military R&D absorbes a
dominant share ofscientific talent and budgetary resources .At
the same time science management has been plagued bythe familiar
bureaucratic ills associated with the centralised command system
oforganisation .President Gorbachev 'sefforts toreform and
modernise the Soviet economy ,ifsuccessful ,will inevitably mean
some reallocation ofscientific resources tocivil uses .As a
consequence ,over time the USSR could become anincreasingly
important force interms ofscience and technology .The USSR has
asolid tradition oftheoretical mathematics ;work isalready
under way onthe Fifth Generation Computer ;the Soviets already
have considerable expertise inareas such asspace ,advanced
materials and molecular biology .They have already byfar the
largest number inthe world ofscientists and engineers engaged
inR&D asaproportion oftheir labour force -onsome estimates
65% more than inthe USA .Economic and administrative reforms
are likely toincrease the effectiveness with which these human
and financial resources are deployed .
2.31 . During recent years ,European industry has been
confronted with increased competitive pressure from the newly
industrialising countries inAsia and Latin America . This
competition concerns traditional industries (textiles ,steel ,
shipbuilding ,automative industries )aswell ashigh tech sectors
(consumer electronics ,IT and microelectronics ,space and
aeronautics ). This challenge will become even more serious as
the more established NICs have toface new competition from other
industrialising countries (e.g. Thailand ,Indonesia ,Malaysia ,
Philippines )with labour costs advantages onthe one hand ,and
offensive technology development strategies inthe industrialised
countries onthe other hand .
Therefore the most dynamic NICs are now planning asubstantial
growth inR&D spending and astrategy for the development of
highly qualified personnel who will bevery much on apar ,
scientifically ,with their counterparts inthe USA but atthe
same time much cheaper (because salaries will belower ).
51

29
2.32 . This isparticularly clear inthecase oftheRepublic
Korea .UptonowKorea 'scompetitive advantage in,notably ,theelectronics industry hasbeen established onthebasis ofthe
successful import and adaption of existing technologies ,
combined with cheap labour . Its indigenous scientific and
research capacity ,onthe other hand ,islimited .But efforts
arenowunder waytoimprove theavailable indigenous resources ,
notably through anexpansion ofgraduate school education inthe
scientific fields ,joint efforts among existing R&D institutes ,
universities and industry inrelation toselective large-scale
R&Dprojects and some attempts tolaythe foundations for abasic
research capacity .ublic R&Dspending isexpected togrow from
2%ofGNP tomore than 3%by1991 ;and the number ofresearchers
will grow from 13/14per 10,000 ofthe labour force in1987 toa
planned 30in2000 .This reflects agrowing perception that as
technology becomes more sophisticated anincreasing scientific
and technical capacity isrequired tomaster ,exploit and adapt
it.Growing wage costs and currency appreciation have also
played arole inunderlining the need for improved indigenous
scientific capacity .
2.33 .Other industrialising countries inAsia and Latin America
toohave clearly recognised the importance for the longer-term of
asolid indigenous scientific base and research capacity .
Since 1984 ,astrong industrial restructuring effort has been
undertaken inTaiwan ,aiming atgiving priority tohigh tech
sectors ,notably telecommunications ,integrated ITsystems and
biotechnology .With aUS$ 663 million civil R&D budget in1986 ,
and more than 1%ofGNP allocated toR&D ,Taiwan isclose to
Korean standards ,including ahigh proportion (14per 10,000 )of
researchers inits population .
With the help ofthe World Bank ,Brazil launched its ambitious
Programme for Support in the Development of Science and
Technology (PADCT )in1982 which was further extended in1986 .
R&D funds ,which reach nearly 1%ofthe GNP ,are supporting
projects inareas vital toeconomic development :biotechnology ,
chemistry and chemical engineering andgeosciences .
With 0.6% ofGNP devoted toR&D and aconsiderable scientific and
technological potential ,India isemerging asanuclear energy ,
space and informatics international actor .
Other developing countries which have clearly recognised the
importance for the longer-term ofasolid indigenous scientific
base and research capacity include Israel ,Hongkong ,Singapore
andArgentina .
2.34 . In China the improvement of scientific and
technological capacity isseen asfundamental totheachievement
of ambitious longer-term goals of economic growth and

30
development .Major research programmes have been launched ,aimed
atcatching upinthe mastery oftechnology inseven main fields
-biotechnology ,aerospace ,information technology ,lasers ,
robotics ,energy and advanced materials .Other programmes are
aimed at increasing the technological inputs to the export
industries and the level ofscientific and technical education
more generally . Already China is attempting toenter the
international satellite launching market .
2.35 . The longer-term consequences ofthese trends for the
advance ofscientific knowledge and for the pattern ofworld
economic growth and trade are clearly impossible topredict .But
the increasing importance attached toscience and technology in
all these countries and the potential for the emergence of
significant new science and technology powers are factors which
European countries cannot ignore intheir own approach toscience
and technology policies atanational ,European and international
level .
53

31
Europe asawhole isspending less onR&D than itsmajor
competitors ;and European industry much less .
Moreover ,the share ofresearch scientists and engineers
inthe labour force issignificantly higher inthe USA
and Japan .
Despite its own problems ofindustrial competitiveness
the USA continues tobenefit from major advantages inthe
field ofR&D (market size ,levels ofmilitary R&Dexpen ¬
diture )and renewed efforts are being made tomaximise the
industrial spin-off from Federally -funded programmes (in¬
cluding ,notably ,military R&D )aswell astoimprove
interfirm cooperation .There isalso anincreasing trend
towards tighter restrictions onthe flow ofscientific and
technical knowledge out ofthe USA .
Japan for its part isnow extending its expertise
into the field ofbasic research tocomplement its
strong position inapplied research and
technological development .
This reflects not only awish for greater integration into
the internationnal scientific community ,but also the re¬
cognition that acapacity inbasic research will beessen ¬
tial inorder toinfluence the direction oftechno ¬
logical development inthe future .
Other industrialising countries are also beginning to
develop anindigenous S/Tcapacity .
Europe faces major challenges from this changing inter ¬
national environment .
54

32
III MOBILISING EUROPE 'SRESOURCES
(i)ATANATIONAL LEVEL
3.1 .Agrowing recognition ofthe challenges facing Europe has
already led tosome considerable rethinking ofnational science
and technology policies during the 1980s . This has been
characterised by redefinitions of public sector expenditure
priorities ,both asbetween RTD and other public policies and
within RTD budgets themselves ;amore important industrial
orientation inmost countries ;anew focus onmeasures toimprove
cooperation between industry and universities ;aconcern about
the pattern ofhigher education and training atone end and about
the pace ofinnovation atthe other ;and the search for better
value for money through improvement in the mechanisms for
evaluating choices between funding priorities and the success of
programmes .This process ofreevaluation isstill going on:in
the United Kingdom amajor review ofscience policy has been
under way ;in Italy and Spain there have been important
reorganizations ofthe administrative apparatus for dealing with
science policy ;Germany has witnessed recent changes inthe
pattern ofFederal spending with agreater priority now tobe
given tospace research .
The Resources Applied toR&D
3.2 . The picture varies considerably among Community Member
States inthe share ofnational resources devoted toR&D ;inthe
relative importance ofthe public and private sectors ;and inthe
sectors towhich resources are applied .
3.3 .Interms ofthe R&D effort the total volume ofspending is
dominated bythree countries :Germany ,the United Kingdom and
France which together account for over three-quarters oftotal
public and private spending onresearch and development inthe
European Community . Indeed it ischaracteristic of USand
Japanese observers to compare the performance of their own
countries with these three countries ,and especially with Germany
which accounts for around 30% ofthe total .
3.4 .All three countries ,together with the Netherlands ,have
higher than Community average shares ofGDP allocated toR&D .
Once again the German position stands out from the others ,with
some 2.8% (1987 ). Both France and Germany have been most
successful inincreasing total expenditure ,with increases inthe
R&D intensity oftheir economies of 18% and 26% respectively
between 1975 and 1985 .
55

33
3.5 .:Atthe other end ofthe spectrum lieSpain ,Portugal and
Greece ,with shares ofR&D inGDP ofrespectively 0.7% ,0.4% and
0.35% .Inall ofthese countries public policy hasemphasized
theneed for increasing expenditure ,but this appears sofar to
have achieved significant results only inSpain ,where even in
themid-1980s the intensity ofthe R&D efforts was below 0.5% .
3.6 .The remaining Community countries lie between these two
extremes .Here Italy 'sperformance isthe most striking ,with
rapid growth inresources devoted toR&D throughout the 1980s .
Inreal terms total (public and private )expenditure onR&D grew
bywell over 10%peryear ,pushing upthe share ofR&D inGNP to
around 1.5% in1986 .There isapolicy objective todouble this
figure bytheearly 1990s .
Table 3.1 .
The Intensity ofR&D Spending byMember States :
R&D asapercentage ofGDP
(1987 ornearest year )
1981
GERMANY 2.45
FRANCE 2.0
UK 2.4
NETHERLANDS 2.0
BELGIUM n.a
DENMARK 1.1
ITALY 1.00
IRELAND 0.7
SPAIN 0.4
PORTUGAL 0.35
GREECE 0.2
Sources :OECD and national
available .1987
2.8
2.35
2.3 *
2.3
1.5 *
1.3 *
1.5+
0.8
0.7
0.4**
0.35 +
data .Figures forLuxembourg not
* 1985
** 1984
+ 1986
56

34
3.7 .The significant differences among Member States are also
evident interms ofnumbers ofresearch personnel .Table 3.2 .
shows that Germany and France together account forwell over half
of the entire Community R&D personnel ,with Germany alone
providing some 35% .
Table 3.2 .
R&D Personnel (1985 )
Nos . %of
(1000 )Community total
(EUR=100 )Nos .per 1000
employed (1983 )
GERMANY 398
FRANCE 270
UK 174 *
ITALY 118
NETHERLANDS 61.5
SPAIN 32
BELGIUM 32**
DENMARK 20
PORTUGAL 9***
GREECE 6**
IRELAND 6***35
24
15
10.5
5.5
3
3
2
1
0.5
0.54.8
3.9
2.7
3.7
1.0
2.6
2.7
0.7
0.6
2.8 (1984 )
Source : OECD and national data .
* 1986
** 1983
*** 1984
57

35
3.8 . Interms ofthe relative importance ofthe public and
private sectors as sources of funding for R&D and as
“performers ",the position also varies considerably . Inall
Community countries the public sector remains acrucially
important source offunds .Inonly Germany and Belgium ispublic
spending onR&D less than business expenditure .The increase in
German expenditure onR&D ,moreover ,has been duemore togrowing
business expenditure than topublic expenditure ,and the private
sector hasaccounted asaresult for agrowing share ofthe total
R&D funding .InGermany too alarger share ofpublicly-funded
research than inother Community Member States iscarried out by
the private sector .InItaly and France ,onthe other hand ,the
improvement inR&D intensity has been the result ,principally ,of
increased government expenditure .
Table 3.3 .
Financing and Execution ofR&D in
the Community ,1985
Financing Execution
Shares in % Shares in %
Business Public Sector Business Public Sector Other
BELGIUM (66 )* (34)* (69)*(univers
etc )– (31)*–
DENMARK 49 46 55 21 24
GERMANY 61 38 72 12 16
GREECE 26 74 n.a n.a n.a
SPAIN 49* 50* (40)** -- (60 )**–
FRANCE 41 53 59 25 16
IRELAND 45 47 51 -49--
ITALY 45 52 57 –43–
NETHER 50 45 55 19 26
LANDS
PORTUGAL n.a 62 n.a n.a n.a
UNITED 46 43 63 20 17
KINGDOM
Source : OECD and National data -Figures for Luxembourg
available .
*1983
**Estimâtes for 1987
58

36
3.9 . Table 3.4 .illustrates insummary from the differences
between Member States intheir levels ofR&D intensity (both
total and industry-intensity )and also inlevels ofemployment in
“technology-based "industries . The outstanding position of
Germany contrasts with that ofthe less-developed members ofthe
Community :
Table 3.4 .
Indicators ofRTD
EC(12)=100
A B C D
R&D Intensity Business R&D "High Tech " Composite Index
(total ) Intensity Employment
GERMANY 134 138 118.5 131
FRANCE 113 111 95 108
UK 120 83 102 106
NETHER 107 102 95 103
LANDS
BELGIUM 72 72 90 76
DENMARK 60 80 70 68
ITALY 59 46 80 61
IRELAND 41 49 82 53
SPAIN 23 7.5 n.a 18
PORTUGAL 18 17 n.a n.a
GREECE 11 5 n.a n.a
Sources derived from STRIDE report ,National Board for Science
and Technology ,Dublin ,November 1987 .
R&D Intensity =Total expenditure onR&D /GDP .
Business R&D Intensity =Business expenditure onR&D/Gross Value-Added .
High-Tech employment =employment inchemicals ,man-made fibres ,office
machinery and data-processing machinery ,processing of rubber and
plastics ,nuclear fuels -aggregated and expressed asaratio tototal
employment inall industries .The composite index atDisaweighted
average ofA,B and C.
Data are for 1983 and 1984 ,except for Portugal (1982 ).
59

37
Regional Differences inRTD Capacity
3.10 . Such differences inR&D resources and their use are evn
more striking ifmeasured atthe regional level .In1987 the
Europen Commission invited agroup ofexternal experts toanalysethe situation atregional level .Their extensive report ^
(summarised atAnnex 13)highlighted regional dispariries inR&D
spending and intechnology levels that aremuch greater even than
those interms ofGDP per capita .Even asbetween the Member
States themselves (Table 3.4 .)there isadifference of12:1 in
levels ofR&D intensity and of28:1 inthe intensity ofbusiness
investment inR&D .Atasub-national level the disparities are
much greater .Interms ofthe intensity ofbusiness expenditure
onR&D ,for example Oberbayern enjoys ascore three times the
Community average ,while inanumber ofregions inItaly ,Spain ,
Greece and Portugal both business expenditure on R&D and
expenditure bythe higher education sector are negligible .The
conseguences for desirable policy approaches are discussed in
Chapter V.
Itshould beadded ,that the link between R&D intensity and rates
ofeconomic growth isnot asimple one ,asthe case ofDenmark
illustrates . Denmark has alower than average level ofR&D
intensity .But Danish policy (cf.5.20 below )has concentrated
much effort onthe diffusion and adoption oftechnologies ,with
R&D resources directed toareas inwhich Danish industry is
strong .Denmark offers aninteresting model of "small country "
orregional strategy .
Trends inR&D Policies and Public Funding
3.11 .Inthe majority ofCommunity Member States there has been
areal growth during the 1980s inthe government appropriations
forR&D .This has been most striking inthe case ofsome ofthe
less developed countries (notably Greece and Spain )and in
France ,Italy and Denmark ,each ofwhich has increased R&D
resources faster than GDP (table 3.5.) Many ofthese countries
have increased public expenditure onR&Dmore guickly than public
expenditure overall .
Overall expenditure inthe UK,onthe other hand ,has held
broadly stable inreal terms formuch ofthe 1980s ,with some
redeployment ofdefence R&Dexpenditures tothecivil sector .In
Germany ,asnoted earlier ,government appropriations have grown
Research and Technological Development inthe Less
Favoured Regions oftheCommunity (STRIDE ),andSTRIDE -
Science and Technology for Regional Innovation and
Development inEurope ,1987 .Figures arefrom Tables
5.1 .and 5.2 .ofthe latter document .
60

General charac teristicsofbudget appropriations forR&O in1986
1Government R&D ap¬
propriations in
1986 atcurrent
values and ex¬
change ratesi
I
ÍGovernment R&D
and
Annual averageappropriât ions at
exchange rates
rate ofchange1980 prices
Contribution of
Member States to
the EUR 12totalRatio ofgovern ¬
ment R&D appro ¬
priations to
total budgettRat ioofgovern -
jment R&Dappro ¬
priations togros
domestic product
1 (million ECU ) (X) (X) (X) (X)
total civil
Γ1-86total
86-87(1 )81-86civil
86-87(1 )81 86 81 86 81 86
Belgium 653 642I1.3 -1.6 1.1 -1.2 2.4 2.6 1.31 1.33 0.63 0.57
Denmark 509 507¡6.8 19.4 8.0 19.5 1.0 1.4 1.36 1.55 0.49 0.63
Germany 1004 9 8832fl
H
1
1
II0.6 2.0 -0.1 1.9 30.3 28.1 4.06 4.20 1.15 1.10
1Greece
199 97 4.8 12.2 5.4 12.7 0.3' 0.3 0.51 0.67 0.16 0.25
Spa in 802 764 6.4 21.3 6.4 17.3• 2.3•1.61 0.28 O.34
France 10273 6935i
a
E3.3 -3.0 5.1 -7.3 27.9 29.3 5.62 6.34 1.31 ■1.44
Ireland 116 1165
i4.2 1.6 4.2 1.6 0.3 0.3 0.74 0.80 0.39 0.44
Italy 4409 4033 !7.5 8.1 7.0 8.8 8.3 10.7 1.60 1.60 0.65 0.85
Netherlands 1705 1658 1.8 1.7 1.8 1.5 5.2 5.0 2.34 2.40 0.93 0.96
Portugal 92 92• 35.0« 35.0 • 0.3 • 1.04 • 0.32
United Kingdom 6787 3329 0.0 -0.4 0.5 -3.3 22.4 20.3 3.18 3.04 1.31 1.24
EUR 12 35492 27003 2.2 0.6 2.7 0.3 100.0 100.0 3.33 3.11 1.02 1.04
European Communities 661 661
I• • • • • « • • ■1
(!)Comparison ofprovisional budgets .
Source : Government Financing .of Research and Development in
Community Countries ,Statistical Office ofthe European
Communities OS/12/87-H
C
0
U'
1

38
only modestly compared with private sector financing .
3.12 .Asfarasthedistribution ofpublic funds among different
categories ofexpenditure isconcerned there are again widedifferences (Table 3.6.).
Even between thethree largest spenders (Germany ,France andthe
UK)there are major divergences asaconsequence inthe first
place ofdefence expenditure ,which accounts for 51% oftotal
expenditure inthe UK,for 34% inFrance and for 12.5% in
Germany .
Inthecivil sector ,themost important categories ofexpenditure
are ,generally ,research financed from general university funds
and non-oriented research . The Netherlands and Belgium
concentrate much oftheir R&D support inthe universities ,and
Germany and Denmark also give above-average shares oftotal
public funding for research tohigher educational institutions .
IntheUnited Kingdom ,ontheother hand ,thepercentage offunds
going tothe universities for research purposes iswell below
average and that tofinance non-oriented research significantly
below and declining ;while inFrance the picture ismixed ,with
university-funding below average but support for non-oriented
research high .
Outside these categories Germany and the Netherlands spend
higher -than -average shares of public funds on environmental
research ;Italy has focussed inthe past aparticular resource
effort onenergy (notably nuclear energy )research ;Greece ,
Denmark ,Ireland and Portugal onR&D toimprove agricultural
productivity .But generally the most important growth sector
during the 1980s has been R&D onindustrial technologies ,where
there have been major investments byGermany ,France ,Italy ,
Spain ,Ireland and Denmark inparticular .
3.13 .This latter feature ofR&D budgets isassociated with the
greater general industrial orientation inpublic R&Dpolicy than
hitherto .This has been characterized by:
* measures toencourage higher levels ofspending on
research and development byindustry itself .Practically
all Member States now provide some form oftax relief for
industry onR&D investment . Many offer ,inaddition ,
financial incentives inthe form ofgrants orloans .As
noted above ,the Netherlands and Germany ,inparticular ,
have witnessed asteady andsignificant growth inindustrial
R&D spending ;
* thetargetting offinancial support onspecific high
technologies with major industrial applications .
62

Os
CNIBreakdown ofprovisional R&Dbudge tsbyobjectives in1986 and1987 (X)L'
r»
iNABS Objectivese
I960c/ce
198 2c
1986Ud12
1982 198631
11982–
1986X
1982 1986oe
1982 1994c*
1982 1996s
1982 1996re
1982
} .
11.CsølOMtlon endfiøloltetton øf
1 theeiMH0,6 0,7 1,6 1.8 2,5i■·'l.j Μ 2,1 1.» 5.5 7,1 5.3 2,2 1.51S
j2.Infrestructgres endgenerel
j lend-vt *ølinning0,6 0,6 2.2 2,2 0,6!°';
12.4 2.3 1.» 1.7 0,4 0,3 3,‘ 0.2 3,2 3,2
i3,Control øfenvironnent et
1 pollution5,8 5,3 1.4 1,7 2,41*'*
i1,5 1,3 3.3J'J.·3,4 2.1 0.4 2.0 0,50,4
i6.Protection endi«prove*ent of
J hg««*heelth‘,1 2.6 3,5 3.6 2.1
13,03.3 4.4 3.0 3,2 »,3 .·7,4 4.06,6 3,83,6
5.Production ,distribution «ndre-
! t*e«ølutilization ofÄnfrgy56,a 51,6 8,7 »,1
•10,1 7,3 4.7 ‘.4 10,5 «.7 2,4 3,4 '2,3 3.1 7,1 4.7
14.Agrlculturtl productivity «nd
1 ttOinelogy1,9 1,5 3,4 3,4 7,2 7,4 7,0 8.5 2.0 2.0 24.» 24,0 4,7 6,7 3,6 3,6
Industriel productivity end
ttchnolog /26,7 33.7 12,8 13,7 14,2 i2,a 20,6 14.2 .. 1‘,3 15,3 · »,7 11,2 17,1 21.5 12,1 10,6
d.Soefel structures «odrela¬
tionships0,6 1,1 2,2 2,1 0.7 0,5 4,3 3,4 2.3 2,3..6'‘ 7,3 0.» 0,» 2.» 2,7
j■9.Ciøloret lønindeiploltetlon of
I SPIC «1,1 1.5 *,6 5,4 7,3 »,8 3,1 2,6 4,3 4.».
«0,4 0,4 ‘.8 8,8 5.8 5.»
i'0.leseerch financed fro«generel
j university funds-
•122,1 23,0 22,8 22,3 27,5 32,1 31,8 31,5 26,» 25,3 18,: 17,5 11,8 12.0
J11.Mon-orlcnt«d r«»*«,ch i,4 1.8 111,3 10,7 20,5 23,6 19,7 .22.3 11.8 12.3 *,1 4,7 20,6 6,5 15,1 li,7
!12.Other reseerch - . 1
1
10,8 1,1 4.3 3,8- - 0,1 0,1 2.2 0,2 2.2 3.4 1,2 1.0
! Totil fincnçlng etcivil «19 100,0- f-
100,C 1
175,1 74,1 78,5 78,7 »7,5 »7,4 87,6 *7,5 77,1 77,7 »4,2 91,1 6»,0 65,9
1U.9«t«nef-1
1
24,7 23,7' . 1.5 1,1 0,5 0,4 12.* 12,5 2.» 2,3 5,8 8,9 31,0 . 34,1
Totil financing 100,0 loo,:j
1100,0 100,0 ■*00,0
1100,0
1100,0 100,0 100,0 100,0 •100,0 100,0100,0 j100.0 100,0 100.0

C/5
0
e
n
n
0
it
nnooooif£
ccn
333
t-H*3
ftrt0
f-<3
0 rr
cnn
0moc2W3^
£UgsoP-5Mt 2.oocn£
c/i
<1oS"
>-•
inpo
rt0
h-in
on>
cu0
f-M
oo:r
fh
2§
®0-
Oo^(D
<II(1)•?t–00
«S
nn
on
TS
to
Cu t–
D3Breakdown ofprovisional R&Dbudgets byobjectives in1986 and1987 (X)
NABS objectives1986R
1987 1986r
1987 1986NL
1987 1986PO
1987I
1986JK
1987
1.Exploration andexploitation of
the earth0,7 0,6 1,1 1,4 0,6 0,6 10,2 9,0 1,7 V .
2.Infrastructure *and general
land-use planning3,9 4,2 0,9 0,8 4,2 4,6 8,9 10,5 1,4 1,6
3.Control ofenvi ronment al
po11ut ion0,8 1,0 1,0 .0,9 ,3,0 .3,1 3,0 3,4 0,7 1,5
4.Protection and improvement of
human health4,9,3,9 4,4 4,5 2,2 2,5 0,2 0,2 3,7 3,3
S.Production ,distribution and ra¬
tional utiliistion .cfenergy1,2 1,1 17,4 11,1 4,6 4,0 5,0 4,7 4,6 3,6
6.Agricultural productivity a«d
technology27,3
.24,2 3,7 3,5 4,4 4,3 14,4 ■14,2 4,6 4,3
7.Industrial productivity and ¡126,1
technology ¡j27,2 19,1 19,1 14,8 17,6 7,3 6,2 6,7 9,9
8.Social structures and relc - !8,0
tionships ¡j10,0 1,1 ■ 1,2 3/5 2,4 0,2 1,3 1,3 1,2
9.Exploration andexploitation of
space1,1 2,3 6,9 9,3 2,9 2,8-I1,8 2,6
10.Research financed fror ,general
university fundi23,9 23,0 28,6 31,9 43,1 40,7 35,5 30,5 14,9 15,3
11.Non-oriented research 2,2 2,4 7,0 6,6 ?/3 10,3 1,8 0,5 6,8 3,3
12.Other research• “0,2 1,9 4,3 . 4,4 is;s 19,5 . 0,3ok
Total financing ofcivil RID 100,0 100,0 91,6 92,2 97,4 97,2 100^0 100,0 48,4Ol
48,8
UJ
13.Defence- -8,4 7,8 2,6 2,8- - 51,6O'51,2 ·
Total finane ing100,0 100,0 100,0 100,0
1100,0 100,0 100,0 100,0
I100,0 100,0 ■s
3F
cr
r–
o
ui
o
«
n
§
'rt
3'
c
n>
a.

39
Information technology has been the focus ofparticular
attention inmost countries (early examples ofnational
policy initiatives inthe 1980s included the Plan d'Action
de Filifere Electronique in France ,the Information
Stimulation Plan inthe Netherlands ,the Alvey Programme in
the UK .These are now being phased out ,toalarge extent
superseded bytransnational actions (see 3.49 below );
* measures topromote better technology transfer -the
dissemination ofresearch findings toindustry .Generally
this has been concentrated on the results of civilian
research efforts .But inthe UKearlier this year ascheme
was launched (the Civilian Industrial Access Scheme )to
increase the spin-off to industry from defence R&D by
encouraging industry tomake greater use ofthe technical
expertise and facilities ofdefence research establishments ;
* anew emphasis on cooperation between government
research bodies ,higher education institutions and industry .
Inthe United Kingdom ,for example ,the LINK initiative was
launched in December 1986 to encourage collaborative
programmes between the three parties inpre-competitive but
industrially-relevant research .
3.14 . Asharper focus onindustry-oriented R&D has meant also
agreater emphasis inpublic support onmore "down-stream "R&D ,
with more immediate commercial application .The picture varies a
good deal across the Member States ,but inmany the balance
between support for basic research and applied research has
shifted infavour ofthe latter .Public expenditure constraints ,
the rising cost ofmuch basic research ,and increasing emphasis
on measurable cost-effectiveness have all contributed to this
trend inaprocess that has been dubbed "the shift from science
totechnology policy "25.insome countries (France ,Germany ,
Netherlands ),non-oriented research continues tobegiven ahigh
level of priority ,alongside support for pre-competitive
industry-oriented R&D .Inthe United Kingdom ,onthe other hand ,
the public funding ofbasic research has been downgraded relative
tothe financing ofpre-competitive applied R&D ,this reflecting
aparticular UK concern about the perceived difficulty of
translating British invention into innovation .
25See STRIDE report .
65

40
Duplication and Overlap
3.15 . Outlines ofthe situation ineach oftheMember States
aregiven inthe short synopses that follow .More detail isto
befound inAnnex 12,which reflects the ongoing work within
CREST tocompare natipnal policies and identify potential areas
forcooperation .This process ,which isdiscussed further below
under Policy Coordination ,isnotyet complete .Itisalready
clear ,however ,that there areareas where duplication ofeffort
andoverlap doexist .Oneaimofsubsequent reports onthestate
ofscience andtechnology will betohighlight these areas .
Dual Use Technologies
3.16 . One difficult question in this context is the
difference among Member States inthe organisation ofR&D onso-
called "dual-use "technologies . The common features inthe
technological requirements of the defence and civil sectors
affect several key areas :sensor and signal /image processing ,
complex system design and information processing ,man-machine
interfaces ,vehicle technology ,advanced design and manufacturing
technology ,electronics /microelectronics /optoelectronics /
bioelectronics ,communications ,advanced materials ,medical
technology ,electrical and mechanical engineering ,and energy
conversion .
The development ofthese dual-use technologies isfunded in
Europe through defence and/orcivil R&D programmes ,depending on
thecountry and thedegree ofresources devoted tomilitary R&D .
The need to improve coherence between civil and defense
programmes ,where they overlap ,inorder tooptimise theuse of
resources (manpower and financial )has been recognised at
national level (cf.3.13 above )andmechanisms are iimplemented in
the principal countries toavoid unnecessary duplication and
promote technology transfer from civil todefense andvice versa .
These efforts topromote theoptimal useofresources atnational
level arereasonably successful insome areas butmore remains to
bedone inother areas where duplications orbarriers to
technology transfer remain significant .
66

41
3.17 . However ,the most significant duplication arises not in
national programmes but between European countries . To the
extent that civil applications are taking the lead indriving the
development ofseveral dual-use technologies ,civil programmes to
promote European technological cooperation ,in particular
Community programmes and EUREKA contribute toamore efficient
use ofresources (seebelow )Their impact ishowever ,inevitably
limited ,given their size and scope .
Inthose technological fields which are more driven bydefence
applications ,much remains tobedone toestablish effective
cooperation between countries .
Another trend which isimportant indiscussing the harmonisation
of defence and civil research efforts to establish abroad
competitive technology base isthe escalation ofthe cost of
developing and producing military equipment . This has led
defence departments inEurope toreduce their support for some
dual-use technologies and to concentrate their resources on
military-specific developments (atrend observed inthe USA -cf .
Chapter II).
While this trend reduces the risk ofduplications between civil
and defence programmes ,italso implies that anadditional effort
byindustry orthrough civil programmes isneeded tomaintain a
broad competitive technology base inEurope .
67

BELGIUM
GROSS DOMESTIC PRODUCT (GDP ) :104.5 Billion ECU (atcurrent prices and
exchange rates )(1905 )
CROSS domestic EXPENDITURE forR&D (GERD ):1,542.6 HioECU (est.) (1905 )
GERD /GDP :1.48 X (est .) (1985 )
NATIONAL BUDGET :49,112 Mio ECU (1986 )
R&D BUDGET :652.6 Hio ECU (1986 )
R&D BUDGET /NATIONAL BUDGET :1.33 X(1986 )
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :N.A.
PERCENTAGE OFGERD financed bvindustry :N.A.
DEFENCE R&DASAV.OFTOTAL GOVERNEHENT APPROPRIATIONS :1.6 X (1986 )
RESPONSIBLE MINISTRY FOR S&T :Deputy Prime Minister ,Responsible for the
Budget and theScience Policy .
STRUCTURE of S&T POLICY :The coordination ofthe whole structure isthe
responsibility oftheScience Policy Office ("Services deProgrammation
de la Politique Scientif ique ")belonging tothe Prime Minister 's
Services .However ,asignificant portion of the "Science policy budget "
isthe direct responsibility ofthedifferent ministries .
NATIONAL PRIORITIES :
1.More concentration offunds onselected research topics :
informatics (Artificial intelligence ,software and
microelectronics );
biotechnology and biosciences ;
aerospace ;
new materials ;
télécommunications;'
oceanography .
2.Increased support for fundamental research and more cooperation
between university and industry ;
3.More incentives toindustry inorder toincrease its share (already
one ofthehighest inEurope :about 62 Xin1985 )intheoverall
funding ofR&D;
4.Maximum encouragement ofparticipation inCommunity and international
programmes .
TRENDS :The responsible government officials state that theratio
GERD /GDP should rise from about 1.5 Xtothe same level asNetherlands
(about 2.3 X)but after abudget .increase in1985 the overall funding
shows only marginal increases .
COMMENTS :The new federal structures ofthe Belgian State ,may lead toa
different share of the coordination of research among linguistic
communities ,regions andnational authorities .However ,atinternational
level the national authority should be totally responsible for
coordination .
nov .1988
68

DENNARK
GROSS DOHESTIC PRODUCT (GDP ) :76.4 Billion ECU (atcurrent prices and
exchange rates )(1905 )
GROSS domestic EXPENDITURE for R&D (GERD ):959.3 Mio ECU (1905 )
GERD /GDP :1.26 X (1905 )
NATIONAL BUDGET :32,730 Mio ECU (1906 )
R&D BUDGET :500.7 Mio ECU (1906 )
R&D BUDGET /NATIONAL BUDGET :1.55X(1906 )
PERCENTAGE OFGERD financed bvindustry :48.9 X (1905 )
DEFENCE HI DASAKOFTOTAL GOVERNMENT APPROPRIATIONS :0.4 X (1906 )
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :3.1 (1985 )
RESPONSIBLE MINISTRY FOR S&T :The Ministry ofEducation and Research and
the Ministry ofIndustry .
STRUCTURE ofS&T POLICY Each Ministry has responsibility for supporting
research related toits function .The Government 'sinternal co-ordination
of S&T policy isguided byitsNational Research Committee under the
chairmanship of the Minister ofEducation and Research and byits
Industrial Policy Committee chaired bythe Ministry ofIndustry .Both
ministries have advisory councils (the council forResearch Policy and
Planning and the Council of Technology ).The largest shares ofthe
national R&D are funded bytheMinistry ofEducation and Research (more
than 50X),the Ministry ofIndustry (about 25X).
NATIONAL PRIORITIES :S&Tisatoppriority policy area inthe mid -
1980 'sinDenmark .Three topics have been declared :
-Information Technology ;
-Material research ;
-Basic Biotechnical R&D.
Most Danish companies are SMEs and special Government effort isnecessary
to aid the dissemination of information on new technology and its
adoption .
TRENDS :Denmark ranks amongst the ECMember States which spend between
1Xand 2XoftheGDP forR&D .Since 1980 anincrease ofabout 8Xper
year has been registered .The Government 'splans provide for aGERD of
about 2.3 XofGDP for theyear 2000 .
COMMENTS :Danish research and technology rely onwide international
cooperation .About 5Xofthe national R&D resources are attributed to
participation in international cooperation .Including the ECR&D
programmes .Participation inNordic research cooperation isofimportance
toDenmark .
nov .1988

FEDERAI .REPUDLIC OFCERMANY
CROSS DOMESTIC PRODUCT (GDP ) :026.4 Uilliou ECU (atcurrent pricos and
oxchange rates )(1905 )
GROSS domestic EXPENDITURE For RS.D (GERD ):22,009.4 MioECU (1905 )
GERD /GDP :2.66 * (1985 )
NATIONAL BUDGET :238,935 Mio ECU (1986 )
R&D BUDGET :10,049 Mio ECU (1986 )
R&D BUDGET /NATIONAL BUDGET :4.20 X (1986 )
PERCENTAGE OFGERD financed bvindustry :60.9 X(1985 )
DEFENCE R&DASA’/.OFTOTAL GOVERNMENT APPROPRIATIONS :12.4 X (1986 )
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :4.0 (1983 )
RESPONSIBLE MINISTRY FOR S&T :
The Federal Ministry for Research and Technology (BMFT )and the
Ministries ofthe Lander Governments .
STRUCTURE ofS&T POLICY :
TheFederal and the Lander Governments attach importance tothe freedom
ofresearch and theprinciples of "subsidiary funding ".The Lander have
mainly the responsibility for R&Dintheuniversities (about 13Xof
1987 total R&D);the Federal Government isresponsible for non -
university R&D (about 24 Xof 1987 total ).The funding ofthe
supporting bodies (DFG ,MPG ,FhG )and thenational research centres is
shared between the Federal and the Lander Governments .The Government
believes that inafree-market economy the primary responsibility for R&D
isthat ofindustry (61Xofthe 1987 total R&D).Further strengthening
ofperformance and private initiative will beassisted bytax incentives
which will beprovided within the 1990 tax reform .
NATIONAL PRIORITIES :
Increased promotion ofbasic research ,strengthening ofresearch with
long term prospects ,and expansion ofpreventive research (ecology ,
health ,climate );
Promotion of industrial research in the area ofmarket oriented
technologies ;
Improvement ofthebasic conditions for innovation inSMEs .
More specifically :the completion of the Airbus family ;information
technology ;materials research ;biotechnology ;selected physical
technologies (laser ,thin-film );regenerative energy technologies .
TRENDS :
National R&Dexpenditure increased between 1973 and 1987 from 2.1 Xto
2.7 XofGDP .The business sector 'scontribution toglobal R&D
expenditure increased from 56Xin1981 to61Xin1987 and isfarthe
highest among the ECHetnber States .
COMMENTS :
International cooperation hasahigh priority intheS6Tpolicy oftheFR
Germany .About 8.2 Xof the Federal Government R&D expenditure was
committed tointernational organisations in1987 .
nov .1988
70

GREECE
CROSS DOHHSTIC PRODUCT (GDP ) :42.0 Uilliou ECU (atcarrent prices and
exchange rates )(1905 )
GROSS domestic EXPENDITURE for R&D (GERD ):140.9 Mio ECU (1905 )
CERD /GDP :0.35 X (1985 )
|NATIONAL BUDGET :14,763 MioECU (1986 )
iR&DBUDGET :99.5 MioECU (1986 )
R&D BUDGET /NATIONAL BUDGET :0.67 X (1986 )
PERCENTAGE OFGERD financed bvindustry :26.3 X (1985 )
DEFENCE R&DASAXOFTOTAL GOVERNMENT APPROPRIATIONS :2.7 X (1986 )
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :0.8 (1983 )
RESPONSIBLE MINISTRY FOR S&T :
General Secretariat ofResearch and Technology ,anautonomous body within
theMinistry ofIndustry ,Energy and Technology .
STRUCTURE ofS&T POLICY :
Each ministry isresponsible for its own research .The Ministry of
Industry ,Energy andTechnology finances 43Xofthe total R6DPublic
Expenditure and , the Ministry of Education 29.2 X. The G.S.R.T.
'coordinates the R&Defforts between the various ministries ,Research
Institutes ,sectoral companies ,Universities and International
Organizations .
NATIONAL PRIORITIES :
improvement ofthe role ofthe country in the international division
oflabour ;
establishment of institutional infrastructure for scientific and
technological development ;
production ofscientific and technological results ofquality ;
exploitation of research results and assimilation of technology
transfer ;
activation of applied and technological research forassimilation of
imported technology ;
making public opinion more aware importance ofresearch for economic
and social development .
Inthe new 1988-1992 National Plan ,high priority isgiven tosocial and
human sciences ,information technology ,biotechnology ,and development of
industrial research .
TRENDS :
GERD as apercentage ofGDP has increased steadily from 0.21 in1981 to
0.35 in1985 .The aim istoreach 0.65 in1992 .
COMMENTA :
Greek participation inthe EEC programmes has increased substantially
over the last years .
nov .1988

FRANCK
GROSS DOMESTIC PRODUCT (GDP ) :674.0 Hill LouECU (atcurrent prices and
exchange rates )(1905 )
GROSS domestic EXPENDITURE forR&D (GERO ):15,587.4 MioECU (1985 )
GERD /GDP :2.31 X(1905 )
NATIONAL BUDGET :162,565 Mio ECU (1986 )
R&D BUDGET :10,273.1 Mio ECU (1986 )
R&D BUDGET /NATIONAL BUDGET :6.34 X(1986 )
PERCENTAGE OFGERD financed bvindustry :41.4 X(1985 )
DEFENCE R&D ASAXOFTOTAL GOVERNMENT APPROPRIATIONS :32.5 X(1986 )
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :4.1 (1984 )
RESPONSIBLE MINISTRY FOR S&T :Under the new Government ,there isa
Ministry of Research and Technology (ministere delegue )who is
responsible forS&Tpolicy inFrance .Space policy isunder theMinistry
ofPost ,Telecommunications andSpace .
STRUCTURE ofS&TPOLICY :Inparallel orincooperation with theMinistry
ofResearch andTechnology ,other ministerial departments have also an
important role indirecting scientific and technical activities :the
Ministry ofNational Education ,ofIndustry ,ofDefence ,ofEconomy and
ofPTT .Despite some considerable efforts toregionalise research ,the
French S&T system iscentralized .
NATIONAL PRIORITIES :The first priority isthe further promotion and
development of industrial research .Priority will also begiven tothe
employment ofyoung researchers inorder tosolve theproblem inthe age
structure of the French scientific body ,and to training through
research .The priorities infields ofresearch are :
Technological Development programmes :nuclear energy ,space ,
aeronautics ,télécommunications ,electronuclear eguipments .
National Programmes :Biotechnology ,food industry ,medical research ,
human and social sciences ,production technology ,electronics ,natural
resources ,new materials ,new chemistry ,research fordevelopment ,
research ongeneral planning ofland-use and transport .
TRENDS :During recent years ,there hasbeen anincrease inR&D financing
aspercentage ofGDP from 2.01 Xin1981 to2.31 Xin1985 .Research has
been designated asanational priority for France .
COMMENTS :Inorder toencourage theprivate enterprises to start their
own research ,the government hasgiven several incentives (direct and
indirect aids )for the creation of research infrastructure within
enterprises andhiring ofresearchers byindustry .
nov .1988

Ï»PA IN
GROSS DOMESTIC PRODUCT (GDP ) :216.2 Hill ion KCU (atcurrent prices and
exchange rates )(1905 )
GROSS domestic EXPENDITURE for R&D (GERD ):1,144.4 Mio ECU (1985 )
GERD /GDP :0.53 X (1985 )
NATIONAL BUDGET :49.848 Mio ECU (1986 )
R&D BUDGET :801.7 Mio ECU (1906 )
R&D BUDGET /NATIONAL BUDGET :1.46 X (1986 )
PERCENTAGE OFGERD financed byindustry :49.1 X (1983 )
DEFENCE R&D ASAXOFTOTAL GOVERNMENT APPROPRIATIONS :4.8 X (1986 )
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :1.0 (1983 )
RESPONSIBLE MINISTRY FOR S&T :The interministerial Committee for Science
andTechnology composed ofrepresentatives from 9ministries involved in
research ,isthe official organism for the planning ,coordination and
follow upofnational S&T policy .
STRUCTURE ofS&T POLICY :The National Plan defines the framework for the
S&T activities ofthenine ministries involved inresearch ,whose work is
coordinated bythe interministerial committee .The Spanish Autonomies are
quite independent indeciding and implementing their own S&T policy .
Efforts have been made tocoordinate those efforts atnational level .
NATIONAL PRIORITIES :Priority sectors are :
Information andproduction technologies .
National resources and agro-industrial technology .
Quality oflife .
The priorities set by the national Plan are ,among others ,the
following :
improvement ofknowledge and progress in innovation and technological
development ;
conservation ,upgrading and optimal exploitation ofnatural resources ;
-development andstrengthening ofthecompetitive capacity ofindustry ,
trade ,agriculture and fisheries ;
strengthening ofnational defence ;
adaptation of Spanish society to the changes brought about by
scientific development and thenew objectives ;
improvement inquality ofeducation ;
encouragement of creativity ,the development anddissemination of
culture inall forms ;
improvement ofhealth ,social security and thequality oflife .
TRENDS :InSpain GERD asapercentage ofGDP has increased from 0.4 in
1981 to 0.53 in 1985 .The Spanish Government isdetermined toincrease
even further thenational R&D efforts to levels comparable with the
other advanced European countries .
COMHENTS :In1987 ,GERD isestimated tobe0.75 XofGDP .
nov .1988
73

IREI.ANI )
GROS SDOMESTIC PRODUCT (GDP ) :24.1 Billion ECU (atcurrent prices and
exchange rates )(1905 )
GROSS domestic EXPENDITURE forR&D (GERD ):192.4 Mio ECU (1985 )
GERD /GDP :0.80 X(1985 )
NATIONAL BUDGET :14,411 Mio ECU (.1986 )
R&D BUDGET :115.7 Mio ECU (1986 )
R&D BUDGET /NATIONAL BUDGET :0.80 X(1986 )
PERCENTAGE OF GERD financed byindustry :45.4 X(1985 )
DEFENCE R&DAS AXOFTOTAL GOVERNMENT APPROPRIATIONS :0.0 X(1986 )
NUMBER of RESEARCHERS PER 1000 LABOUR FORCE :2.8 (1984 )
RESPONSIBLE MINISTRY FOR S&T :
Ministry for Science and Technology operating within Department of
Industry and Commerce .
STRUCTURE ofS&T POLICY :
In1987 Irish S&T was considerably reorganised .Minister ofState for
Science and Technology was appointed and ageneral programme of
rationalisation of S&Tagencies undertaken .NBST and IIRS were merged to
form EOLAS
NATIONAL PRIORITIES :
Strategic Research Programme emphasises application -oriented research
and has identified Biotechnology ,Engineering ,Advanced Materials and
Information Technology aspriorities .
Policy aims toconcentrate national S&T effort on indigenous firms .The
South East Region -one ofweaker R&Dregions -hasbeen declared apilot
region for S&T related economic development .
TRENDS :
S&T hashad small budget increase in1987 despite widespread cuts inmost
other spending departments .Government expenditure onS&Tincreased in
real terms by1.4Xper annum average from 1981-1987 .All Irish S&T
expenditure iscivilian R&D .
S&Texpenditure hasdeclined inAgriculture andEnergy andincreased in
S&T for Manufacturing Sector .
COMMENT S:
Major S&T interests are strengthening indigenous industry S&T
participation and S/Tinfrastructure with the help ofECstructural
instruments .
nov .1988

ITAI.Y
CROSS DOMESTIC PRODUCT (GDP ) :473.0 Billion ECU (atcurrent prices and
exchange rates )(1905 )
GROSS domestic EXPENDITURE for R&D (GERP ):6,307.3 Mio ECU (1905 )
GERD /GDP :1.33 X (1905 )
NATIONAL BUDGET :275,537 Mio ECU (1986 )
R&D BUDGET :4,408.5 Mio ECU (1986 )
R&D BUDGET /NATIONAL BUDGET :1.60X (1986 )
PERCENTAGE OFGERD financed bvindustry :44.6 X(1985 )
DEFENCE R&DASAXOFTOTAL GOVERNMENT APPROPRIATIONS :8.5 X (1986 )
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :2.7 (1986 )
RESPONSIBLE MINISTRY FOR S&T :Ministry for S&T Research
STRUCTURE ofS&T POLICY :The Ministry for S&T Research will become
"Ministry for the University and S&T Research ",responsible for all
Government funded research .
NATIONAL PRIORITIES :
1)Increase inoverall funding of Government and private enterprises
since 1980 .
2)Emphasis and increased funds for research onnew technologies such
as :
-biotechnologies and fine chemicals ;
-information technologies ;
-neu materials ;
-nuclear fusion ;
-télécommunications ;
-optics and lasers ;
-advanced transport ;
-satellites and space crafts ;
-biomédical instruments .
3)Decrease infunds fornuclear R&Dfor the production of
electricity .
IRENDS :
The neu Ministry for University and S&T research should lead to
streamlining the uhole Government R&Dstructure and simplify the
administration ofGovernment research establishments .
Incentives (mainly fiscal )forprivate funded R&D.
-The ratio GERD /GDPuas 0.74 Xin1980 ;by1987 ituas about 1.40 X.
Increased European and international cooperation .
COMMENTS :Italian authorities wish to bring the ratio ofGERD /GDP to
same level ofItaly 'slargest European partners (France and UK)ina4or
5years .
nov .1988
75

LUXEMBOURG
GROSS DOMESTIC PRODUCT (GDP ) :4.7 Billion ECU Catcurrent prices and
exchange rates )(1985 )
GROSS domestic EXPENDITURE for R&D (GERD ):N.A.
GERD /GDP :N.A.
NATIONAL BUDGET :2,005 Mio ECU (1987 )
R&D BUDGET' :N.A.
R&D BUDGET /NATIONAL BUDGET :N.A.
PERCENTAGE OFGERD financed byindustry :N.A.
DEFENCE R&DASAXOFTOTAL GOVERNMENT APPROPRIATIONS :N.A.
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :N.A.
RESPONSIBLE MINISTRY FOR S&T : - .-
Ministry for national education and youth .
STRUCTURE ofS&T POLICY :
Interministerial Committee forcoordination ofResearch andTechnological
Development .
NATIONAL PRIORITIES :
Setting upGovernment structures andpublic research centres tocarry
out R&Dactivities with Government funds .
-Transfer ofresults of research ,gathered inpublic research
establishments ,toindustrial innovation .
TRENDS :
Anew law (March 1987 )will .initiate theestablishment ofacertain
number ,(upto.$-or 7)ofPublic Research Centres ;two centres are
already operational in1988 .
COMMENTS :
Luxembourg does notcollect atpresent data onR&Dexpenditure butwill
dosoprobably in1989 .R&Dactivities have been carried outuntil
recently exclusively inprivate industrial concerns ,this should change
with theestablishment ofthegovernment-funded public research centres
mentioned above .
nov .1988
76

PORTUGAL
GROSS DOMESTIC PRODUCT (GDP ) :27.3 Billion ECU (atcurrent prices and
exchange rates )(1985 )
GROSS domestic EXPENDITURE for R&D (GERD ):111.7 tlio ECU (1905 )
CERD /GDP :0.41 * (1985 )
NATIONAL BUDGET :8,801 Mio ECU (1986 )
R&D BUDGET :91.5 Mio ECU (1986 )
R&D BUDGET /NATIONAL BUDGET :1.0*X(1986 )
PERCENTAGE OFGERD financed bvindustry :30.8 X(1984 )
DEFENCE R&DASAXOFTOTAL GOVERNMENT APPROPRIATIONS :N.A.
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :0.8 (1984 )
RESPONSIBLE MINISTRY FOR S&T :
Ministry forPlanning and Territorial Administration .JNICT is themajor
planning ,policy and overall coordination body with responsibility for
preparation ofR&DBudget .
STRUCTURE ofS&T POLICY :
Since 1986 and the establishment ofthe Superior Council for Science and
Technology there has been major changes and much new investment inS&T .
NATIONAL PRTORITIES :
Priorities oftheGovernment programme (April 1987 )for R&Dare applied
research related tousers ,strengthening basic research inuniversities ,
promoting mobility inscience ,and developing joint mobilization
programmes between research and industry ,aswell asstrengthening public
sector S&T infrastructural capability .Hajor Sectoral Research Action
programmes are biotechnology ,robotics /microelectronics ,material
sciences and ,marine sciences .
TRENDS :
R&D expenditure in 1986 /87 doubled 1985 'sallocation with plans to
steadily increase itto reach 1 Xof GDP by 1990 .JNICT 'sbudget was
multiplied by4.5 .inthe last four years .
C0MMENTS :
Low level ofInternational R&DParticipation but set toincrease steadily
with EEC membership and priority given byGovernment .Amajor priority is
tostrengthen S&T infrastructure aswell aseducation and learning ofS/T
researchers .
nov .1988

THK NETIIERLANIJS
GROSS DOMESTIC PRODUCT (GDP ) :165.3 Billion ECU Catcurrent prices and
exchange rates )(1905 )
GROSS domestic EXPENDITURE FOR R&D (CERD ):3,492.6 Mio ECU (1905 )
GERD /GDP :2.11 Xin1905
NATIONAL BUDGET :70,599 Hio ECU (1986 )
R&D BUDGET :1,704.9 Mio ECU (1986 )
R&D BUDGET /NATIONAL BUDGET :2.40 X (1986 )
PERCENTAGE OFGERD financed bvindustry :50.2 X(1985 )
DEFENCE R&DASAXOFTOTAL GOVERNMENT APPROPRIATIONS :2.8 X (1986 )
NUMBER ofRESEARCHERS /PER 1000 LABOUR FORCE :3.7 (1983 )
RESPONSIBLE MINISTRY FOR S&T :TheMinistry ofEducation and Science and
the Ministry ofEconomic Affairs .
STRUCTURE ofS&T POLICY :Decision making isbased on abroadly
structured network ofadvisory bodies .S&TPolicy isprepared bythe
Council for Science and Technology Policy (RUT),chaired bythePrime
Minister within which the Minister of Education and Science acts as
coordinating minister for science policy and theMinister ofEconomic
Affairs ascoordinating minister fortechnology .Thepolicy ismarket -
oriented ,aiming toimprove competitive strength oftheDutch industry
via thebroadening ofthetechnology base ofthe industry ,improving the
quality ,the use ,and thediffusion oftechnology .
NATIONAL PRIORITIES :The dissemination ofknowledge via innovation
centres and major incentive schemes :
The Innovation Stimulation Scheme (INSTIR )provides grants forR&D
labour costs whether in-house orcontracted R6D.
TheTechnological Development Credit Scheme (TDC )offers support for
R&D onnew products ,processes ,and services oncondition that they
are technologically new and risky .
The SHE Business Research Programme (OMK )stimulates SMEs tocarry out
advanced R&D projects .
The Innovation-Oriented Programmes (IOPs )include among others :
Biotechnology ,Membrane Technology ,Technical Ceramics ,and IC
Technology .
TRENDS :National R&D expenditure increased between 1980 and 1988 from
2.03 Xto2.40 XofGDP .The business sector increased its contribution
toglobal R&D expenditure from 50.2 Xin1985 to55.3 Xin1988 .
COMMENTS :The "Internationalisation of Education and Research "isa
major issue intheDutch S&T policy .
nov .1988
78

UN ITHU KINGDOM
GROSSDOMESTIC PRODUCT tGDP ) :595.0 Billion ECU (atcurrent prices and
exchange rates )(1905 )
CROS Sdoniestic EXPENDITURE for R&D (CHRP ):13,037.6 flio ECU (1905 )
GERD /GDP :2.33 X (1985 )
NATIONAL BUDGET :223,312 Nio ECU
R&D BUDGET :6,786.8 Mio ECU (1986 )
R&D BUDGET /NATIONAL BUDGET :3.OAX(1986 )
PERCENTAGE OFGERD financed byindustry :46.1X(1985 )
DEFENCE R&DASAXOFTOTAL GOVERNMENT APPROPRIATIONS :50.9 X (1986 )
NUMBER ofRESEARCHERS PER 1000 LABOUR FORCE :N.A.
RESPONSIBLE MINISTRY FOR S&T : Cabinet Office has overall
responsibility reporting to Prime Minister but ministerial departments
have responsibility for own R&D.
STRUCTURE ofS&T POLICY :S&T structure has been strengthened into
central structure under Prime Minister ,with theAdvisory Council on
Science and Technology (ACOST )as expanded advisory body .The S&T
Assessments office assists Departments ,Research Councils and University
inR&Dexpenditure proposals .
NATIONAL PRIORITIES :Three main priorities have tobeconsidered atthe
national level :
1.maintain and enhance quality inS&T ;
2.increase social and economic return from S&T ;
3.improve management ,ensure greater concentration and selectivity of
S&T activities .
As regards sectoral research ,action programmes are developed by
individual ministries .
Government is conducting "searching review "of R&Dpriorities across
Government with emphasis oncontribution of Government funded R&Dto
efficiency ,competitiveness and innovative capacity .
Criteria revised in1987 fordistribution ofScience Budget .
1.Internal Funds -Timeliness and Pervasiveness .
2.External -Exploitability .Applicability and Significance for
Education .
3.Financial -Benefits and Costs /Affordability .
TRENDS :Overall level funding for 1987-89 committed with cuts indefence
research and small increases forResearch Council and University Grants
Committee .UKGovernment isdetermined tosecure greater Industry funding
ofR&D,and also toensure that Industry takes more responsibility for
R&D. Emphasis has shifted from project support tocollaborative
research .
COMMENTS :Main concern istoensure value for money inall research and
development ,international aswell asnational ,towhich UKGovernment
contributes .
nov .1988

42
(ii)EUROPEAN COOPERATION
3.18 . Examples ofcollaborative research ventures inEurope
can betraced back over many years . CERN (the European
Organisation for Nuclear Research )was established in1953 ;ESRO
(the European Space Research Organisation )and ELDO (theEuropean
Launcher Development Organisation ),which were later merged to
the European Space Agency (ESA )were set upin1962,the same
year asthe signature oftheAnglo-French Concorde project ;1970
saw the establishment ofAirbus Industrie .
3.19 . At the level of the European Community the first
collaboration incoal and steel research began in1955 ,this to
befollowed bycooperation onnuclear research under the Euratom
Treaty in1958 .Inthe aftermath ofthe doubling ofoil and
energy prices in1973 /74the Community 'sresearch efforts were
extended in 1974 into the non-nuclear energy fields ,the
environment and raw materials .--In1971 the first cooperation
within the COST framework was begun ,involving the Community and
other European countries ;COST remains animportant framework for
cooperation onspecific projects .
3.20 . But the 1980s have witnessed aqualitative and
quantitative development inCommunity activity ,characterised by
the introduction ofmore industry-oriented "second-generation "
R&D programmes ,medium-term resource planning for Community
research ,and Community level actions both upstream ofresearch
(inthe field ofeducation and training )and downstream support
for innovation .
Underpinning this cooperation now isthe political commitment of
the Community ,enshrined inthe Single European Act :
tostrengthen the scientific and technological basis of
European industry and toencourage ittobecome competitive
atthe international level ;
to encourage and support cooperative efforts between
industry and research centres and universities ;
and toadopt aFramework Programme asamedium-term planning
tool .
Bylaying down theobjectives ,priorities andexpected financial
requirements for the Community 'sactivities inthe fields ofRTD
and breaking itinto lines ofaction ,the Framework Programme
forms aguide for specific programme decisions .Another ofits
aims istofamiliarise scientific institutions and companies with
theresearch opportunities offered bytheCommunity inthemedium
term .
80

43
3.21 . The main elements inthe programme for 1987-1991 are
given inthe following table ,which illustrates the emphasis
given to information technologies ,telecommunications ,the
modernisation ofCommunity industry ,biotechnology ,marine
Science &Technology ,alongside the long-standing collaboration
innuclear fusion and fission and the environment .
3.22 . The largest single programme isnow ESPRIT ,which was
launched in 1984 with the aims of providing the European
information technology industry over the subseguent 10years with
the basic technologies required tomeet the competition ofthe
1990s ;encouraging industrial and university cooperation in
information technology ,and contributing tothe development of
internationally accepted standards .For its first five years the
ESPRIT programme had atotal budget of1500 MECU ,half ofit
funded by the Community ,and half bythe research partners
themselves .Inits second phase ESPRIT has abudget of
3.200 MECU ,again shared equally between the Community and the
research partners .The first phase ofthe programme concentrated
onpre-competitive research inmicro-electronics ,information
processing systems ,and application technologies such ascomputer
aided manufacturing systems .The new phase includes ,alongside
the application-orientation ,some emphasis onmore basic research
targetted onissues such asartificial intelligence .
3.23 .The second largest group ofindustry-oriented activities
aims atthe modernisation ofEuropean industry through the use of
advanced technology and the development ofnew materials .Here
the .BRITE programme isthe largest single element .BRITE was
launched in1985 asafour-year programme funded jointly bythe
Community (185 MECU )and research partners inuniversities or
industry .Building onits experience with the BRITE programme
and the related EURAM programme onadvanced materials (under
which together some 300 projects are being financed )the
Commission has recently submitted proposals for anew combined
programme for 1989-92 ,which isdesigned toattract SMEs in
particular and which ,itisestimated ,could generate projects
costing 1.000 million ECU .Most ofthe Community funding of440
MECU will beonapplied research ,but upto7%ofthe budget will
be made available for more fundamental work in areas where
industrial progress ishindered byweakness inbasic sciences .
3.24 . Athird element inthe Framework Programme which has a
specifically applied industrial orientation isRACE which is
designed toensure that the different telecommunication systems
and services now being developed inEurope remain consistent .
The specific aim ofthe RACE programme istoenable the Community
tomove towards integrated broadband communications based on
integrated digital networks inasystem able tohandle awide
81

Table 3.7 .
FRAMEWORK PROGRAMME OFCOMMUNITY ACTIVITIES INHIE FIELD OF
RESEARCH AND TECHNOLOGICAL DEVELOPMENT (1987-91 )
Breakdown of(heamount deemed necessary between (hevarious activities envisaged
million iX'U
1.Qualily oflife 373
1.1.Health SU
1.2.Radiation protection 3-)
1.3.Environment 261
2.Towards alarge market andaninformation andcommunications society 2275
2.1.Information technologies 1600
2.2.Télécommunications 550
2.3.New services ofcommon interest (including transport ) 125
3.Modernization ofindustrial sectors S45
3.1.Science and -technology formanufacturing industry -09
3.2.Science andtechnology ofadvanced materials 220
3:3.Raw materials andrecycling -5
3.4.Technical standards ,measurement methods andreference materials ISO
4.Exploitation andoptimum useofbiological resources 2S0
4.1.Biotechnoloey 120
4.2.Agro-industrial technologies '05
4.3.Competitiveness ofagriculture andmanagement ofagricultural resources 55
5.Energy 1173
5.1.Fission :nuclear safety --0
5.2.Controlled thermonuclear fusion 61!
5.3.Non-nuclear energies andrational useofenergy 122
6.Science andtechnology fordevelopment 80 SO
7.Exploitation of(heseabedanduseofmarine resources SO
7.1.Marine science andtcchnology 50
7.2 .Fisheries 30
8.(uiprovciiieut ofEuropcau S/Tcoopération 2SS
8.1 .Stimulation ,enhancement anduseofhuman resources ISO
8.2.Useofmajor installations 50
8.3.Forecasting andassessment andother back-up measures (including statistics ) 25
8.4 .Dissemination and utilization ofS/Tresearch results 55
5396 Total

44
range ofnew and conventional telecommunication services from
telephones to videophones ,cable TV,data transmission and
electronic mail . The RTD component will make an important
contribution tothe Community 'sdevelopment strategy for the
telecommunications sector asawhole ,which will beofgreat
importance tothe functioning ofthe internal market .
3.25 . Other sectors too now have asignificant applications -
oriented component .The Community 'sbiotechnology programme (BAP
-Biotechnology Action Programme ),notably covers anumber of
research fields relevant tothe needs ofindustry and agriculture
and iscomplemented byaprogramme ofprojects specifically for
the application ofbiotechnology toagro-industry .
3.26 . Alongside the part-funding of contract research in
these and other areas ofthe Framework Programme and the work of
the Community 'sown Joint Research Centre (which isitself now to
have amore industry-oriented vocation )the Community is
* promoting cooperation and exchanges of research
scientists among the Member States through the SCIENCE
programme (formerly called the STIMULATION programme )
* encouraging student mobility and cooperation between
higher education institutes inEurope through its ERASMUS
programme
* promoting strong and long-lasting partnerships between
enterprises and universities intraining ,notably inrespect
ofhigh technology (COMETT )
* promoting the effective dissemination ofthe results
from its research activities and contributing to their
application through the VALUE programme ;
* working towards the lowering oflanguage barriers to
the circulation of information through the EUROTRA
programme ;
* encouraging innovation through the SPRINT programme
which aims to create more favourable conditions for
innovation and technology transfer ingeneral ,aswell as
other sectoral programmes such asSTAR (telecommunications )
and VALOREN (energy technologies )which are specifically
oriented towards the needs ofthe less-developed regions of
Europe ;
* promoting the application of new information and
communication technologies in order to develop the
information services market ,through the IMPACT programme
and through sectoral programmes (AIM ,DRIVE ,DELTA ).
83

45
3.27 . The experience ofthe Framework Programme activities
both under thecurrent Programme andunder the first programme
(1984-87 )hasbeen overwhelmingly positive ,demonstrating areal
thirst forcross-border cooperation .Theenthusiasm generated by
theCommunity programmes intheindustrial andhigher -educational
worlds isindisputable .The ESPRIT and BRITE programmes ,in
particular ,have been massively oversubscribed ,with the
Commission and its Advisory Committees having toturn down for
support alarge number ofpotentially good projects .Thesame is
true ofprogrammes such asERASMUS ,which hasbeen oversubscribed
byafactor ofatleast three and COMETT (which in1987 received
applications for 120 MECU compared with available finance of16
MECU ).The clear evidence isthat theprovision ofaframework
encouraging cooperation and collaboration inEurope inthe
scientific 'and technological fields responds toawidely-felt
need ,particularly atatime when pressures onnational funding
have been growing .
3.28 . The experience ofthe EUREKA initiative also confirms
the growing interest inEuropean collaboration asameans of
improving Europe 'stechnological base andmaking themost ofthe
opportunities offered bythe Internal Market .
3.29 . Since EUREKA was launched in1985 ,213 cooperative
cross-border projects have been announced in the fields of
information -technology ,robotics ,biotechnology ,communications
eguipment and other high technology fields .These include ,most
notably ,^the High Definition Television Project ,amajor set of
projects inthe area offlexibl'e automated assembly (FAMOS ),as
well asprojects inthe transport and environmental research
field . The total EUREKA project portfolio has currently an
estimated value ofsome 3.8 milliard ECU ,which iseguivalent to
around 1milliard ECU per year (about half the level expected to
begenerated bythe Community programmes ); and already some 800
organisations -two-thirds ofthem industrial -are involved .
While some ofthese collaborative industrial projects ,which are
intended tobemore "downstream "than Community projects ,might
well have gone ahead even inthe absence ofthe EUREKA framework
itself ,the number ofprojects coming forward confirms the
growing industrial and university interest incollaboration and
cooperation .Inthe case ofEUREKA ,cooperation has the added
dimension of facilitating cooperation between companies and
institutes inCommunity Member States ,ontheonehand ,and those
inthe EFTA countries inparticular ,onthe other -around half
theEUREKA projects involve participants from each grouping 26.
More detailed information onthe trends inEUREKA and
inthe links between EUREKA and Community programmes
can be found in the Commission 's Communication
84

46
3.30 . EUREKA isanimportant complement tothe Community 's
own activities insupport ofthe objective ofimproving the
mastery ofnew technologies .The Commission plays afull role
inside EUREKA onbehalf ofthe Community inaneffort tomaximise
the synergy between the two groups ofresearch activity .Ithas
recently outlined ways inwhich cooperation between the Community
and EUREKA can bereinforced without prejudicing the operation oftheCommunity 'sownR&Dprogrammes themselves 27.
(iii )POLICY COORDINATION
3.31 . The Community programmes (currently about 1.000 million
ECU ayear )are small compared with the R&D budgets ofMember
States (over 35.000 MECU in1986 );and the total cost ofprojects
supported through the programmes isonly equivalent toabout 4%
oftotal estimated public and private spending oncivil research
(about 50milliard ECU per year ).Even ifall the other European
collaborative actions are taken into account -EUREKA ,COST ,ESA ,
CERN ,EMBL etc .-the bulk ofresearch continues tobefinanced
and carried out atnational level ,alarge share ofitthrough
the national budgets discussed earlier .Given the pressures on
resources and the risks of fragmentation and duplication of
effort ithas been recognised byEuropean governments that better
coordination of national policies is now required . That
recognition isreflected inArticle 130H ofthe Single European
Act which promises better coordination .
3.32 . There are anumber of factors which have constrained
coordination to date . These include :the different R&D
capacities among Member States ;the different balance between
civil and military R&D ;different patterns ofinvolvement bythe
public and private sectors ;different traditions in higher
education ;different sectoral priorities reflecting in part
specific economic and social concerns (eg .energy inItaly ,the
environment inGermany ).
Broad policy coordination isatpresent limited tothe exchange
ofbetter mutual information about programmes and policies under
way and exchanges ofviews among scientific advisors and experts
in the Advisory Committees of Community programmes ;while
specific coordination efforts are reflected inthe concerted
actions in the fields of medical research and the environment
COM(88)291 final of24June 1988 ,and inits report to
the Parliament of18July 1988 .
COM (88)291 final .
85

47
and ,together with other European countries ,within theframework
ofCOST .
3.33 . The pressures ofthe Internal Market will militate in
favour offurther policy coordination among Community Member
States through the need todevelop common standards ,the opening
upofpublic procurement ,thereguirements ofcompetition policy .
The framework for intergovernmental cooperation provided by
EUREKA will also push inthe same direction :intergovernmental
coordinating committees already exist for some ofthe larger
projects and aim toprovide aframework for dealing with the
problems of concerted Government actions which will be a
necessary corollary toresearch cooperation .But the degree of
coordination islikely toremain patchy unless the commitment
reflected in Article 130H of the Single European Act is
vigorously pursued .
The Commission attaches particular importance tothe ongoing work
within CREST designed tofacilitate an in-depth exchange of
information on national policies and thus tohelp identify
duplications and overlaps .Asnoted earlier ,itintends tofocus
particular attention onthis question inforthcoming reports on
the state ofscience and technology inEurope .
86

48
Agreat deal has already been done ,both atanational
and atransnational level ,totackle Europe 'sproblems .
The success ofthe Community 'sRTD programmes ,the
rapid development ofEUREKA ,other bilateral and multi ¬
lateral ventures inside Europe ,have demonstrated that
there isathirst for cooperation across national
frontiers and that itcan bemounted successfully ,des¬
pite the barriers ofcultural and linguistic
differences .
But policy coordination among the Member States ofthe
Community isstill weak and particular efforts are
needed toreduce the potential for duplication and overlap
innational efforts .Dual-use technologies pose
particular problems inthis respect .
87

49
IV RESEARCH ISSUES FOR THE FUTURE
4.1 . Three main challenges face the Community :
" toimprove its international competitiveness ,notably
inthe context ofthe completion ofthe Internal Market ;
* torespond tothe needs ofsociety byimproving the
quality oflife ;and
° toincrease its capacity topursue its own scientific
and technological options where necessary ,byreducing its
dependence onothers .
These three goals are interlinked .Byimproving competitiveness
the Community will create the wealth which makes iteasier to
tackle issues ofsocial concern .Technological independence ,on
the other hand ,islinked tolonger-term competitiveness ,with
fundamental research offering opportunities toincrease the scope
fordetermining ,rather than simply responding toeconomic change
inaninternational context .
4.2 . The organisation ofthis chapter reflects these three
concerns bydealing ,firstly ,with the research requirements to
improve competitiveness ;secondly ,with the areas where research
has aparticularly important contribution tomake inmeeting
Europe 'ssocial needs ;and thirdly ,with the scientific and
technological base offundamental research ,which provides the
essential underpinning and the seedcorn for the longer-term .
There are ,inevitably ,overlaps between and among these
categories .The most obvious isinthe case ofthe biological
sciences which will make significant economic and social
contributions (through their impact onindustry and agriculture ,
onthe one hand ,and inthe fields ofhealth and environment ,on
the other ), and where progress on specific questions of
fundamental research isessential ifmajor break-throughs are to
beachieved .The categories chosen ,however ,reflect the areas
where the most significant contributions can beexpected from
individual areas ofresearch .
4.3 . Under each heading the chapter considers the market
situation ,the research needs and action underway inEurope (in
industry ,atMember State level and ,where appropriate ,within
the framework ofthe European Community ).More details oneach
area ofresearch are given inthe annexes ,while the industrial
and services markets are analysed separately indepth inthe
"Panorama ofECIndustry "which isshortly tobepublished bythe
Commission .
88

50
4.4 . This isafirst analysis ofthe main research needs ,
which the Commission intends torefine during the coming months .
But italready reflects awealth ofinputs and advice from inside
and outside the Community institutions ;the main contributions
have already been indicated inthe Introduction tothe report .
Itwas not possible insuch ashort report tobeexhaustive .
The report concentrates onthe areas where the needs are most
clear .
IIMPROVING COMPETITIVENESS
4.5 . There isabroad consensus internationally onthe areas
oftechnology which are expected tobeimportant for industry and
the services over the period tothe end ofthe century :
Table 4.1 .
Emerging Technologies
Japan USA EC
Electronics Electronics Information
Technology
Software Engineering Automation New Materials
New Materials Computing Biotechnology
Biotechnology
BiomaterialsAdvanced Materials Energy
Medical Technology
Thin Layer Technology
Sources ÏThe Status of Emerging Technologies : An
Economic /Technological Assessment tothe year 2000 .US
Department ofCommerce ,June 1987
Trends and Themes inindustrial technologies ,MITI,1988
Panorama ofECIndustry 1989 (forthcoming publication
bythe ECCommission ).
4.6 . As underlined in Chapter I,the new groups of
technologies are not independent ofeach other .Lasers ,for
example ,which are developed from opto-electronics ,are used for
cutting and milling metals and plastics ,composites and ceramics .
Onthe other hand silicon and ,for the future ,superconductors
are materials onwhich improvement inelectronic components
89

51
depend ,while superconductors may modify significantly the way
energy istransported and stored .Some ofinterrelationships are
identified bythe concentric circles inTable 4.2 .
Specific research :needs inEurope can ,however ,beidentified in
five fields :
1.Information Technology and Telecommunications ,where
Europe has made substantial progress ,but where rapid
developments are occurring world-wide ;
2.Industrial Materials Technologies ,which are vital to
the success ofmanufacturing industry ;
3.Aeronautics ,where Europe faces aparticularly
important competitive challenge ;
»
4.Biological sciences ,which are the focus ofattention
world-wide and which offer the prospect of radical
improvements inagricultural and industrial production and
major commercial opportunities ,inaddition totheir impact
onmedicine and the environment ;
5.Energy ,where adeguate and secure supply atreasonable
cost and in an environmentally acceptable form is an
essential prereguisite tothe functioning ofthe European
economy .
1.INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS (Annex 1)
The Market Situation
4.7 . Europe 'sweaknesses inthis area ,especially inthe
information technology industry ,attracted great concern atthe
beginning ofthe 1980s .The European industry was characterised
byaflagging ITmarket ,low market shares ,low R&D and low
capital investments . Moreover ,the balance of trade in IT
products was negative ,amounting toadeficit of10.6 milliard US
dollars in1984 .
Concerted action was taken from 1984 onwards bythe European
companies torectify the position .These actions encouraged a
new dynamism inthe European industry and helped mobilise human ,
financial and technological resources which were supported by
collaborative programmes such asESPRIT .The fruits ofthese
combined efforts are just starting toappear :
Inaworld-wide market growing atmore than 15% yearly ,the
six main European companies have been growing ata25% p.a .
– Inthe European market ,the largest European companies have
90

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significantly increased their market share ,bringing it
close to50% from 33% in1983 .
Insoftware and services market ,the European companies are
holding afavourable position ,taking advantage of the
strong growth ofthe market demand .
European ITcompanies are now investing inR&D aproportion
oftheir sales that isvery close tothat ofUScompanies .
Nevertheless the needs for R&D in the IT field are
accelerating .
4.8 . Although the European Information Processing industry
seems onthe way toovercome some ofits traditional weaknesses ,
major problems still remain .These include :
The penetration ofEuropean Information Systems companies on
overseas markets isstill minimal (15to25% ofsales ).
The balance oftrade inITproducts has not improved .On
the contrary in1986 the trade 'deficit increased to13.4
billion USdollars .
The Electronic Components industry has not progressed in
Europe at the same rate ,making the Information Systems
industry and other user industries even more dependent on
foreign suppliers of ^critical and strategic components
(Table 4.3 .).
The situation issimilarly critical incertain types of
computer peripherals .These represent anever-increasing
share ofthe value ofInformation Systems .
Amajor weakness inEurope isthe lack oftrained personnel .
Table 4.3 .
Million ECUElectronic components -Main Trends
1980 -1987
EUR -12Electronic components -Main Trends
1980 -1987
EUR -12
1980 1985 1986 1987
Apparent
Consumption
Net Export
Earnings
Total Production6,083 13,125 13,117 n.a .
+1,246 +104 +498 n.a .
7,329 13,229 13,615 14,060
Source :Panorama ofECIndustry 1989
Note : Bycomparison ,the USA has acomponents market worth
more than 29milliard ECU in1986 ,and Japan 23milliard .
92

53
4.9 . The relative success insome areas of European IT
serves tohighlight the remaining problems .Continued action is
also required to consolidate the newly acquired competitive
positions .This means :
- ensuring the economic climate and boundary conditions which
allow full exploitation ofthe potential demand .
strengthening European technological capabilities inkey
areas .
4.10 . In the telecommunications sector the relatively
favourable situation ofEurope ,inindustrial ,technological and
commercial terms could bethreatened by:
the continuing weaknesses in the field of electronic
components ;
new technological and market challenges (digitalisation of
networks ,ISDN and broadband networks );
the spiralling costs ofR&D intelecommunications ;
the effects ofrapid changes inthe regulatory environment
world-wide .
Substantial efforts are therefore needed to secure and to
reinforce the present position of European industry and
telecommunications operators .
Research needs :Information Technology
4.11 . Further advances inthe field ofelectronic components
will lead ,for example ,toanincrease ofthe capacity ofmemory
chips beyond the present state ofthe art (1Mbit ). Progress
towards the objective of 64Mbit chips make itnecessary to
design circuitry for feature sizes below the level of0.5 micron .
This requires highly sophisticated design and production
techniques . The new technological approach ,combined with the
currently stronger industrial and technological position ofthe
European semiconductor companies ,should provide opportunities
for Europe tocome back into the race .Asignificant cross -
border collaborative effort inEurope isproposed under the Joint
European Submicron Silicon project (JESSI ),which aims todevelop
the design and manufacturing techniques needed for Europe to
change its competitive position vis-&-vis the USA and Japan .
This project will need appropriate support from companies and
public authorities .
93

54
4.12 . Atthe same time progress needs tobemade insoftware
and advanced information processing ,given the growing demand for
increased capabilities for computing ,for knowledge - (rather
than data -)processing ,and for enhanced user friendliness .
Key issues inthis context are :operating systems ;management
systems for data base ;parallel architectures which can provide
powerful computing capabilities (Europe has very good
capabilities inthis field );RISC architectures ,especially for
microprocessors .
The traditionally good technical position of Europe in the
software area isbeing reinforced bythe advances made through
some major cooperative projects developed in ESPRIT .Further
efforts are nevertheless required ifEurope wants tostay inthe
race :USA and Japan (especially through ambitious long term
projects such asTRON ,SIGMA ,5thGeneration ...) are making major
efforts inthis field .
4.13 . Peripherals will become increasingly important with the
development towards integrated systems .Research work onflat
panel displays and optical storage technologies isprogressing
fast ;but Europe 'ssituation israther weak and requires early
attention .
4.14 . At the same time as this applied research effort ,
however ,the fast-developing ITindustry isdemonstrating aneed
for more fundamental research incomputer services (tosolve
problems ofreliability ,safety and security );inprogramming
languages appropriate tothe expanding hardware facilities ;in
machine-learning ;inareas such asthe design ofautonomous
mobile robots ,cognitive engineering ,and specifically the
analysis and better design ofhuman -computer -work interactions .
4.15 . Finally ,there are major needs in the field of
prenormative research ,because ofthe increasing importance of
standards (and oftheir early definition ofstandards )inthe
context ofevolution towards the integration ofcomplex systems
designed for awide range ofnew applications (intelligent
banking and financial services ;advanced robotics ;multimedia
systems ;bioinformatics ;intelligent car and transportation
systems ;home automation ...).
Research Needs :Télécommunication Technologies
4.16 . The key issues intelecommunications are essentially
related tothe establishment ofbroadband networks ,equipment and
services ,which are expected tohappen from the mid-1990s onwards
(the present narrow-band ISDN network ,which will use
technologies already available , requires basically
standardisation work ).
94

55
Most technological developments are therefore generated by
demand pull ,linked toeach major component ofthe broadband
communication systems :
a)broadband infrastructures will carry information flows 1000
times more important than today .
This will require enhanced systems ofnetwork management using
the resources ofadvanced information processing and ofdata base
management systems .The USA are presently ahead inthese areas .
b)broadband equipment will develop according to three
technological stages allowing each time considerable gains of
speed ,of volume transmitted and received and of cost
effectiveness .These three stages will use :
VLSI electronic components for switching ;coding /decoding ;
network management .
The design and use of these components require strong
advances tobemade inthe field ofsoftware .Here Europe
isstill behind USand Japan ;
optoelectronic components which will allow better and
quicker interfaces with fibreoptics transmission ;
optical communication (operational after 2000 )which
implies :new materials for components ;new component
manufacturing technologies ;new software tools inorder to
control and manage considerable flows of information
transmitted at very high speed (coherent multichannel
techniques allowing multiplexing ofoptical channels onone
fibre byfrequency allocation ).
c) broadband services .
Their implementation requires substantial activity in :
service engineering techniques , (covering issues of
standardisation ,software ,expert systems ,data libraries ,
image processing ), in order to establish operational
services able tocombine data ,images and voice through
merging ofdata processing and telecommunications .The 3
main regions ofthe world seem tobeatthe same stage in
this field ;
appropriate exploitation oftechnologies through increased
activity test beds ,language customisation ofhardware and
software ,permanent feedback with the users ofnew services ,
inorder toprovide advanced /intelligent terminals for
specialised business use and for domestic use (by
combination ofPCs ,TVs ,hifi ....).
95

56
Research Needs :Application Technologies
4.17 . The convergence and maturing of information
technologies ,telecommunications and audio-visual services has
created conditions favourable tothe intensive exploitation of
the basic technologies ,adapting them tothe specific needs and
constraints ofdifferent categories ofusers (the business world ,
public administration ,social services ,individuals )inorder to
meet social and economic needs .
4.18 . The fields ofpotential application are very numerous :
health ,transport ,agriculture ,public administration ,education
and training .And the spread oftechnologies tobeused and
integrated inthis respect isbroad :personal computers ,optical
discs ,microprocessor cards ,new medical and educational imaging
techniques ,computer languages close toordinary human language ,
expert systems ,mobile telephones ,integrated digital services ,
broad band networks ,high definition television ,direct satellite
transmission ,etc....
The problem istocombine and integrate asfar aspossible the
broad range of technologies already available or under
development ;and to optimise their overall performance in
technological ,economic and social terms ,while avoiding the
risks caused bythe present proliferation ofindependent systems
which are conceived from particular ,and often exclusively
national perspectives . Avoidance of such risks requires
cooperative and concerted actions ataEuropean level among all
the actors concerned .
4.19 . InEurope there isaparticular need tomake use ofthe
opportunities offered byinformation technology tofacilitate the
flow of information across linguistic boundaries . This is
particularly important to the Community 's service and
distribution industries ,which currently represent 59% ofGDP and
60% ofemployment inEurope .Itwill beofincreasing relevance
inthe context ofthe completion ofthe Internal Market .The
current EUROTRA programme atCommunity level ,which began in
1982 ,has already produced asound basis for the creation ofa
European language industry .But new efforts are needed to:
(a)encourage industrial participation inthe development
work and knowledge transfer between universities and
industry ;
(b)exploit the results of research on artificial
intelligence ,voice and pattern recognition and expert
systems developed under programmes such asESPRIT . The
transformation of ongoing pre-competitive research into
industrial applications will lead toincreased outlets and
demand for normally "monolingual "natural language
processing technology such astext processors ,hyphenation ,
96

57
grammar and spelling checkers ,optical readers and the like ,
thus providing further impetus for the growth of the
information technology industry .
European Action inITand Télécommunications
4.20 . Assuring the necessary and most effective efforts on
R&D in these fields will require further encouragement and
coordination atEuropean level .Action isalready under way in
some areas .The second phase ofESPRIT isnow inoperation .And
in the field of sub-micron technology ,as noted above ,
discussions are inprogress between European manufacturers to
establish an appropriate framework for research (the JESSI
project );the Community will have arole toplay ascatalyst .
Within EUREKA ,information technology projects represent amajor
share of the project portfolio . Itwill be important to
capitalise onthe successful experience ofEuropean collaboration
in the information technology field and toensure the best
possible coordination between projects and programmes .
4.21 . As far asmore basic research on IT isconcerned ,
Europe isinadifferent position from its competitors .Inthe
USand particularly Japan ,such research islargely the preserve
ofindustry ;while inEurope industry has been more short -or
medium-term oriented .This isanarea where action ataEuropean
level can beofimmense value inencouraging the necessary work
tobecarried out inacooperative framework and inhelping to
commit industrial finance tothe projects .
2.INDUSTRIAL MATERIALS AND TECHNOLOGIES (Annex 2)
The Market Situation
4.22 . Industrial technologies support the design ,
engineering ,manufacture and operation ofproducts and processes .
They are inseparable from the materials which must bedeveloped ,
processed and finished tomeet the designer 'sintentions .
4.23 . The primary customer for industrial technologies and
materials ismanufacturing industry ,which currently provides
about 30% ofGNP inthe European Community ,and 75% ofthe
industrial work force ofsome 41million people .The Community
97

58
balance ofexternal trade inmanufactured goods -+15% in1987 -
ispositive .
Table 4.4 .
1981 (EC10)
1987 (EC12)
Source :ECTrade Balance inManufactured Goods
Milliard ECUs
Imports
171
252
EUR0STATExports
236
289Balance
+65
+37
Moreover ,some ofthe traditional sectors ofmanufacturing have
invested heavily innew technology inthe past few years :the
textile industry is the most telling example ,with great
confidence in the industry that the move towards computer -
integrated manufacturing islikely toreinforce its position on
world markets (the ECaccounts for 55% ofworld production ).
Despite the improving position inmany areas ,however ,Western
Europe suffers from structural weaknesses ,namely aninadeguate
capacity to respond to growing demand in some of the more
developed markets -particularly those where the economies of
scale are largest ,such as transport equipment ,machinery ,
instrument manufacturing ,paper and printing .
4.24 . Successful manufacturers are seeking increasingly to
capture the top end ofthe market bynew and improved products ,
usually with ahigher technology content inthe product itself or
in its means ofmanufacture . The potential for increased
productivity and flexibility is particularly great in the
"mature "industries (such astextiles ,clothing ,motor vehicles
and food aswell astextiles ). Improving the situation depends
heavily onthe further diffusion and application ofavailable
technologies bythese industries .Italso depends ,however ,on
advances inthe technologies themselves and inexploiting the
possibilities that they offer . Progress inR&D istherefore
fundamental tolong-term success .Here Europe ishampered bythe
low level ofindustrial RS.D compared with that ofthe USand
Japan (apoint underlined inChapter IIand III ).
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59
Research Needs
4.25 . Particular areas that require renewed research efforts
are :
* the development oftechnologies toimprove product and
process quality and reliability . Ensuring quality and
reliability can typically cost 5-25% ofcompany turnover ,
and for one Member State has been estimated to cost the
equivalent of 10% ofGNP . Significant improvements are
possible through successful R&D on optical engineering ,
sensors ,power control engineering and through the use of
modelling inareas such asthe filling ofcomplex injection
moulds ,particle formation inatomisers ,positioning of
sensors for monitoring ,or the design of composite
materials ;
° techniques for shaping ,joining and assembly ,and for
surface treatment .The prevention ofcorrosion ,which is
estimated tocost 4%ofGNP inindustrialised countries ,
makes progress insurface treatment potentially ofreal
economic significance ;
’ catalysts and membranes .Progress inthe understanding
of catalysis could lead ,in particular ,to cleaner
production through higher specificity ;while the world
market for membranes (currently estimated at400MECU /year )
islikely togrow significantly asnew applications are
identified ;
* powder technology . This is alarge and high-value
market (about 2milliard ECU/year inUSA ,half asbig in
Europe and Japan ). While steel ,semi-finished powder and
metallurgical components can bevalued atbetween 20-50
ECU/kilo ,ceramic powder parts can cost 2.000 ECU/kilo .
International competition isparticularly strong ,driven in
part by the requirements and spin-cffs ,such asvacuum
technology ,from the space programmes ;
* other high-value materials ,such as metal matrix
composites (already being developed for ceramic -reinforced
light alloy pistons )and anisotropic materials using various
strengthening techniques such as particles or fibre
reinforcement ;
* superconducting materials .
In information and communication technology the further
development of superconducting materials could lead to
qualitative breakthroughs (byminimising heating ),aswell
asprogress intechnologies based onmagnetism (eg .fast
switching devices ,nuclear magnetic resonance for medical
diagnosis ,controlled nuclear fusion ). And ifeconomic
99

60
devices carrying high current densities could bebuilt ,long
distance electricity distribution networks and magnetic
superfast trains would acguire amore practical dimension .
Some very fundamental aspects of superconductivity ,however ,are
not yet understood and the prospects for development ofhigh
current density devices are still uncertain . InJapan around
one-third of the research effort isdevoted towork onthese
issues .
InEurope ,where some ofthe seminal discoveries were first made ,
reactions tothe explosion ofinterest inthe field was rapid
(the ECCommission convened the first group ofinterested experts
inJune 1987 ). But interms ofresources made available the
European response was much weaker than inthe USA and Japan .
In order to match the financial ,technological and human
resources made available by competitors ,systematic joint
European action isneeded .
4.26 . Inaddition toresearch ontechnologies and materials
themselves there isagrowing need ,inthe context ofthe 1992
market ,toensure that there isanadequate research base for the
development of common norms and standards in the field of
industrial technologies and materials ,including notably in
respect oflasers ,membranes ,new materials ingeneral ,fracture
mechanics ,construction materials and production technologies .
This is in addition to the preparatory work on IT and
telecommunications standards referred toearlier .
European Action
4.27 . It is important that industry itself should be
encouraged toinvest more inthe R&D that isrequired inthe
areas outlined above . National authorities clearly have an
important role to play in providing the right framework
conditions . Community cost-sharing programmes are also of
significance . The very high rate of subscription to the
Community programmes (onaverage there are 5times more good
proposals than can be funded under the present conditions )
indicates that European industrialists increasingly recognise the
need for R&D and are ready toparticipate and contribute with
company funds toatleast half the cost ofCommunity-managed pre-
competitive R&D onindustrial technologies and materials .Anew
programme ofCommunity support for industrial technologies and
materials has recently been proposed tothe Council ,which aims
toprovide aEuropean dimension and toact asacatalyst tothe
research discussed above . Asnoted above ,aspecific effort
within Europe isneeded onsuperconducting materials .
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61
4.28 . Providing and stimulating financial commitment by
industry isnot ,however ,ofitself sufficient tomaximise the
benefits ofR&D .Two other things are also required ,which would
benefit from aEuropean dimension :
* action needs tobetaken toimprove the availability of
skilled research managers inindustry .Itcould beuseful
toexamine further what action inthe field oftraining
might beappropriate ataEuropean level ,whether inside or
outside the Community framework ;
* top management of industry as well as research
managers ,must bemore directly involved inR&D projects ,
which ought to be closely integrated in corporate
strategies .The independent panel which recently evaluated
the BRITE programme has made such arecommendation in
respect of projects financed under the Community 'sown
programmes .The positive results ofsuch involvement have
already been witnessed inthe case ofthe ESPRIT programme
and inthe preparation ofthe Commission 'sproposal inthe
aeronautics field .
3.AERONAUTICS (Annex 3)
The Market Situation
4.29 . During the period 1980-86 the European aeronautics
industry captured 23% ofthe civil and 27% ofthe military world
market .The world market isexpected toexpand substantially up
tothe end ofthe century and increasing competition tocapture
itmust beexpected ,not only from the USA but also from Japan
and industrialising countries such asKorea and Brazil .The US
industry remains inaparticularly favourable position ,however ,
because itenjoys alarge home market and itbenefits from the
spin-off from military R&D programmes .
The Challenge for Research
4.30 . The aeronautical industry depends heavily onadvanced
technology toensure competitiveness ,incorporating progress in
aeronautics ,the design of complex structure and advanced
materials ,electronics ,etc as well as the design and
implementation ofnew manufacturing methods .The development of
these technologies requires along-term strategic approach ,while
their application necessitates abroad industrial base .
101

MECUSCENARIO OFFUTURE EUROPEAN AIRCRAFT
RESEARCH &TECHNOLOGY NEEDS
1000_ rl~–:-----
800 _ _ -
600 _ /
I–- 1- 1- 1 I
1980 85 1990 95 2000 05 20Ю1000-.
AERODYNAMICS
STRUCTURES &
MATERIALS
AIRBORNE SYSTEMS
EOUIPMENT &
COMPUTATION
PROPULSION INTEGRATION
&ACOUSTICS
DESIGN &
MANUFACTURING
TECHNOLOGY
OPERATlONAL SYSTEMS100 %
80
60
40
20
0
1988
O
ro(Source :EUROMART Study )AIRCRAFT CATEGORY
BREAKDOWN INYEAR
2010
COMMERCIAL
TRANSPORT
COMMUTER
GENERAL AVIATION
VSTOL
HIGH SPEED
TRANSPORT •
MILITARY
•ASSUME 50%OFSST .25% OFHSTH
Ù)
O"
«

62
European Action
4.31 . IfEurope istobeable tomeet the challenge inan
increasingly competitive environment a broadly-based
transnational collaborative effort inR&D isnow reguired (Table
4.5.). The Commission has recently proposed apilot programme at
European level . This would provide afirm foundation for
cooperation between the European aeronautical industries ,and
between them ,universities ,national research centres and SMEs .
Itwould also enable specific urgent research projects tobe
tackled right away .The scope ofthe programme isdiscussed
further inthe annex .The main technology areas identified for
the pilot phase are : aerodynamics and flight mechanics ,
materials , acoustics , computation , airborne systems and
equipment ,propulsion integration and design and manufacturing
technologies (Table 4.5.). Special attention will bepaid to
safety and environmental aspects ,aswell ascommon norms and
standards .
4.LIFE SCIENCES AND TECHNOLOGIES (Annex 4)
4.32 . Developments inthe life-sciences open uppossibilities
that straddle the concerns ofeconomic success and social need ;
ranging from improvements in agricultural and industrial
productivity that are environmentally "clean ";toprogress in
pharmaceuticals ,chemistry and medical science ;to improved
understanding of the brain ,with implications not just for
medical science but for the design ofcomputers ;tonew knowledge
about the mechanism ofevolution itself .Their major economic
contribution could be to shorten production processes and
increase efficiency inthe pharmaceuticals industry ;tospeed up
the development ofnew strains ofplants (ittook 50years from
1930-1980 toincrease the yield ofcorn by70% through along
process ofgenetic selection ;the same improvement could now be
obtained inafew years orless );and todevelop and produce
products innew ways (computers built with biological components
may beable todeliver vastly higher performances than current
technology allows ).
For convenience ,the issues for research discussed below are
treated predominantly inthe context ofEurope 'seconomic needs ,
with medical research alone dealt with separately inthe context
ofthe needs ofEuropean society .But itshould beremembered ,
for example ,that genome analysis ,which isdiscussed below ,will
beofmajor significance inthe context ofmedical diagnosis and
therapy aswell as inbio-industries and agriculture ;while
certain aspects ofmedical research (medical instrumentation )are
ofrelevance inthe context ofcompetitiveness and technological
independence .
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63
The Market Prospects
4.33 . Inboth the USA and Japan biology and its applications
have been identified asfields ofmajor potential significance to
industry over the period tothe end ofthe century ;and there is
awidespread expectation of arapid growth world-wide of
application technologies (cfChapter I),although determination
offuture market size and timing isparticularly difficult .A
cooperative analysis of11market forecasts to2000 undertaken in
1984 showed arange ofbetween 9milliard dollars for the least
optimistic and over 100 milliard dollars for the mostoptimistic^® . The uncertainties have not changed inthe
meantime , although there is a broad consensus that
pharmaceuticals ,agriculture and food-processing offer the
greatest market opportunities .One reason for the difficulty is
the pervasive nature ofthe potential application ofbiological
research ;another isthe speed ofchange inthis field ,which has
been made possible bythe development ofinstrumentation based on
advanced physics ,chemistry ,informatics and mathematics .
Research Needs
4.34 . Europe has pioneered many of the most important
developments inthe life sciences ,from the discovery ofthe
"double helix "tomonoclonal antibodies and receptor-targetted
pharmacology ; from biological application of physical
spectroscopy to the crystallographic study of the three
dimensional structure ofnucleic acids and proteins including ,
quite recently ,those associated with membranes ;from the
regulation ofgene expression togenome structure and predictive
medicine .
Inspite ofitsmany achievements ,however ,Europe isinferior to
America inbreadth and depth ofcoverage and inthe capacity to
expand rapidly innew fields and toexploit the results in
industry .
4.35 . Inseveral areas ofbiology ,Europeans have found it
useful tocomplement existing collaboration with the rest ofthe
world (and especially with the USA )byimproved collaboration
among themselves .The European Molecular Biology Organisation
and the European Molecular Biology Laboratory ,aswell asthe
Basel Institute of Immunology are particularly significant
examples .
High Technology Industries ,Profit and Outlooks
Biotechnology ,USDepartment ofCommerce ,International
Trade Administration ,Washington DC1984 .
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64
4.36 . Taking into account the ongoing and planned activities
ofthese organisations and suggestions made bythe authorities of
some Member States and byuniversity and industry researchers ,4
areas ofresearch merit particular attention inEurope :
- basic plant biology
- the molecular investigation ofthe genomes ofcomplex
organisms
- neuroscience ,and
- biotechnology based agro-industrial research and
technology development .
Basic plant biology
4.37 . The new tools associated with progress in modern
genetics and biotechnology now make possible adiversity of
potential applications for the improvement ofcrop sciences ,for
environmentally safe land use and disease control methods .But
ithas become apparent world-wide that the bottleneck toprogress
lies less inthe absence ofadequate application technologies ,
and more in large gaps in our basic understanding ofkey
structures and functions within plants .European biotechnology
has now reached astage where the ability tomanipulate plant
genes ,largely established bypioneering laboratories inseveral
Member States ,has outstripped the knowledge ofmany underlying
biological functions and metabolic properties .
4.38 . Inorder tomake significant advances inbiotechnology ,
itistherefore essential togoback tothe investigation of
plant physiology ,using all the new tools developed formolecular
investigation . Ifmajor efforts are made ,itmay bepossible
within 5-10 years to identify ,for example ,the "quality "
molecules ofmany plants -those associated with innocuity ,
flavour ,nutritional value ,and texture . If they can be
identified ,their synthesis controlled ,the "quality "molecules
would make areal difference to agricultural production ,
providing the basis for abetter balance between high quality and
low quality crops . Atthe same time itwill beeasier to
establish abetter balance between "bio-natural "and chemical
practices inagriculture ,enabling increased production tobe
based' onbiological supply ofchemical fertilizers and pestides .
Finally ,better understanding of basic biology would enable
closer monitoring ofthe interactions ofcrop plants with other
species ,which would permit better ecological monitoring ofland
use .
This work isofparticular importance inaglobal context .In
order tofeed aworld population ,which could beashigh as
10.000 million in50-60 years time ,without atthe same time
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65
increasing thegreenhouse effect ,newmethods offood production
will beneeded .Efforts must bestepped upnow toprovide a
solution tothe problems that will face Europe and the rest of
theworld inthe longer-term future .
4.39 . Amajor effort inthis field would beatthe crossroads
between molecular biology ,physiology and genetics . Such a
multidisciplinary approach requires elaborate integration ofwork
programmes which could beachieved atthe desired level of
excellence only through coordinated transnational action .
Genome Analysis
4.40 . Each of the 10trillion cells inthe human body
contains about 100.000 individual genes .The sum total ofthese
genes corresponds to what is known as the human genome .
Knowledge ofthe human genome isasnecessary tothe continuing
process ofmedicine asknowledge ofhuman anatomy has been for
the present state ofmedicine .The major diseases which affect
human beings all have genetic components ;and many diseases
result directly from one ormore defective genes .Understanding
the entire genome sequence would allow amore rapid
identification of these disorders and anaccurate detection of
hereditary predispositions . Inthe field ofagriculture and
industry the molecular investigation_of important microbial plant
arid animal species isanessential complement tothework needed
onbasic plant biology discussed above . . .
4.41 . The necessary research work iscomplex .Itconsists of
several phases ,involving respectively the detailed and physical
mapping ofgenomes ,'the development ofautomated techniques for
large-scale cloning and sequencing ,and finally ,the sequencing
itself .
4.42 . The importance of this field has been recognised
outside the Community .InJapan amajor effort isbeing made on
the automation ofmapping and sequencing techniques ;while the
USA are setting aside $3.5bn forwork onthehuman genome during
the next 10years .
4.43 . Europe has many ofthe skills and resources tomake a
major contribution tothe international efforts oncomplex genome
analysis .Already some actions areunder way atanational level
(France ,UK,Germany ,Italy ).However ,even thelargest European
country cannot work onits own inthis costly endeavour .The
Community assuch already hasexperience inthe field ofgenome
106

бб
analysis (the Community BAP programme has involved some 24
laboratories inthe sequencing ofone yeast chromosome ). Other
discrete steps have been taken using existing programmes ornew
proposals under the Framework Programme , to organise
transnational research onsmall-scale sequencing projects ;and
new efforts will be made under the Predictive Medicine
initiative .Given the cost and complexity ofgenome analysis ,
further work inEurope requires transnational effort .
Neurosciences
4.44 . The past few decades have seen ■an explosion in
knowledge ofthe nervous system .Inthe past many disciplines
such as medical science ,physics ,chemistry ,and molecular
biology studied the nervous system inisolation from each other .
But neuroscience today isanalliance ofdisciplines applied to
this most complex branch ofthe life sciences .
4.45 . Even with the considerable amount of information
already accumulated onwhat the brain ismade of,what itlooks
like and how its elements behave ,the really big questions about ,
for example ,how man remembers ,feels and carries out voluntary
movements ,remain unanswered .
4.46 . The applications ofknowledge inthis field gobeyond
pharmacology ,psychology ,psychiatry and medicine . The
neurosciences are increasingly interesting also in terms of
information theory and technology .The brain has capacities for
information storage and processing ,including plasticity ,
adaptivity ,learning and creative association which cannot be
matched by the best computers available at present .
Mathematicians ,physicists and biologists hope tobuild computer
models that gomuch further than today inmimicking some ofthe
skills ofreal brains .
4.47 . Tothat end ,and toensure atimely and original first
European contribution to this rapidly developing field ,the
Commission launched the BRAIN initiative onadaptive intelligence
and neuro computing .
This latter initiative needs tobefollowed byother action ata
European level topool resources and complementary skills .
Industrial and agro-industrial applications
4.48 . The European pharmaceutical industry has enjoyed rapid
growth inthe 1980s ,with production almost doubling between 1980
and 1987 and imports low .But itnow faces anumber ofproblems .
107

67
These include the high cost (around 100 million ECU )of
developing and bringing tothe market anew product orchemical
entity (NCE );the short period ofexclusiveness granted under
existing patent protection legislation (ittakes usually over 10
years from the time ofpatent application until amarketing
authorisation isobtained );and increasing competition from the
USand Japanese industries .European research isstill highly
effective but the results achieved inJapan inparticular (19
NCEs out of56introduced in1987 )demonstrate that aredoubling
ofeffort isrequired and more investment isessential .
4.49 . There isalso aneed for further efforts inthe agro ¬
industrial field ,where the Commission has already made proposals
for action atCommunity level .These are described more fully in
the annex .
The funds estimated necessary for the programme proposed onagro ¬
industrial research (ECLAIR )are limited (80MECU for 5years ).
They allow areasonable start ,but -ifsuccessful -they are
likely toneed expansion inthe coming years tomeet the expected
needs . Industry has suggested' ,moreover ,that the currently
proposed programme onimproved food technology (FLAIR -25MECU
over 5years )should becomplemented byanaction atEuropean
level to stimulate research on nutrition . Anew look at
nutrition isdesirable given the importance ofthe nutritional
aspects of health and the possibilities offered by new
technologies for food production .This "new nutrition "isbeing
pursued inthe USA and Japan inparticular . InEurope the
implications for transfrontier trade infood products ,for the
CAP ,and the need for common standards would need to be
considered .
5.ENERGY (Annexes 5+6 )
The Market Requirements
4.50 . Anadequate supply ofenergy atreasonable cost inthe
right place atthe right time isfundamental tothe proper
functioning of industry ,commerce and transport and to the
satisfaction ofhuman needs for -heating ,cooking and travel .
Technologies that supply energy ,aswell asthose that ensure its
most efficient use are truly "enabling "technologies ,without
which our economies and societies would rapidly break down .
4.51 . The future energy needs ofthe European Community upto
the end ofthe century and alternative ways tosatisfy them have
been extensively analysed bythe services ofthe Commission with
the help ofnational experts and the modelling tools developed
under ,jtheCommunity 'snon-nuclear energy R&Dprogramme .The
108

68
range ofscenarios they present are agood starting point to
identify research needs .
Table 4.6 .
Scenarios for Community energy needs in2000 a.d .
Mtoe EUR -10
Primary energy demand
Solid Fuels
Oil
Gas
Nuclear
Hydro ,Geothermal ,Solar ,etc .2000 a.d . 1985
1036 -1218 942
229 -309 218
430 -539 413
196 -256 182
150 -235 116
21 22 12
Source : Energy 2000 ,CEC 1986 .
The range offigures reflects uncertainties about future economic
growth ,the future price ofoil ,emission controls ,the size of
nuclear power programmes inindividual Member States and progress
indevelopment and use ofnew and renewable energies .
All the scenarios point toagrowing demand for electricity ,
which could rise toasmuch as20% ofthe energy used bythe
final consumer in2000 ,compared with around 15% today .Beyond
2000 too the demand for electricity isexpected togrow more
quickly than other fuels .
4.52 . The broad conclusions from this analysis -supported by
national studies and those of majbr energy companies ,and
reflected inthe Community 'sagreed energy objectives to1995 -
are infavour ofdiversification ofEuropean supply and increased
efficiency ofenergy use asmeans toensure energy and economic
security .
The close relationship between energy production and use and the
environment add afurther and compelling argument infavour of
diversification .Inorder tominimise the negative environmental
effects ofeach energy source itisimportant tohave access to
several solutions .
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69
Research Needs
4.53 . Many ofthe technologies are available now ;some will
only beavailable inthe longer-term as aresult ofmajor
research efforts .Those efforts ,which insome cases will not
bear fruits for 10-20 years oreven longer ,must not beweakened
orabandoned simply because the price ofoil inthe short-term
has dropped toless than half its value inthe early 1980s .
Inthe past few years there has been some reduction inof
expenditure onenergy asawhole inside and outside Europe .This
applies particularly toresearch onnew and renewable energies
and on fast breeder reactors as well as fossil-fuel based
technologies .Expenditure onnuclear fission research continues
tobethe largest element inpublic expenditure onR&D asawhole
(Table 4.7 .).
4.54 . The reduction in support for energy R&D reflects
progress accomplished since major programmes were launched inthe
aftermath ofthe 1973-74 "oil crisis ";problems encountered in
bringing some projects tosuccessful technological orcommercial
development ;and shifts ofpriority inpublicly-financed research
away from energy and towards information and industrial
technologies .There remain areas where asignificant level of
effort needs to be maintained because of their longer-term
potential for providing environmentally benign and independent
sources ofenergy supply and use inEurope .This isparticularly
the case ofcontrolled nuclear fusion and for carefully targetted
actions inthe field ofnon-nuclear energies .Asfar asnuclear
fission energy isconcerned the main needs lie more inthe field
ofpublic acceptability rather than inproduction technology
itself . The issue ofacceptability and safety isdiscussed
separately inpart 2ofthis chapter .
Controlled nuclear fusion
4.55 . Nuclear fusion should provide ultimately an
environmentally acceptable , practically inexhaustible ,
geographically independent source of energy . The economic
aspects are impossible todefine precisely atthe present stage ,
but will need tobeperiodically monitored asthe fusion and
long-term energy scenarios become better known . The
environmental aspects will also deserve continuous study as
fusion programmes approach the technological stage .
4.56 . Fusion research is already a major European
collaborative venture under Community auspices .This long-term
project ,embracing all the work carried out inthe Member States ,
isdesigned tolead indue course tothe joint construction of
prototype reactors with aview totheir industrial production and
110

MARKET REQUIREMENTS FORENERGY TECHNOLOGIES INDIFFERENT TIME SCALES
Upto2000 Between 2000 and 2020 After 2020
Rational Use of
energyEnergy conservation
combuand
Stic
“ΤΠΓenergy usetechnologies
intechnologies(DU
 *ildings ,industry ,transpo rt)
 
Electricity Storage Conversion and 1
* .ransportation
* *  
Oil Explorati on-Exploi tat.
   assisted extraction
*** **
Gas Exploration
* conversion into liquic
fuel e.g .alcohols etal
  *·  *
Coal improved
-exploitation andus
-fluidised bed combues
St .-Coal gasification
-Combined cycles -
electricity generati on
 *MHD
gasification /1iquefactior
Nuclear Safety
waste disposal
decommissioning
**2ndgeneration
nuclear reactors
with improved safety
features**Breeder and Fusion
reactors
   
Renew .Energies Cost reduction :
Solar
Wind
Biomass
Hydra ulic
Geothermal
*Cost reduction :
Photovoltaic solar
*Cost reduction
it 
Energy -Env ironment Emission R<
S02 ,NOx ,(C02 )
C02 abatement;duction ,radioactive waste
C02and
•kit*emission control
C02
*Potential market inprimary energy requirements :**'*>30%-** 10to30%-<10 %.“1>
CD
1“
m
«r*

70
marketing .Two third countries (Sweden and Switzerland )have
joined the programme .Amulti-annual programme for the period
(1.1.1988-31.3.1992 )has recently been approved .Anew Programme
Decision should betaken inJanuary 1991 ,which will need tobe
prepared byindepth analysis not only ofthe outlook for fusion
itself ,but ofthe role itcould play inthe energy and
environmental scenarios for the next century ,both within the EC
and world-wide .Inparticular ,the global climate change study
(discussed later )should indicate the acceptable limits tofossil
fuel combustion .Analysis will also beneeded ofthe prospects
for nuclear fission waste disposal .Both results will help to
define the long-term role tobeplayed byfusion .
4.57 . Scientific wisdom ,technological skill and managerial
efficiency have made ofthe ECfusion programme arecognised
success .Scientific and technical achievements place Europe in
the forefront ofworld-wide magnetic fusion research :
JET ,the flagship ofthe Community fusion programme ,isthe
world 'slargest experiment ,which has made alarge step
towards the demonstration ofthe scientific feasibility of
fusion ;
the European medium-size devices inoperation contribute
also tothe progress offusion ,and the construction and
commissioning ofnew devices are proceeding according to
schedule ;
European industry isbuilding all these devices and has
already been entrusted with some long-term advanced
development .
This leading position ofthe Community fusion programme makes
Europe anappealing partner for international collaboration both
in bilateral frameworks (Canada ,Japan ,USA )and within
multinational organisations (OECD ,IAEA ).Inparticular ,under
IAEA auspices ,an agreement on participation by EURATOM -
together with the USA ,the USSR and Japan -inthe conceptual
design activities for anInternational Thermonuclear Experimental
Reactor (ITER )has recently been signed .
4.58 . The ECdecision toconcentrate onmagnetic rather than
inertial confinement has sofar proved judicious :onaworld ¬
wide basis ,the inertial approach should ,however ,not be
neglected (Table 4.8.). Two-thirds ofefforts ,inthe USA for
example ,are devoted tomagnetic confinement and one-third to
inertial confinement (which has adirect connection with military
technology ).
Suggestions todevelop the inertial confinement approach ,either
bylasers orbyheavy particles ,have been made inItaly .
Development ofthis approach would beatleast asexpensive as
the present magnetic confinement programme .
112

Comparison between public RSDDexpenditures in1987 ($1987 )
(7ίofthe total )
EC JAPAN US COMM R&D COMM .
(incl.
X X % % y.
Energy conservation9 A 8 3,3 8
Hydrocarbons3 5 2,5 1,4 7
Coa l9 11 10,5 2,3 12
Nuclear Fission 39 AA 33 7,8 20
Renewable energies9 5 7 9,711
Advances nuclear +Fusion 21 28 18 73,0 Aí
Others10 3 21 2,51
TOTAL 100 100 100 100 100R&DD
JRC)

European Fusion Programme Strategy
Mostly i Mostly |
i Economic
Scientific ! Technical | Feasibility
■Aims ! Aims !
:_ i -- - i T-
JET- 1- >■ '--–>■ - | NCT I^ DEMO
Other- i- ► HER r~rj-^
jivrvcu iicirwj i i- | j ^| | | _ I_ __L--- 1
Technology -
Alternative lines - :- .Mostly
TechnicalMostly
.Scientific
■AimsEconomic
Feasibility
Other
TokamaksDEMO
Technology
Alternative lines- -- >
1980 1990 2000 2010 . 2020
THE THREE ABOVE-MENTIONED STEPS TOWARDS FUSION REACTORS (DEMONSTRATION OFSCIENTIFIC /
TECHNOLOGICAL ANDECONOMIC FEASIBILITIES )ARE INTERDEPENDENT ANDOVERLAP EACH OTHER .
ATTHE TIME OFTHE NEXT PROGRAMME REVISION (1-1-1991 )/THE PHYSICS AND TECHNOLOGY DATA
BASE WILL PROBABLY BESUFFICIENT TOALLOW TODECIDE ONTHE STARTING DATE OFTHE DETAILED
DESIGN OFTHENEXT STEP .–H
ùi
C7
r–
fP
OO

Table 4.8 .continued
VARIOUS APPROACHES TOCONTROLLED FUSION RESEARCH
APPROACH CONFIGURATION LINE
MAGNETIC
CONFINEMENTTOROIDAL TOKAMAK
ALTERNATIVE LINES :
i)Stellarator
•
ii)Reversed Field Pinch
iii )Others
OPEN MIRROR
OTHERS
INERTIAL
CONFINEMENTLASERS
LIGHT ION BEAMS
HEAVY ION BEAMS
OTHER
APPROACHESMuon-catalyzed fusion and fusion with exotic fuels ,
aresometimes also considered asaremote possibility .
.Atpresent ,the Community funding for fusion R&D amounts toabout
200MioECU peryear ,corresponding toanoverall yearly expenditure of
about 450MioECU .Anincrease oftheorder of100MioECU /year will be
necessary during thedetailed design ofthe Next Step (1992-1994 ).A
further increase will berequired during the construction phase ;its
amounts will depend upon theframe inwhich theconstruction will take
place .
.Europe isconcentrating onmagnetic fusion (only 2%expenditure
devoted toinertial fusion ,because ofmilitary implications ),and
within that approach :80%expenditure are devoted totokamaks and 20%
toalternative lines (noresearch onopen configurations ).
.For •comparison :the USfusion programme follows both the magnetic
confinement approach (two thirds ofexpenditure )and the inertial
confinement approach (one third ).Within themagnetic approach ,open
configurations have recently been abandoned (alarge mirror device has
been moth-balled )and USmagnetic research is-like inEurope -
putting emphasis ontokamaks .
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71
Non-nuclear energies andenergy-saving technologies
4.59 . Progress on non-nuclear energies has significantly
evolved since research activities throughout the Community were
stepped upfrom the early 1970s .The three successive Community
programmes on energy R&D ,together with the Community 's
demonstration programmes ,have made animportant contribution to
this development inEurope and throughout theworld .
The present state ofresearch can beconsidered under four main
headings :
(i)renewables
Solar power plants using photovoltaic cells have good long-term
prospects provided the costs for the cells and the associated
array structures can bereduced toabout 1ECU/Watt .Another
important area isthe development ofpassive solar technology to
reduce conventional energy requirements for heating and cooling
inbuildings .
Wind energy research aimed essentially atcost reductions and
reliability oflarger wind generators .Long-term contributions
ofupto10% oftotal electricity demand insome regions are
conceivable .
Biomass research aimed also at reducing overall costs of
collection and conversion of biomass through pyrolysis ,
gasification and liquefaction .
Geothermal R&D focussed on "Hot dry rock "technology development
could provide heat and power almost anywhere inEurope where the
geological conditions are favourable once economic feasibility is
achieved .
(ii )Rational energy use
Development work is concentrating on heat pumps ,advanced
batteries and fuel cells . Heat pumps have the potential to
reduce energy use indomestic and industrial heating by30-50% .
Advanced solid batteries are being developed for electrical
vehicles .Fuel cells are being given particular attention inthe
field ofenergy production and storage .
Energy savings research inindustry isfocussing oncomponent
development and unit operations . Incombustion research for
stationary applications and intransport the main interest lies
inthe twin concerns ofenergy saving and pollution abatement .
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72
(iii )Fossil fuels
One important field isthe use and conversion ofsolid fuels ,
i.e. coal ,peat ,lignite ,including the possible reduction of
environmental pollution involved in the coal conversion
processes .Research onliquefaction ,combined cycle electricity
generation with fluidised beds and coal gasification isbeing
carried out insome ofthe Member States and atCommunity level .
The use ofcoal /liquid mixtures isalso being researched .
The bulk ofhydrocarbons research isbeing carried out bythe oil
and gas companies themselves .AtCommunity level the focus of
activity is to increase the economic exploitable reserves
accessible tothe European oil industry .Drilling techniques are
progressing as far as speed and reliability are concerned ,
especially inthe deep and off shore drilling sectors .The same
holds for production techniques including assisted recovery .
(iv)Energy Modelling
Afourth important research area embraces the analytical tools
essential tounderstanding energy systems and their interface
with the economy and the environment .This isanarea where the
value of coordinated activities among different research
institutes and universities inaCommunity framework has already
proved its worth (cf .Energy 2000 study cited earlier ).
Future Options
4.60 . Some ofthe technology options which were pursued in
the aftermath ofthe first "oil crisis "have now come toanend
from the point ofview ofresearch ,because they have reached
their goals and led topractical exploitation (one example is
passive solar water heating which is now relatively widely
developed inEurope ,notably inSouthern Europe ).
Others have come to an end either because of specific
technological problems encountered or because ,for economic
reasons ,they donot offer the prospect ofbroad application .
One example ofthe former issolar tower power stations .
Onthe other hand ,new perspectives have emerged inthe light of
the trends described earlier .These are analysed more fully in
the Annex onnon-nuclear energies and summarised intable 4.9 .
The new targets are reflected at Community level in the
Commission 'srecent proposal (the JOULE programme ).
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Table 4.9 .
Priorities fornon-nuclear energy R&D
Ratlonal Energy Use (RuE )
-energy saving inbuildings (energy management and control ,heat
pumps ,solar energy applications )
-combustion technology (computer simulation of combustion ,
experimental Verification with advanced non-intrusive diagnostics )
-industrial processes (heat recovery including development ofheat
exchangers andheat pumps ,unit operations ,energy andprocess system
models )
-fuel cells (solide oxide ,molten carbonate )high Tcsuperconductors ,
energy storage .
Renewables
-wind energy (large-scale wind installations ,wind measurements and
modelling )
-photovoltaic solar energy (crystalline and amorphous silicon
technology )
-hydraulic energy (small hydro ,study ofpotential oftidal andwave
energy )
-biomass (production and storage ofenergy crops ,biological and
thermal conversion ,pilot projects )
-geothermal energy (hot dry rocks ,brine handling and corrosion and
scaling ofresources ,study ofdeep geology )
Energy derived from fossil sources
-oil exploration and recovery techniques
-conversion ofgas into liquid fuels
-combined cycle electricity generation with fluidised beds and coal
gasification
-coal liquefaction and insitu coal gasification
new solid fuel burners
-Magneto-hydrodynamics
Modelling energy and environment
-energy resources ,energy supply anddemand systems
-energy /environment interactions
-assessing impact oftheSingle European market onenergy /economy
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73
IIIMPROVING THE QUALITY OFLIFE FOR EUROPE 'SCITIZENS
4.61 . European science and technology have amajor
contribution tomake inthree main areas :
* inproducing abetter environment
* inimproving health ;and
* inenhancing safety .
Inaddition there are important social responsibilities which
must beaddressed inthe field ofbioethics ,which are considered
separately below .
1.THE ENVIRONMENT (Annex 7)
4.62 . There is increasing public awareness about the
threat tothe environment . Political leaders have responded to
such concern and have proposed specific national ,regional and
international actions .The relevance ofthe European dimension
has been formally recognised bythe Single European Act ,which
identifies the protection and the improvement ofthe environment
asamain objective ofCommunity action .
4.63 . Environmental problems are complex ,in continuous
evolution and incompletely known .Research provides therefore a
vital basis onwhich policy responses can beevolved .
Though many problems are common toindustrialised countries ,and
others are "global "inthe literal sense ofthe word (namely they
concern the whole globe and require world-wide collaboration ),
many problems are ofaregional nature .Moreover ,the European
Community has regulatory responsibilities which must rest on
sound scientific knowledge and reliable technical know-how .
Joint research atCommunity level istherefore needed toprovide
this knowledge and know-how efficiently and economically (through
complementarity and task sharing ),and also toprovide itina
form acceptable toall concerned .
Research Needs
4.64 . Anoverview ofthe main issues for research isgiven in
Annex 7.The research problems towhich need orwould greatly
benefit from research at atransnational level inEurope are
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74
summarised inTable 4.10 .They form three interdependent sets :
understanding thebasic phenomena
detection and interpretation of environmental
changes
" prevention .
Understanding the basic phenomena
4.65 . Since the environment results from the complex
interaction ofmany complex sub-systems ,these must each be
analysed (the stratosphere ,the atmosphere ,soil ,inland water ,
the sea),and their mutual interaction studied by asystems
approach (large ecosystems ,climate inits regional aswell as
global aspects ). Inaddition further efforts are needed to
understand the environment within buildings ,anarea onwhich the
Community 'sJRC iscarrying out pioneering work .
Ascientific approach toasystem ofthis complexity would have
been unthinkable afew decades ago .However ,progress inbasic
mathematics ,analytical techniques (including remote sensing from
space ),together with the huge capacity tostore and analyse
information by advanced computing now make this approach
possible .
Detection and interpretation ofenvironmental changes
4.66 . Asecond set concerns the continuous detection and
interpretation ofenvironmental changes and the assessment of
their consequences onhuman ,animal and vegetable life aswell as
ongeological resources and the sea .This isneeded toprovide
public assurance that undesirable trends will bedetected and
also toprovide data for the analysis outlined in4.65 .above .
Environmental epidemiology isincluded inthis activity .The
advantages of aEuropean dimension interms of statistical
significance are obvious . Environmental toxicology and the
development ofsuitable systems toidentify and measure noxious
agents isalso important .
Prevention
4.67 . The third set concerns prevention ,including the
development of •rc-lean technologies ,the abatement ofexisting
noxae and the elimination oftoxic wastes . Research onthe
safety ofindustrial practice and compatibility ofagricultural
practice with the environment also belongs tothis group .Since
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able 4.10 .
KeyResearch Issues intheEnvironmental Field
A. Understanding thebasic phenomena
mechanisms ofclimate ;
atmospheric (troposphere andstratosphere )chemistry ("ozone
hole ");
physiology oforganisms under environmental stress (pollutants ,
drought ,etc );
functioning ,stability andvulnerability ofecosystems ,
including stress ecology ,natural population dynamics ;
metabolism findeffects ofxenobiotic substances inman ,aniirals
andplants ;
interactions between atmosphere ,soil andwater bodies ;
chemistry andbiology ofsoil under theinfluence ofpollution
andother stresses (eg.agricultural practise ),vulnerability
toerosion ;
basic mechanisms ofseismic andvolcanic events ;
study oftheeffects ofpollutants onmaterials ;
research into theprevention ofaccidents frcm hazardous
industrial activities .
B. Detection andInterpretation ofEnvironmental Changes
- improvement ofmethods fortheanalysis ofthecomponents of
environmental matrices ;
earth observation byremote sensing techniques ;
- elaboration ofmethods forstorage andtreatment ofdata onthe
environment ,also insupport ofmodelling ;
collection ,conpilation andassessment ofdata onenvironmental
quality ;
description andevaluation ofdamage symptoms onorganisms ;
- epidemiological studies inhuman populations exposed to
environmental pollution ;
studies onsoil deterioration anderosion ;
recording ofindicators forclimatic changes .
C. Prevention ofEnvironmental Damages
development ofsound technologies forpollution abatement and
waste recycling anddisposal ;
development ofalternative ,less polluting technologies and
products ("clean technologies ");
methods fortheecologically sound management ofecosystems and
renewable resources ;
rehabilitations ofdisturbed ordegraded ecosystems ;
development ofsafer technologies (chemical plants );
investigation ofthepossibilities topredict ,andtomitigate
theconsequences of,disasters ofman-made andnatural origin ;
design ofmethods andmaterials fortheprotection and
restoration ofthecultural heritage .
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75
these activities are continuously evolving ,somust the research
itself .Studies ontheprevention andmitigation ofman-made and
natural hazards also belong under this heading .
Global Climate Change
4.68 . The greatest source ofconcern and the most difficult
toanalyse isthe so-called "greenhouse-effect ".
Continued burning ofcoal and oil since the beginning ofthe
industrial era has resulted inincreasing quantities ofcarbon
dioxide being added tothe natural composition ofthe planet 's
atmosphere .Although the oceans act asalarge sink through
complex phenomena involving phytoplankton photosynthesis ,large
quantities ofcarbon dioxide remain inthe atmosphere ,which is
now enriched in this gas by 15-20% with respect to pre¬
industrial values .Natural recycling ofCO2bygreen terrestrial
plants isalso seriously impaired bydeforestation .
Carbon dioxide isnot transparent tothe infrared light radiated
back by the earth 'ssurface as aresult ofincoming solar
radiation ,which means that heat istrapped inthe lower layers
ofthe atmosphere .The planet isthus being heated inasimilar
way tothat ofagreenhouse .
Scientific consensus is that such heating will produce an
increase inthe global mean surface temperature of1.5 to4.5’C
over the next 50years .The atmospheric accumulation ofother
greenhouse gases ,such as methane ,nitrous oxide and the
chlorof luorocarbons also plays arole .
The climate change resulting from such heating would have serious
consequences foragriculture ,and asignificant rise inthe level
ofthe seas isexpected from the thermal expansion ofthe oceans
alone ,apart from themelting ofthe ice caps .
4.69 . The issue has global dimensions and ismade enormously
complex bythe uncertainties still affecting the measurement of
global heating ,the regional and seasonal features of the
anticipated climatic changes (precipitation patterns ,frequency
of droughts and other extreme events ,etc.), and the
uncertainties about future energy patterns . Itinvolves an
assessment ofthe rates ofcarbon dioxide production ,ofthe role
ofthe oceans and biosphere assinks and sources ,ofthe rate of
deforestation ,the possible shifts ofbioclimatic zones ,the
modelling ofall the interactive components ofthe climate
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76
systems (atmosphere ,oceans ,cryosphere ,biosphere ),and an
appreciation ofthe consequences ofenergy policy options .
4.70 . Intensified research isneeded to reduce asmuch as
possible ,and assoon aspossible ,the remaining uncertainties ,
especially asregards the timing ,the magnitude and the regional
distribution ofclimate change ;the impacts which the change
would have mainly onagriculture and water resources ,onthe sea
level and its consequences for the coasts and coastal-based
economic activities ,onsocio-economic structures ingeneral ;and
onenvironmentally benign energy options capable ofleading to
reduced carbon dioxide emissions .Atthe same time research is
needed toensure preparedness inrespect ofchanges which cannot
beprevented intime ,soatleast alleviate their consequences .
4.71 . Such research requires European and world-wide
cooperation ,not only because ofthe multi-disciplinary character
ofthe issue ,but also inview ofthe need for acoordinated
approach tochoices that might have tobemade onfuture energy ,
agriculture and industry policies and on measures able to
counteract oralleviate the affects ofthe climate change .
European Action
4.72 . AtaEuropean level the Community will need tomobilise
various modes of action to satisfy research needs for the
understanding ,monitoring ,protection and improvement of the
environment ,starting from its own "inhouse "research carried
out inthe JRC (aguarantee ofindependent high level S/Tknow ¬
how for the whole Community ),to ashared-cost action and
international collaboration .
Inthe latter context amajor contribution atthe Community level
tothe implementation ofthe International Geosphere-Biosphere
Programme (Global Change )deserves careful attention .
Atthe same time anadequate liaison needs tobeassured with
other transnational environmental R&D actions inEurope ,and
notably within EUREKA and with the space agencies (inparticular
with ESA )to ensure aproper balance between the space
instruments themselves and the requirements ofthe scientific
community (see also point 4.106 .onEarth sciences ).

77
2.HEALTH RESEARCH (Annex 8)
Research Needs
4.73 . Three main issues inthe field ofhealth provide the
starting point forconsideration ofresearch requirements :
(i)therising cost ofhealth care anddelivery systems .
Health costs inthe Community amount tomore than 200milliard
ECUperyear ,theequivalent ofabout 8%ofGNP .They arerising
both because of the increasing sophistication of medical
equipment and opportunities for treatment ,and because ofthe
growing incidence ofcertain diseases .This isrelated inpart
to :
(ii)the "greying "ofEurope 'spopulation .
Europe faces the prospect of.anageing population over theperiod
totheend ofthecentury asaresult oflower reproduction rates
inthe 1970s and 1980s ,onthe one hand ,and higher life -
expectancy ,onthe other .This will mean aquantitative increase
over the coming years inage-typical illnesses ,with consequences
for the demand onmedical services ;
(iii ) the need for major progress inthe fight against
diseases such ascancer and AIDs ,aswell asthose related
tothe environment and life-style .
4.74 . Public health research inthe Community ,which isabout
half that ofthe USA ,amounts toless than 2%oftotal health
costs .Ifproperly aimed ,itcan make amajor contribution to
meeting all three of the needs described above .Research on
prevention ,care-delivery systems and organisation isessential
toensure the best value-for money inhealth delivery (i);while
the need for targetting research efforts onthe specific problems
posed under (ii)and (iii )iswidely recognised .
European Action
4.75 . Research isproceeding onall these fronts inthe
Member States ,but often inafragmented manner .Most national
research programmes inthe field ofmedicine and health consist
ofalarge number ofrelatively small projects carried out by
scattered and relatively small research teams often working
independently atuniversities ,hospitals etc .This isanarea
where the value of more coordinated action across national
frontiers hasalready been recognised andconcerted action within
the Community framework has proved its worth .The principal
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78
characteristic of this concerted action is that Member States
themselves select the projects for coordination atCommunity
level and execute the work themselves ;while the Commission
coordinates the national research contributions .
4.76 . The future action lines inhealth research recommended
bythe Advisory Committee for the Community 'sHealth Research
Programme are summarised intable 4.11 .Itwill beseen that
they correspond very clearly tothe needs described earlier .
They also include one other important aspect ofR&D onhealth
research -the development ofmedical technology -which has an
economic aswell associal dimension .
3.SAFETY (Annex 9)
4.77 . The safety ofthe environment inthe home ,atwork and
in travel is afundamental social need ,linked also to the
control ofcosts inhealth .The contribution ofR&D tosafety is
pervasive -from the use ofnew materials tothe development of
robotics ,from the improvement invehicle and aircraft technology
to the development of monitoring and sensing techniques to
identify potential dangers inthe environment and inmachinery
and equipment long before they occur .
Industrial and Road Safety
4.78 . Inthe field ofindustrial technologies and materials
increasing attention will have tobegiven tothe safety aspects
ofdesign ofconsumer goods and also tothe safety ofthe working
environment itself ,asforeshadowed inthe Single European Act
itself .Animportant issue ,where R&D has arole toplay ,isthe
development ofcommon safety standards inrespect ofthe new
technologies themselves . Lasers for industrial use are a
significant example .
4.79 . The potential contribution ofR&D toroad safety inthe
longer-term isparticularly great ,and major efforts are being
undertaken inEurope todevelop both the "intelligent car "and
the road infrastructure that itwill require .This isanarea
where collaborative transnational efforts are important both
because ofthe scale ofthe research requirements and the need
for aharmonised approach .The Community itself has launched a
significant programme (DRIVE -Dedicated Road Infrastructure for
Vehicle Safety inEurope )which isdesigned tohelp coordinate
efforts onthe infrastructure ;while within EUREKA the PROMETHEUS
project and other related transport R&D projects are focussed on
125

FUTURE ACTION-LINES PLANNED IN
HEALTH RESEARCH
CANCER
Cancer research training scheme
Clinical treatment research
Epidemiological research
Early detection anddiagnosis
Orug development
Experimental Cfundamental )research
AI0S
Oisease control andprevention
Viro-immunolag 1calresearch
Clinical research
AGE-RELATED HEALTH PROBLEMS
Reproduct ion
Ageing and diseases
0isab ilities
ENVIRONMENT AND LIFE-STYLE RELATEO HEALTH PROBLEMS
Breakdown inhuman adaptation
Nutrition
Consumption ofillicit drugs
Infect ions
MEOICAL TECHNOLOGY DEVELOPMENT
Diagnostic methods andmonitoring
Treatment and rehab ilitation
Technical and clinical evaluation
HEALTH SERVICES RESEARCH
Research onprevention
Research oncare delivery systems
Research onhealth care organitation
Health technology assessment

79
the in-car research requirements .Coordination ofeffort isa
major preoccupation .
Nuclear fission safety
4.80 . Athird area where continuing safety research isofthe
utmost importance isnuclear fission .The dependence onnuclear
power for energy supplies varies significantly asbetween Member
States .But asthe Chernobyl accident demonstrated forcefully ,
the safety ofnuclear power isamatter that concerns each and
every Member State .
4.81 . The needs and outlook for research onnuclear safety
both outside and inside Europe are presented inannex 9.The USA
used tobe inthe forefront ofresearch but the Americans have
now reduced their efforts . Japan iscontinuing tomake a
significant effort .The results ofSoviet work inthe field are
not fully available ,although some opening has occurred after
Chernobyl . Europe has moved into the forefront ,with some
countries playing aleading role (France ,Germany and the United
Kingdom ).
4.82 . Inthe field ofradiation protection (where Community
research programmes have either directly supported orcoordinated
80% ofthe effort inside the Community )continuing research is
needed on :
Human exposure to radiation and radioactivity
(measurement and interpretation of radiation dose ;
transfer and behaviour of radionuclides in the
environment ,making full use ofthe information coming
from Chernobyl ).
Effects onthe human body ofexposure toradiation ;
assessment ,prevention and treatment .
Management ofrisk ofexposure toradiation .
4.83 . Amajor information effort isalso required .Inthe
aftermath of Chernobyl ,political and social considerations
overrode scientific and technological arguments about radiation
levels and their effects . Scientists and technologists are
partly responsible for this . Before the event they
underestimated the importance of systematic information and
education ofthe public ;while after the event they confused the
public by non-homogeneous technical jargon and disagreements
about details . This has had negative consequences in^some
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80
countries onpublic confidence inthe nuclear community .This
confidence can and must berestored bygreater openness and
willingness tocommunicate ,not only interms understood by
fellow scientists ,but also interms accessible toamuch wider
public progress . Particular efforts must bemade in this
direction over the coming months and years .
4.84 . Continuing research work isalso needed onreactor
safety (notably the phenomenology of low probability severe
accidents ;mitigation ofthe consequences ofsevere accidents ;
structural behaviour of reactor components ;fuel behaviour ;
improved passive safety mechanisms );the safety of the fuel
cycle ;radioactive waste management and storage ;decontamination
and dismantling techniques for nuclear plants ;and control of
fissile materials .
4.BIOETHICS
4.85 . The progress inbiology described earlier issorapid
and the resulting applications sopervasive and substantial that
the utmost attention must begiven totheir impact onindividuals
and society .Ever since biotechnology began toopen upmajor new
possibilities ,notably in the field of genetic engineering ,
biologists themselves have been conscious ofthis need .More
than adecade ago they proposed and implemented amoratorium on
genetic engineering research until the conditions for safety
were identified .Since then ,public opinion aswell aspublic
authorities has become progressively aware ofthe problem and
bio-ethics has become asubject ofconstant attention and action ,
not only atthe national but also atthe international level (for
example the yearly Bioethics Conferences of the Summit of
industrialised countries ). InEurope itself ,the Council of
Europe has created astanding Committee forbioethics .
4.86 . The Community 'sobligations inthe field ofhealth and
safety ,aswell asthe need (for competition reasons )toavoid
the emergence ofwidely divergent legislation inthe Member
States on biotechnological applications and products are
compelling reasons for aCommunity approach tothis issue .Such
anapproach would contribute topublic confidence inscience in
the Community ,without which the European Technology Community
cannot besoundly built .
Inthe first half of 1988 the German Presidency of the EC
Council ,incomplete agreement with theECCommission ,called for
the pursuit ofbioethics atCommunity level .Some progress has
been made .The momentum should bemaintained and increased .It
isessential that ethical ,societal and juridical considerations
accompany science andprecede technological developments .
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81
III FUNDAMENTAL RESEARCH -THE ESSENTIAL UNDERPINNING
4.87 . Asolid capacity infundamental research ,both free and
targetted ,provides the essential underpinning tothe research in
specific fields described above .Asthe provider ofnew ideas
and knowledge itoffers opportunities for quantitative change and
new openings ofboth economic and social significance ,widening
and deepening the scope oftechnology options .Itistherefore
of vital importance to Europe 'squest for independence and
autonomy .
4.88 . Inthe USA ,while Federal support for non-military
applied research and development has decreased ,that for
fundamental research has increased over the last 5years (cf .
chapter 2). Japan isnow fully aware ofthe need tostrengthen
its basic research athome ,and inaninternational framework
has ,for example ,launched the Human Frontier Science Programme
for joint development offundamental research inneuro -and cell
biology by the Industrialised Summit Countries . Inthe USA
scientific research proceeds onavery broad front ,and gives
opportunity to "free ",individual choices ,whereas inJapan
targetted basic research prevails .The implications ofthis new
international emphasis onbasic research are discussed further in
chapter 5.1 .below .
4.89 . European excellence in fundamental research is
demonstrated bythe attribution ofNobel Prizes and bythe other
indicators ofperformance discussed inChapter II .However ,most
European researchers would think that USoccupies the first placeintheir own field^9 .During the last decade ,industry and
universities have become increasingly aware ofeach other .The
questions posed bythe'further evolution ofthis trend inEurope
are also discussed inchapter 5.
The Organisation ofBasic Research
4.90 . One permanent problem for basic research policy is
the distribution ofresources between asmall number oflarge and
expensive projects (so-called "Big Sciences ")and more diffuse
and less expensive activities ofsmall groups and individuals .
The question has been partially solved inWestern Europe by
several multinational ventures for the common pursuit ofBig
Sciences (eg.CERN for high energy physics ,ESO for astronomy ,
This emerges clearly from The Community ofScience in
Europe ,Mark N.Franklin ,astudy made onbehalf ofthe
CEC in collaboration with the European Science
Foundation (contract STI 042 ,November 1986 )and
subsequently published byGower (ISBN 0566056321 ).
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82
ESA for space ,EMBL for biology ,ILL for neutron sources ,ESS forsynchroton radiation ^ ).Moreover ,some very large national
facilities ,such asthe German centre inHamburg are open to
bilateral collaboration .These activities have been successful
and there isgrowing collaboration among them ,which isawelcome
trend . In the future ,international collaboration in Big
Sciences may have toextended world-wide .Controlled nuclear
fusion isacase inpoint ,asdiscussed earlier .
Simultaneously ,several networking initiatives have been taken so
astoassure the benefits ofcomplementarity and task sharing
among individual scientists and small groups . The European
Science Foundation (ESF), the European Molecular Biology
Organisation (EMBO )and the European Community 'sStimulation
programme (now called the SCIENCE Programme ),together with the
Community 'ssectoral R&D programmes ,play important roles inthis
context .
There remains ,however ,the question of access toadvanced
middle-size research devices and the development ofexpensive
scientific instrumentation .Given the cost and sophistication of
many ofthe facilities inquestion itisnot feasible toimagine
that they could all beavailable inevery European country ,let
alone very major laboratory .Particular efforts are therefore
needed toprovide aframework for cooperation among national
teams and toreduce the risk offragmented research efforts .In
1989 ,inrecognition ofthis problem ,the Community will initiate
apilot programme tosupport mutual access tolarge national
installations .Suggestions have also been made within CREST to
launch afeasibility study on joint European development of
scientific instrumentation .
Development sinspécifie scientific disciplines
4.91 . Within the broad area offundamental research ,some
developments inmathematics ,physics ,chemistry and the earth
sciences should behighlighted .Fundamental biology ,together
with basic biotechnology and its applications was dealt with
earlier insection I.
CERN -European Centre forNuclear Research
EMBL -European Molecular Biology Laboratory
ESO -European Organisation forAstronomical Research
inthe Southern Hemisphere
ESA -European Space Agency
ESF -European Science Foundation .
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I
I
Mathematics83
4.92 . Inmodern mathematics .the theory of non-linear
phenomena and related geometrical ideas deserve attention because
they are revolutionising the theory and application ofdynamic
systems ,with far-reaching implications for physics ,chemistry ,
biology ,meteorology ,ecology ,technology and ,probably ,
sociology and the science ofeconomics .Most real world problems
are complex and non-linear ;therefore they fall outside the scope
oftraditional closed-form analysis .The subtle and versatile
techniques ofdynamic systems theory now make itpossible to
model and toexplore the evolution over time ofboth natural and
man-made systems .
4.93 . The combination oftheoretical advance and significant
computing power now makes itpossible todistinguish those
systems which evolve towards astable solution ;those that evolve
to asituation of stable oscillation ;those that reach
alternative final states depending onsmall differences inthe
initial conditions ;and those that develop into astate ofsteady
but perpetual chaos .The search for anunderlying order inthe
ensemble ofall chaotic trajectories inachaotic system remains
amajor challenge tomodern mathematics .
4.94 . Specific examples ofthe impact which the theory ofnon­
linear ,complex phenomena has onother branches ofscience and
technology can be found in Annex 10. These include the
development ofthe first optical version ofatransistor ,and
demonstration of the feasibility ofanall-optical computer ;
advanced modelling ofclimatic change (ofrelevance tothe Global
Change initiative discussed earlier ); improvements in the
functioning ofthe internal combustion engine .
4.95 . The theory ofnon-linear phenomena was pioneered in
Europe . And Europe continues toplay asignificant role
Research projects infields such asthose mentioned in4.94 .
above are amongst those accepted ,after stiff competition ,under
the ECStimulation programme ,reflecting the continuing interest
ofEuropean researchers inpushing out the frontiers .
Physics
4.96 . Inaddition toencouraging further collaboration among
existing multinational ventures inhigh energy physics etc .,
greater attention needs tobegiven to the exploitation of
technology spin-offs .This must bedone without side-tracking
the main projects . The scope for closer links with EC
technological research programmes and tothe industrial firms
participating inthem could beusefully explored .
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4.97 . Asfarasfundamental physics areconcerned ,particular
attention needs tobegiven tothe study ofcondensed matter ,
because ofboth itsimplications formaterials technology andits
need forlarge andmedium scale investigation facilities (such as
synchrotron radiation and neutron sources ,high power lasers ,
irradiation devices ).TheUSAandJapan arewell provided with
such devices .InEurope ,however ,they areoften unique and ,(as
suggested above ),could beopen toincreased transnational use .
Asuggestion along these lines was made in1985 bythe UK
Sciences and Engineering Research Council and could bepursued
through the ECprogramme ofAccess toLarge Installations .
4.98 . Among the scientific developments of particular
interest interms ofthe expected technological impact ,ishigh
temperature superconductivity (theability ofelectrical currents
toflow without resistance ),which was discussed insection 1
above inthe context ofindustrial materials .
4.99 . Other areas ofthe physics ofmatter should also be
mentioned ,because of their electromagnetic ,optical or
mechanical properties ,such as "low-dimensional "(i.e. very thin )
materials ,artificially structured materials ,material obtained
and performing under extreme conditions ,liquid crystals ,quasi
crystals .Progress onthese subjects has ahigh priority inthe
USA .
4.100 . Developments inoptics and lasers are also interesting :
inadvanced optics ,Western Europe isinagood position and has
pioneered some recent developments (for instance ,the Joint
European Optical Bistability Project within the ECStimulation
Programme ).
Inlasers ,however ,inspite ofsome important national and
multinational developments inside BRITE and EUREKA ,European
efforts are not onapar with those inthe USA ,where there has
been asignificant spin-off from military R&D ,and notably SDI .
The need for strengthened joint European action inthis field
merits careful consideration .
Chemistry
4.101 . Chemistry isalso developing rapidly , "pushed "by
progress incomputing ,mathematics and physics instrumentation
and "pulled "bybiology andbyapervasive market demand .
Here asinother technological areas ,quality isbecoming more
important than quantity . From the scientific standpoint ,
computer modelling and prediction aswell asprogress in
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85
analytical tools^l arechanging theway inwhich chemicals are
isolated ,identified ,designed by computer and synthesized .
Progress inthe theory ofchemical reaction isleading toawhole
spectrum ofnew catalysts (synthetic enzymes ,catalytic surfaces ,
cluster catalysis ,homogeneous catalysis )and photochemically
primed events . At the same time anumber of techniques ,
including "intelligent "selection membranes are improving
separation and purification .
4.102 . Europe occupies avery good position both onthe market
for chemistry-based products (see chapter I)and in basic
science .There are ,however ,some problems ofpublic acceptance
because ofthe issue oftoxic waste .Possibly related tothe
latter ,there isalso some difficulty inrecruiting asufficient
number ofhigh quality students (cf .chapter 5).
Earth Sciences
4.103 . The importance ofprogress inthe earth sciences for
the prediction ofnatural phenomena with major economic and
social impacts (eg .earthquakes ),aswell asfor the rational
exploitation ofland resources goes without saying .
4.104 . The oil companies ,in particular ,are themselves
engaged insignificant basic and applied research .Deep drilling
has been pioneered bythe Soviet Union ;and there are major
efforts inthe USA .Good European coordination isassured bythe
European Science Foundation (cf .the Geotraverse Project
supported bythe EC).Atanational level ,the German government
recently decided toinitiate avery ambitious programme todrill
avery deep (10km)hole through the crust ofthe earth .This is
important because other deep drills (notably those carried out in
the Soviet Union )have suggested that conventional methods in
exploration ofthe earth crust may beaffected byartifacts .
4.105 . Oceanography ,aspart ofthe earth sciences ,isbeing
actively pursued throughout the world .The USisleading the
field ,with ahigh level ofparticipation ofJapan and some
European countries . Some aspects such asthe study ofthe
coastal zone ,the interface between the ocean and the atmosphere
(important for understanding global climate change )will be
Mass and optical spectroscopy
NMR :Nuclear Magnetic Resonance
ESCA :Electron Spectroscopy for Chemical Analysis
XAFS :Xray Absorption Fine Structure
XANES :Xray Absorption Near Edge Structure
Neutron activation ,neutron scattering ,chromatography .
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5.4 .This isamatter for all European governments toreflect
upon .Inmany areas basic research isvery expensive .This is
obvious for fields like high energy physics oroceanography or
space .But many smaller-scale basic research investigations now
also require high-cost sophisticated equipment .Costly basic
research cries out for ajoint orcoordinated approach whether
through the sharing ofexpensive facilities orthe formulation of
coordinated work programmes . Resource-pooling is already
happening tosome extent inEurope ,notably through CERN ,EMBL ,ESO ,the basic research programme ofESA and ESF^ .The
SCIENCE programme ofthe Community isalso helping todemonstrate
the usefulness ofjoint approaches tospeculative basic research .
And in ESPRIT II and under the new BRITE-EURAM programme
currently before the Council provision has been made for joint
projects onmore targetted basic research topics than hitherto .
5.5 . The Commission believes that this trend should be
reinforced during the coming years .Itconsiders basic research
tobeanessential aspect ofCommunity efforts ,underpinning
research aimed atimproving competitiveness and research onthe
societal problems facing Europe . Basic research supports
industrial development longer-term alongside -but distinct from
-shorter-term product development .Basic research also performs
the vital function of "training "researchers inthe paradigms ,
methods and norms ofresearch .Toneglect this human capital
would seriously compromise Europe 'slong-term prospect . As
suggested in Chapter IV,biology is one field where new
fundamental research efforts are now needed to lay the
foundations for more applied research later ,notably inthe
fields ofhealth and agriculture .
Private industry should also beencouraged toinvest more in
basic research for the longer-term . Historically ,important
advances infundamental research have been made byscientists
working within private sector companies (one example isthe work
onbeta-blockers which recently led tothe award ofaNobel Prize
toSir James Black ).
(ii)The links between industry and the universities
5.6 .The Japanese technological success ispartly attributable
to close relationships between universities ,industry and
government ,including the establishment of aseries of
33CERN -European Centre for Nuclear Research
EMBL -European Molecular Biology Laboratory
ESO -European Organisation forAstronomical Research
inthe Southern Hemisphere
ESA -European Space Agency
ESF -European Science Foundation .
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specifically cooperative ventures involving firms ,universitiesand MITI laboratories -^. Inthe USA industry-university
cooperation dates back over many years ,but inthe 1980s it has
witnessed aqualitatively new development inthe form ofmajor
multimillion dollar contracts between companies and universities
enabling companies tobethe first tohave access tothe work
carried out oncampus inabroad scientific domain and for aperiod ofyears^S . inEurope the traditions ofindustry -
university links vary considerably but the general trend has been
towards areinforcement ,with industry driven increasingly bythe
need totap scientific knowledge and universities byfinancial
constraints .One associated phenomenon has been the growth of
"science parks "onboth sides ofthe Atlantic (eg .Durham inthe
USA ,Cambridge inthe UK).Community cost-sharing programmes
such asESPRIT and BRITE have aimed toencourage the links by
deliberately providing aframework inwhich industry research
workers and those inuniversities can team upinspecific R&D
projects .
5.7 .The trend towards close industry-university links inEurope
should befurther encouraged .Itisone more potential means of
maximising the use ofscarce R&D resources .But there are two
caveats .The first islinked tothe balance between basic and
applied research (point (i)above ). There is arisk that
increasing university dependence onindustry may encourage more
and more university resources to be devoted to short-term
problem-solving to the neglect of longer-term and more
fundamental research .Secondly ,there isarisk that exclusive
relationships between companies and universities oruniversity
departments may lead torestrictions on the availability of
research results .This isalready animportant issue inthe USA ,
and it islikely togrow inimportance inEurope .Already the
OECD ,in arecent report has expressed concern about theimplications forthelonger-term^® .
notably the JISEDAI (Basic Technologies for Future
Industries )and ERATO (Exploratory Research for
Advanced Technology )programmes .This isnot tosay ,
ofcourse ,that the Japanese experience can bedirectly
translated toEurope .
Well-known examples are the ten-year -agreement between
HOECHST and the Massachusetts General Hospital for the
creation ofadepartment ofmolecular biology ;and a
five -year -agreement between MONSANTO and Washington
University inSt .Louis forresearch onproteins andpeptides .
Science and Technology Outlook ,1988
OECD ,Paris 1988 .
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TheCommission has shown theway toavoid therisks inCommunity
programmes through the nature ofthe contractual arrangements
made with participants ,which provide abasis forboth assuring
thedissemination ofresearch results tointerested parties while
safeguarding the interests ofthe specific research groups
involved .But this isanissue which will need tobeconsidered
further inall research funding programmes ofanational aswell
asatransnational nature .
5.8 .Two other more specific developments ataEuropean level
also deserve attention in the context of links between
universities and industry .The first isthecreation byanumber
ofmultinational companies ofaEuropean Institute ofTechnology
aimed specifically atcreating links between industrial R&D
efforts and pre-competitive university research .The second is
the growing industrial interest in participation in the
multidisciplinary collaborative research associations inEurope
known as European Laboratories without Walls (ELWWs ). This
latter issue iscurrently under discussion bythe Community 's
Management and Coordination Advisory Committee onBiotechnology
and bythe Industrial Research and Development Advisory Committee
(IRDAC ).
Basic research must begiven adequate support and
attention ,ifsolid foundations for the future are
tobeconstructed .
Industry-university links should befurther encouraged ,
but attention must bepaid tothe consequences forthe
nature ofuniversity research work andtheavailability
ofresearch results .
EDUCATION AND INFORMATION
(iii )Broadening anddeepening thetechnology culture
5.9 .Theconduct andmanagement ofresearch andtheapplication
ofthetechnologies that result from italldepend ontheskills
ofindividuals .The most successful societies inthe post-war
period have been those that have sought actively todevelop those
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skills ,tocreate ageneral climate oftechnical literacy and to
encourage the emergence of large numbers ofhighly trained
scientists and engineers . Inthe future these skills will be
ever more indemand .
5.10 . Japan has witnessed the most significant growth in
general technical literacy and in the numbers of research
scientists and engineers .Inthe USA the numbers are high but
stagnant ,and increasingly worries are expressed about the future
availability ofthe manpower needed tocarry through the new
technological revolution . InEurope the traditions of some
countries are stronger (Chapter II)than others .But there are
widespread mismatches between the output oftraditional education
and the demand for skilled manpower . There are particular
shortages ofhighly gualified scientific personnel inthe smaller
and less developed countries ofthe Community (see (viii )below ).
But even in some of the larger countries the shortages of
science-based skills are already asource ofsome concern and
there are new worries about a "brain-drain "as USuniversities
and companies seek toentice the brightest and the best tomeet
their own future needs for highly qualified scientists and
engineers .The USdrive will not bedirected only atEurope :a
key issue inthe USA now iswhether and how toencourage the
large number ofAsian students atUSuniversities tostay onin
the USA .But Europe will continue tobeamajor potential source
ofsupply ofhighly trained research scientists tothe USA .
5.11 . The question ofscience education ,training and skill
acquisition is one principally for national governments .
Industry also has animportant role toplay and many industries
have already increased their own training efforts asapartial
solution .But the value ofcomplementary action atCommunity
level has already been demonstrated bythe success ofthe COMETT
and ERASMUS programmes .Alongside ,the Community must now move
forward in improving the attractions of the wider European
framework tothe most able national research workers bymore
rapid progress increating agenuine Researchers' Europe .Asthe
scope ofresearch needs widens and deepens itisless and less
possible for individual countries ,however large ,to offer
centres ofexcellence inevery field .Itbecomes inconsequence
increasingly important for researchers to be able to take
advantage ofthe possibilities offered bythe whole European
Community .Atpresent the mobility ofresearchers ishampered
not only bylanguage problems ,but also bypractical problems
such asdifferent social security systems ,pension arrangements
and soon.Progress inthis area will begreatly facilitated by
the removal ofbarriers tothe free movement oflabour within the
Community inthe framework ofprogress towards the Community 's
Internal Market .
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(iv)The public acceptability ofscience and technology
5.12 .Arelated issue isthat ofpublic acceptability ofscience
andtechnology .Public concern has two facets .Ontheonehand ,
people worry about the dangers and risks associated with new
technology ,and particularly the possibility ofinvoluntary
accidents (arepeat ofthe Chernobyl accident ,the escape of
dangerous biological cultures ,the possibility ofmajor chemical
spillages etc.). Onthe other ,there isethical concern about
thepossibilities offered byscientific developments ,forexample
inthe field ofgenetic engineering ,which may bevoluntarily
exploited .
5.13 .Concern about new scientific developments isoften based
onfears oftheunknown .This isparticularly true atpresent in
the case ofbiotechnology .Public opinion surveys intheUSA and
insome European countries have revealed considerable confusion
about its benefits and risks .They have also demonstrated that
the degree of acceptability of new technologies such as
biotechnology depends heavily onthe level ofgeneral education
and onthe depths ofunderstanding ofthe issues surrounding aparticular scientific development ortechnology -^.
Itisimportant for the proper functioning ofour democracies and
for the advance ofEuropean society that popular understanding of
the issues should beimproved .Only inthat way will sensible
choices bemade ;asound regulatory environment established to
minimise the risks ;and aninformed basis created for examination
ofthe ethical issues .The role which information can play in
this respect is visibly illustrated in the case of the
Netherlands where tough regulations onsafety matters combined
with ahigh quality ,extensive and systematic provision ofpublic
information inschools and through the mass media has helped to
reduce concern about recombinant DNA techniques .
5.14 .The Commission has arole toplay onbehalf ofthe whole
Community inimproving public understanding about these important
issues byhelp inthe design and development ofconsistent and
objective information material . The prospect of alarge
expansion ofsatellite broadcasting could offer newopportunities
forCommunity-backed programmes onscience andtechnology issues .
See Science and Engineering Indicators ,1987 ,NSF
Washington ; "Public Opinion on Biotechnology :
(un)known , (un)loved ?"inBiotechnology inHolland ,
1985 /5;Democracy and Biotechnology ,Mark Cantley ,in
Swiss Biotech ,5(1987 ).
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More attention must bepaid inEurope tothe development
ofhuman resources ,both topursue scientific knowledge
and toapply its results .Aparticular effort must be
made toprovide anattractive environment inside
Europe for research workers inwhich the brightest and
the best have easy access tothe centres ofexcellence
which are available indifferent countries .
Atthe same time aparticular effort must bedirected to
improve public understanding ofscience and technology
issues .
INDUSTRY AND THE PRIVATE SECTOR
(v)Encouraging the private sector toinvest more inR&D
5.15 .Amajor challenge for Europe istoincrease the share of
its economic resources that are devoted toinvestment inR&D ,
which for the bulk ofEuropean nations iswell below that ofthe
USA and Japan (Chapters IIand III ).Much ofthe efforts must be
made byindustry itself ,which has been the leading source ofthe
growth offunds innon-military R&D expenditure inthe USA and
Japan .Itisinindustry 'sown interests toinvest more inR&D
asthe source oflonger-term improvements incompetitiveness and
profitability .But the growth inindustry-funding ofR&D isnot
uniform across Europe .Industry-funding ofR&D must befocussed
not only "downstream "on projects of short-term commercial
benefit .Japanese and USindustry isspending more and more
money ontargetted basic research tocreate the conditions for
longer-term advance .European industry must dothe same .
5.16 .Factors ofimportance inencouraging investment inR&D and
innovation include the general economic climate ,tax regimes ,and
(for innovative investments )the existence ofdeveloped venture
capital markets (the latter being ofparticular importance to
nascent or small companies ). In Europe overall rates of
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industrial investment vary widely ;each country has its own
system oftax orother incentives tosupport industrial R&D ;
while venture capital markets (which aredeveloped intheUnited
Kingdom ,and toalesser extent intheNetherlands andBelgium )
are essentially national markets .
5.17 .The Community 'sR&Dprogrammes onindustrial technologies
(ESPRIT ,BRITE inparticular )have already played arole in
helping tocommit industry-funding ofR&D through cost-sharing
mechanisms .Anumber ofinitiatives atEuropean level have also
been taken toencourage investment bysmall and medium-size
enterprises .The European Venture Capital Association (ECVA )was
created in 1983 with the support of .the Commission .In
collaboration with ECVA the Venture Consort project aimed at
promoting transnational financing ofinnovation inSMEs was
launched in1985 .The Commission has also recently approved the
launching of an initiative for financial support for the
establishment of "seed capital "funds and for aEuropean network
ofsuch funds .
The barriers to transnational industrial and technological
cooperation have already been analysed separately inaseparateCommunication bytheCommission ,which contains anaction plan 38.
The Commission isalso exploring with the financial Community
whether itwould beappropriate toestablish one orseveral
investment companies specialised inthis kind ofproject .Itis
also exploring with the insurance companies the most appropriate
way toinsure the risks involved and thus toremove one ofthe
main obstacles toinvestment ininnovative projects .These two
initiatives (Eurotech Capital and Innovation InsuranceFacility 39)aim toensure the industrial and commercial
application ofthe results ofEuropean R&D programmes .
Inaddition ,the European Investment Bank hasmade available loan
finance toSMEs ,with priority for innovative investment ,using
its own resources and those of the New Community Instrument
(NCI ).Between 1985 and 1987 its loans for investment inhigh
technology amounted to1,094 million ECU .The proposed NCI V
includes investments inhigh technology asone ofthe two
priority areas .
The Commission isalso working towards improvements inthe flow
ofinformation between potential financiers and thepromoters of
projects who are seeking external finance ,byestablishing a
project data-base .
38 C0M (88)114 final ,du28.3.88
39 formerly EUROTECH INSUR
ê ■r
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95
5.18 .Alongside action toimprove the flow ofprivate funds to
industry the Commission has operated competition policy insuch a
way astobalance the need toincrease the overall level of
investment in industry in R&D against that of avoiding
distortions to competition . Aspecific framework has been
established for the handling of joint agreements between
enterprises inR&D and for state aid regimes for R&D projects .
Asthe Community moves further towards the completion ofthe
Internal Market ,with aconsequent increase incompetition ,on
the one hand ,and concentration ,onthe other ,the application of
competition policy toR&D and particularly totransfrontier R&D
arrangements will become anincreasingly important issue .
(vi)The diffusion oftechnoloqy
5.19 . R&D itself lies atthe centre of acomplex feedback
process involving education (upstream )and innovation and
diffusion or technology transfer (downstream ). Aswell as
investing more inR&D ,industry also has toknow and understand
the new technologies coming onthe market and toinvest directly
inthem .Anexpert group ofthe OECD has recently noted that
"the economic advantages ofnew technologies derive from their
diffusion rather than from their refinement . New technology
initself has hardly any economic advantages aslong asitisnoteffectively used andwidely applied ...."^. Thesluggish growth
inEuropean demand for electronic goods (chapter 1.2 )isone
important example of the slow rate of adoption of new
technologies . Itshould also besaid that the benefits of
research todevelop those technologies are also enhanced the more
widely they are disseminated ,even though this may not always be
in the immediate commercial interest of an industrial firm or
research consortium .
5.20 .Technology transfer isanother area where the Japan isin
astronger position than Europe . Insome European countries
(notably Denmark )major efforts have been made inrecent years to
encourage the spread ofnew technologies within industry and
commerce through information campaigns and specific financial
support systems for the private sector .. But the degree of
attention varies .Moreover ,the public policy efforts are based
essentially on the spread of technologies within national
borders .
Effective dissemination ofthe results from the Community 'sown
research activities contributes to the goal of improving
40Science and Technology Policy Outlook ,OECD 1988 .
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96
information .This isthe purpose oftheVALUE programme .But
the impact ofmeasures inthis field isdirectly related tothe
volume of Community research activities . This is why
complementary actions such asthose carried out under the SPRINT
programme tocreate more favourable conditions for innovation and
technology transfer will need tobereinforced inthe future .
Outside experts have recently underlined the importance ofa
vigorous effort inthis direction and called for astrengthening
oftheSPRINT activities' **,and anewandlarger programme has
now been proposed bythe Commission .
The importance ofstimulating demand fornew technologies cannot
beoverstressed .Akey issue isthe availability ofinformation
about particular technologies and their expected returns .
Organised "watch "programmes have proved tobevery efficient in
Japan .Consideration needs tobegiven inEurope tohow to
improve this information and tostimulate the consumer (of
capital orconsumer goods )tothink about how new technologies
could help satisfy his needs .
The role of Member Governments and the Community in
standardisation and normalisation of technologies is also
important inthe context ofshaping the market for adoption of
technologies .
Industry must beencouraged toinvest more inR&D ,
and topmanagement should bemore closely involved
than isoften the case .
Amajor effort isneeded throughout industry and the
services toimprove awareness and information about new
technologies sothat the fruits ofR&D canbewidely
and quickly spread .
Evaluation ofthe first BRITE programme (1985-88 )
Research evaluation report n*25 ,CEC 1988 .
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POLICY COORDINATION AND COHESION WITHIN EUROPE
(vii )Increasinq coordination amonq national policies
5.21 . Chapter III underlined the importance of increased
coordination ofnational policies as ameans ofsaving money
overall ,increasing the returns toR&D investment ,encouraging
the broadest use inthe Community of "best practice "inresearch
management ,and ultimately leading togreater complementarity in
national programmes .This iswhy Article 130H ofthe Single
European Act expresses apolitical commitment onthe part ofthe
Community 'sMember States ,inliaison with the Commission ,to
coordinate among themselves their policies and programmes at
national level .
5.22 .The first step inbetter coordination must betoimprove
mutual information and understanding about national policies .
Such information about what others are doing will initself
contribute to future decisions on national programmes or
policies .The second istoidentify fruitful areas for more
specific cooperation . These can be of abilateral or
multilateral nature .Some may beappropriate for Community-wide
coordination . There are numerous formulas possible for
developing cooperative activities (such asspecific bilateral or
multilateral agreements , joint agreements on national
participations inmajor projects such as CERN ,EMBO ,or
supplementary programmes inastrictly Community framework as
provided for under Article 130L ofthe Single European Act ). At
Community level the formula of "concerted action "at,which has
proved highly successful inthe fields ofhealth and environment
and which requires aminimal amount ofCommunity public funding ,
should bemore widely used .
(viii )Improving the cohesion ofthe Community
5.23 . The technology gap between the less-favoured regions
(LFRs )and the more economically advanced areas ofthe Community
isgreater even than the economic gap (Chapter III). Inmost
LFRs there isalack ofphysical infrastructure for research and
development ;there isachronic shortage ofskilled scientific
personnel ;companies are less oriented towards innovation .
Improving theRTD base isessential toensure adequate growth and
development inthe LFRs .
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5.24 . The better coordination of national research
activities will certainly have some spin-offs inregional terms .
And the Community 'sVALUE programme will ensure the spread of
research results throughout all the regions ofthe Community ,
helping toreinforce the knowledge base inthe LFRs .Moreover ,
the Community 'sown research programmes have already promoted
relations between researchers inLFRs and their colleagues
elsewhere ,encouraging the "trickling down "ofbest practice and
experience . But substantial improvements in regional
competitiveness cannot betackled primarily through Community
research programmes themselves .The main principle applying to
the choice ofresearch projects forCommunity support isthat of
excellence inscientific terms ,and the evaluation ofprojects
and programmes is based on purely scientific criteria .
Excellence isagoal which isappropriate for all regions to
strive towards .But scientific excellence will not beachieved
everywhere without major improvement inthe RTD fabric .
5.25 . Toachieve these improvements mechanisms other than
research programmes themselves must beused .At aCommunity
level new opportunities are offered by the reform of the
Community 's3structural funds ,whose budget will bedoubled by
1993 . Actions needs to be focussed on infrastructure ;
stimulating innovative activities inindustry ;helping companies
and institutes to prepare for participation in Community
programmes ;and technical assistance and evaluation . The
Commission isalready contemplating one specific action known as
STRIDE ^. This isnot aresearch programme aimed atspecific
research goals . Nor is it ablueprint for RTD development
prepared centrally .Inkeeping with the philosophy applying to
the structural funds itisaframework for the development of
initiatives toimprove the RTD base inLFRs inpartnership with
the regions themselves . Other actions through the other
structural funds may beconsidered .
5.26 . Itwould beillusory tobelieve that theproblem ofthe
technology gap within the Community can berapidly and easily
bridged .Infrastructural development ;training ;the creation of
aninnovative capacity ,all take time . But action through
regional and social policy instruments will help toshorten the
time-scales involved .
Science and Technology for Regional Innovation and
Development inEurope .
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Better coordination ofnational policies would help to
save money and improve the efficiency ofresource use
throughout the Community .
Atthe same time aparticular effort isrequired to
improve the RTD fabric inthe less-favoured regions ofthe
Community .Research programmes inthemselves cannot
provide acomplete answer .Amajor action using regional
and social policy instruments isneeded .
THE EXTERNAL ASPECTS
(ix )Encouraging cooperation inRTD with third countries
5.27 . Science and technology are increasingly international
commodities .Atthe level ofthe firm there has been arapid
growth inrecent years ofcooperative ventures inR&D ,often ofa
transnational nature .Among universities and between them and
industry ,relations ofatransnational nature are already common .
There isagrowing international market inresearch scientists .
And national policy-makers have recognised the value ofaccess to
the scientific and technological resources ofthird countries as
ameans ofproviding the new knowledge and expertise needed to
sustain growth and development intheir own countries .Inthe
case of Europe there are particularly intensive scientific
exchanges and significant industrial R&D cooperation with the
USA .
5.28 .Bycommitting the Community todevelop RTD cooperation
with third countries and international organisations ,Article
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130G ofthe Single European Act recognises the importance for
Europe 'sown long-term future ofproperly coordinated action in
this field .The recent recommendations' *3oftheOECD Council
also urge Member States intheir ownmutual interests topromote
scientific and technological exchanges . The further
internationalisation ofRTD istherefore inevitable .The issue
ishowbest toorganise international cooperation insuch away
that it can be a "positive-sum "game inwhich all the
participants have something togain .
5.29 .For the European Community cooperative activities must be
focussed principally onthree groups ofcountries ,towhom
different considerations apply ,namely :other countries within
Western Europe ,and notably our EFTA partners ,the other
industrialised countries outside Europe ,and the developing
countries .Outside these three groups separate reflections are
nowneeded onthe basis for cooperation with the Soviet Union and
Eastern Europe in the light of the new relationships now
developing across the European continent ;aswell asonpolicies
ofRTD cooperation with the NICs that take into account ,ona
case -by-case basis ,the position and prospects for individual
countries .
5.30 .Asfar asthe EFTA countries are concerned ,cooperation
has been running since the establishment ofCOST in1971 .COST
remains an important framework for cooperation on specific
projects "A la carte "with other European countries . The
Luxembourg agreement of1984 between the Community ,the Member
States and the EFTA countries tocreate aEuropean Economic SPace
has led to an intensification of relations inthe scientific
field .Special bilateral cooperation agreements have now been
concluded between the Community and 5ofthe EFTA countries .The
sixth (with Iceland )has recently been submitted tothe Council
for approval .These agreements provide for various forms of
access to Community programmes . Alongside the Community
framework EUREKA provides auseful basis forcooperation between
companies and institutes from the EFTA countries (and Turkey )and
those from the Community Member States themselves .
5.31 .Cooperation within astrictly Community framework with
industrialised countries outside Europe isless well-developed .
Atacommercial level ,asnoted above ,adense network of
linkages inR&Dbetween companies hasbeen established across the
Atlantic .Moreover ,the tradition oftransatlantic migration of
Recommendations ofthe OECD Council about ageneral
framework of principles relating to international
scientific andtechnological cooperation ,21April 1988 .
146

101
European scientists goes back along way .But these developments
have occurred inthe absence ofaformal general framework for
cooperation with the USA .Itmight now beappropriate toexplore
the scope for such ageneral framework ,given the wealth ofUS
resources and experience in the scientific domain and the
opportunities and issues raised bythe recent developments inthe
USA described inChapter II.Itwould also betimely totake
advantage ofthe new moves byJapan towards the international
science and technology community inorder toexamine seriously
the scope for mutually beneficial cooperative ventures which are
unlikely toexacerbate commercial strains .
5.32 .For the developing countries the situation isdifferent
again .Their problems are ,insome respects ,akin tothose of
the less-favoured regions ofEurope ,but their shortages of RTD
infrastructure and skilled scientists and skilled manpower are
more severe .These limitations interms ofindigenous resources
put apowerful brake oneconomic and social development . In
addition many ofthem face specific problems inthe fields of
agriculture ,medicine and health ,and the environment which
require aparticular research effort .
Europe has considerable experience and expertise inthese
research fields ,partly asaconsequence ofcolonial experience .
But the expertise isoften fragmented among different national
institutes .Efforts are needed tocoordinate national actions .
Some of the necessary coordination is already underway at
Community level .Since 1983 the Community has been running with
the LDCs aprogramme ofR&D directed atthe problems oftropical
medicine and agriculture ("Science and Technology for
Development "). Separately ,since 1984 it has developed a
flexible programme ofscientific cooperation inLatin America ,
Asia and Mediterranean countries aimed atthe integration of
research workers in these countries into the international
scientific community ,the improvement of indigenous research
capacities ,and ,latterly ,exploring the scope for technology
transfer .
These programmes are animportant contribution tothe Community 's
-wider development policy objectives ,and inthe years tocome RTD
must play anincreasingly important role inthis context .Given
the growing concern about environmental issues inthe developing
countries (soil erosion ,industrial pollutants etc .)and the need
to'optimise the development and exploitation ofthe natural
resource base and new and renewable energies ,there isagrowing
need for aparticular new and coordinated research effort in
these fields .Atthe same time the wider consequences for the
developing countries ofscientific advances in,for example ,
materials and biotechnology will need tobeconsidered further .

102
(x)Avoidinq technoloaical protectionism
5.33 . The longer-term benefits ofRTD cooperation atan
international level canonly befully achieved ifthetransfer of
knowledge and technology isfacilitated rather than constrained .
Historically thescientific world hasbeen anopen world inwhich
results ofresearch are widely published and discussed and taken
upand elaborated byothers . But the "industrialisation "of
research and the growing importance ofscience totrade flows has
increased the pressure torestrict the flow ofinformation in
order topreserve competitive edge .
5.34 . This isamajor issue for international cooperation ,
notably inthe Community 'srelations with other industrialised
countries ,which has been addressed recently bythe OECD initsCouncil Recommendation ofApril 1988 44.TheCommission believes
that Europe and the world economy asawhole would bethe loser
from amore protectionist scientific and technological world .
LDCs would beeven bigger losers .The Community should therefore
work towards ensuring the diffusion ofresearch results and away
from policies that restrict the flow of information . The
necessary corollary isthat progress should bemade inensuring
adequate regimes for the protection of intellectual and
industrial property . The Commission therefore vigorously
endorses the OECD Council Recommendation on the need towork
towards this end .
Science and technology are international commodities ,and
international cooperation must beafundamental element in
European RTD policies .The Community must further cement
its relations with the EFTA countries ?explore new modes of
cooperation with the other industrial countries ,notably
theUSA and Japan ;and build onits successful cooperation
with LDCs .
One important issue affecting relations with third coun ¬
tries isthequestion oftechnological protectionism and
potential restrictions onthe flow ofknowledge .The
Community should work towards ensuring thediffusion of
research results bythird countries andaway from policies
torestraint the flow ofinformation .
44See footnote n*31 .
148

Annex 1
INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS TECHNOLOGY
ISSUES
Introduction
I.INFORMATION TECHNOLOGY ISSUES
A.Technology issues inthecontext ofthecompetitive position ofIT.industry inEurope
1.Initial situation 1980 -1984
2.Actions andprogress 1984 -1988
3.Remaining weak points
4.Changing priorities andnewactions
B.The perspectives ofemerging technologies inI.T.and theneed forreinforced basic
research
1.Background andrationale
2.Issues ofstrategic significance
II.TELECOMMUNICATIONS AND APPLICATION TECHNOLOGY ISSUES
A.Télécommunications technology
Initial situation
Changes occurred during thelastyears
New needs toaddress
New priorities foraction
B.Application technology
1.Rationale forCommunity action
2.Application ofinformation technology andtelecommunications inhealth care
3.Application ofinformation technology andtelecommunications ineducation and
training
4.Application ofinformation technology andtelecommunications intransport
149

INFORMATION AND TELECOMMUNICATIONS TECHNOLOGIES ISSUES
Introduction
Theglobal R&D effort devoted toinformation andtelecommunications technologies inthe
EEC for1986 isevaluated at14billion ECUs ,thus onehalflessthan intheUnited States .
InEurope ,almost allexpenses arefinanced andcarried outbyindustry ,thatdevotes a
considerable proportion ofitsturn-over (10.5% )toit.
Public financing plays anotable butminor role (29% inEurope against 37% intheUnited
States ).
The R&D effort ininformation andtelecommunications technologies ischaracterised in
Europe byatriple deficiency :
avery marked scattering ofefforts between 12countries (ranging from 0.3% to6%of
theGNP ,thus afactor of1to20oftheeffort rate);
ahigh redundancy mainly forwhat concerns many national programmes andthecritical
mass insufficiency thatcanresult ofthis ;
arythm ofactual growth that isslower than intheUnited States andJapan .Despite
therecent constant increase oftheR&D effort inthesmall countries oftheEuropean
Community (Portugal ,Greece ,Ireland ,theNetherlands ),theslow progress ofpublic
andprivate budgets inthefour countries realising 90% ofthetotal (Federal Republic
ofGermany ,France ,Italy ,United Kingdom )leads toaglobal annual increase of
expenditures (8.4% )that ,intheEuropean Community ,isstillunder thatrealised inthe
United States (+10.7% )andinJapan (+9.5% ):thus ,thegapseems toincrease from
year toyear .
The existence ,since 1984 ,ofthe Community’s transnational cooperative research
programmes (representing 3%ofthetotal RDT expenditures in1986 )obviously cannot
alone have aneffort proportionate totheimportance ofthestakes andproblems .
150

1
A. Information Technology (IT)Issues intheContext oftheCompetitive Position
srrritmra^iTWturope ^) " 1■ n
1. Initial Situation 1980 -1984
Togain ofthepresent status andtrends within theEuropean ITindustry weneed
toreview recent history .Atthebeginning ofthe 1980s thesituation ofthe
European ITindustry attracted great concern .The European industry was
characterized byalagging ITmarket ,lowmarket shares ,low R&D and low
capital investments .
Ananalysis ofperformances oftwogroups ofcompanies ,including respectively
thelargest USandthelargest European Information Systems companies ,showsthatfrom 1980 to1984 <1):
-therevenue growth rate ofUScompanies washigher both ontheworldwide
andtheEuropean market ;
-theprofitability ofUScompanies stayed constantly higher ;
-both capital expenditure and R&D were much higher inUSthan inEurope
andstillgrowing inUSatahigher ratethan inEurope ;
-theprojected growth oftheleading UScompanies would have enhanced their
dominant position intheInformation Systems market ,bytheend ofthe
decade .
Moreover ,thebalance oftrade inITproducts was negative ,amounting toa
deficit of10.6billion USdollars in1984 1.
2. Actions andProgress (1984-1988 )
Concerted action wastaken bytheEuropean companies totryand rectify the
position .These actions encouraged anew dynamism intheEuropean IT
industry andhelped mobilise human ,financial andtechnological resources totry
and reverse thenegative trends .There have been some acquisitions and
numerous cooperative projects between European companies during thelastfive
years .These have been partly inspired byentrepreneurial opportunities strongly
stressed andsupported bycollaborative programmes such asESPRIT .
Wearenowbeginning toseethefruits ofthecombined efforts .
Instrictly quantitative terms ,thesituation intheInformation Systems industry is
now quite different .
(*)All sources ofdata are listed inthe annex .
Information Technologies (IT)comprises :Information Systems including software andservices .
Electronic Components ,Industrial Automation Systems /Computer Integrated Manufacturing (CIH).
151

2
-IntheEuropean market ,where market shares have notbeen affected by
changes inexchange rates ,thelargest European companies have significantly
increased their market share ,bringing itclose to50%,from 33%in1983 43*.
-Inthesoftware andservices market ,representing more than halfofthetotal
Information Systems market ,theEuropean companies are holding a
favourable position taking advantage ofthestrong growth ofthemarketdemand 44*.
-European ITcompanies arenowinvesting inR&D aproportion oftheir sales
very close tothat ofUScompanies .Nevertheless thespeed ofnecessary
increase ofR&D costintheITfield hasnotyetslowed down 45*.
-The strongest investment effort ofEuropean companies was incapital
expenditure ,which reached in1987 alevel higher than thatofUScompanies ,
although stilllower thanthelevel ofJapanese companies 45*.
3. Remaining Weak Points
Although theEuropean Information Processing industry seems ontheway to
overcome some ofitstraditional weaknesses ,major problems stillremain .These
include :
TheInformation Processing industry represents inEurope only26%oftheElectronic industry ,against 33%inJapan and41%inUSA 4.Thefastest
growing sector oftheelectronic industry (theInformation Processing
sector )hasnotyetinEurope aposition able toprovide anhealthy condition
tothewhole electronic industry and inparticular tothesemiconductors
industry .
b)The penetration ofEuropean Information Systems companies onoverseas
markets isstillminimal (15to25%ofsales 43*),while theexpanding
European market isincreasingly attracting tough competitors :Japanese
manufacturers have notyetconcentrated their efforts inEurope ,butthe
rateoftheir growth pushes Japanese companies toexpand overseas sales .
c)Thebalance oftrade hasnotimproved .Onthecontrary in1986 thetrade
deficit inITproducts increased to13.4billion USdollars 4**.
d)TheElectronic Components industry hasnotprogressed inEurope atthe
same rate ,making the Information Systems industry and other user
industries even more dependent onforeign suppliers ofcritical andstrategic
components .The dependency onforeign suppliers for some key
Microelectronics components isasfollows :
-65%ofthe most commonly used memory chips areproduced by
Japanese manufacturers .This share gets close to90%forthemost
advanced type ofmemory 46*.This situation hasalready pushed US
manufacturers (both ofsemiconductor andcomputers )tojoin forces to
establish newproduction capabilities intheUSA ;
152

3
-89%oftheproduction ofthemost advanced microprocessor chips (32-
bit)isconcentrated inthree UScompanies .The same three companies
account for 55%ofproduction ofthe most commonly used
microprocessors (16bit) .
In astrongly competitive industrial environment ,the European
Microelectronics industry hasthedisadvantage ofalowdemand from the
consumer electronics industry ,the locomotive which led Japanese
semiconductor industry tothepresent leadership position .Moreover ,the
Information Systems industry ,thesecond driving force ofMicroelectronics ,
ismuch smaller inEurope than intheUS.
e)The situation issimilarly critical incertain types ofcomputer peripherals .
These represent anever-increasing part ofthevalue ofInformation
Systems .
-Japanese andSouth East Asia manufacturers produce 90%ofworldwide
production oftubes (CRTs )fordisplay units ,95%offlatpanels based on
Liquid Crystal Technology (LCD’s )andareexpected togetsimilar shares
inother emerging flatpanel technologies 17).
-USandJapanese manufacturers represent 90%oftheworld production
ofprinters andtheEuropean dependence iseven higher forkeyparts :
thecore elements forlaser printers areamonopoly ofthree Japanese
companies (7>.
f)Afurther andcritical weakness isthelack oftrained personnel .Estimates
oftherequired number oftrained personnel vary widely butitisclear that
insufficient arebeing produced .Asanexample onerecent estimate forthe
requirement ofengineers trained inVLSI design was5,000 peryear inone
recent estimate fortherequirement ofengineers trained inVLSI design
was5,000 peryear inoneMember State ,namely Germany 185.Atthe
moment only about 3,000 peryear areentering theworkforce inthewhole
oftheCommunity .
153

4
4. Changing Priorities andNew Actions
Therelative success insome areas ofEuropean ITserves tohighlight the
remaining problems .Continued action isrequired totackle these aswell asto
consolidate thenewly acquired competitive positions .Further efforts arecalled
forbynewchallenges evolving (such asJapanese entry intoEuropean computer
market ortherecent newUSinitiatives inMicroelectronics ).Thefactmoreover
that ,inthelight oftherecent positive experience incollaboration ,European
companies arenowready toprogress further ontheroad ofintegration ofjoint
efforts andtosubscribe insome selected areas tounprecedented commitment in
cooperative R&D andtothesubsequent downstream production investments ,
creates theneed forarevision andanadaptation ,andinsome cases asubstantial
shift ,ofthepriorities todate andinorder toensure thelonger term viability of
theCommunity strategy tostrengthen andconsolidate acompetitive position
worldwide ofEuropean ITindustry andservices .
Tothisenditisinthefirstplace necessary :
a)toprovide theeconomic climate andboundary conditions which allow full
exploitation ofthepotential demand .This because theoverall success of
anyR&D policy intheITsector isclosely related totheachievements in
other sectors ofCommunity policy ,inparticular theinternal market and
standardization ;
b)topursue further andstrengthen ontheonehand thecurrent ESPRIT II
policy ofdevelopment ofaEuropean capability todesign andproduce
application specific Microelectronics products (integrated circuits )capable
offully exploiting thepotential ofthemost advanced semiconductor
technologies and ,ontheother hand ,tocomplement thisbypromoting and
sustaining thecreation intheCommunity ofsuch leading edge technologies
(0.3micron CMOS technology by1996 )soastosecure toEuropean
electronics industry strategic independence ofsupply .
c)tosecure ,inparticular ,theready availability ofmicroprocessor technology
inEurope .This iswhyanewinitiative isnecessary ,which aims todevelop a
basis forafamily ofmicroprocessors with standardized architectures .
Control ofthemicroprocessor architecture (including theinstruction set)
willenable ahierarchy ofstandard interfaces tobedesigned andused for
software development throughout ITuserindustries ;
d)toprovide theproduction capability forkeyperipherals inEurope .
e)tore-inforce certain well-identified topics such asComputer Integrated
Manufacturing ;
f)toprepare new actions promoting inspecific areas ofstrategic concern
training measures ,which would help toovercome crucial bottlenecks ona
Community scale .
154

ANNEX II
А}?Ш#1етщр «^ ÿb'Ri:DWiwB»E)P«w«iiiiliaiWil«^H
CAGR
% ■
1
iFUJITSU NEC HITACHI
TOSHIBA MATSUSHITA 35.3
SIEMENS OLIVETTI BULL
NIXDORF PHILIPS STC26.4
DEC HP WANG APPLE 20.4
TOTAL DPMARKET 17.3
IBM 8.5
BURROUGHS SP
CDC HONEYWELERRY NCR2.1
(NOIiVWYiVO )

ANNEX 111
■;-щттттштшш&щщжШ
• '1МяШшштпм
1984 1987 ''Ш«1«®1И1к|ШЛШвШвв
шштшшшшшшт1Ш0ш
шв
21%
/\ LARGEST /\/VJAPAN/ 6\16%
I\s/LARGEST \
27%OTHER USA^-~-1/ /\ / iou yЧ/ 1ВМ УV У
36%/\LARGEST\JAPAN ,
LARGEST \
EUROTHER USA7–\ 12%
33%/ /$X,/ /LARGES/
/jAPAj/\
/OTHER USA//LARGEST/^l/i.EUR
''T"^ IBM /\ //_
45%OTHER USA LARGEST
98BILLION $ 141 BILLION $
(DATAMATION )KO-3

en
•^3I.:xp[®Difp!pteteÉp ^
1984 1987
М .,../"\ Г^ч */^Tf.£?.\o««. 16Vl....\ ...»_\/Np\ sN?«* 7OTHER\LARGEST \\\ LARGEST \ /EUR\ EUR \
2SJ0T„ERXC!l \ ,‘--~X__
|USA^ j 1OTHER/ /\/ l8MJ \USA/IBM •J
20»\//
40% \/ У%1ЪI ■•■■тют •*Ш0№ШатШ№ШШштт&т
/OTHERX LARGEST
EUR\ EUR LARGEST
EUR
25% OTHER
USA OTHER
USA
28.5 BILLION $ .56.3 BILLION $ANNEX IV
•*2
I
KO-2
ATAMATION )
\

5
B.THE PERSPECTIVE OFERMERGTNO TECHNOT OGTRS TMI.T
NEED FOR REINFORCED BASIC RESEARCH ~AND THE
1.Background andrationale
Thesecond halfofthiscentury isreplete withexamples ofresearch ideas which ,although
conceived without even thought toapplications ,ledtotechnological developments withmajor industrial andsocial impact .
Entire theoretical subjects studied anddeveloped byphilosophers andmathematicians are
nowproviding essential tools forInformation Technologies (IT)aswellasallengineering
areas thatrelyonthecapability forrapid andmassive computing andautomated logicalinference .
Asaresult there isagrowing consensus thatsupporting basic fundamental research inITis
asolid investment whose payback ,even ifitdoes notcome intheform ofshort term
industrial applications ,isrich .
InEurope ,partly incontrast with thesituation intheUnited States ,ITrelated basic
research ismostly carried outatuniversities and research institutes asmost industrial
laboratories areconstrained todevote their efforts tothedevelopment ofshort tomedium
term applications .
Inaddition ,itisthebasic research environment inthese institutions thatprovides the
nursing ground forhighly trained manpower ,thedemand forwhich isincreasing much
faster than thecapability tosupply it.
2.Issues ofstrategic significance forfuture informations technology development
They relate to:computer science ,programming language ,advanced robotics ,machine
learning ,cognitive engineering optical andmolecular computing .
a)Awell recognized andbroad long-term research goal inComputer Science addresses
thepredictable reliability ,safety ,security ,integrity andcorrectness ofcomplex ,large -
scale distributed systems .Towork towards thisgoal ,research isneeded onformal
specifications ,testing andverification ,fault tolerance ,system architectures andonhow
torelax onthesimplified abstractions ofthereal world underlying current systems
design .Itisintended that theESPRIT basic research actions willenable aserious
coordinated effort thatwillbring together European expertise inthisarea .
b)The design and specification ofaconcurrent programming language ,the
implementation ofaprovably correct compiler forthatlanguage andthespecification
andimplementation ofaprovably correct operating system would provide thebasis for
ahardware computer ,allofwhose components have been verified through formal
methods .Toachieve this,expertise must bedrawn together from areas ranging from
automated theorem proving toVLSI design methods ,including proof verification
systems ,compiler and operating system design and concurrent programming
methodology .Available ,butdistributed throughout Europe ,thisexpertise could be
brought together tochallenge recent advances inthisarea thathave taken place mostly
intheUnited States .
158

6
c)Many basic problems stillhave tobesolved before arealautonomous mobile robot can
becreated .Corresponding tothecomponents ofsuch arobot ,work isneeded inbasic
research areas likeplanning ofrobot actions ,autonomous navigation ,design ofworld
models ,multisensor fusion ,knowledge representation languages ,design ofhierarchical
expert systems ,distributed planning andmachine learning .
d)Inmachine learning new logical tools arebeing sought inthedirection ofcombining
deductive approaches tolearning with inductive ones into what isincreasingly called
concept learning .This requires extensive work ininductive building ofdecision trees ,
techniques into knowledge acquisition systems .Combining data base management and
knowledge based techniques isalso anarea expected toattract ever increasing
attention .
e)The emerging cognitive engineering approach tothedesign and analysis ofcomplex
systems develops models of human -computer -work interaction inreal-life
environments ,models possible systems andtheir limitations aswell asthework domain
anditsactors .Itisatop-down ,problem driven approach requiring basic research on
therepresentation ofcomplex work domains ,cognitive control ofwork ,error tolerance ,
representation ofintentions andvalues andcooperative ,distributed decision making .
f)Optical andmolecular computing areareas where much fundamental research hasto
becarried outifthepromises ofthesocalled 6thgeneration computing systems areto
bemet .From thesame viewpoint ,recent superconductivity developments open the
wayforwork oninterchip (thick film)andon-chip (thin film )interconnections ,sensors ,
shielding andnew devices .Aneventual deeper understanding ofthephenomenon itself
could provide even hitherto unsuspected information technology advances .

7
Sources ofData
(1) Booz ,Allen andHamilton study on"Trends andObjectives oftheITSector in
theMedium -andLong-Term "(Study carried outfortheCEC in1985).
(2) EIC -Electronics International Coopération ,"L'électronique dans lemonde "-
1987
(3) Datamation -The Analysis isbased ontheInformation Systems revenue ofthe
Top 25suppliers .
(4) IDC -Eurocast -Software andservices -1988
(5) Company reports -Companies inthegroup oftheTop 25forInformation
Systems revenue have been considered .
(6) Dataquest -1988
(7) Consultronique -Study on"Opportunities forEuropean Suppliers ofComputer
Peripheral Equipment "(Study carried outfortheCEC in1988)
(8) Markt &Technik ,June 1985
160

8
A.Télécommunications technolog v
1.Initial situation
Incomparison with theinformatics sector ,Europe hasbeen sustaining agood position in
telecommunications .This isduetothegood technological capabilities inthisfield andto
theclose links established between telecommunications operators and industry ,which
contributed tosecure very substantial market shares toeuropean companies .
TheCommunity balance oftrade intelecommunications hastherefore always been positive
sofar.
2.Changes occured during thelastyears
a)Since 1984
European telecommunications industry andoperators areconfronted with :
achanging regulatory environment world-wide ,which willlead toincreased competition
intheprovision ofequipment andservices ,
technological challenges with theevolution towards digitalization ofnetworks ,ISDN
andbroadband networks and services (present european weakness incomponents is
also amajor challenge inthiscontext ),
growing demand ofkeeping upthepace interms ofRandDeffort andininvestment ,
which require increased market base andbetter useofeconomies ofscale ,especially in
public telephony .
The approach defined atCommunity level hasallowed toestablish consensus between
telecommunications operators andindustry oncommon concepts ofevolution ofnetwork ,
including theestablishment ofacommon strategic framework todevelop concertation and
technology forIBC networks ,services andterminals .
Inthiscontext ,Europe must :
improve itsoverall capabilities ingeneric ITtechnologies (esp .components ,software )
which play anincreasing role intelecommunications because oftheconvergence of
technologies .The rising trade deficit intelecommunications with Japan andtheUnited
States against anoverall commercial surplus isaclear evidence ofthisthreat .
address theissues ofsystems research andengineering ofintegrated services .
b)Since thelaunching ofRACE
Since telecommunications operators ,industry andusers oftheCommunity andtheEFTA
countries joined forces toaddress thedevelopment ofanadvanced telecommunications
systems inEurope intheframework ofRACE important developments have taken place :
1.The implementation oftheRACE Definition Phase hasproved theadvantages and
necessity ofcollaborating onaeuropean scale indefining anddeveloping specifications
andcommon technological elements .
161

9
2.Japan andtheUS/Canada havecompleted their broadband overlay network unlocking
theeconomic and competitive potential ofadvanced communications services .
Broadband links tothecustomer (45Mbit DS3)experience intheUSagrowth rateof
100% perannum .TheFCC expects broadband links togointotheUShomes within
thenext 3years andanexplosive growth oftelecommunications services .Europe will
consequently have tospeed upandintensify itsefforts .
3.Theglobal optical network israpidly advancing from theUSviathepacific andthe
atlantic multiplying thetransmission capacities linking different regions oftheworld
economy .
4.The internationalisation ofeconomic and social activities feeds atrend towards
international service provision withstrong economies ofscale .ForEurope thisimplies
theneed forthesector actors (operators ,industry ,service providers )toaddress their
respective responsibilities inaconsistent andagreed framework .
Theinterest andcommitment byoperators ,telecommunications equipment industry and
telecommunications users totheobjectives ofRACE hascorrespondingly increased .
3.New needs toaddress
Inthelight ofthedevelopments ,theappreciation oftheneeds hasevolved reflected in
a)anincreased conviction thatthemarket willdemand advanced communications inthe
mid-1990s implying that thetarget date forEurope -wide introduction ofintegrated
broadband services of1995 may need tobemoved forward tocoincide with the1992
objective ofthecompletion oftheinternal market .
b)agrowing interest toreinforce thework onHDTV with respect toitsdistribution inter
aliaviacable networks toexploit theachievements oftheEUREKA HDTV work ;
c)therecognition oftheneed toaddress themid-tolong-term implications forthe
telecommunications system inallitsparts oftherapidly growing demand formobile
communications ;
d)thenecessity toextend thecollaboration ofoperators and industry with service
providers andusers inapplication pilots toaccelerate theemergence ofeconomically viable
services optimally adapted totheneeds oftheuser .
4.New priorities foraction
Thespecific adjustments andre-inforcements tobecarried outrelate to:
IBC DEVELOPMENT AND IMPLEMENTATION STRATEGIES
Itwillbenecessary torevise thecommon functional specifications prepared bytheRACE
programme inthelight oftheverification andintegration work carried out.Furthermore
thenewPart IItechnological activities willgenerate ononehand output forPart Iandon
theother hand thePart IIactivities willneed guidance from Part I.
H2

10
IBC TECHNOLOGY
Long Term Technological Issues
Inthe light oftechnological trends and theevolutionof theappreciation ofdemand
characteristics thefollowing technological issues need increased attention :
*optical switching :technology andsystem integration
*coherent multichannel technique ,progress towards integration into customer access
connection andpossibly integration with optical switching .
*specification andimplementation ofasignalling system forbroadband networks
*consideration ofspecial topologies forthecustomer access networks ,interfaces to
public networks ,protocols ,common functional specifications ,interconnection ofCustomer
Premises Networks
*broadband mobile technology ,technology ,integration into theterrestrial network and
implications ontheterrestrial network
*High Definition Television (HDTV ),coding forHDTV ,structure ofdistribution
networks ,distribution switching forHDTV signals
*network management andimpact ofadvanced information processing technologies on
network management .
PRE-NOMATIVE FUNCTIONAL INTEGRATION
Intégration and Vérification
Further systematic efforts arenecessary and could benefit from collaboration ona
European scale :
*integration ofsubsystems into systems where necessary toenable verification atsystem
level
*verification ofcommon functional specifications viaintegration ofsystems (network
termination ,customer access connection andlocal exchange )into anetwork testbed to
enable verification atnetwork level
*verification ofcommon functional specifications onthebroadband user network
interface byintegration ofterminals and Customer Premises Networks (CPN )into
network testbeds
*evolution from demonstrators and verification testbeds toabroader trial network and
service testbed byexploiting thesynergy among national testbeds .
Application Pilots
*enhancement ofapplication pilots insuch awaythatthey canusethefuture broadband
facilities .
163

11
*improvement ofusability ofapplication pilots .
*pilot implémentations ofservice éléments .
B.Application technology
I.Rationale forCommunity action
When theframework programme wasbeing prepared ,ithadbeen clearly perceived thatin
thefield ofgeneric technologies andcommon infrastructures asitisledintheframework
ofprogrammes suchasESPRIT andRACE ,must necessarily beaccompanied byaparallel
effort ofdevelopment ofapplications thatoffer aconsiderable potential ofcreation of
activities ,services andthusofnewemployment .
The objective istoprepare ,indue time ,theconditions favourable totheintensive
exploitation oflarge basic technologies thatarebeing perfected ,byadapting them tothe
needs and specific constraints ofthedifferent categories ofusers (business ,public
administrations ,social services ,individuals )andthus implement ,atCommunity level ,a
market ofequipment and services that willbear theEuropean industry ,favour its
international competitiveness andallow aresponse tothesocial andeconomic needs .
Onthebasis ofinitial studies ,theCommission hadidentified thefollowing asbearing
application sectors :
education andtraining (mainly forprofessional training ),
transport ,
medical science and health .
Thevery large consultations towhich theCommission hasproceeded since 1987 with the
different groups ofactors involved (dataprocessing and telecommunications industry ,
publishing industry ,transport ,health equipment ,etc.,scientific sectors ,pubLic authorities ,
user groups ,telecommunication networks operators ,standardisation organisations )have
largely confirmed thesocio-economic relevance ofthesectors ofpriority application
identified beforehand .
Thethree specific programmes -DRIVE ,AIM ,DELTA issued from thisphase ofstrategic
concertation -areconcerned with theapplications ofinformation ,telecommunications and
audio-visual technologies inthefields ofgeneral interests services ,management and
security ofroad traffic ,bio-medical dataprocessing andremote multimedia teaching .
These three fields present acertain number ofcommon characteristics thatjustify ajoint
action atCommunity level :
-their economic andsocial importance isconsiderable intheCommunity andtheir costs
weigh heavily onthecollectivity andinparticular onpublic finance .This charge can
only bestabilised orreduced byabetter cost/performance relation oftheservices
offered ;
they very largely depend ontheresponsibility ofthepublic authorities ,who either
define theregulations ormanage anessential partoftheinfrastructures thatform the
basis oftheservices offered tothepopulation ;
164

12
lastly ,inthese sectors ,the users’ needs are developing rapidly throughout the
Community .
Inthecase oftraining ,theEuropean active population isfaced with thenecessity of
constandy adapting itslevel ofknowledge and experience tothe rapidly changing
techniques andprofessions .Now ,thetraditional structures ofknowledge transmission lack
ofadaptation tothenecessities ofthere-training andre-adaptation ofknowledge .
Inthefield oftransport ,thenumber ofbodily accidents ontheroad ,thewaste ofenergy
and atmospheric pollution that entail traffic problems demonstrate that the classic
techniques oftraffic management have reachd thelimits oftheir possibilities .
Inthefield ofhealth ,although theprogress inmedical sciences hasbeen very rapid during
these past decades ,aconsiderable effort remains tobeaccomplished totake thebest
advantage ofthem byfurther adapting thecapacity ofdiagnosis and treatment tothe
specific needs ofthepatients anddoctors .
Facing this lack ofbalance between thedemand forservices more adapted tothenew
needs andthepresent supply thatdoes notallow totake them intoaccount inasatisfactory
way anymore ,thenew information ,telecommunications and audio-visual technologies
represent amajor opportunity forthefuture .
The new technological supports that permit amultimedia andremote apprenticeship will
allow everyone tostudy atachosen time ,desired rythm and inaplace that suits onemost
(home ,work ,school ).The concept of"teieteaching "hasbecome acrucial factor of
progress .
The information technologies arenow adeterminant factor bringing together patient and
medical science .They allow theconception ofa"telemedicine "that abolishes constraints
duetodistance ,of"integrated "hospitals inwhich allequipment willfunction asanetwork ,
ofhealth care adapted directly totheindividual patient .
Inthefield oftransport ,they allow theconception ofsolutions adapted inabetter way to
the needs and the behaviour ofthe vehicle drivers ,byputting attheir disposal
computerised tools and more flexible and safer information and communication
infrastructures .
The range oftechnologies tobeused andintegrated tothiseffect isvery large :personal
computer ,optical disk ,microprocessor cards ,new techniques ofmedical and educational
imagery ,computer languages similar tonatural language ,expert systems ,mobile telephony ,
ISDN ,broadband integrated network ,HDTV ,direct transmission bysatellite ,etc...
The problem now istocombine and integrate toamaximum the large range of
technologies already available orincourse ofdevelopment ,andthus optimise their gobal
performance onatechnological ,economic and social point ofview and avoid ,by
cooperative andconcerted actions with alltheactors concerned attheEuropean level ,the
risks caused bythepresent proliferation ofindependent systems that would allbe
conceived inrelation toapaticular ,often exclusively national ,point ofview .
2.Application ofinformation technology andtelecommunications inhealth care
Member States spend asubstantial proportion oftheir GNP onHealth Care .Inspite of
determined efforts tolimit further increase ,costs arestillescalating (cf.separate annex on
health research ).
165

13
Specific application ofinformation technology andnew means ofcommunication can
provide increased health care *
Thereasons forthisapproach canbesummarised asfollows :
*Theefficiency ofhealth care mayimprove bylinking allparties involved indiagnosing
ortreating onepatient orthesame group ofpatients .
*The goal ofequal access willbearealistic onewhen thecentralized expertise is
disseminated towhere thepatient is.
*Managerial and financial aspects ofhealth care will become transparent and
comparable ifmodern informatics isapplied .
*Industry willbenefit from amore harmonious health care market than thevery
fragmented sector weknow today .
Since introducing theAIM action intheFramework Programme ,therationale forithas
strengthened by
mounting interest ofsector actors ,inparticular ,national administrations ofhealth care ,
industry andresearch ,
growing awareness thatthere isagood case forextending thecooperation beyond the
scale oftheExploratory Phase .
Areas tobestrengthened are:
a)specific diagnostic technologies such asforexample imaging needs studies both on
software andhardware specifications .
b)agreed terminology andmedical records .Inmedical health care there isahuge
variety ofdata .
c)AEuropean strategy foracoherent IT&Tstructure inhealth care .The
structural implications ,andopportunities ,ofthenew technologies need tobe
studied and acted on.Modem telecommunications can cutacross existing
structures ,andrevolutionize thisprofessionals ,hospitals ,home care etc.need not
continue .
Further efforts inEurope should address thefollowing keysubjects :
Agreed terminology andrecord handling ,
Knowledge based medical systems andinstrumentation .
-Establishment ofnetwork databases andcomputing facilities tolinkgeneralized aswell
asmore specialized workstations e.g.inoncology ,epidemiology andresearch .
Integration ofknowledge based systems intohealth care .
166

14
Development ofbiosensors formonitoring and controlling various body functions (a
field where Europe may stilltake alead).Apositive outcome would beofgreat
importance formany categories ofpatients such asdiabetics ,patients with cardiac
diseases ,neurological disorders etc.
Investigation ofIT&Tapplication topatients with sensory andmotor handicaps ,which
would help these disabled persons tolead amore normal life.
Besides ,there willbeacontinued need foraddressing thenon-technological issues ,such as:
Legal issues inconnection with safedata handling
Legal issues with respect toprotection ofprivacy
Training ofpersonnel
Ethical problems andpatient acceptability .
3.Application ofinformation technology and telecommunications ineducation and
training
European governments and undertakings have become increasingly aware ofthe
competitive andsocial value oftraining andofaskilled ,educated workforce .Recent and
foreseeable progress ininformation technology ,telecommunications andbroadcasting open
upnewpossibilities ofreaching awider audience cost-effectively .
IT&Ttechnology isasuitable tooltoaddress thisneed because :
1.Education isessential foreveryone ,butthere arefinite teaching resources .
2.Currently ,upto600 hours areneeded toproduce one hour ofgood educational
material .This can bereduced tocost effective levels .
3.Itisoneofthelargest markets forgood ,integrated services that merge technology ,
content andprocesses .
4.Bytheyear 2000 ,18% ofthepopulation willbeineducation ,training orretraining at
anytime .
5.Industry isbecoming acutely aware oftheneed tomaintain itsskills base .
Itwillbeessential forEurope touseallappropriate means tocreate aninformed and
educated workforce .This isthesingle most vital asset ofanadvanced service oriented
group ofnations .
This was thebasis fortheadoption oftheDELTA Exploratory Action ,which was
confirmed bytheexperience gained since then inCOMETT andDELTA .
Since thedefinition oftheFramework Programme thecase forcollaboration ataEuropean
scale hasfurther strengthened :
1.IntheUSA ,government expenditure onprojects likeDELTA areestimated atwell
over 400MUSdollar peryear .
167

15
2.Anestimated USA market (1987)of29Billion USdollar attracts other competitornations .
3.These developments arenowbeing aggressively exploited .
4.They arepotentially very significant ,inanindustry starved ofgood global solutions to
become de-facto world standards .
5.Even small countries have used distance teaching using technology toovercome
regional ,cultural andgeographical barriers .
Inthiscontext thespecific European situation should betaken intoaccount :
1.Europe isbehind interms ofpilot testing andexperimentation ,
2.Nevertheless ,ithasahigh level ofeducation andtraining development activity ,albeit
fragmented ,
3.There isapotentially potent source ofhigh skillandexpertise inlearning technology ,
thatworks well,butisoften sub-critical .
4.There isagoodwill foreducation not tobeunduely restrained bytariff or
administrative barriers .
5.The climate forinnovators inthis domain hasnever been better due tothevolume of
successful results from European collaboration such asESPRIT andRACE .
There isagrowing consensus inEurope todevelop :
solutions thatallow formore cost-effective creation ofhigh quality learning material ,
experimentation ,prototyping and harmonisation ofallaspects ofITT&B-based
learning systems .
4.Application ofinformation technology andtelecommunications intransport
Road Traffic Administrations ,Industry andRoad Transport Users intheCommunity and
inEFTA countries ,becoming aware oftheincreasing problems ontheEuropean road
network ,have decided tojoin forces intheframework oftheDRIVE programme to
address the development ofadvanced systems using Information Technology ,
Telecommunications andBroadcasting which could help toimprove theuseoftheexisting
network ,inincreasing their capacity andatthesame time ,reducing technical orhuman
errors .
Therapid adoption ofDRIVE took place against thebackground of:
transport representing more than 6%ofGNP ;
more than 10% offamily budget being devoted totransport ;
-carownership inEurope representing 60% ofthelevel inUS,whilst congestion and
poor routing costs anestimated 150billion ECUs peryear ,androad accidents kill
55,000 people andinjure 1,7million annually inEurope ,with afinancial costofan
estimated 50billion ECUs ;
168

16
progress ininformation technology ,telecommunications andbroadcasting offering new
and effective solutions .
DRIVE hasbeen prepared with theactive participation ofallpublic bodies concerned from
allMember States ,with themotor industry andthe1T1&B industry .Afullconsultation
with more than 60organisations ,hastaken place ,representing allinterests (Industry +
Users ).
Since theDRIVE Programme hasbeen taken upintheUSandJapan inrecognition ofthe
competitive impact ofroad transport informatics which arelikely toresult inspeedy
progress .Itseems very likely that imported solutions emerging from these initiatives will
notbeoptimal fortheEuropean situation ;
European carmanufacturers have committed themselves tothecontinuation ofthe
work inthe framework ofPrometheus (EUREKA Project ofEuropean
automobilemanufacturers );
interest intraffic andtransport manangement hasincreased ;
3000 organisations ,industries andResearch Institutes from theCommunity andEFTA
countries have expressed interest inDRIVE ;
new important R&D ofpre-competitive andpre-normative kind have been identified
bysector actors .
Future research needs include ,notably :
a.Development ofappropriate verification tools ,which willfacilitate theintroduction of
newequipment onvehicles ortoinfrastructure .
b.Longer term technological solutions ,which willsubstantially increase thecapacity of
theroad-transport network ,improving safety atthesame time .
c.Investigation indepth oftheproposed systems ,particularly those relating topublic
Transport ,goods transport andvulnerable Road Users .
d.Concepts fortheuseofmobile communication asinfrastructure forroad transport
information andguidance services .
e.Thenecessity toextend thecollaboration ofoperators ,industry andusers inapplication
pilots taking intoaccount regional differences .
f.Development ofproposals forintegrated specifications forallmajor sub-systems
building inter aliaontheresults ofESPRIT andRACE .
More specifically ,thismeans :
Development ofasystems approach ,which will consider the total transport
environment inEurope and willinclude land useandgeneral economic issues and
specific regional requirements .
U9

17
-Further development oftransportation models toinclude elements oftotal transport
performance and thespecifications ofadvanced systems offering longer term
technological solution ;aswellasdevelopment ofatechnoeconomic toolforevaluating
theconsequences ofproducing different components ofRoad Transport Informatics
(e.g.showing theway they arechanneled through different economic sectors and
through different markets ).This would beofusetoother R&D programmes
concerned with techno-economic evaluation .
Investigation and development oflonger term technological solutions ,particularly
relating toincreasing capacity oftraffic lanes ;technologies forPublic Transport and
Goods Transport Intermodal Information Systems ;andadvanced systems forrural
Road Transport .
Integration ofTraffic management andTransport Management systems ,with the
inclusion ofallvalue added services .
The synergy ofsimilar technological solutions foralltransport modes ,addressing the
issues ofnavigation ,information ,management .Inaddition exploitation ofmerging
work ofESPRIT andRACE formaximisation ofsynergy with these actions .
Intheroad safety context :
advanced anti-collision devices incomplex situations using longer term technological
solutions ;
advanced man machine interfaces using longer term technological solutions ;
advanced co-pilot systems including corresponding servo mechanisms ;
improved sensors including incarbiochip devices .
Toprepae thewayforimplémentation :
-Development oftestbeds forIntegrated Road Transport Management Systems ,
including theinterfaces with other modes forpassenger and good transport ;
development oftestbedsforAdvanced Road Safety Systems forurban andinterurban
Road Transport ;and development oftheverification procedures forlicencing
Advanced RTI Systems .
170

Annex 2
INDUSTRIAL TECHNOLOGIES AND MATERIALS
MAIN ISSUES FOR INDUSTRIAL R&D AND MARKET PERFORMANCE
1.1The Market
Manufacturing industry ,astheprimary customer forindustrial
technologies andmaterials ,isanestablished andessential part ofthe
Community 'seconomy andwill remain sofortheforeseeable future .It
provides around 1050 billion ECU (1985 )or30%ofGNPandaccounts for75%
oftheindustrial work force ofsortie 41million people .There isa
strongly positive balance oftrade inmanufactured goods (export /import
ratio of1,15 in1987-Table 2.1 ).This isunderpinned bysectors which
have devoted considerable resources tomaintaining their competitive edge
andisparticularly sointhemanufacture ofmotor cars ,chemicals ,power
cables and instrumentation .Nevertheless ,same structural weaknesses
persist andinparticular thecapacity torespond togrowing demand in
more developed markets .Theconsiderable changes that have taken place in
therelative size ofworld output across arange ofmanufacturing sectors
isshown infigure 2.1 .Comparing theperformance ofselected sectors in
Europe ,USandJapan ,(seepages A1-A6 )reveals large relative movements
inoutput growth andthus theconsiderable pressure onEuropean
manufacturers inadynamic market .
Table 2.1
ECBalance ofTrade inManufactured Goods
(billion ECU )
Exports
1981 (EC10 ) 236Imports
171Export /Import Ratio
1.38
1987 (EC12 ) 289 252 1.15
Eurostat
171

1
§
ft
£
21a.
WORLD MANUFACTURING OUTPUT GROWTH
EVOLUTION BYSECTOR 75-BOAMJ 00-8S ...45%
42%
40%
35%
31% i- - %
30% -
25%
26% r–-rrn 23%- –, 22%
^ f~~i
20% Н ■ч;; 'Ч' :Ч: .;чï-i /: i8%
.»- ■:i: 1ÿ' .
12%
ο%-ΐ- 1- 1– ι-μ– ι– ί-–μ– ι– ι– ι– ι
CHE ENQ MEN EEN
_ SECTORS _HH 75-80 I I80-85EVOLUTION BYSECTOR 75-80 AMJ 80-85
•'H '
SECTORS
I 180-85 rn 75-80
Figure 2.1 a
30%WORLD MANUFACTURING OUTPUT GROWTH
EVOLUTION BYSECTOR 75-80 AT©80-85
20% -
10%-
&
£
è
-10%-
-20%-10% -«% -4%-12%
ΤΟΥ SCI OPT
SECTORS
I )75-80SH
I j80-65
For legend see page A2
Figure 2.1 b172

X
§
a
P
sWORLD MANUFACTURING OUTPUT GROWTH
EVOLUTION BYSECTOR 75-80 AM)80-85
21% I" I
2011 19%
18%
.6% .'•?*
Мг 13%
In%
1СП
8%- 8-1 8%811 I–
«- . 5%
4\-
Л-11 11 1%
wh-T^l 1 1 1I I 111Ml I
-2%-
-4%-
-6\-
-G% i i- 1- 1- 1 F
TEX CLO MAR MOT TRA RB
_ SECTOftS _
I I75-80 I180-85EVOLUTION BYSECTOR 75-80 AM)80-85
SECTOftS
[ ]75-80
T'inure 2.1 C
ForSource /Leyena seepage A2
173

2.
However ,inrecent years there hasbeen amarked reaction byEuropean
manufacturing industry tothepressures ofever widening andmore
competitive markets .This isvisible interms oftheimproved performance
within theleading companies inmany sectors .Maintaining market share
means providing abetter service than canpetitors .Increasingly ,the
requirement relates totheability tosupply ,when required ,small batches
ofhigh quality goods .Thenecessary flexibility requires major changes
inthemanufacturing strategy ofmost companies .Demolition ofthe
barriers between thefunctions ofmarketing ,design ,purchasing or
manufacturing ,andafter sales ,within andbetween companies ,will
facilitate theidentification ofthetechnologies which areneeded to
improve performance .
1.2 Technology inCompany Strategy
Different approaches toIndustrial R&Dstrategy ,such asfocussing on
product innovation orreducing manufacturing costs ,must beapplied
singularly orincombination tosectors with afast growing demand (such
asinstruments andchemicals )orthose whose demand isstagnant (such as
clothing ,textiles ,motor vehicles andfood ).Thecommon element isthat
theperformance oftheEuropean industries andthose ofthemost developed
industrial countries will beless concentrated onmaintaining or
increasing market share ofthetotal market .Instead they will seek to
capture thetopendofthemarket byneworimproved products often with a
higher technology content intheproduct itself orinitsmeans of
manufacture .
Thesize ofthesocalled 'top end' ofthemarket will ,toalarge extent ,
depend onthetechnologies used andhewthey extend theefficiency tothe
customer 'sneeds .Thepotential forincreasing productivity and
flexibility isgreater inmature industries ,asistheincentive toemploy
newtechnology .Oneindication ofthis trend towards thedevelopment of
products having ahigher added value isthemovement towards materials
having agreater 'expertise' content perunit weight ,seefigure 2.2 .
Already this 'denaturing' process isevident inestablished sectors ,as
demonstrated bythefollowing examples :
- inthemotor carindustry ,responsible forabout 10%ofindustrial
value added andemployment ,productivity increased bymore than 30%
between 1980 and1987 .After making losses intheearly 1980s the
industry became profitable in1986with profits estimated at7
billion ECUfor1987 .Forthis improvement against strong external
174

Relation between thequantity ofmaterials inaproduct andtheinformation content
Degree ofsophistication
•Electronic materials
\г
Composite#
materialsHigh-temperature
materials
Л
Materials mixandsophistication
oftoday’s automobile industry
V• HieEngineering#
plastics # High -©Steel ,bulkapplications
Aluminium strength
lkplastics fealloys low-alloy %CementBulk plastics <
Steel- ►
Quantity ofmaterial perunit ofproduct
Figure 2.2
Source :ATAS Bulletin
175

3.
pressure ,amajor contribution came frcm innovation inthe
organisation ofproduction ,heavily supported bytechnology .
Asahighly automated process industry ,European power cable
manufacturers simply 39%oftheworld production .Todefend itself
against import substitution policies indeveloping countries R&Dis
recognised asameans ofmaintaining technical leadership inareas
such asinsulation andfine protection .
Theclothing industry ,employing over onemillion people ,has
inproved itsexport /import ratio frcm 0.45 to0.68 since 1980 .
Overall imports into theCarmunity amounted to9.6% ofconsumption in
1986 although forseme items thefigure wasashigh as76% .
Technology isrecognised asoffering amajor opportunity although
there aresome very difficult problems tosolve .
Theassociated textile machinery sector manufactures 55%ofworld
productions andexports 70%ofoutput .Although recent ccrrmercial
trends arenotencouraging there isoptimism that themore integrated
manufacturing processes nowrequired byusers andwhich exploit
advanced technologies will reduce therelative importance ofmarket
costs andsoshift demand fortextile production back tothe
Carmunity .Current textile manufacturing process technologies such
asweaving achieve extended effectiveness through advanced technology
additions (seefigure 2.3andpage A7)
4 Maturity extenced
Dymicroprocessor
technology
and/or .S
roDotlcs /
c Maturity of y-
£ Dasic process
v technology
c /L /
CL /E //a /
O /C /.c /U //H /
l- ^
YearsMaturity extenced
Dymicroprocessor
technology
and/or .S
roDotlcs /
Years
Source KSA
Figure 2.3 176

4.
- Themachine tool industry hashadamixed performance with sore
companies being slew inmoving tothetechnologies ofnumerically
controlled tools .However some companies have been particularly
successful inmaintaining their position inworld markets through
technology leadership .
Theglass andwood industries have annual outputs of16and 19
billion ECUrespectively .Though very different innature ,both
contracted intheearly 1980s .Technology innovations areallowing
these sectors tobenefit from their inherent environmental
advantages .
Last butnot least thechemical industry hasanannual turnover of
same 230billion ECU (1987 )with anexport /import ratio of1,27 .
With theopening ofmarkets thesector hasdemonstrated its
technical strength inproducts andtheir production against growing
international competition .
1.3 Barriers toprogress
Asenterprises become more dependent onexpensive machinery ,improvements
areneeded concerning thereliability andpredictability ofmachine
behaviour .Recognising thecharacteristics ofCorrmunity industry
consisting offewlarge andmany medium sized andsmall enterprises ,there
isaparticular need toreduce thecomplexity andcost ofnewproduction
technologies and systems .
Exploiting newtechnology inproducts isessential whether directly ,asin
theuseofnewmaterials ,orindirectly through inproved design ,
reliability ,servicing ormarketing .Here theCannon ityindustry has
generally been less successful than itscompetitors ,particularly from the
FarEast .TheCannunity nowlags behind intheengineering aspects -
performance andmethods ofcorponent manufacture andnewmaterials .
Failure toexploit newmaterials toimprove product performance ,
durability andreliability bars theCannunity from competing inrapidly
expanding andtraditional markets .
Thechallenge ofthesingle integrated market highlights thegrowing
requirement foruniform standards ataEuropean level ,which arethebasis
foreffective ccrmunication between interested parties within industry and
between industry andregulatory bodies .Results already emerging from
European level programmes including BCR ,BCSC Steel Research andCOST
suggest that research involving partners from several Member States canbe
avaluable steptowards harmonisation ofindustrial practice . 1!177

Pre-ccmpetitive R&D-applied research notleading directly to
ccmmercially exploitable results -isanessential enabling instrument for
competitiveness butmaybetoowide inapplication ,oftoolong atine
scale ,ortoorisky tomake itacceptable forfunding bysingle companies ,
particularly SMEs .Itishere that existing resources inEurope canbe
further exploited ,building onthegrowing awareness ofthebenefits of
collaborative activity .AttheEuropean level ,R&Dprogrammes have helped
toreinforce this encouraging trend inbringing together thecomplementary
expertise ofthose inindustry andresearch organisations tospecify ,
manage andimplement thework required tounderpin thecompetitiveness of
European manufacturers .
Within Europe most R&Drelating toindustrial technologies andmaterials
isbelieved totake place inindustry .However ,theavailable statistical
information isgenerally toobroad incoverage toprovide anaccurate
picture ofthetrue situation .Itisestimated that spending by
governments onindustrial production andtechnology isseme 3,7billion
ECU .Incomparison ,theCarmunity 'sindustrial research anddevelopment
programmes such asBRITE /EURAM ,RawMaterials andRecycling ,andtheECSC
Steel Research will commit only arelatively small percentage ofthis sum
each year .Though within these programmes Community support will vary
between ahigh level ofoverall R&Dfunding inalewresearch intensity
sector such asclothing toalowlevel inamere research intensive sector
such aschemicals .Thefigures onpages A8-A10 ,though incomplete ,
indicate thetrends across Europe ,USandJapan inoverall R&Dexpenditure
inanumber ofseertors :
Inthecase ofchemicals ,itisparticularly noticeable that the
Japanese ,starting from amuch smaller base ,arecatching upwith
Europe through ahigher rate ofgrowth inR&Dexpenditure .
Thefigures formotor vehicles suggest that after major efforts in
theseventies ,world manufacturers mayhave slewed down theincrease
inR&Dexpenditure ,particularly inthecase ofUSbutalso inEurope
relative toJapan .
Thetextile andclothing industry conducts very little R&Dbutitis
worrying toseethat Europe appears tohave been decreasing
expenditure relative toJapan andUS.
Inthearea ofrubber andplastics ,Europe appears tobemaintaining
itsposition against USandJapan .
–Theposition inmachinery R&Dexpenditure ,although increasing ,isa
cause forconcern with Europe falling steadily behind both USand
178 Japan .

6.
Although Europe clearly hasasubstantial activity ,ittends tobebehind
theUSinabsolute R&Dexpenditure andalso falls belcw Japan intherate
ofgrowth particularly between 1980 and1983 .Thefigures confirm the
concern expressed elsewhere over thetrends intotal volume ofresearch
expenditure .
2.THE CHALLENGE FRCM OUTSIDE EUROPE
Outside Europe itis,forthetime being ,theUSandJapan which dominate
theR&Dscene inindustrial technologies .However both have very
different incentives andinfrastructures supporting their advancement .
Onemeasure ofsuccess istheability toretain orincrease shares in
world markets .Looking attherelative importance ofindustries across a
basket of12important manufacturing sectors between 1980 and1985 ,table
2.2reveals that whereas 9oftheJapanese industries have held or
increased market share this wasonly thecase foroneEuropean and 4
American sectors .
TABLE 2.2 Gains and Losses inShare of
World Markets 1980 to1985
Sector Europe
Electrical Engineering L
Engineering forailindustries L
Mechanical Engineering L
Rubber Products L
Textile L
Fumiture L
Machine Tools L
Ship building L
Optical Products L
Scientific Instruments G
Clothing L
Chemical Industry L
G-Gain ,L=Loss ,H-HeldUS
L
L
L
H
L
G
H
G
L
L
L
LJapan
G
G
L
L
H
H
L
Г'
G
H
H
H
After Arthur Anderson and Co .1988179

7.
Formany years Japan hashadthereputation forbeing acopier ofwestern
technology .Many European manufacturing companies have studied the
Japanese approach atfirst hand andnowbelieve they have the
capabilities ,ifproperly used ,tomount asuccessful challenge .There is
alotofground tomake upasJapanese products were newworld leaders in
36outof40technology intense product categories .
Japanese industry isstructured inawaywhich avoids many oftheproblems
associated with technology transfer intheWest .Japanese industry does
theresearch itself with internal technology transfer byproduction and
research engineers working alongside oneanother during thedevelopment
phase .While Government laboratories anduniversities play arelatively
minor part inindustry 'sR&Deffort they doprovide apool ofexpertise
forusebyMITI andother agencies inplanning andrunning Government
sponsored industrial research programmes .
In1981 MITI launched itsproject dealing with therevolutionary basic
technologies essential totheestablishment ofthenewindustries expected
toflourish before theendofthecentury .The 'Research andDevelopment
Project ofBasic Technology forFuture Industries' (JISEDAI )covered new
materials ,biotechnology andnewelectronics devices .
Last year areport prepared onbehalf ofMITI byacademics and
industrialists recognised theneed tostrengthen Japan 'scapabilities in
fundamental research .Various means were proposed including the
establishment ofcentres ofresearch asabasis forencouraging exchanges
ofresearchers between industry anduniversities .Another measure wasto
reinforce theJISEDAI programme ,recognising that theareas offundamental
research which were expected tobeimportant forindustry atthebeginning
ofthenext century were :newmaterials ;electronics ;software ;
biotechnology ;andbicmaterials .
IntheUSamajor factor intheadvancement ofmanufacturing ,design ,and
materials technology hasbeen theDepartment ofDefense support forR&D .
IntheManufacturing Technology Programme alone there areapproximately
500projects active atanyonetime with anannual funding (in1986 )of
approximately 200million dollars .Inits25years this R&Dprograrrme is
recognised ashaving benefited both civil andmilitary users with ,insame
instances ,returns totheUSamounting tobillions ofdollars .
180

8.
Theprimary objective tosupport R&Dcapable ofimproving theeconomical ,
timely andreliable production ofdefence material ,hasmeant that the
programme hasbecame anational focus fordevelopments inmanufacturing
technology .Incontrast tothelewlevel ofspin-off resulting from the
development ofdefence equipment ,thesupport forimproving manufacturing
performance among defence contractors hasresulted inpractices ,products
andsystems which have found wide application inimproving manufacturing
effectiveness .
Nevertheless ,asinEurope ,there isconcern intheUSabout the
barriers tothecommercialisation ofnewtechnologies .This isalso
considered intheMain Report .Amajor worry isthelack ofintegration
andcommunication among functions within companies andaccmplacency and
overdependence onthedorestic market forgrowth opportunities .Foreign
competitors ,often butnotalways Japanese ,were seen ashaving turned US
technological development into their commercial product successes .There
isafeeling that thebenefits ofemerging technology aretooeasily lost
byweak laws andregulations ,andineffective enforcement forthe
protection ofintellectual property rights intheUSoroverseas .
Astothefuture ,theDepartment ofCommerce considers theemerging
technologies ofparticular importance totheendofthecentury tobe:
Advanced Materials ;Electronics ;Autonation ;Biotechnology ;Computing ;
Medical Technology ;andThin Layer Technology .These priorities ,notvery
different from those ofJapan given above ,reflect theimportance ofthe
production related technologies asalmost allhave asignificant role to
play inthecontrol ,operation ,oreffectiveness ofmanufacturing
processes .However ,intheshorter term thesubstantial funding for
manufacturing related technologies from theDepartment ofDefense supports
theeffective development ofproducts andprocesses .
3.THE TECHNICAL REQUIREMENTS
Inthis section thegeneric industrial technologies underpinning thedrive
towards industrial competitiveness -forwhich research effort should be
concentrated -areidentified .Included aretheimproved technologies
needed forthedesign andassurance ofproducts andprocesses ,formeeting
themanufacturing needs ofgroups orsectors ofindustry ,forimproved
manufacturing processes ,together with those associated with the
application andrecycling ofnewandadvanced materials andmaterials 1\

9.
production .These R&Dpriorities forEuropean industry have been
established inconjunction with industrial experts .
3.1 Design andAssurance
Thedevelopment oftechniques toimprove product andprocess quality ,and
thereliability andmaintainability ofstructures ,andmanufacturing
systems have amajor affect onperformance .Their costs have been
estimated inoneoftheMember States tobeseme 10%ofOSIPandcan
typically range frem 5-25% ofcompany turnover anditisbelieved that a
reduction by70%oftheir present level through better management and
control ispossible .Asthecosts ofquality arerelated tothe
imperfections andalso costs ofprocess andproduct assurance ,amajor
task istoreduce theimperfection rate while reducing theassurance
costs .Thetrend tolewinventory manufacture underpins therequirements
forreliability andmaintainability .
Inmany sectors there isconcern over limitations ofavailable process
control andthemeans bywhich theproduct specified isassured .Newand
improved sensors arerequired tocontrol processes andtheir importance
reflects increases inthescale andflexibility ofsystems .Optical
engineering ,ifdeveloped could satisfy needs intheareas oftesting ,
detection and inspection .
Power control engineering ,forcontrol ofspeed orposition inelectric
motors isatthebase ofadvances inautomation inallkinds ofindustry .
Though there were strengths inthepast ,European andUSmanufacturers are
newlosing market share against Japan .Technological improvements are
needed sothat European manufacturers ofprocess andproduction
machinery canhave access tothemost suitable technology .
3.2 Application ofManufacturing Technologies
Here therequirement istodevelop manufacturing practices intheleading
sectors forothers which have been slew toexploit thebenefits in
business performance .These will include ahigh proportion ofSMEs ,and
have limited research anddevelopment capabilities themselves andsobe
dependent ontheexpertise andexperience ofother sectors .Application
ofmodelling techniques isrequired toaddress problems inestablished
industries ,such asthefilling ofcomplex injection moulds ,particle
formation inatomisers ,positioning ofsensors incondition monitoring
systems ,noise generation inmachinery orthedesign ofcomposite
materials . "!82

10.
Aparticular area where there areprospects tobuild oninitial progress
isinthose industries based ontheprocessing anduseofflexible
materials .Their importance iswell illustrated bytheCcnmunity 's
textile andleather related industries where sane 3.5million people are
employed .Intheclothing industry about 80%ofproduction cares fran
SMEs ,many ofwhich have limited technical capabilities .
3.3Manufacturing Processes
Improved techniques forshaping ,joining andassembly ,surface treatment ,
chemical processes andparticle technology are fundamental needs for
industry .Advancement ofthese processes isessential forsecuring
manufacturing competitiveness .With regard tosurface treatments the
costs ofcorrosion prevention andeffects amount toabout 4%ofGNP in
industrial countries andsimilar figures apply towear .Inalmost all
surface treatment systems ,theaspects ofquality assurance ,condition
monitoring inservice andcontrol ofthetreatment process require further
development .
Inthecase oftechnologies forshaping ,assembly andjoining further
development isneeded toexploit thefull benefits oftheir incorporation
into computer integrated manufacturing systems .There arealso
requirements fornewprocesses with improved performance including high
precision andfaster operation .Theavailability ofadvanced materials
both tobetreated andalso foruse inthetreatment process ,challenge
conventional practice .
Important advances inchemical manufacture will only result ifthere is
collaboration between chemical manufacturers ,users andsuppliers ofnew
technology orexpertise .There isaparticular challenge toproduce
improved catalyst systems while thesupply ismainly local ,andEurope is
generally strong .There isrequirement tooptimise thedesign ofmembrane
systems ,such astoenhancing turbulence atthemembrane surface andalso
techniques toinhibit fouling .Europe hasbeen slipping behind inmembrane
innovation .Theworld market formembranes isabout 400mioECU/year and
islikely togrew significantly inthefuture asnewapplications for
membranes areidentified ,such asgasfiltration .
Research isneed toovercame theinability tofully categorise particles ,
poor efficiency andsize control within many conventional particle
processes ,and the difficulties inmaintaining an even flew and
distribution intheflowofpowders andsuspensions .Multi disciplinary 183

expertise isrequired totackle problems found invery different particle
systems .
Advanced powder materials technology islimiting theachievement of
potential benefits inareas such asaero andautomotive engines ,magnets ,
tool steels andelectronic materials .There isanopportunity tobuild on
European strength insane process areas tosecure ashare inastrongly
competitive industry where theUSleads production inpowder andproducts
valued atabout 2billion ECU ,with Europe andJapan atabout 1billion
ECU each .
3.4Advanced Materials
While newmaterials areoften considered tobea'horizontal' subject
within awide spectrum ofindustrial sectors ,most major developments have
arisen within aerospace ,nuclear energy andmore recently electronics and
theautomobile industry .Thetrend inapplication forthelast sector is
shewn infigure 2.4 .
Thelack ofadequate materials isabrake ondevelopments such asmagneto ¬
hydrodynamics ,fuel cells andhigh energy density performance materials .
Europe iswell placed toprovide themulti disciplinary approach necessary
forprogress ,buttheUSandJapan have been first torecognise anew
awareness ofmaterials .This isillustrated intable 2.3 for advanced
ceramics .
Formetallic based materials advances inprocessing andalloying
technologies have considerably widened thedesign scope .Butamajor
technological challenge istoestablish abase ofquality confidence in
thenewmaterials andimprove processing techniques ofthese andmore
established materials soastobring production costs tocompetitive
levels .Anisotropic materials strengthened with particles orfibre
reinforcement arerequired .
Materials having significantly improved magnetic ,optical ,electrical ,
andsuperconducting properties areneeded torealise advances inawide
range ofindustries .Magnetic materials ,forexample ,areindispensable
intheelectrical andcomputer industries .Building onEuropean strengths
inR&D ,there isarequirement fordevelopments which permit effective and
economical exploitation as,forexample ,polymer-bonded anisotropic
permanent magnets ormassive segments ofmetallic glass forapplications permanent magnets ormassive segments ofmetallic glass forapplications

11 a.
Materials intheautomobile
80O1–--
70°- H
■g600- R 1!
Ü3500- H JyI|
fc400-^300-0illlllll1 1IIIIIIi^n200'^ % &^ ^ 8200m PMHH PiHr
'V-'' i-, 'i >> >, > -\
100-* 7 4 v;j ■>} 7‘'/ /Z /V 4' ,\ '*7 \' . /'0iid–y–y–y–y–y–u–u–L±J
YEAR 1976 78 '80 '82 '84 '86 '88 '90 1992£600
a>400
o200
E7BPlastics andComposites ESS HSLA ES Aluminum
Note :Increasing automobile usage (actual andprojected )ofcerrsin materials ,including hich-srrencth low-alloy steels ,inthelnuc >.
States ,despite overall trend toward downsizing .
Fiçjurs 2.4
Source :ATAS BuLletin
185

11b.
•International Comparison ofR&D Efforts inAdvanced Ceramics by
Application Area
Location
Application United States Japan Western Europe
Electronic applications :
multilayer capacitors10to15MECU /yr R&Dspending
unknown ;said tohold
10:1 lead over USin
number ofpatents and
engineersNot estimated
Gas sensors Nomore than 1to2
MECU /yrR&Dunknown ;said
tohold 3:1lead over
USinnumber cf
technical papers and
10:1 lead inpatentingProbablv similar to
USlevel
Structural applications :
heat engines35to40MECU /yr Greater than $50
million /yrLess than US :
Germany and
Sweden arethe
European leaders
Cutting tools Probably nomore than
lMECU /yrR&.Dspending
unknown ;20:1 lead
over USinpatents for
period 1973 to1982Probable more
than US;Germany
alone nearly even
with theUSin
patents forperiod
1973 to1982 .
Optical applications :
integrated opticsApproximately 10
MECU /yrSlightly lessthan US
expendituresAbout half ofUS
expenditures
Source .Black ,Blum and Kalos
Table 2.3
186

12.
which include electric motors ,security systems ,oreseparation ,medical
equipment andmagnetic levitation fortransport .
High temperature superconductor materials ,inwhich Europe played anearly
role ,areexpected tohave agreat inpact inthemedium andlonger term on
most ofthehigh technology industry sectors ,particularly incomponent
design forreduced energy consumption .Asmany basic problems remain
unsolved industrial breakthroughs will notbeachieved without a
systematic investigation oftheoperating mechanism andengineering
problems .
Thelarge potential ofengineering ceramics depends onsolving problems in
properties andavailability .Inspeciality powders ,such aswhiskers ,
there aresupply difficulties within Europe .Ifthis technology isto
meet theusers needs ,there will have tobecloser links with pxwder
producers .Theworld market forengineering ceramics ,including special
glasses andamorphous materials ,will besane 12billion ECUwithin afew
years .Currently European activity islewcarpared toUSandJapan .
Developments areneeded inEurope torespond tothetrends ofreplacing
general purpose polymer materials byfunctional materials .Theworld
polymer market isoftheorder of120billion ECU ,ofwhich engineering
polymers ,including polymer matrix composites ,amount to5billion ECUand
areincreasing inmarket share .Europe isanetimporter ofengineering
polymers .TheUSwith 70%oftheworld production andJapan with 10%are
increasing market share attheexpense ofEurope currently with 10-15% .
Currently themarket foradvanced materials islimited andmostly in
theUSbecause oftheaerospace dependence .Growth will ccme frem new
approaches todesign which allcw cheaper materials tobedeveloped and
exploited ,asinmotor cars .Developments inrecycling andrecovery
technologies areneeded torespond togreater useofpolymers inconsumer
products .Theproblems reflecting environmental consideration are
significant asthere areseme 7000 types ofpolymer incirculation .
Improvements arealso needed inmore conventional materials inaddition to
thetechnologies which reflect theuseofnewandadvanced materials .In
particular more effective extraction ,process andrecycling technologies
arerequired forcritical materials tounderpin their availability to
users .Similarly improvements intheprocessing andapplication
technologies ofsteel areneeded tosecure thecompetitiveness ofEuropean
producers inworld markets . 1Q

13.
4.THE TASK FOR EUROPE
Acompetitive ,technology based manufacturing industry isanessential
element oftheCommunity 'seconomy .Theoverall task atEuropean level is
toestablish anenvironment inwhich theindustry canflourish .The
technology related issues where action isneeded areasfollows :
4.1 R&DandCcmpany Strategy
Itisforindustry toidentify itsfuture technological needs andtake the
necessary action .However ,notallcompanies arewell structured to
undertake such atask .This weakness washighlighted during therecent
evaluation oftheBRITE programme asresulting from poor links between
company planning ,marketing ,manufacturing andR&Dfunctions .The
analysis ofparticular areas that require renewed research efforts for
European industry given inChapter 3hasbeen developed together with
industry .Itwill befurther developed butshould ,already ,behelpful at
thelevel oftheindividual company .Itwill also signal theoverall
trend forfurther co-operation atEuropean level .
4.2 R&D and Technical Barriers
Standardisation activity attheEuropean level contributes tothebreaking
down ofbarriers totrade within the CcmniLinity .Particularly inthose
areas with arapidly advancing technology ,there canbebenefits for
establishing links between R&Dandstandards related activities ,so
speeding uptheeffective exploitation oftheR&Dresults .
4.3 TheBalance Between Fundamental andApplied Research
Aconcern ishowfundamental research ,usually inuniversities and
supported from public funds ,should bebalanced against research and
development having agreater industrial focus .Aclose look should be
taken atthebalance between thefundamental andapplied work toensure
that theinventive skills ofacademic researchers areencouraged butyet
they have those links with industry which will ensure speedy progress
through theresearch ,design ,development andapplication chain .
4.4 Education andTraining
R&Dcanonly beasgood astheresources available .Thehuman resource is
strongly influenced byitseducation andformation .Several ofthe
concerns expressed above should bereflected inthetraining ofresearch
managers .188

14.
Atthemanagement level thefailure toconvert research into profitable
products andprocesses continues tobeaconcern within Europe .Afresh
look needs tobetaken atthepreparation andtraining formanaging
innovation andthemanagement ofitsimplementation -notasanisolated
activity butinanenvironment that isaware ofthemarket place .In
responding tothechallenge oftheJapanese invasion oftheEuropean
market place many companies have reformed andre-organised andarenow
much better structured tomake real gains .
189

BIBLIOGRAPHY
IRDAC ,Opinion upon R&DFunding ,October 1986
IRDAC ,R&DNeeds intheField ofMechatronics ,October 1986
IRDAC ,Opinion ontheFramework Programme 1987-1991 ,October 1986
IRDAC ,Report andRecarmendations onAdvanced Materials andRelated
Processes R&DinEurope ,January 1988
Performance oftheEuropean Manufacturing Industry ,Arthur Andersen and
Co,February 1988
Research Action Programme -Materials -IVAdvanced Materials ,EURAM
Programme Description 1986-1989 ,1985
European Economy ,CEC ,N°35 ,March 1988
European Economy ,CEC ,N°25 ,September 1985
Proposal foraCouncil Decision adopting aspecific Research and
Technological Development Programme oftheEECinthefields ofIndustrial
Technologies andAdvanced Materials Applications (BRITE /EURAM )
(1989-1992 ),CEC ,August 1988
Discussions with Experts during thepreparation ofBRITE /EURAM
Discussions with Standards Institutions inMember States
Report oftheEvaluation Panel oftheFirst Brite Programme
Research Evaluation -Report N°25 ,CEC ,September 1988
TheStatus ofEmarging Technologies :AnEconanic /Technological Assessment
totheyear 2000 .USDepartment ofCcrmerce ,June 1987
Information provided byECPermanent Délégation inJapan
- LesMatériaux nouveaux ,Dynamique ,Economique etstratégique Européenne ,
Eccncmica /Paris ,1987
ATAS Bulletin ,Issue 5May1988 ,United Nations
Technological Needs oftheEuropean Textile Industry ,KSA ,February 1988
Black ,Blum andKalos :Referred toin'Market Trends forExisting and
Forseeable Advanced Ceramic Products intheEEC 1,CERAM Research ,
October 1987
190

А1
1985 :Value-added intheEC,theUnited States andJapan bysector (1985 ,current prices )
Branch EUR 12
billion ECUJapan
billion ECUUSA
billion ECU
Manufactured products .S2S SOS 1024
Ores and metals 35 24 30
Non-metallic minerals andmineral products 41 24 40
Chemical products 76 44 103
Metal products (except machinery andtranspon equipment )73 68 84
Agricultural andindustrial machinery
Office anddata-processing machines ,precision andoptical79 40 88
instruments 25 20 80
Electnca !goods 82 79 92
Transpon equipment 92 49 145
Food ,beverages ,tobacco 129 56 108
Textiles andclothing ,leather andfootwear 66 40 53
Paper andpnnting products 57 14 113
Rubber andplastic goods 32 21 38
Other manufactured products 38 26 51
Building andconstruction 180 128 24S
Sortit CommiUkon tcrvtcet tiectoral d«ta bank-VISA )
191

A2
TABLE OFLEGENDS
S3S3SSSlS3Z<>ISSZS>SISSS»SSI>IISSai3imiBtSS>:>SC3SSS
LEGENDS SECTORS
IX3333S8333X33 :I33X33IS»X3f3SXS3S3XSS3333333Z333333S3
CAT Catalyst·
CER Ceramics (engineering )
CES Ceramics (sanitary )~
CHE Chemical Industry
CLO Clothing
COM Composites
COO Cooking Equipment
! EEN Electrical Engineering
ENG Engineering andall .industries
FOR Forgings andcastings
FTU Footwear
FUR Furniture
HOU Household Fittings
MAC Hachine Tools
HAG Magnetic Materials
HAH Materials Handling Equipment
HAN ManHade Fibres
HAR Metal articles
HAY Machinery (Printing /Packing /Food )
HEN Mechanical Engineering
HOT Motor vehicle andparts
OPT Optical Products
PLA Plastic processing
RUB Rubber Products
.SCI Scientific Instruments
SHI Shipbuilding
TEX Texti le
TOY Toys
TRA Transport
UEL Uelding /Joining Equipment
UHI Uhite Goods
Source ofmaterials onpages A3-A7 ,A9-A11 andfigure 2.1 :
andfigure 2.1Arthur Andersen Uûo.
192

A3
CHEMICAL INDUSTRY OUTPUT
EVOLUTION BYCOUNTRY 1975 -1985
700-- -- -
eoo -
500- U.S.A.
__^39%___–-"'|
4°0- --*^ » E.E.C. |- -
3004-
JAPAN
2001 - -- ----- Т _ __ 13* I - -36* !
100- i
j
o- ,- !
1975 1980 1985
YEARSeoo -
U.S.A.
100 -
YEARS
TEXTILE OUTPUT
EVOLUTION BYCOUNTRY 1975 -1985
80i- --
7K3*~ –■–- EEC .__ __ __ «
70Ί ^ ΪΓ
65-
60_ _ __ USA.-- ■*" 2*55- --^--13*50-<r" "
*S-
40"I _ __ JAPAN
35-J- --
30-j- 1- ---- 1
1975 1980 1985EEC .
70-
65-
U3.A.
JAPAN
YEARS
193

A4
MECHANICAL ENGINEERING OUTPUT_ EVOLUTION BYCOUNTRY 1976-1988
600-
500-
400-
300 -
200- 5% 18* - __ g rr-
. 18%
30%
100' 60%_ __ - - 18%
°-J- -- -- ,--- -
1975 1980 2,
YEARSUS .A
E.E.C.
JAPAN
1985
MACHINE TOOLS OUTPUT
EVOLUTION BYCOLNTRY 1975 -1985
15Ί- 1
14-
13-
12-
11-
1°-
8- 83%^^^ ^^\- 43%
! 88%
6T ___–_ __ JAPAN
4- 70% __^___--
3-,-""
•0-|- –- 1-–-
1976 1860 1685-43%
E.E.C
JAPAN
U.S.A-45% 262%
YEARS
194

A5
OPTICAL PRODUCTS OUTPUT
__ EVOLUTION BYCOLKTRY 1975-1965
70-
00-
50-
40-
30-
19* U^ .
20-_ I85_ __ _ __
10i 811 _ 8% E.EC.
-- -–-- ■
17* 31* JAPAN - –- – ■- –_
1975 1fi~, 118eo 1985
YEARSEVOLUTION BYCOLKTRY 1975-1965
30-
U.SA.
E.E C.
JAPAN
SHIPBUILDING OUTPUT
EVOLUTION BYCOLKTRY 1975 -19Ô5
15-i-
13~_ USA ^
10-
9-
8-
7H
E.E.C.I
0-
5-
4-
3-
2-
1-
0-I- 1- –---i
1975 1900 1966
YEAR313-
U.S.A
-11*JAPAN
E.E.C.
195

A6
SCIENTIFIC INSTRUMENTS OUTPUT
EVOLUTION BYCOUNTRY 1975 -1865
80-1- -- ––- 1
70-
80-
50-
40-
30-
U.S.A.
20%_ __ <>20- 31% __ «-
-- - ” E.E.C. I
7% _ ^_ __ ■
104- - - -- - 14% JAPAN
69% I0-I- 1- 1
1975 1980 1985
YEARS70-
60-
40-
U.S.A.
20-
E.E.C. I
JAPAN
1975
196

A7
Technological improvements
l.Alltextile manufacturing
processesManual Computer
adjustment /control
2.Raw materials Natural fibre
Natural filaments
(silk )Synthetics
Artificials
Synthetics
continuous fila ¬
ments
3.Yarn spinning ,winding Manual Automatic piecing ,
creeling ,doffing
4.Woven fabric Narrow Wide width
5.Fabric dyeing Batch
High
AtmosfericContinuous
processing
Low liquor ratio
Pressure
6.Carpet formation Manual Weaving
Tufting
Nonwoven
Source KSA
Examples ofchanges inthetextile industry that have increased
some aspect ofproductivity
197

i
i
bA8-
I
hCHEMICALS OVERALL R&D
EVOLUTION BYCOLKTRY 1975 •1963
H- -- ■■■■
I ^- ^U.9.A.
25-–
_ ._■_'”ïé%
441-- 14%
3- __ __ _ JAPAN - ---- 25*
- 45%
1-
0-|- 1-
1976 1660 1SÔ3
YEARSEVOLUTION BYCOLKTRY 1975-1663
U.3.A.
E.E.C.
JAPAN
MOTOR VEHICLES OVERALL R&D
EVOLUTION BYCOUNTRY 1975-18637-- ■- -- -- -
fl-
6~ –-- -11%– __ U.S.A.' ..
3- E.E.C._ ____ 18%___
o-I- 1-
1876 1960 1963EVOLUTION BYCOUNTRY 1975-1963
-11%
U.S.A.
E.E.C.
ΥΕΑΗ8
198

I
feA9
TEXTILE AND CLOTHING OVERALL R&D
EVOLUTION BYCCLMTHY 1876 -1863
5-
4-
Q1
2-
1-
-32% E.E.C.
19%JAPAN 14%U.S.A.41%
-22%
1875 1860
YEARS
RUBBER AND PLASTICS OVERALL R&D
EVOUJTON BYCOLKTRY 1875 -1963JAPAN
E.E.C
1983
6-
5-
4-
3-
a
2
2-
1-
187537*EEC .
146*JAPAN 146*JAPAN 10% |–E.E.C.
__ 0USA - 15% jpJAPAN
.- * -
1- - --
>75 1860
YEARSJAPAN
1983
199

f
I
£A10
MACHINERY TOTAL R&D
12__ EVOLUTION BYCOLNTHY 1975-1868_
111
10- 18» -- -
__- U.3.A.
8-
7-
<
β-
5-
_|_ __ 10%_ E.E.C. I
2"___ __–H- sr"
0-I- 1-
1976 1980 1983
YEAR3EVOLUTION BYCOLNTHY 1975 -1983
U.3.A.
E.E.C.
JAPAN
2C0

ANNEX 3:AERONAUTICS
MARKET SITUATION
The aeronautical industry iswithout doubt avery important
industrial sector inEurope (Fig .1).The establishment of a
strong and competitive industrial base in this field is a
contributing factor toastrong and powerful economy and tothe
prosperity ofthe population .
During the 1980-1986 period the European aeronautics industry has
captured 25,9% ofthe world-market . This represents average
annual sales ofabout 9,900 -MECU 's.Forecasts for the 1987-2010
period reveal anappreciable further increase inthe world market
leading toaverage annual sales ofabout 14,800 MECU 's (Fig .2).
Aconvincing example ofthe technological capability ofEuropean
aeronautics industry isthe penetration of "Airbus Industrie "in
the category ofmedium range aircraft (Fig .3). This has
provoked aseries ofvigorous reactions from the USA where the
Administration has declared its support for anew national thrust
toreassert USleadership inworld aeronautics .
World scheduled passenger traffic israpidly increasing (Fig .4).
Increased competition for the capture ofthe expanding market
must beexpected ,notably for civil aircraft (Fig .5),not only
onthe part ofthe USA but also from Japan and the Newly
Industrialised Countries (Brazil ,Korea ...).
(0051 .JC )
201

to
O
roFIG .1.
(SourceECAERONAUTICS
THE EUROPEAN INDUSTRY ,based on 1905statistical
data :(excluding engine andequipment companies )
EMPLOYMENT :
TURNOVER :
ANNUAL RESEARCH -6DEVELOPMENT Expenditure :
ANNUAL RESEARCH £TECHNOLOGY Expenditure :
(Excluding theProduct Development Content ofRSD )200,000 persons
16,000 million ECU
2,400 million ECU
370million ECU .
EUROMART Study )

(SourceALL-AIRCRAFT MARKET ANALYSIS .PAST AND FUTURE
Charts show average annual value (at1987 prices )
ofaircraft deliveries over theperiods indicated
25.9%
\ALLOTHER WESTERN WORLD /\ MANUFACTURERS /
V 74.1% /ALL OTHER WESTERN WORLD
MANUFACTURERS /\ 741% /
PERIOD 1980-1986
Average annual value oftotal market =ECU 38.3bn
(ECU 268bnover thewhole period )
269%
ALLOTHER WESTERN WORLD /
MANUFACTURERS /
73.1% /269%
ALL OTHER WESTERN WORLD
MANUFACTURERS
73 .1%
PERIOD 1987-2010
Average annual value oftotal market =ECU 55bn
(ECU 1323 bn(at1987 prices )over thewhole period )
:EUROMART Study ) FIG-2-
203

PERCENTAGE OF
MARKET SHARE
(invalue )
Δ
100–~ 1– I– I– I– I– I– I– I– [– I ! II ! !
Qn I_ I IUSA (Boeing +Douglas +Lockheed )- !-- 1 Qri ■ _ uon iDuemy xuuuyio »xLVWMICVU / . ■«- t
| \| |il\\TÏ
3Q_ J -–-––– - Sales Value–ECU 8100million
! *"+^*> 1,j
70- i---- 1-fW-1 US
| BOEING | j ^ Manufacturer
50 I- 1- 1–-----–Г^-Тв .^ ■
i I -I
I I
40-- - j- jk■+-33.5% Airbus
IIndustrie
20- –- 1- L--
AIRBUS .X TSales Value ~ECU 1700million
_S \ INDUSTRIE X | - -Nfc=H^- _^i
01A 1 I- 1--j~~T |OTHERS |_ 1-\JZ-4>YEAR
1978 80 82 84 85 86 87
Announced orders
asatend *1987USA (Boeing +Douglas +Lockheed )
Sales Value –ECU 8100 million
US
Manufacturer BOEING
33.5%
AIRBUS
INDUSTRIESales Value ~ECU 1700 million
OTHERS
■C>YEAR
Announced orders
asatend *1987
Themarket lorlarge civiljettransport aircraft (more than 100passengers )
over thepast tenyears (1987 prices )
ГО
■7)(Source :EUROMART Study ) FIG .3

PASSENGER TRAFFIC
(Including USSR )
Billions ofpassengers xkm
 ,/
1500- ./_/.
M y i
lOOO-] / I FREIGHT
I Ê Billions ofTonnes xkmü/ i ty iy / 1 1/-- o53(incl .10%mail)|50yrr ;-y
<£>f DOUBLED I ^jyS IN10YEARS ^ 1jy 41^ !
« i
, i
r-FuelCOUS-1 |–- 1–* 1– I–^-!- 1– I-
1960 1970 1977 1980 87 YEARS
£ -OINTRODUCTION OF
SINTRODUCTION “WIDE-BOOIEO "TRANSPORTS
IOFJET TRANSPORTS1500–
FREIGHT
Billions ofTonnes xkm
– jp-5053(incl .10% mail )500–
DOUBLED
IN10YEARS
–25
Fue <crisis
YEARS70 1977 1980
INTRODUCTION OF
"WIDE-BODIED "TRANSPORTS INTRODUCTION
OFJET TRANSPORTS
Source :International Civil Aviation Organisation
World scheduled airlines traffic
FIG .A.
205

PRESENT AND FUTURE MARKET ANALYSIS
AIRCRAFT DELIVERED 1980-1986 FORECAST DELIVERIES 1987-2010
AllManufacturers EEC Manufacturers only AllManufacturers EEC Manufacturers only
AIRCRAFT Units Value Units Value Value of Units Value Units Value Value of
CATEGORIES (BlnECU (BlnECU Market (BlnECU (BlnECU Market
1987 ) 1987 ) Share 1987 ) 1987 ) Share
(%) (%)
CIVIL
Commercial Transports0-200 >360 Seals 228 19.03 0 0 0 1450 148 0-20 0-14
281-360 211 13.20 0 0 0 1650 109 550 36 33
201-280 438 21.56 283 14.77 68.5 1600 84 650 34 40
141-200 734 17.43 0 0 0 3250 79 1150 30 38
81-140 764 13.02 160 2.00 15.4 2050 34 750 12 35
51-80 2 0.02 0 0 0 2000 16 1250 10 63
20-50 794 3.46 530 2.07 59.8 2350 11 1050 5 45
15-19 967 1.80 226 0.50 27.8 1900 5 750 2 40
Supersonic0-120 0-25 0-50 0-10 0-40
General Aviation
21.5Business Jet 2401 15.10 504 4.42 29.3 8600 60 2150 36
Private 16000 2.00 n.a . n.a . n.a .70000 10 10500 0-1.5 0-15
Utility n.a . n.a . n.a . n.a . n.a . 1600 5.4 800 3.5 65
Helicopters 5210 9.23 1980 2.69 29.1 12000 22 4800 8.5 40
Convertiplanos– – – – – 600 9 150 1.5 17
CIVIL SUB-TOTALS 115.85 26.45 22.8 592-617 164-196 28-32
(Source :EUROMART Study ) FIG .5.

roo
<1[AEROSPACE
COMPUTERS ^
'ELECTRONICS
PRUCS
INSTRUMENTS”
ELECTRIC MACHINERY
CHEMICALS”
AUTOMOBILES(averaged from 11main countries inside O.E.C.D. ,period 19/0-80 )
LTuli-î illj Ilfei 1tei[rr4r ^
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OIL REFINER IES H“:EEiaiHJRESEARCH ANDDEVELOPMENT INTENSITY
=R&DEXPENDITUKE /PRODUCTION RATIO
AEROSPACE INDUSTRY ISTHELEADER ,AMONG THE 11"HIGHTBCH "INDUSTRIES
INSIDE THEO.E.C.D. COUNTRIES ,FOR R&DINVESTMENTS
whichmeans:
(Source :EUROMART Study )(*AHIGH DEGREE OFINTERNATIONAL TRADE
S•*APREDOMINANCE OFPRODUCT INNOVATIONEXPORT
(-
IMPORT
FIG .6.

-2-
Thesituation ismore favourable fortheUSAaeronautics industry
because itenjoys avast anduniform market andbecause ofthe
knowledge and the infrastructure provided bythe execution of
important programmes financed bythe Department ofDefense and
NASA forthemilitary and the space sectors .
RESEARCH AND TECHNOLOGY NEEDS
Competitive air transport demands continuous improvement in
aircraft production costs (design ,manufacturing ,validation ),
airline operational costs through improvements inperformance and
fuel consumption ,facilities toreduce delays atairport and in
flight ,aircraft maintainability while meeting operational
requirements (safety ,environment ,punctuality ,comfort ,etc.).
The required level oftechnological competence can only be
achieved bypersistent and substantial efforts inresearch and
technology which implies the development ofalong term strategy .
The aerospace industry ,more than any other ,depends onadvanced
technology toensure competitiveness . Itisaleader inR/D
investments (Fig .6)and inthe application ofnew technologies
toitsproducts and also benefits other industries byspin-off at
the same time asitdevelops and applies its own technologies
especially inthe fields ofdesign andproduction .
Italso exercises animportant role asthe industry which makes
use ofthe most advanced scientific research ,acting asacentre
for the transfer and diffusion ofthese technologies toother
industrial sectors .
(0051 .JC )
218

-3-
Because ofthe specific high technology characteristics ofthe
aerospace sector the United States administration uses this
sector todevelop and apply advanced technologies which are then
adapted and utilised byother sectors engaged indevelopment
(Automotive Engineering ,High-Temperature Furnaces ,Industrial
Control Systems ,Testing and Production Methods ). The value of
this spin-off isimmeasurable and itmakes amajor contribution
toimproving the country 'seconomy .
The technologies needed bythe aeronautical industry require a
high level ofcompetence for their realisation inanumber of
diverse areas ,such as the sophisticated analysis techniques
required for aerodynamics ,the design ofcomplex structures ,the
evaluation and methods of use of advanced materials ,the
integration ofelectronic techniques into complex operational
systems ,and design and implementation ofnew manufacturing
methods .
This level ofindispensable technological competence can only be
attained by acontinuous ,intense effort in the domain of
research and technology acquisition ,and itrequires along-term
strategic programme .Anexample showing the timescales involved
is that it can take five to six years to develop anew
technology ,five years more toincorporate this into anew
product followed bymaybe ten years ofexploitation ofthe
product torecoup the investment made .
Consequently ,it isnecessary toestablish astrategy at a
European level inorder toavoid the danger ofloosing the
competitiveness ofthe European aeronautics industry ,which could
lead toaprogressive deterioration ofits position inthe world
market .
(0051 .JC )
209

-4-
EUROPEAN ACTION
The acquisition ofthe complex technologies and the required
support equipments require awide application base .
Thenational centres (O.N.E.R.A. 1,D.F.V.L.R. 2,R.A.E. 3,N.L.R. 4,
C.I.R.A.5 ,I.N.T.A.® )inthemajor aeronautical countries are
actively involved and contribute to progress in aerospace
techniques with their fundamental research ,complementing
university laboratories ,with their applied research ,preparing
long and medium term projects and with their direct technical
assistance toindustry ,either bymaking the testing potential of
their centres available orbystudying problems raised byactual
projects under development or difficulties encountered on
operational equipment .
Some international collaboration on aeronautical research is
implemented inorganisations like GARTEUR and AGARD onthe basis
ofconcerted action and onspecific topics .But the acquisition
ofthe complex technologies and the required support equipments
requires awider application base .This can beorganised in
Europe bycollaboration atcommunity level .
1O.N.E.R.A. Office National d'Etudes etdeRecherches
Aérospatiales (France ).
2D.F.V.L.R. Deutsche Forschungs -undVersuchsaustalt für
Luft -und Raumfahrt (F.R.G. ).
3R.A.E.
4N.L.R.
5C.I.R.A.
6I.N.T.A.Royal Aerospace Establishment (U.K. ).
Nationaal Lucht-en Ruimtevaartlaboratorium
(Netherlands ).
Centro Italiano Ricerche Aerospaziali (Italy ).
Instituto Nacional deTécnica Aeroespacial
(Spain ).
(0051 .JC )
210

-5-
For the development ofprototypes ,EUREKA isinvolved inanumber
ofmarket-orientated projects (EUROFAR ,Amphibious Flying Boat ,
SAMOVAR ,etc .).
Inthe longer term the improvement inthe capabilities ofthe
European industry will necessarily involve aprogressive
reorganisation ofthe industry .Inthe meantime ,there isaneed
toimplement aprogramme ,without delay ,atCommunity level .
This programme will bebased onaseries ofmeasures following
the conclusions of astudy supported by the Commission and
undertaken bynine major European aircraft companies .
These measures concern :
increased co-operation in research and technology
activities ;
concentration onkey technology areas identified innew
joint requirements ;
provision ofadditional funding resources tosupport this
increased effort .
The Commission plans ,via these actions ,the double objectives :
ofenlarging the European technology base byinvolving the
largest possible participation in the programme ,by
universities and national research centres ;
of reinforcing the current position of the European
aeronautical industry inworld markets .
Inthe context ofsuch alarge and wide-ranging programme to
enable Europe toattain inthe future the objectives defined in
the Commission strategic plan ,atwo year pilot programme is
being proposed .
(0051 .JC )
211

-б-
Theparticular objectives ofthis pilot phase are :
- toprovide afirm foundation for co-operation between
European aeronautical industries inresearch and technology
acquisition and toinvolve inthe projects universities ,
national research centres and SME's;
tocommence the research projects which have adegree of
urgency and are important forthe future capabilities ofthe
European aeronautical industries ;
tocompile ,verify and complete the information base and
knowledge required fortechnological development ;
togain experience inthe organisation and functioning ofa
programme ofthis type and todefine the required long-term
actions .
The areas ofkey technology identified forthe pilot phase are :
aerodynamics and flight mechanics
materials
acoustics
computation
airborne systems and equipment
all electric aircraft
propulsion integration
design andmanufacturing technologies .
(0051 .JC )
212

BI0L0GY
ANNEX 4
Introduction
The significance ofbiotechnology
Japan 'sMinistry ofInternational Trade andIndustry in1988 forecast
the world market for "bio-related industries "as$514 billion .Ina
paper in1981 ,afutures group within theEuropean Commission (1)had
pointed out that ,inamodern developed economy ,over 40 %of
manufactured output ,or20 XofGNP ,was biological innature or
origin .Estimates ofmarket potential for biotechnology have varied
over several orders ofmagnitude ,depending onthewriter 'schoice of
anarrow orabroad definition ;but aswas pointed out ,"human beings
are 100 Xbiological " (1). Radical advances in biological
understanding and related technological ormanipulative abilities were
therefore bound toattract not only commercial ,but widespread
political attention ,and acertain degree ofpublic disquiet inat
least some cultures .Thecurrent OECD study onthe "long-term economic
impacts ofbiotechnology "has not suggested dramatic near-term growth
ofnew markets ;but has acknowledged adifferent significance bya
subtle change of title :"Economic and wider impacts of
biotechnology ".Itisapervasive technology .
Biotechnology isnot ascientific discipline inits own right but ,
rather ,across-roads ofdifferent sectors ofknowledge -including
biochemistry ,genetics ,microbiology ,physiology ,morphogenesis among
many others -which contribute tothe intelligent use ofnature and
natural processes .Itisthe technology ofliving matter ,from which
many biotechniques have emerged tothe immediate benefit ofhealth
care andhygiene ,agriculture ,thefood industry ,theenvironment ,the
health and chemical industries .Biotechnology isabout thepurposeful
management of living systems ,ranging from the control of a
microorganism inafermenter ,tothe maintenance ofasmall planet
with apopulation of5to10billion human beings .
Inthe following sections ,details are presented ofsome ofthemost
dynamic areas ofthe "bio-revolution ".The sequencing ofthe human
genome ,"the map ofman", isachallenge which has seized the
imagination ofscientists and laymen alike .Section (A)sets this in
the broader context ofgenome analysis ofvarious complex organisms ,
since neither scientific enquiry nor practical applications can be
anthropocentrically constrained .
Mandepends forhisexistence andhisenvironment above all onplants
and their constituents .The penetration ofthe bio-revolution ,the
"molecularisation "ofplant science which isexpanding the role of
biotechnology inagriculture ,isdescribed inSection (B).
The application ofbiotechnology toagriculture has attracted fears
that itwill stimulate ecologically devastating monocultures ;but as
has been rightly pointed out by one of the world 'sleading
environmental institutes ,
213

"Abiotechnology attentive tonatural history mayprovide some of
the most powerful tools toreduce the pressures ongenetic
resources and enhance the value and conservation of wild
species ". (2)
Section (C)describes some ofthe practical steps and political
developments in defending the diversity of mankind 'sgenetic
resources ,atask inwhich biotechnology isincreasingly called upon
toassist .
The advances inbiotechnology offer theprospect ofprogress notonly
tothemanagement ofour environment ,animal andvegetable ,but above
all tothe understanding ofman himself .Ofimmediate social and
commercial relevance indefending man against disease has been the
understanding ofhis own immune system ,and its stimulus (by
vaccination )toproduce antibodies .Since thedevelopment ofcultured ,
immortal hybridoma cells for the production ofmonoclonal antibodies
isone ofthe great triumphs andmost productive innovations ofthe
bio-revolution ,itisappropriate topresent (Section D)areview of
recent progress andchallenges inimmunology .
The bio-revolution isamolecular revolution ,and istransforming
research methods and theprospects forbreakthroughs even inthat most
daunting intellectual challenge ,understanding the human brain
itself :section Eoutlines some current challenges inneurobiology .
This subject isofinterest notonly forclinical applications (the
understanding ofAlzheimer 'sdisease isofobvious importance forthe
ageing societies ofthedeveloped world ),but for thedevelopment of
"neural computing ".Developers ofthe most sophisticated parallel
processing computers contemplate with awe-andwith detailed interest
initsmechanics andmethods -the speed ,performance and compactness
ofthe human brain .
Following this presentation ofsome ofthmost significant domains ,
the final section ofthis annex gives anoverview ofthe Community
initiatives inbiotechnology .
The biotechnology race ?
Given the ultimately enormous economic and social significance of
biotechnology ,governments ofeven the most "non-interventionist "
persuasion have rushed tosupport biotechnology .U.S. federal support
isestimated bythe OTA (3)tohave amounted in1986-1987 to$2.7
billion .Japan 'slong-term technology forecasts (1987-2015 )underpin a
strong emphasis onbiotechnology asapriority tobring their
pharmaceutical and other bio-related industries towards international
competitiveness inthe 1990s .Modest government expenditure figures on
R&D belie acompetent ,coherent and long -term -oriented strategy for
biotechnology .
Thus ithas been unsurprising tosee various consultant reports ,
including those used bythe USCongressional Office ofTechnology
Assessment ,placing Europe inthe bronze medal position behind the
entrepreneurial vitality ofthe USA ,and the systematic thrust of
Japanese consensus policy .
214
O

However ,the "Olympic games "include many diverse sports .Europe has
many "golds ",and although its fragmentation and diversity are at
first seen asaweakness ,the "old colonialists "ofEurope have used
their centuries of experience to be the most effective
internationalists in many markets around their world .In the
entrepreneurial climate ofthe USA ,small companies have toshout
loudly toattract venture capital ,contract research customers ,and
new investors willing tobid upthevalue ofthe company 'sshares .
With les9 noise and agreater emphasis onin-house activity ,the
profitable and internationally successful giants ofEurope (in
chemicals ,inpharmaceuticals ,inagrochemicals and infood -are no
less effectively developing aninternational position .
Europe isspending less onbiotechnology research than theUSA :afew
hundred million ,perhaps abillion Ecus on publicly supported
research .But nosimple judgement can bemade ontheoutcome ofthe
"race ".The U.S. isthought tolead inthe number and vitality of
small entrepreneurial start-ups -some $3billion has been invested
inthese during theperiod 1976-1986 (31;butmany areacquired ,ordo
their contract research for Japanese and European multi-nationals .
Total current private sector R&D expenditure in biotechnology
(including biotechnology activities ofmajor companies )isestimated
bythe OTA atsome 2.0 billion in1987 ,some $1.2 billion by
"dedicated biotechnology companies ",and some $800million bymajor
corporations .
Based perhaps on asomewhat broader concept of "biotechnology
company ",the European Commission 'sbiotechnology concertation unit
has identified some 448 companies inWestern Europe ,numbers as
follows :
EUROPEAN COMMUNITY OTHER EUROPEAN STATES (EFTA )
Belgium 37 Italy 34 EEC 388
Denmark 19 Luxembourg 1 Austria 2
France 76 Netherlands 33 Finland 6
Germany (w.) 46 Portugal 2 Norway 7
Greece 2 Spain 12 Sweden 28
Ireland 11 UK 115 Switzerland 17
Total EEC 388 Tot .West.Eur .448
215
3.

3.Internationalism and Information
One of the characteristic features of biotechnology is its
internationalism .Whether for access tomarkets formaximum return ,or
access toscience and technology for maximum efficiency inresearch ,
development and Innovation ,abiotechnology company has tobe
conscious ofcompetition andopportunity onaworld scale .
Oneresponse tothis hasbeen theproliferation ofstrategic alliances
between companies .These may bejoint ventures ,equity purchases ,
licensing agreements ,marketing agreements ,orresearch contracts .
Many ofthem are transnational ,EC-US ,US-Japanese ,orEC-Japanese .
Their existence complicates anysimple picture ofcomparative research
expenditures byregion ,since there iscontinuous information flow
through published information channels ,via the inter-company
agreements ,and bythefrequent transfers ofindividuals inadynamic
industry .
Even the largest companies recognise that their continued
competitiveness depends upon effective exploitation ofarapidly
changing base ofknowledge ,most ofitexternal tothecompany 'sown
resources .The challenge of managing this constantly changing
interface has led togrowing emphasis onInformation services and
Infrastructure ,afield inwhich Europe ismost seriously behind the
USA (4),and inwhich the advantages ofthe federally centralised
facilities ,e.g. ofthe National Library ofMedicine (and its
fast-growing National Biotechnology Information Center ),build upon
their computer-sophisticated home market (40,000 general practitioners
have personal computers intheir surgeries )the basis forpotential
global dominance .
Because ofitsinformation -intensive character ,biotechnology hasbeen
the basis for agrowth industry inadvice onpatenting issues .There
aremany controverses arising asthenewintellectual breakthroughs in
understanding seek commercial return onthe research investment by
expanding into thetraditional application areas ofthelife sciences .
Added tothe already familiar consensus about the regulation of
biotechnology ,thepatenting andinformation infrastructure illustrate
the many points atwhich international competition inbiotechnology
depends upon public policy .Forareview ofthese Issues ,see (5).
Sources
1.Commission oftheEuropean Communities :FAST Occasional Papers ,
n° 1:"Biotechnology :What will itchange ",March 1981
2.Wolf ,Edward C."Conserving Biological Diversity ",in"State ofthe
World ,1985 ",Worldwatch Institute .Washington ,1985
3.U.S. Congressional Office ofTechnology Assessment :"U.S.
Investment inBiotechnology ",1988
4.Franklin ,J."The role ofInformation Technology andServices in
theFuture Competitiveness ofEurope 'sBio-Industries ,1988
5.Davies ,D. (ed.)"Industrial Biotechnology inEurope :Issues for
Public Policy ",based onCEPS (Centre forEuropean Policy Studies )
conference ,November 1985 .Pub .Frances Pinter
216 «•

A Molecular investigation ofthegenomes ofcomplex organisms
Thechallenge
The genome specifies all the rules which ,through interaction via the
phenotype with the environment ,determine the survival and the
reproduction ofanorganism .Uptonow ,themolecular structure and
the regulation ofthis genetic information has remained largely
inaccessible .New techniques inDNA sequencing ,aswell asimprove ¬
ments inthehandling ofbiological information ,have now created an
unprecedented situation .There are scientific means available to
decipher completely the genetic programme ofany organism .The tool
kit iscomposed oftechniques toseparate chromosomes ,cloning and
sequencing methods ,ordered DNA libraries ,genetic linkage maps ,data
bases and computer software .
DNA sequencing ofwhole genomes will require avast amount ofwork ,
especially ifone hopes toinvestigate the structure ofhigher
eukaryote genomes .Itseems therefore ofthe utmost importance to
organise and make proper choices for aproductive strategy .Itis
clear that ,assuch ,thesequence ofagenome ofasingle entity will
beofvery high basic value ;itseems also clear that determination of
the sequence ofseveral genomes will increase the potential interest
ofsequence determination byavery high factor .Indeed ,atthe
simplest level ,sequencing will make available all signals that are
important for the core machinery ,responsible forgene expression and
replication .Afurther important result will bethat weshall have
access toinformation corresponding tothe ecological niche ofthe
organisms considered .Indeed ,the DNA sequence information that
remains present after the core sequences have been subtracted ,repre ¬
sents information specific toeach type oforganism .This will make
understandable theway bywhich typical instances ofvarious organisms
cope with their environment .
Thenext domains which will befertilised byknowledge oftotal genome
sequences isthestudy oftheevolution ofspecies .This will result
both from comparisons ofsequences ofagiven organism ,andcomparison
ofhomologous sequences indifferent organisms .Amajor consequence
will bethat weshall have pathways relating known structures (atthe
three dimensional level )tounknown structures .This ,most probably ,
will bring amajor support tothe general problem ofprediction of
protein tertiary structure ,knowing only their primary structure .
5.
217

Finally ,when weshall beinaposition tostart sequencing genomes of
multicellular eukaryotes ,weshall start obtaining specific informa ¬
tion ongenes involved incell differentiation .Ingeneral itcan be
hoped that knowledge ofthe genes will help understand avariety of
biological phenomena inawaymore directly accessible than theusual
converse way (i.e. going from thebiological phenomenon tothegene ).
The United States are seriously contemplating the possibility of
sequencing the human genome ,and Japan ismaking anendeavour to
invite international cooperation for this ambitious task tobeplaced
under the umbrella ofits proposal for aHuman Frontier Science
Programme .The primary interest ofsequencing the human genome goes
with the wide-ranging medical applications atstake .Many human
diseases are indeed under genetic control ,and knowledge ofthe
molecular structure ofthe disorders could lead tovast new markets in
diagnostics and therapeutic agents (cf.Health annex ).Beyond its
scientific significance ,aproject ofthis dimension would obviously
result in technological spin-off and the development of
instrumentation ofwide biotechnological use .
Progress throughout theworld
The United States are already engaged insome steps ofthe human
genome enterprise .Total federal funding togenome projects amounted
to32-34 Mio $in1987 .Projected spending ofNIH in1989 isestimated
at28Mio $,andDOEproposes 18Mio $forthesame year tocarry out
technological and instrumentation connected research .The NSF would
also provide some support through grant programmes .However ,itis
generally accepted that abudget of200Mio $/year would benecessary
toprovide the comprehensive support that would berequired .The
dimension ofthe task ,and some lack ofcoordination between themany
interested organisations ,both public andprivate ,may create diffi ¬
culties before the human genome sequencing project can deliberately
take off .Inthe meanwhile ,several smaller genomes are subject to
pilot sequencing work ,inthe United States aswell asinother
developed countries .
The Japanese position appears particularly strong from thetechnologi ¬
calangle .The automation ofsequencing techniques isanarea inwhich
much work isbeing done ,funded both byindustry and bythe govern ¬
ment .Robots have been developed ,based onUSapproaches .The Univer ¬
sity ofTokyo isvery strong andmany oftheindustry people involved
inthedevelopment ofautomated sequencing /mapping equipment aretheir
former students .Much more sothan its European counterpart ,Japanese
industry ismaking efforts tocommercialise the results ofresearch
anddevelopment inthis field .
6.
218
» . 1»

Developments inEurope
Several Member States aswell asthe Commission ofthe EChave already
invested much thinking ,and sometimes money ,indefining thepartner ¬
ship Europe could offer inthis major international effort .Itisa
fact that Europe cannot accept aminor role .Ithas many ofthe
required skills and resources ,and has acquired much experience in
coordinating work across State boundaries .Its reputation that itis
bound tocoordinate policies and actions inall areas ofCommunity
competence turns out tobeitsreal force .The task ofsequencing the
genome ofacomplex organism isone which will require much division
oflabour andnetwork integration .
France has allocated already 1.4Mio $tosequence regions ofthe
human chromosomes ofparticular medical importance ,and todevelop
data processing systems .The UKMedical Research Council set upa
coordination committee ,and isinthe process ofworking out its
strategy tobeapproved atgovernment level .The German DFG has been
allocating 500.000 $/year forthelast three years forresearch onthe
human genome .Cloning ,data handling and instrumentation are the 3
main fields onwhich discussions were organised inarecent national
meeting ,tobeconvened again onaregular basis .A50.000 kbase
chromosomal region associated with mental retardation has been
selected byItaly forcomplete sequencing ,incollaboration with the
Salk Institute .The cost tothe Italian government will beabout
10Mio $.AEUREKA programme was also approved which covers some of
the technological aspects ofsequencing work ,with aBritish and a
French company involved .
However ,even the largest European country cannot rely onits own
forces tocompete with the USand Japan where theinitiative received
earlier attention .Itisstill remarkable that the Comnunity has the
privilege ofbeing first in1988 toorganise onatransnational basis
acoordinated project tosequence one chromosome ofyeast .This
objective brings together inthe framework of the BAP Community
programme asmany as35laboratories during aperiod of2years .The
target ,proportionate tothe modesty ofthe funds available ,isa
reasonable choice before the international scientific community will
embark onthe human genome .The latter -1000 times the scale ofa
bacterial DNA -issolarge that one has toperform several intermedi ¬
ate studies inorder topermit scaling up.This means that eukaryotes
with small genomes such asyeast ,beitonly for this reason and not
for their own interest ,should beconsidered first .
Other discrete steps have been taken ,using existing programmes ornew
proposals under the second Framework Programme ,toorganise trans ¬
national research onsmall-scale sequencing projects :Drosophila is
considered under the Stimulation action ,and the human genome will be
for the first time the subject ofCommunity research under the
initiative ofPredictive Medicine .
7.
219

From needs topriorities
The different projects that have been briefly outlined involve a
significant amount ofwork :asexample thesmallest project (1000 kb)
requires atleast 25man xyear ofwork ,and theproject ofsequencing
abacterial genome would require five times that figure .Choices are
needed for the Community totailor its effort ataninternational
level .
-The participation ofthe Community inthehuman genome project is
both astrategic necessity and achance offered toscientists and
industry ;this participation still has tobedefined interms of
scientific contributions ,commercial consequences and ethical
guidelines ;the coordination ofthe European response istaking
shape inthe framework ofthe Japanese initiative for aHuman
Frontier Science Programme .
-Thecompletion ofthetotal sequencing oftheyeast genome ,ofwhich
only one chromosome isunder analysis ;this istheunique strength
ofthe Comminity that itwas first toembark onacompletely co¬
ordinated project using this lower eukaryote ,accumulating
information and creating skills largely applicable tothe human
genome later on;the Community must keep with itthis modest
advantage .
-The participation of the Comminity ininternational projects
addressing other genomes of high commercial significance
(JB.subtilis ,Arabidopsis thaliana ).
-The organisation ofanindustrial involvement inthis whole endeav ¬
our ,taking care oftechnological spin-offs inthe software and
instrumentation areas ,aswell asoflegal ,ethical and commercial
consequences ofexploiting theaccumulated biological information .
-Concomitant support tobasic science inthe areas ofmolecular
biology ,cell physiology ,protein chemistry and enzymology ,to
secure that the structural information massively disclosed bealso
interpreted and exploited inEurope through anadequate research
infrastructure .
References :
National projects inbiotechnology
Susumu Yamamoto ,ontheoccasion ofBio'FAIR TOKYO 1986
Quatrième enquête delaSTA sur les technologies japonaises dans les
30ans àvenir (1987-2015 ):partie "Sicence delaVie".
Traduction enprovenance deladélégation delaCommission ,M.Bourène
8.

OTAreport
Mapping our genes .Thegenome projects :howbig ;how fast ?
OTA-BA-373 (Washington ,DC :U.S. Government Printing Office ,April
1988 )
Sequencing theyeast genome .Adetailed assessment .
Report tothe Commission ,DGXII-F-2,Ed. A.Goffeau ,May 1988 ,
XII/F/280 ,250pages .
Workshop onprospects forbiology inEurope and ontheHuman Frontier
Science Programme ,Brussels ,2May 1988 .
Proceedings edited byXII-G-3,19July 1988 .
B Molecular foundations ofplant biotechnology
The roots ofour green planet
Plants are mostly studied infunction oftheir agricultural and
economic importance ;yet ,inspite ofelegant investigations ine.g.
photosynthesis ,they have not received the right attention onmany
aspects ,such astotipotency ormetabolisms ,with direct bearings on
agriculture and industry .
Totipotency isaunique property ofplants .Incontrast with other
living beings ,they can develop into normal embryos and regenerated
organisms ultimately ,without necessarily passing through fecondation .
The identification ofmolecular signals tocontrol these unusual
processes isanessential research step for the understanding of
reproductive mechanisms inagriculture andforestry .
Plants are also endowed with complex and original bio-synthetic
pathways ,which often find noequivalent inanyother living organism .
The products ofthese biosyntheses have attracted the interest of
chemists forcenturies andhave opened upawide diversity ofmarkets
forhealth and chemical industries .Their structures andbiosynthetic
routes arehowever poorly known (ifknown atall)insome ofthe9.000
plant species partially studied sofar .But300.000 plant species with
potential interest still are keeping most oftheir metabolic secrets
beyond scientific grasp .
Limited efforts have recently been engaged tofill some ofthese gaps
through research atmolecular level .However ,they have been always
subcritical and innoproportion tothe overwhelming importance of
plants toregulate thebiosphere and tosupport most ofhuman activ ¬
ities .There are thousands ofanimal genes isolated sofar ,for a
hundred plant genes only ;and theexcess ofblood proteins compared to
thenumber ofwhole plant proteins that could bestudied still isby
two orders ofmagnitude .Nevertheless ,food ,feed ,fibres ,wood ,
drugs ,solar energy capture all are derived from plant essential
features ,which are exploited merely onempirical bases .Itisun¬
thinkable that the significance ofany ofthese functions ,and pro¬
ducts thereof ,may fade away inaforeseeable future .
9.221

Thesituation worldwide ishowever rapidly changing ,and anewdeal in
plant sciences isabout tobeestablished .The dramatic leap hascome
from theimplementation ofnewresearch tools such ascell culture and
regeneration methods ,T-DNA transfer systems ,site-directed muta ¬
genesis ,molecular probes for genes and gene expression ,etc .The
rapid arrival onthe market side ofunconventional products with a
high profile (engineered symbiotic agents ,seeds with specific
resistances )raised much industrial interest ,resulting insubstantial
restructuration oftheagriculture-based industry .What isoccurring
intheUnited States and inJapan isparticularly significant .
The world scene
American teams have been very fast atapplying thewhole panoply of
molecular tools mentioned above ,tobuild upleading expertise in
plant gene expression andplant development .They recorded many world
firsts over the last 3years ,such ascreating the first tobacco with
anengineered resistance tomosaic virus ,the first tomato with an
engineered resistance tothehomworm ,thefirst transgenic sunflowers
and oil seed rapes ,the first chloroplast genetically transformed ,
etc .This race towards meaningful research achievements has been made
possible also because many industrial companies participated directly
intheeffort .Besides theexpected seed andagro-chemical firms that
were first inthebusiness ,several pharmaceutical and oil companies
among themajor ones started tohave significant "green "commitments ,
starting from the purchase oflocal seed companies tosecure the
access togenes .They have also contracted research touniversities ,
although toalesser extent than inthepharmaceutical field .
One ofthese big companies iseven known for having established in
Europe more contracts with universities inthe ECthan was possible
through the BEP Community programme during the same period .Other
forms ofresearch commitments have been flourishing ,such asthe
purchase ofsmall R&Dservice companies ,thereinforcement ofin-house
research capacities ortheparticipation inconsortia .Established in
1986 ,theMidwest Plant Biotechnology Consortium inparticular brings
together theexpertise of14universities and thedriving forces of31
industrial companies (including from pharmaceutical and electronic
sectors )for target-oriented research inthe field ofagricultural
biotechnology .The research environment isparticularly favourable in
the USbecause ofmarket prospects (5billions $for seeds ,and the
projection to100billions $in1995 forallbiotechnology products in
agriculture ),andafter favourable provisions had been made in1985 by
the USPatent and Trademark Office for granting patent protection to
plant varieties ,including those resulting from genetic engineering .
Theonly pitfall before modified agricultural species are brought to
the field and new bio-rational practices implemented inagriculture
stays with the question ofconjectural risks .Pressure groups have
caused prejudice totheprosecution ofexperimental work ,and federal
agencies have not yetbeen able tocontrol thesituation .This diffi ¬
culty ,which was particularly amplified inthe USwhere public debates
10.
222

have always been part ofthe political life ,could give Europe a
competitive advantage ifonly theCommunity was able rapidly todefine
common regulations for the introduction ofmodified organisms .How¬
ever ,irrespective ofthe somewhat confused regulatory status ,the
USDA makes now provisions for asubstantial support tobasic plant
research .Although itaccounts for only 6%ofthe Federal budget ,
ranking third after N1H and NSF inbiotechnology spendings ,USDA has
constantly increased its biotechnology budget since 1982 .Its new
Plant Science Centres (10million $in1987 )have been set upto
encourage the best inbasic plant research .These will address the
areas ofplant engineering ,rhizosphere dynamics ,carbohydrates and
ecological processes inpriority .Cooperation andmultidisciplinarity
are themajor ingredients ofthenew recipe ,which provides evidence
for the real obstacle which American plant biotechnology isfacing :
the lack ofabasic understanding ,atphysiological and molecular
levels ,ofthemake-up ofagricultural species .
Japanese plant biotechnology isnot less spectacular ,although it
could give theimpression ofbeing more limited inscope .
Amajor strong point inJapanese plant science has always been the
study ofsecondary metabolites .Apart from describing the structure ,
biosynthesis and physiological functions ofthese compounds ,alarge
effort hasbeen put inincreasing their production .This was attempted
through plant breeding and through plant cell culture .InJapan so
many groups were and are still involved inthis approach that they
have obtained anunique technological skill ,nonexisting inanyother
country .Now that improvement ofplant cell lines for secundary
metabolite production will become possible through genetic engineer ¬
ing ,their capacity for plant cell fermentation will inthe near
future give Japan aleadership intheproduction ofthese compounds ,
which can beofthehighest importance tothe fine chemical industry
and thepharmaceutical industry .
Due tothestrategic importance ofagriculture ,Japan also has along
lasting interest indeveloping crop improvement facilities .Atpresent
the major effort isgeared towards rice ,wheat ,barley and soybean .
The future trend will betoinclude rapeseed .Their present major
successes are inadapting the gene transfer techniques tonew plant
species .With these techniques ,they have been particularly successful
inengineering different rice cultivars .Atpresent itisthe only
country where insome institutes and companies one can find green ¬
houses full ofengineered rice plants .
Outstanding research isalso carried out inthe laboratories of
different big industries .Each year the best students ofthe major
universities are contracted bythe leading industry .Allhave started
in-house plant biotechnology research ,some have even purchased seed
companies inJapan and abroad .Likewise other parts ofthe developed
world ,this move isseen not only ontheside ofthetraditional food
industry oragricultural companies ,but also bythe major chemical
companies ,the fibre and paper companies ,oil companies and even
cement and electric industry .Most are active inresearch and produc ¬
tion ofseveral major crops (rice ,wheat ,beans ,even corn )vegetables
(tomatoes ,potatoes ,cabbage )but also fruits (citrus ,melon ,straw ¬
berries ,grapes ),medicinal plants andornamentals .
223

Insummary ,with amuch larger number ofskilled scientists and
technicians than the whole ofthe EEC countries ,Japan iswell pre¬
pared foramajor biotechnology effort .
Their weakness stems from the fact that developed skills arenotmuch
used forasking fundamental questions inplant molecular biology .And
yet ,thefruitful applications ofgene transfer techniques depend on
e.g. cell regeneration through organogenesis orembryogenesis .Success
ingene isolation relies onhigh standards inmolecular biology
techniques and also onaproper understanding ofplant physiology to
characterise the required gene product .Quite some fundamental know ¬
ledge isstill needed tooptimise thecurrent effort .
The role ofEurope
Even inafast moving world ,Europe has uptonow been able to
maintain aleading posltioit inplant biotechnology ,owing tothe
activity ofpioneering groups and tothepromotion effect ofnational
and Community programmes .Asaresult ,European achievements can
compare very favourably with those ofthe US.The first monocots
(onion ,daffodil ,asparagus and rye)were genetically transformed in
Belgium ,Germany and theNetherlands ;the first receptor ofaplant
hormone cloned inGermany ;the first nitrogen-fixing heterologous
Rhizobium inassociation with anengineered legume inDenmark ;the
first regulatory gene ofastorage protein cloned inItaly from maize ,
etc .
EECMember States have been very fast atusing this momentum ,asthey
reinforced oreven frequently created numerous laboratories and
centres for plant research .The Community placed itself atthe
forefront ofthe area ,but itmust make sure the benefits will stay
with it.Losing competitiveness inthis phase ofrapid expansion would
result inaloss ofopportunities toexploit imagination .Inaddition ,
itisofparticular advantage that this European impetus canbetuned
and amplified bycapitalising onthe experience from the Community
programme forbiotechnology R&D (BAP :1985-89 ).BAPwas very well
received and provided areliable test for the interest and promises
which lie with the scientific and industrial communities inthis area .
Thepattern anddevelopment ofindustrial Interest parallels very well
that observed inthe USand Japan ,crossing all traditional branches
ofindustry .After aperiod ofhesitation intheearly eighties ,when
small R&Dcompanies were flourishing intheStates ,there arenowmany
indicators ofanintense and far-looking industrial activity by
established European firms :
-recruiting university staff ,particularly massively the last five
years ;
-setting upnew in-house biotechnology laboratories ,inalmost all
branches ofbio-industry ;
-restructuring quite intensively themarket ;
-joining newrepresentative bodies (EBCG ,GTBiP );
-cooperating inresearch (BAP ,EUREKA ,Clubs ,etc.);
-supporting basic research (European Institute ofTechnology EIT ,
private foundations ,etc.);
-buying American seed and R&D service companies .
224

About 25companies ofvarious sizes and professional affiliations
joined anewclub ,theGreen Industry Biotechnology Platform (GIB1P ),
toInterface with thepublic ,consumers and regulatory bodies ,and to
develop common ideas inthe fields ofresearch and intellectual
property .Their expectations are for amajor European effort inplant
biotechnology and forharmonised regulations allowing research results
tobeapplied inEurope and preferably not onother continents
systematically .
Community needs andopportunities
The foreseeable applications which could promote thewelfare and the
competitiveness oftheCommunity would fall under three policy objec ¬
tives :
-agricultural competitiveness ,
-envlronmental care ,and
-consumer safety .
Community agriculture isfaced with the urgent need toincrease its
competitiveness while keeping inharmony with the environment .Both
objectives ,competitiveness and environmental protection ,can be
either antagonistic asthey might have been occasionally inthe past ,
orpreferably compatible when based upon judicious technological
options .The reconciliation ofthese equally important issues stays
with the right balance of "bio-rational "tochemical practices in
agriculture .That istosaywith thedesign ofalternative methods in
plant nutrition and crop protection that would base productivity on
genuine biological processes under genetic control ,rather than on
external supply ofchemical fertilizers orpesticides exclusively .
This "bio-rationality "isbecoming more conceivable with the advance
ofmodern biotechnology and thedemonstration that early applications ,
such asmicrobial fertilizers orin-built genetic resistances ,are
already becoming feasible .
Through thepervasiveness ofmolecular approaches ,more attention can
also begiven tothe molecules ofquality ,those associated with
lnnocuity ,flavour ,nutritional value ,texture ,etc .ofmany plant
products .Ifone could identify them ,control their synthesis and tune
their functional activity ,the molecules ofquality would make the
real difference between asurplus and adeficit crop :e.g. between a
surplus barley oflowfeeding value and adeficit barley more adapted
toanimal diet ;between asurplus wheat ofpoor baking quality and a
high gluten wheat asdemanded bythemiller 'strade ,... .Quality and
precise characteristics will increasingly become the discriminating
factors ofplant products onthe market side ,and biotechnology is
giving anew opportunity tofocus onmolecular determinants ofthese
parameters .
13.
225

Last but not least ,theInteractions ofcrop plants with other native
species oftheagricultural environment can bemonitored and ,hence ,
predicted asthey never could before .This should permit real ecologi ¬
cal management ofland uses ,inboth the short term and long term
interests ofCommunity citizens .
Inorder toapply the results ofmodern biology tothese Community
policy objectives ,theCommission hasformulated newprogrammes aiming
topromote the relevant developments .What is required is a
collaborative effort ,not only multinational (asinany Community
programme ),andmulti-disciplinary ,asisusual inbiotechnology ,but
in particular based on closer partnership ,in R&D ,between
agriculture ,industry and science .Such isthe aim ofthe ECLAIR
programme (European Collaborative Linkage ofAgriculture and Industry
through Research :80MECU ,1988-1992 ).Thebiological advances canbe
used toenable agriculture todevelop products (ofplant ,animal or
other origin ),better adapted tomarket needs (food and ,increasingly ,
non-food ) ;thus opening upnew growth opportunities for European
agriculture ,promoting competitiveness and respecting the need to
maintain and enhance the environment .
Arelated programme ,FLAIR (Food-Linked Agro-Industrial Research ,25
MECU ,1989-1993 ),similarly applies the fruits ofmodern biology ,but
with aparticular emphasis on the interface betwwen the food
production system and theconsumer .The keywords arequality ,safety ,
nutrition ,and theapplication ofthenew technologies tothese ends .
These programmes offeasibility research anddevelopment ,looking at
possible exploitations ofbiotechnology breakthroughs attheinterface
ofagriculture ,industry and the environment ,have evolved inclose
connection with theCommunity programmes ofbiotechnology R&D (BAP :
1985-89 ,then BRIDGE :1990-94 ).The programme BAP ,inparticular ,is
placed atthefore-front ofresearch andwill find inECLAIR ,FLAIR or
the programme forcoordination ofagricultural research ,the logical
receivers ofthetype ofenabling techniques orinstrumental knowledge
that iscreated .Conversely ,the application-oriented programmes
constitute thetesting ground where bottlenecks areidentified andcan
very appropriately feed back scientific ideas into the more basic
ones .
Atthis stage ,the point will bemade that none ofthe existing
programmes oftheresearch -development -application line will forever
perform asthey did throughout the eighties ,without caring for the
necessary forward thinking into theprinciples oflife which underly
biological sciences .
None ofthese objectives ofCommunity significance can bereached just
byextrapolating theongoing research effort .Scientific andtechnical
obstacles have now shifted from the technological end to the
biological end ofbio-technology .
Inthe same way asbiotechnology R&D activity and agro-industrial
research mutually enhance each other ,there need tobeastronger
commitment into basic areas where knowledge isexpected tobecome
limiting for further expansion ofbiotechnology to take place
eventually .
14.
226

This isajob forEurope
Genetic and molecular techniques have attracted attention ,they have
become particularly precise and powerful ,but they still can be
applied only tothe emerged side ofthe Iceberg which represents
living matter .The hidden principles regulating plant functions and
metabolisms nowneed tobeelucidated ,before useful work canproceed
atascale ofmacro-economic significance .Know-how has outstripped
knowledge ,sothat technology will belimited inscope until techno ¬
logy has served the purpose ofproducing thenecessary understanding
ofagricultural objects ;what could also becalled "newplant physio ¬
logy ".
Five major areas areproposed forjoint research inEurope :
-flower induction ,gamete development and sexual recognition
processes
-control ofplant cell development andmorphogenesis
-information atplant-microbe interfaces
-genetic andmetabolic controls ofquality traits
-molecular investigation ofthe genome ofArabidopsis thaliana
asmodel for all plant genomes and reservoir ofgene probes
(chromosome isolation and sequencing ,cloning oflarge frag­
ments and complementation systems ,transposon mutagenesis ,
homologous recombination ).
Each ofthese areas has specific bearing onactivities inseed or
process industry .Underlying these focal points ofinterest ,common
biological processes ofthe basic cell machinery will have tobe
addressed inpriority :signal perception /transmission ,regulation of
development ,genome organisation ,gene-function relationships .The
horizon ofthe researcher inplant molecular biology isopening up
into arevised vision ofplant cell physiology ,e.g. howgenetic units
are set into motion through molecular interactions with either
adjacent cells orthe environment ;and how the regulated genetic
programmes lead to new metabolic functions which support the
expression ofsomany plant features foragriculture andindustry .An
adequacy ofphysiological /biochemical knowledge with the extended
array ofnewanalytical /genetic techniques atmolecular level iswhat
pressingly calls for the convergence of multiple skills and
wide-ranging cooperation schemes .Atpresent ,the developed skills
must beused forasking thefundamental questions ofplant physiology ,
before meaningful applications can befurther devised .
Significantly enough ,this isananalysis which closely meets American
and Japanese science evaluations .Europe must neither bebypassed by
the expanding knowledge base ofothers who are conducting strong
actions inthis area ,nor beoverruled instrategic discussions on
genetic resources (cf.also section C :Diversity of genetic
resources ).Itmust hold astrong negotiating position when defining
the new international distribution ofresearch tasks ,ortheneeds to
rationalise networks ofbiological resources ,the latter with the
participation ofLome Treaty countries inparticular .
15.227

References :
TheHuman Frontier Programme :Japanese research inplant sciences .
Apreliminary report totheCommission (1988 ).
M.vanMontagu
Biotechnology inJapan .
Areport prepared byaUKvisiting group fortheSERL ,April 1986 .
L'USDA s'accroche auwagon delagénétique végétale .
Biofutur ,Janvier 1987 ,page 11.
USagricultural research
Nature ,vol .324 ,13November 1986 ,page 103 .
New USPlant Science programme
AGROW ,n°51,13November 1987 ,page 11.
Biotechnologies etagriculture aux Etats-Unis :vers une nouvelle
révolution verte .
Ambassade deFrance àWashington ,Services del'Expansion économique
etMission scientifique ,mai 1986 .Paru dans "Problèmes économiques ",
n°1976 ,28mai 1986 ,pp.3-10 .
’Workshop onprospects forbiology inEurope and ontheHuman Frontier
Science Programme ,Brussels ,2May 1988 .
Proceedings edited byXII-G-3,19July 1988 .
Boutry ,M.andMagnien ,E.1987 .The use ofRFLPs forbasic research
and plant breeding .Report totheCommission ,Directorate-General for
Science ,Research andDevelopment ,DGXII-F-2,Brussels .
Dickinson ,H.G. andMagnien ,E.1987 .Manipulation ofcore processes
inplant breeding .Report tothe Commission ,Directorate-General for
Science ,Research andDevelopment ,DGXII-F-2,Brussels .
de Vries ,S.C. ,Olesen ,P. and Magnien ,E. 1988 .Control of
differentiation andmorphogenesis inplants .Report totheCommission ,
Directorate-General forScience ,Research andDevelopment ,DGXII-F-2,
Brussels .
C Diversity ofgenetic resources
Plant resources
The production ofbiotechnological innovation will belimited bythe
ability ofscientists tocapitalise ongenetic variability .The access
togenetic resources and togene banks will become themajor factor of
acontinuing progress .Thirld World countries will therefore take
advantage oftheir strategic position inthetropical areas asbeing
thehosts ofmost living species ontheearth .They sitonareservoir
ofgenetic variability that attracts considerable interest .Totake
just anexample ,amajor seed company recently provided theUSDA with
1.5million §toinventorise and collect 20,000 genotypes and wild
species ofmaize inSouth America .
i«.228

Theposition ofdeveloping countries sometimes appears contradictory :
onthe one hand ,they would like tomaintain afree international
exchange ofplant genetic resources for the benefit oftheir own
agriculture ;asamatter offact ,they would fear that the best
adapted genetic material could result from the breeding work of
laboratories in the North and bemade accessible to them under
restrictive conditions .The executive director ofthe United Nations
Environment Programme (UNEP )warns "the control and patenting of
biotechnology applications (including modified plants )by the
developed countries could further disadvantage developing countries ".
But ,on the other hand ,developing countries would consider it
desirable tocontrol and possibly regulate the export ofgenetic
resources from their territories .The FAO conference has always
supported the adoption of an international agreement for the
preservation and exploitation ofworld plant genetic resources .
Industrialised countries have however raised opposition against what
they would consider over-regulation inthe field ,which isalready
under the competence ofthe International Board for Plant Genetic
Resources (TBPGR ).
The scientific community now enters the political debate byraising
the threat ofarapid erosion ofplant genetic resources :within 10
years ,thousands ofplant species will unavoidably disappear .The
proposal tosetupaworld gene bank gets substantiated ,butdoes not
receive anAmerican approval because ofthe existence ofanational
collection inthe US.
The International Board for Plant Genetic Resources (TBPGR ),
established since 1974 bythe Consultative Group onInternational
Agricultural Research Centres ,has pursued asanobjective the
promotion ofinternational networks ofgenetic resource centres .
Collection ,conservation ,documentation ,evaluation and use ofplant
germplasm are the activities this organization intends tocover
worldwide .IBPGR can be praised for significant and impressive
achievements .Its relationships with FAO have however proven tobe
contentious and ,technically ,much isleft tobedesired .With very
few exceptions (rice ,sugar cane ,potato ,alfalfa ...), the
acquisition ,maintenance andevaluation ofmajor world crops issimply
notorganized and thebreeders collections ,next tobeing private ,are
indeed under risk that they getdisrupted orlost .The evaluation of
the germplasm and its utilization ,necessary tosustain breeding
activities ,isnot carried out properly .This would require an
international agreement onanintegrated catalogue with meaningful
descriptors :collection sites ,ecological characteristics ,
stress /resistance behaviour ,agronomic traits ,using more and more
molecular probes andchemical signatures inconjunction with botanical
descriptions asbecomes possible .This information system should
obviously becomputerized .
22917.

Particularly relevant will bethedescription ofgenes and oftheir
sequences ,expected tobecome available atanaccelerated rate .Gene
banks should bedesigned inaway tofacilitate thesearch fordesired
genes in gemplasm collections .Biotechnology is providing
opportunities toincrease the functionality ofoffsite-maintained
plants ,particularly through invitro culture ,biochemical blueprints
and ,may bemore futuristic ,the preservation ofisolated genetic
information inthe form ofDNA orRNA .The applications ofrDNA
technology togerraplasm evaluation andmanagement have hardly began ,
but arelikely tobecome ofincreasing importance .
InEurope ,awareness ofspecies diversity isgrowing and isgiving
raise todiscrete initiatives .AEuropean Standard List ofAnimal and
Plant species has been set upbytheCouncil ofEurope .Theproduction
and standardization of species diversity checklists and the
development ofspecies diversity database networks isthe first
priority .But taxonomic work goes ondeclining further inacademic
institutions and itisbecoming anurgent task torevitalize this key
discipline ofthelife sciences byhaving itrevisited ,inparticular ,
with thecontribution ofmolecular biology .
Animal resources
Incontrast tothe breeding situation inJapan and the USA ,the
selection ofraces ofdomestic animals inEurope hasdeveloped into an
outstanding tradition for hundreds ofyears .This has led tothe
development of many valuable animals adapted tomany useful
productions under different environmental conditions .However ,due to
animmediate competitivity requirement ,there isaclear tendency for
these races todisappear ,replaced byasmall number ofuniform ones ,
highly selected formassive productivity inanartificial environment
anddepending onsupplied feed .Inorder topreserve this exceptional
genetic capital nowindanger ,itwould beworth improving themethods
ofgenetic preservation ofembryos andcollections ofthem .
Ecological monitoring
Theignorance ofthetrue taxonomic structure ofnatural microflora is
acritical deficiency inour current knowledge .The majority of
bacteria present inagiven ecosystem are not readily cultured in
vitro and are experimentally silent .Hence the inability toidentify
and classify satisfactorily asubstantial proportion of those
microorganisms .The dynamic interaction of microorganisms in
particular ecosystems cannot beanalyzed properly ,although itisnow
expected that molecular microbial ecology should allow ,inconjunction
with sophisticated instrumentation for data capture andautomation of
microbial identification ,new insight into the functioning of
ecosystems .
18.
71 230

DNA probes and monoclonal antibodies must bedeveloped formany more
microorganisms ,and especially for those composing biotechno logically
important ecosystems .Analytical instruments with higher resolving
power (gaschromatography ,mass-spectrometry ...) need tobefurther
improved towork onvery large numbers ofisolates .The data must be
evaluated andorganized into adequate information base .
What is urgently needed in Europe is the organization of
multidisciplinary groups capable ofexploiting new technologies and
molecular methods and ofapplying them tointegrated studies of
microbial ecology intarget ecosystems ,especially those susceptible
ofbeing subject tonew agricultural practices orintroduction of
foreign species .The priorities would be :
-instrumentation for high resolution automated microbial
identification ;
-banks ofspécifie probes ;
-monitoring ,atmolecular level ,ofgene flows inmicrocosms ;
-standardization ofmodel microcosms ;
-microbial interactions inecosystems moved away from equilibrium ;
-relation ofmicrobial processes tothe overall flux ofenergy and
matter ;
-ecosystem modelling with predictive capacity inthe event of a
perturbation .
BTBLIOGRAPHY
.Laguerre dessemences ,J.Grall etB.Roger Levy (Fayard ,1985 )
.Biotechnology News ,vol .5n°25(9October 1985 )
.Department ofEducation and Science ,and Research Council ,meeting
with Commission 'srepresentatives ,20September 1988 ,background
paper
.Prof. K.N. Timmis ,GBFBraunschweig ,personal communication (1988 )
.Actes delaConférence Européenne :Diversité Biologique -Undéfi
pour laScience ,l'Economie etlaSociété .Dublin ,4-6mars 1987
Commission des Communautés Européennes ,DGXII-FAST ,1988 (with
particular reference to P.R.Day :Problems and opportunities
confronting theexploitation ofgenetic diversity ,p.26-41 )
.Technologies tomaintain biological diversity ,Office ofTeclmology
Assessment ,OTA-F-330, Government Printing Office ,Washington ,DC,
March 1987
19.231

D Immunology
Over one thousand journals today bear witness tothe scale of
scientific and biomedical activities conducted under the heading of
'’Immunology ".Inpresenting abrief resume ofthecurrent situation in
this complex and fast-advancing biological discipline ,three aspects
should behighlighted .Firstly ,asafundamental science ,immunology
has provided basic research with many challenging problems .Acentral
issue has been the basis for the diversity ofantibodies ,the
mechanism bywhich anorganism has theability toproduce millions of
different antibody molecules ,with arelatively lownumber ofgenes .
Secondly ,immunology ishighly implicated inmedicine (especially
prophylaxis )with ,forexample ,apredominant role indefence against
bacterial ,viral and parasitic attacks .Thirdly ,immunology provides
exquisitely specific analytical tools ,finding practical applications
inmany fields and ,especially ,since the discovery ofmonoclonal
antibodies .These have made itpossible very cheaply todetect and to
quantify viruses ,bacteria ,parasites and the presence ofspecific
molecules such ashormones ,toxins orpollutants .
During therecent years ,immunology hasbrought ahuge contribution to
science .Since 1980 ,immunological research has been rewarded with
three Nobel Prizes out ofeight attributed inphysiology andmedicine
(1980 :B.Benacerraf (EU);J.Dausset ,(F);and G.D. Snell (EU)-
1984 :N.Jeme (DK);G.Kohler (FRG)and C.Milstein (UK)-1987 :
S.Tonegawa (J).This demonstrates theexceptional vitality andimpact
ofimmunology onmedicine andscience .
Immunology isawidely dispersed discipline .Itisbased onteams of
collaborating researchers ,grouped inuniversity departments or
institutes ofrelatively modest size (10to100people ),and having
high competence inbiochemistry ,molecular biology andmedicine .
Certainly ,thebest immunological research isconducted intheUnited
States ,which has the largest number ofresearch groups .The quality
oftheir work isgreatly assisted bythe excellence ofthe research
infrastructure ,asexemplified bythecollection ofcultured cells at
theATCC (American Type Culture Collection ),ortheJackson collection
ofmice which have noequivalent elsewhere inthe world .There are
excellent teams inthe U.S. inevery sector ofimmunology .
The development ofimmunology inJapan isrelatively recent .However ,
they possess many teams ofhigh quality such asthat ofT.Tada
(working onTsuppressor lymphocytes and lymphokines )inTokyo ,T.
Kishimoto (Bcell stimulatory factors )and T.Honjo (molecular
genetics ofthe immunoglobulin synthesis and Tcell receptor )in
Osaka .Immunology hasprogressed extraordinarily quickly inJapan ,and
itisdifficult topredict its development inthenear future ,owing
tothe potential which lies with ayoung generation immunologists ,
mostly trained however intheUnited States .
20.232

Europe isanold andtraditional region with excellent capabilities in
immunology .The present situation inboth basic and clinical or
applied immunology israther good ,with highly qualified teams :but
themost competitive studies ,requiring large contributions ofgenetic
engineering ,are located intheStates orinJapan (Tcell receptors ,
interleukins ...). Non-Community countries ,such asSweden ,Finland or
Switzerland ,have excellent immunology research .Amajor contribution
toimmunology hasbeen theestablishment inSwitzerland ofthe "Basel
Institute forImmunology ".This institute isentirely devoted tobasic
immunology and istotally supported bytheprivate pharmaceutical firm
Hoffmann -LaRoche .
Unfortunately ,European efforts and results have very often been
developed and exploited intheUnited States before being employed in
Europe :monoclonal antibodies areone ofthemost striking examples .
The Nobel -prize -winning discovery was made inCambridge ,England ;but
UScommercial firms (Hybritech ,Becton Dickinson ,Ortho-Diagnostics )
have taken the largest part ofthe market (for example ,monoclonal
antibodies forhuman lymphocyte typing ).
The Commission ofthe European Communities has already recognised the
importance of immunology and supports research involving this
discipline inprogrammes such asthe "Biotechnology Action Programme ",
"Stimulation ","Medical Research "and "Tropical Medicine ".This effort
isconsiderable and can contribute tothe progress ofimmunology and
itsapplication .Nevertheless ,this effort isdispersed andaims atso
many goals that itcannot beconsidered asasignificant contribution
toimmunology .
Many major problems inapplied immunology remain unsolved :such asa
better evaluation ofthepotential ofthehuman immune system ;better
control ofimmunosuppression inorder toimprove thesuccess ofheart ,
liver ,orother organ grafts ;the production ofhuman specific
antibodies against many aggressive agents (virus ,bacteria ,toxins ,
chemical drugs ...); improvement inthe treatment ofautoimmune
diseases ,etc .
Abasic challenge currently facing immunology ,istoimprove the
presentation ofantigens toorganisms inorder toget strong and
longlasting immunities .Very promising progress invirology (for
example inunderstanding the AIDS virus )and inparasitology (the
major diseases intheworld areparasitic )have been achieved ,leading
toabetter understanding ofthese infectious agents .However ,tobe
transformed into efficient ,safe and cheap vaccines ,the new
engineered substances must meet the requirements ofthe immune system
inorder tobeeffectively recognized .Those requirements are still
poorly understood .Acollaborative effort inEurope onsuch asubject
could beavaluable contribution tothe improvement ofthe major
problems ofhuman (andveterinary )medicine aswell asaconsiderable
help topharmaceutical firms developing vaccines .
21.235

E.NEUROBIOLOGY
The study of the human brain and nervous system Includes a
multiplicity of disciplines from physics , chemistry and
Information science to zoology ,psychology and medicine .All of
these areas contribute tothe understanding ofthe nervous system
from acellular ,molecular and biochemical point of view as well
asgoing same way toelucidate the higher brain functions such as
problem solving language and memory .
How the brain functions has been the subject ofIntense Interest
ever since It was recognised as the centre for Intelligence ,
thought and sentiment .The scientific study ofthe brain began In
the early part ofthe last certuary when certain brain functions
were plnponted and the nervous tissue found to be composed of
Individual cells (neurons j.Neuroscientists are still however
working onthe study ofmany ofthe more complex processes ofthe
brain such as memory ,how sensory Information IsInterpreted and
the processes Involved Involuntary movement .Some of the work
being carried out will have direct application to the
understanding and possible treatment of certain neurological
disorders .The brain 'sIncredible computer power his become a
major subject for research with scientists hoping toemulate some
of its capabilities In the building of 'neurocomputers'
computers whose structure Isbased onthat ofthebrain .
Neuroblologlcal Research
The diverse topics being undertaken In neuroblological research
are an Indication ofthe complexity ofthe subject .Considerable
breakthroughs have been made Inrecent years Inthe fields of
molecular cellular and Intercellular analysis of the nervous
system .In particular ,scientists have been successful in
Identifying and Isolating the specific molecules responsible for
the transmission ofanimpulse from one neuron toanother and the
complex processes Involved In the modulation or control of the
nerve response .While neurotransmitters are produced In minute
quantities Inthe neurons ,using recombinant DNA techniques ,they
can begenerated Insufficient quantities tobestudied Indetail
using protein sequencing methods .This Information Is necessary
to provide afull understanding of the chemical basis tothe
nervous system .
22.
234

Reuroblology has benefltted from several Interdisciplinary
successes enabling the study of the nervous system both'in -
vltro' and 'in-vlvo' .The bringing together of molecular biology
and genetic engineering has permitted the study ofnerve cells In
culture where the environmental conditions required for their
growth and function have been Identified .These techniques have
also brought tolight the mechanisms by which neurons Identify
each other and form their complex interconnections .Cell culture
Iscurrently being used In the study of how myelinating cells
(those specialised cells which Insulate neurons and allow
Impulses tobeconducted ),may betransplanted tovictims ofsuch
diseases as multiple sclerosis where myelinatlon has broken dowon
Inthis way ,repair may bepossible .
The observation of the brain In-vlvo using scanners has been
possible since the early 1970‘s .Conventional X-rays are coupled
to acomputer which reconstructs multiple Images of the brain .
The technique of Huclear Magnetic Resonance (ti.M.R. )is one of
the most recent tools available ,providing exceptionally high
quality Images based on the magnetic properties of the brain
tissue .While these techniques allow the anatomical study ofthe
brain ,researchers are working on the development of magneto ¬
encephalography atechnique which ,by detecting the changes In
electrical activity ofthe neurons will help toIdentify diseases
such as epilepsy whose causes evade other Invasive diagnostic
tools .There have also recently been developments inthe use of
radio-labelled substances Injected Into the bloodstream which are
traced by adetector coupled to adata-processor .This technique
provides Information comparable tothat of ascanner but In
addition ,Information onthe complex blood-brain barrier .Awhole
series ofradiotracers now exist which help Inthe Identification
of thromboses ,blockages ,haemohorrages ,ect .It Is envisaged
that by combining the results ofthese examinations surgeons will
be able to carry out surgery with the maximum amount of
precision .
Since the 1940' sparallels have been drawn between the
functioning ofthe human brain and computing machines .Attempts
toemulate the brain have proved largely unsuccessful .Inrecent
years however ,there has been an explosion of enthusiasm and
Investment Inthe United States and Japan Inthe possibility of
developing neurocomputers .In the United States ,In particular ,
federal agencies ,universities and private companies are making
Important financial commitments .
23.
235

Scientists are hoping that through the understanding of the
functioning of the brain they can •build aneurocomputer -a
computer which Isstructured like the brain and which like the
brain can learn for Itself without programming .The way Inwhich
the brain processes Information isextrodln&rily efficient and itis envisaged that neurocomputers would be vastly superior to
conventional machines .The brain differs from ordinary computers
in several Important ways including Its ability tocarry out
slmultalneous processing ,learning and active reasoning .While
computers have been trained toplay chess at world level ,torediscover Important physical principles ,such as Ohm'slaw and
to answer questions on the unstated Implications of Information
fed to them ,they are along way from being considered
Intelligent .The function of the brain is not based solely on
logic asIs acomputer ,as problems ofcertain complexity only
experience based onlearning can find asolution .
Iuit.iatly.es Inthe Unit edStates and Japan
Inthe United States ,Interest can be measured by looking atthe
attendance figures of major conferences on neurocomputing ;in
1985 only 50participants attended ameeting atSanta Barbara .By
1987 2000 people attended an international conference at San
Diego .It Is estimated that more that fifteen 'Start-up ‘
companies areoperating inthefield ,Inthe United States .
AT&T's Bell laboratories have succeeded in building silicon
'neurons' based asthe nerve cells ofthe garden slug .The model
can simulate thelearning ofwhich the slug Iscapable .
Another American company has developed adevice which imitates
the retlrn ofthe eye while another has invented adevice toread
handwriting andfeed theInformation toacomputer .
Japan has launched amajor Initiative inscience entitled ‘Human
Frontiers' Inwhich neurocomputing will play amajor role .
European laboratories are very active Inneuroblological research
and many of the important discoveries have been made here .
American companies are showing interest in European expertise .A
large Investment has recently been made by an American
Pharmaceutical Company Inthe University ofOxford 'spharmacology
department where research Isbeing carried out onthe treatment
ofbrain diseases .Inreturn for Its Investment ,the company will
gettheIntellectual property rights tothe work which Itfunds .
24.236

Communlty Inltlatles luNeurûblQlQgy
The Commission ofthe European Communities has been supportingneuroblologlcal research (In particular the study of Inter ¬cellular communication )under the Science Plan since 1984 .As an
extension of Its Interest In the subject the Commission
Introduced the BRAIN (Basic Reseach Adaptive Intelligence and
Neurocomputing ), Initiative In 1987 , following the
recommendations ofthe Committee from the Development ofEuropean
Science and Technology (CODEST )which advises the Commission on
new trends In Science .The purpose of the initiative Is to
support research collaboration between member states and to
promote the design ofmachines that emulate the brain 'sfunction .
Eight project arecurrently being supported byBRAIN .These are :
the development ofconnectlonlst models for neurocomputing
-amathematical way of simulating the brain 'scalculating
capacity
-thedesign ofaneurocomputer with learning abilities
-the study of the use of neural networks for data
processing
-the determination ofthe level ofcomplexity necessary for
acomputer tostart tofunction In aslmular way tothe
braln
-the study of the neural networks determining the
relationship between the brain and the movement of the
eyes and ofthe head
the study of dynamic connectlonlst models for the
récognition ofdesigns andgraphs
-the Investigation of sensorimotor strategies involved In
visually guided arm movements with aview toapplying this
the knowledge torobotics and computer vision
-the study ofthe basic operations Involved Inthe cerebral
cortex ofprimates Incontrolling areaching movement .
Other Initiatives being supported by the European Community
Include aproject todevelop acomputer programme which will help
Inthe diagnosis of muscular and nervous diseases .This project
Isbeing supported under the ESPRIT programme (European Strategic
Programme for Research and Development InInformation Technology )
and Involves five teams Inthe United Kingdom and Denmark .
25.
237

This expert system iscapable oftaking Information from medical
equipment measuring the electrical characteristics ofnerves and
muscles and providing alikely list of diseases as well as
suggesting tests and treatments .Itis planned to extend the
range ofdiseases diagnosed toabout five hundred and tofurther
develop thefollow-up provided bythesoftware .
Neurocomputing is amultidisciplinary field which includeds
neurobiology .psychology ,materials science ,informatics and
computer science .The projects being supported by the BRAINinitiative reflect this diversity and . will provide a
comprehensive base for Europe 'sparticipation inthe developmentof aneurocomputer .In September ‘‘"some 80scientist will take
paAc in the first evaluation of BRAIN atOxford University
where the second stage ofthe programme will also bediscussed .
Through such initiatives the European Community plans toIncrease
itssupport ofneurobiology .
26.
238

F Biotechnology
R&DinEuroge
The relative weakness ofEurope incertain areas ofbiotechnology isnot
due toaninadequate research potential ,which isoften very highly
developed ,but tothefragmentation and isolation ofnational research and
training efforts and tothe absence ,atnational and transnational levels ,
ofadequate concertation and contextual support for research ,development
and exploitation .
Itiswith theaim ofovercoming these deficiencies that allMember States
have now placed biotechnology at ahigh position intheir national
priorities ,and increased accordingly their support to national
institutions .Policy awareness has become such that support isalso been
organised under different departments ,and across several professional
branches .The same occurred atthe initiative ofmajor European companies ,
although itcan beshown that these frequently invested asmuch research
funds overseas aswithin theCommunity .
Next tofunding ,national and Community programmes have been able to
provide aforum for research leaders tocoordinate work atalarge scale ,
avoiding gaps and emphasising priorities .The scientific community now
realises that biotechnology R&D must becarefully conducted ,leaving room
for speculative research but addressing inpriority the needs ofthe
society .Biotechnology operators have themselves developed ahigher degree
of transnational integration ,through the European Federation of
Biotechnology (EFB)and through theestablishment ,ontheindustrial side ,
ofthe European Biotechnology Coordination Group (EBCG ),theconstitution
for theCommission ofthe E.C. ofabiotechnology working group attached to
theIndustrial R&DAdvisory Committee oftheCEC (IRDAC ),and thecreation
cfGreen Industry Biotechnology Platform (GTBiP ).Other major international
research initiatives took shape more orless simultaneously :particularly
relevant tobiotechnology R&D are EUREKA and the Human Frontier Science
Programme ,respectively attheapplied and thebasic ends ofbiotechnology
and with which the Community established formal links .Inexistence for
already three years ,Eureka now comprises more than 200projects involving
about 800 companies and research centres from 19European countries .Of
these ,13%(asper July 1987 )are falling under thebiotechnology area .
Biotechnology isatypical field where Community actions and Eureka
projects can bestrategically aligned ,industry-led projects being put ina
position oftaking upfor development purposes scientific results which
rapidly build upthe framework ofbasic programmes .The Commission ofthe
European Community is itself implementing several priority actions
specifically designed for improving the competitiveness of European
biotechnology .Cue ofthese actions alms attheestablishment ofaCommu ¬
nity network for training and research and has been executed ,since 1982 ,
inthe framework oftwo successive Community programmes ,the Biomolecular
Engineering Programme (BEP )from April 1982 toMarch 1986 ,and theongoing
Biotechnology Action Programme (BAP),fortheperiod 1985-1989 .

Thepioneer programme :BEP
BEP was Che first Community initiative inthe field ofbiotechnology .
Its objectives were tocontribute ,through transnational efforts in
research and training ,tothe removal ofbottlenecks which inhibit the
application ofmolecular and cellular biology toagriculture and to
the agro-food industries .With abudget of 15Mio ECU ,BEP supported
91 training contracts and 103 cost-shared research contracts with
public and private laboratories in the Community .In the area of
genetic engineering ,several significant contributions ,such asagene
cloning inStreptococcus bacteria exploited bythe cheese industries ,
the characterisation and isolation ofmore than 20plant genes ofhigh
importance for agriculture orgenetic transformation inplant species
belonging tothe monocots ,resulted from the programme ;53cooperation
agreements were established between laboratories indifferent Member States
which involve the exchange ofequipment and staff and the execution of
joint experiments .Permanent transnational working parties have been setup
foreach research sector intheprogramme {*).
The current programme ;BAP
Objectives forresearch and_training
The programme ,inherently pre-competitive ,isoriented towards medium
and long term objectives essential for the strategic strength of
European industry and European agriculture .Itdeals with the two
following aspects :
-the establishment of asupportive infrastructure for biotechnology
research inEurope (sub-programme oncontextual measures ).
-the elimination ,through research and through training ,ofbottle ¬
necks which prevent the exploitation by industry and agriculture
of the materials and methods originating from modern biology
(sub-programme forbasic biotechnology ).
Âreas ccvared
Research and training
Contextual measures
»
-Bio-informatics : the interface between biotechnology and
information technology (data capture ,data banks ,compu ¬
ter-assisted design ,etc.)
-Collections ofbiotic materials (upgrading and integration of
existing collections ,enhancement oftechniques )
(*)For anevaluation and adetailed review ofthe scientific results
obtained intheframework ofBEP ,seethefinal report oftheprogramme
(Biomolecular Engineering inthe European Community ,1172 pages ,
E.Magnien Ed,,Martinus Nijhoff ,1986 ).
740

Basic biotechnology
-Enzyme engineering :bioreactors of 2nd generation ,stability
ofenzymes ,protein design
-Genetic engineering :applied tomicro-organisms important for
industries ,to plants and soil micro-organisms ,to animal
husbandry
-Technology of cells cultured in vitro (micro-organisms in
continuous cultures ,regeneration ofplant cells ,new methodo ¬
logies foranimal cells )
-Invitro tests toscreen new molecules created byindustry for
their biological activity andpossible toxicity
-Methods of assessing possible risks associated with modern
biotechnology .
Concertation ofnational andCommunity policies
-Arange of information ,liaison ,evaluation and initiation
tasks to ensure that Community policies affecting bio­
technology are both relevant and consistent within the Commis ¬
sion and inrelation tothe outside world .
Imglementation ofresearch andtraining_activiti.es (*)
1.Long-duration training contracts available to both junior and
senior research scientists involving travel from one Community
country toanother .
2.Multiannual marginal -or shared-cost research contracts with
public sector orprivate research bodies .
3.Regular meetings ,dissemination of information and results ,and
on-site visits .
Dimensions
The programme ,recently extended toSpain and Portugal ,has atotal
budget of75Mio ECU and foresees ,forresearch and training :
300 -350 training contracts
some 380 research contracts .
(*) :forinformation seethepublications ,available upon request ,
issued every year by the services of the Commission onall
matters related to the programme (results of contractual
research ,proceedings of meetings ,catalogue of contracts ,
reviews ofmain achievements ,statistics onresponse tocall
forproposals ,statistics oncooperation ...)
241

Resgonse tothecall forresearch grogosals_and transna tional !tyof
theprogramme .
The selection criteria included the transnationality of the research
proposals and expressions of interest originating from industrial
partners .
Atotal of 1550 proposals were received ofwhich 80% were trans ¬
national .Budgetary constraints were such that only 387 of these
proposals could beaccepted forfunding .
Particigation ofindustries
The research presently conducted inthe framework ofBAP ,atthe date
ofDecember 1988 ,isexecuted by 90transnational groups oflabora ¬
tories which have agreed tojoin their efforts and towork together .
Fifteen per cent ofthese transnational groups include one industrial
partner .
The proportion ofprojects implemented inthe framework ofBAP which
are supported byanexpression ofinterest from one orseveral indus ¬
trial firms amounts to83% .Inall ,150 expressions ofinterest for
specific projects inthe programme have been transmitted byindustrial
firms tothe services ofthe Commission .
Inaddition ,there isnow aregular demand from industries toattend
the various types ofcontractors meetings ("sectoral ", "horizontal ",
"spontaneous ") which the Commission services organise at regular
intervals in the framework of BEP and BAP and tohave access toall
data and information (proceedings ofmeetings ,books ofabstracts ,
annual reports ,catalogue ofcontracts ...) arising from these pro¬
grammes .Asparticularly well illustrated inthe sector ofthe pro¬
gramme dealing with the genetic engineering ofplants and of soil
microorganisms ,"European laboratories without walls "(ELWW )arepresently
being constituted which bring together the laboratories participating to
Community research and the industries specifically interested bythis
research and theexploitation ofitsresults (*).
(*)Methods ,materials and results circulate freely within each ELWW
and animportant part ofthe research work isimplemented asa
totally integrated joint effort .Approximately 30ELWWs have been
constituted and launched in BAP and this number should consid ¬
erably increase within BRIDGE .For further information see "Eur¬
opean Laboratories Without Walls : focused precompetitive
research ", R.vanderMeer ,E.Magnien and D.deNettancourt in
Trends inBiotechnology ,5:318-321 ,1987 .
30.
242

The future programme :BRIDGE
The Commission services are now proposing orientations onthe nature and
objectives of the programme (BRIDGE -Biotechnology Research for
Innovation ,Development and Growth inEurope )which will take ,in
1990 ,the succession of BAP ,These orientations have been defined on
the basis ofpast achievements inBEP and BAP and through recommen ¬
dations received from apanel of Independent Experts ,the European
Parliament ,industrial organisations and theCGCBiotechnology .
BRIDGE istobesubdivided ,aswas BAP ,into two actions :
Action Ifor Research and Training ,Action IIfor Concertation .Ninety
per cent ofthe total budget will bedevoted toAction Tand 10% to
Action II.
The main tasks of Action Iwill be todevelop cooperative basic
research and training through research adapted tothe long term needs
ofthe Community .This implies ,for the removal ofbottlenecks result ¬
ing from gaps in basic knowledge ,the reinforcement of existing
networks ofELWWs and their extension tonew areas considered ofhigh
significance for the Community .Alternatively ,larger targeted pro¬
jects will beimplemented ,when necessary ,for removing bottlenecks
originating from scale orstructural constraints .Avery substantial
effort isforeseen inthe area ofnormative research and ,inparticu ¬
lar ,with regard tothe assessment ofrisks possibly associated tothe
release of genetically engineered microorganisms .The research and
training programme outlined intables 1and 2istobesubdivided into four
sectors :
Theprogramme ,asoutlined ,takes into account but still very insuffi ¬
ciently ,therecommendations made inthepresent report forCommunity
activities onthe "molecular foundations ofplant biotechnology "and
onthe "molecular investigations ofthegenomes ofcomplex organisms ".
Action II
Action II(Concertation )will cover arange ofmonitoring ,information
and collaborative activities toprovide and facilitate the effective
application ofbiotechnology tothesocial and economic objectives of
theCommunity andoftheMember States (table 2).Action I
-information infrastructures
-enabling technologies
-cellular biology
-normative research
31.
243

Related R&D activities
ECLAIR (80MioECUfortheperiod 1989-1993 )
ECLAIR (European Collaborative Linkage ofAgriculture and Industry
through Research )will bethe first multiannual programme ofthe
European Communities for biotechnology-based agro-industrial research
andtechnological development .Through such research development work ,
itwill contribute ,inthe medium and longer terms ,toenhancing
Europe 'scompetitiveness inthe economic activities -industrial and
agricultural -based onthe life sciences andbiotechnology .
FLAIR (25Mio ECU from 1989 toinid-1993 )
FLAIR (Food-Linked Agro-Industrial Research )isaprogramme proposal
concentrating exclusively onthefood sector and ,particularly ,onthe
processing -distribution -consumer end ofthe food chain .The long term
objective ofFLAIR istocontribute tothecompetitiveness ofEurope 's
food industries ,and toimproved consumer protection and confidence ,
bystrengthening the links between them through research and develop ¬
ment .TheCommission proposes toachieve this objective bylaunching a
programme ofconcerted actions and cost-shared actions .The projects
seek topromote the close collaboration between research and indus ¬
trial groups ,bytheir participation inresearch and technological
development onfood quality ,hygiene ,safety ,toxicology ,nutritional
and wholesomeness values .
Table 1:Biotechnology research andtraining activities proposed
forimplementation intheframework ofBRIDGE (1990-94 )
Information structure
.culture collections ;
.processing andanalyses ofbio (techno )logical data ;
Enabling technologies
.protein design /molecular modelling ;
.biotransformation ;
.gene mapping »genome sequencing ,novel cloning methods ;
Cellular biology
.physiology andmolecular genetics ofindustrial microorganisms ;
.basic biology ofplants andassociated organisms ;
.biotechnology ofanimal cells ;
Normative research
.safety assessments associated with therelease ofgenetically
engineered organisms ;
.invitro evaluation ofthetoxicity andpharmacological activity
ofmolecules .
32.244

Table 2:Biotechnology concertation activities proposed for
implementation intheframework ofBRIDGE (1990-94 )
-Coordination ofCommission activities ;
-Concertation ofactivities ofMember States ;
-Provision ofinformation on the advantages ,limitations and
safety ofbiotechnology topoliticians ,scientists and the
general public ;
-Formation and growth ofsmall and medium-sized biotechnology
firms .
33.245

ANNEX 5
RD&D NonNuclear Energy
Motivation
Progress todate oftheEuropean RD&D action
Indications for the future
RD&D Orientations
Conclusion for the future3
8
10
13
246

2.
Motivation
The need for Europe toface energy challenges has been reconfirmed
numerous times bytheEuropean Council over thepast years .Theenergy
strategy oftheCommunity emphasizes coherence offar-reaching planned
actions intheenergy field ,aswell asthenecessity ofanincreased
effort toreduce thedependance onoil (energy-saving ,development of
alternative fuels ,diversification ofsupply and demand )and to
facilitate theadaptation oftheEuropean industry totheenergy market .
Since 1974 ,these objectives constitute themost important Community
options inthedomain ofR&D .
Until the year 2000 ,pursuit ofthese options should ensure a
reinforcement andabove all alarger scope ofR&Dactivities according
tothe main aims :independance ,security regarding the long term
supply ,environmental protection ,competitivity ,safety .AtEuropean
level the framework programme consists of3major themes onenergy
research :nuclear fission ,controlled thermonuclear fusion ,non-nuclear
energy and the rational use ofenergy .Moreover ,the demonstration
programmes for energy savings and coal and the support programme for
technological development inthefield ofhydrocarbons have allowed to
make important progress inthese fields .
Numerous achievements have been noted in each field .However ,
continuation ofEnergy research isessential even though economic
conditions temporarily favour access toenergy .Infact ,RD&D will
determine the long term future ofenergy and ifnoactions are taken
today ,serious problems mayresult inthemore orless distant future .
Three major factors should influence the choice ofthe energy RD&D
options :
*theforecasts ofenergy demands inEurope and intherest ofthe
world .
*the evolution ofenergy resources and comprehension oftheir
exhaustion .
*protection oftheenvironment .
These factors pose many responsibilities and R&D must establish the
means forsociety toface them .Atthedawn oftheXXIst century ,when
already onecanperceive alimit totheavailability ofcertain forms of
energy andtheconsequence ofenvironmental damage atglobal level ,it
isvital tomerge allresearch efforts bymeans ofoptimal management of
theenergy policy .
Theestablishment ofthegreat internal market canonly reinforce this
conviction :theharmonisation ofnorms and laws and the necessity of
maintaining competitiveness often find their answer intechnological
research .
247

3.
Progress todate oftheEuropean RD&D action
TheCommission hasnotallowed itself tobeinfluenced bythetemporary
fluctuation ofenergy prices when defining itspolicy inthefield of
non-nuclear energy R&D .Attheeuropean level neither itsR&Dprogramme
launched in1975 nor itsdemonstration programme ,initiated three years
later ,have suffered anyharmful blows .
The financial commitments of the Community do not show yearly
oscilliations assome national budgets do.Even though the last
four-year budget was reduced upon request ofcertain Member States ,it
still continues inthe range ofprevious budgets ,with unaltered and
even enriched objectives and hasremained atacreditable level ,inany
case above theminimal critical level .Generally speaking anddespite a
slow decrease inpublic spending onnon-nuclear research ,one may
observe that therelative shares for thethree main poles between 1980
and1988 have remained stable :energy savings (28%),coal (34%)and
hydrocarbons (about 10%),renewable energies (28 %).Nevertheless ,a
more detailed survey ofthese aggregates mayindicate substantial shifts
between programmes .
More precisely :What arethestrong andweak points oftheCommunity 's
andthemembre states programmes inthefield ofnon-nuclear energy ?
Community action ,composed ofthree major fields :energy saving ,fossil
fuels andrenewables ,hasbacked theresearch ofthemember states .The
tables 4.9 (a;b )illustrate respectively thebudget ofthe ECmember
states andtheCommunity in1987 .
For 15years Europe has worked inthe field ofenergy conservation
thanks tothevigorous R,D&D policy atnational aswell asatCommunity
level .Alot has been said and written around the statement which
implies that the cost has been the main ,ifnot the only factor
responsible foreffecting areduction oftheconsumption ,and that is
true for alarge part .But ,the influence ofthecost itself hasalso
generated research efforts which appear tobedurable .The cumulative
impact of15years ofefforts hasprocured great benefits thanks tothe
fundamental structural changes which have occured inthe production
machinery andalso inthepsychological approach ofthe individual and
collective actors .
TheCommunity objectives have been achieved andeven surpassed .
Following adecrease ofabout 20%between 1973 and1980 (preceded byan
increase of63 %between 1960 and 1973 )the European consumption of
primary energy stabilized ,and only fluctuated between 1000 and 1100
Mtep .
All the sectors ofR.D&D have shared this successful result .Space
heating which represents about 40 %ofEuropean consumption isthefirst
domain -atleast inthenewbuilding sector -tomake rapid progress .
The insulation andventilation techniques andalso therecovery ofheat
have led toasubstantial increase insavings ,currently upto50%and
more .The passive solar contributions have shown the strength ofthe
European R,D&D and the attempts toretrofit old buildings have been
fruitful .Active solar contributions have been limited towater heating
and are relatively well developed insouthern Europe .The economic
248

4.
conditions and certain technical constraints are the reasons that active
solar could not play its role asoriginally foreseen .The same holds
true forheat pumps .They might come into play inadecade 'stime .The
unsolved technical difficulties andthelack ofeconomic competitivity
have limited its application tothe tertiary and industrial sectors
where scale effects and "intelligent "putting into operation have given
them achance .
With respect tothe rational use ofenergy inindustry ,the R&D
endeavours have been more diversified duetothenumerous energy saving
possibilities onemight find andalso due totheconsiderable potential
toquantitatively reduce energy consumption (European industrial consump ¬
tion accounts for 351ofthe total consumption ).New processes and
industrial products appear year upon year rendering older products obso ¬
lete .This renovation ,aswell asthemodernisation ofthe industrial
equipment have unobtrusively introduced newtechniques with areduction
inenergy consumption andpollution (thelatter isalso aconsequence of
indirect R&Deffects ).
Numerous factors have contributed toareduction oftheconsumption in
industry ,and itisworthwhile toemphasize the remarkable results
obtained inadozen years inEurope andelsewhere onthethermal level ,
asforexample abetter comprehension ofcombustion phenomena orheat
transfer .
Among the recent advances which have benefitted european technology
oneshould underline theimportance oftheimprovements inmeasurement ,
control and regulation ofenergetic processes .They have benefitted
enormously from the popularization ofelectronics ,new collection
methods ,data gathering andprocessing .
Let usalso refer tothedevelopment ofheat distribution systems and
co-generation which have undergone asatisfactory expansion inEurope .
Atpresent ,Europe may beproud ofanindustry which knows how toapply
themost advanced techniques ,regarding energy efficiency ,even though
due tothehistorical ties incertain traditional branches penetration
ofnewideas hasbeen somewhat slow incomparison toyounger industrial
competitors .
Amongst other research toimprove theenergy efficiency and theendea ¬
vours spent onprimary energy ,itisnecessary tohighlight the R&D
efforts devoted tothemain secondary energy vector ,i.e. electricity .
From aclassical electro-technical viewpoint ,one should notforget the
remarkable success ofturbo-alternators ,the unit power ofwhich has
doubled every tenyears ,andalso themodern methods ofgrid control ,
revolutionized bytheuseofcomputers .Butthemost advanced andori¬
ginal research concerns thefield offuels cells ,electro-chemical stor ¬
ageandcryo -electricity .These sectors have been explored foryears ,
but fundamental and subsequent applied research has given them anew
youth andaninterest that will always bewith us.
Fossil fuels (solid ,liquid andgaseous ),themost spread outandused
ofall ,used will remain themajor resource for avery long period of
time .Whatever may betheeconomically interesting stock ,fossil fuels
today are ofincreasing concern asfar asthe scientists ,environmen ¬
talists andeven thepublic andpoliticians areconcerned .
249

5.
Besides thetoxicity ofthepollution caused bytheir combustion (S0?,
NOx ,dust )which canbecontrolled ifonewants topayfor it,thefear
ofwarming uptheplanet byagreenhouse effect due toCCLseems tobe
more and more justified ,atleast inthe long run .Because weare
"condemned ",and without doubt for several generations ,tomake
abundant use ofthese fuels ,weshould appreciate all the more the
efforts that are made for their clean use and reduction oftheir
consumption ,bymeans ofsavings and efficiency atthe consumption
level ,byanimproved efficiency and abetter yield atevery stage of
exploitation ,preparation ,purification ,transformation uptothe end
use .TheCommunity R&Dhasbeen incharge torespond tothose concerns .
Hydrocarbon research must increase theeconomically exploitable reser ¬
ves .Hence ,exploration techniques have made bigprogress ,allowing to
increase significantly the rate ofsuccess ofdrillings .The drilling
techniques reach agreater efficiency -drill ingspeed aswell increased
reliability -especially inthedeep seaandoffshore drillings .
Inthis field ,very promising techniques ashorizontal drilling appear ¬
ed.Thedevelopment ofoffshore production techniques ,inparticular in
deep sea ,hasachieved well performing submarin techniques using autom ¬
ation androbotics ,whereas support offloating production units andnew
concepts ofplatforms were developed .
Anextension ofbasic knowledge hasaccompanied technological research ,
notably inthegeological field concerning themechanism offormation
andmigration ofhydrocarbons .More generally speaking ,physico-chemical
conversion problems have taken upanimportant share ofthehydrocarbon
R&D action .
Endeavours ofRD&D inthe field ofsolid fuels arefully justified by
the coal potential and bythemore immediate concern toprotect the
environment against the effects ofvery abundant impurities insolid
fuels .Thecombustion andconversion techniques remain atthecentre of
research planning andarestudied actively inEurope (inparticular in
the FRG butalso intheUKand the NL).These activities are rather
diversified and theobtained results are ofvaried importance .Ifin
spite ofitsefforts Europe seems tobelate incomparison with theUSA
andJapan regarding combustion techniques with coal-liquid mixtures ,it
should berealized that fluidized bedcombustion isanarea where Europe
has agood research tradition .
Prototypes exist inalmost allMember States and some installations of
important size are inoperation .
Other investigations have accompanied those just mentioned ,asforexam ¬
pleliquefaction andgasification ofcoal ,production ofmethanol deriv ¬
edfrom coal andcombustion oflean gases .
Thevariety ofRD&D areas isvery vast andEurope occupies amore than
creditable place .Generally speaking ,onemight saythat alltheinvest ¬
igated processes operate well ,oratleast correctly ,when applied to
coal ofgood quality .Theproblems arise when dealing with poor fuels ,
which are abundant butmore heterogeneous ,less reactive ,polluttant ,
dirty anddusty .
250

6.
Since 1974 ,avast area ofrenewable energies has seen intensive re¬
search activities inthewhole world andmore particularly inEurope .
Itconsists ofawide variety ofsources :solar ,wind ,small hydro -
power ,biomass plus urban waste ,geothermal ,marine energy .
During thelast 15years ,Europe hascarried out R.D &D.inallthese
fields .Even ifnot the first ,measured bythevariable financial and
manpower input bydifferent countries ,Europe possesses inall these
fields ahigh degree oftheoretical andpractical knowledge .Assoon as
theeconomic circumstances allow oratechnical breakthrough takes place
Europe ishighly likely tooccupy almost immediately afavourable posi ¬
tion .One should not forget that themajority ofthe renewables are
non-pollutant ,andhence public opinion isfavourable .Incertain cases ,
theenergetic aspect gives way totheprotection oftheenvironment ,as
forinstance inbacteriological treatment ofanimal andvegetable waste
andtheincineration ofhousehold waste ,which renders these processes
generally attractive ,even iftheenergetic profit itself isnotalways
significant .
Given the broad domain ofscientific disciplines andtechnologies used
inthefield ofrenewable energies ,onecanonly present here aconcise
overview ofsome outstanding achievements which arecharacteristic for
some 15years ofEuropean research anddevelopment .
Photovoltaic conversion techniques have enjoyed ,inEurope aswell asin
theUSAandJapan ,afrank technical success ,most certainly constrained
byaneconomically less favourable context .Theeuropean industry ,even
ifitonly ranks in3rdplace with somewhat more than 10%oftheglobal
production ,disposes ofthemost advanced techniques and hasalready
attained asubstantial turnover ,especially with regard toexport .The
efforts ofRD&Dwhich have been skilfully coordinated bytheCommis ¬
sion (incl .JRC )include pilot installations anddemonstrations concern ¬
ingtests andcertifications inorder toobtain world wide recognition
ofEuropean norms andquality standards .
Theeuropean countries have abandonned the idea ofelectricity produc ¬
tion byconcentration ofsolar energy bymeans ofafield ofheliostats .
The technically difficult concept facing climatological hazards and
unfavourable economic factors ,explains this failure ,although anumber
ofinteresting data hasbeen obtained forother research areas .
Wind energy hasbeen strongly developed innorthern Europe andseveral
european countries have demonstrated the quasi-competitivity ofthis
form ofelectricity production coupled tothe grid .Concerning small
units ,upto2-300 KW,anindustrial production exists where european
manufacturers areperfectly competitive .
Theutilisation ofenergy from biomass isinitself abroad andmulti ¬
disciplinary area andtheRD&D prior tothis usage hasseveral branches
:harvest andtransformation toenergy ofwaste ,which isstrongly stimu ¬
lated byeuropean RD&D ;specific cultures ofenergy production ;har¬
vest ,transport andpreparation ofsolid biomass including thedevelop ¬
ment ofboilers onbiomass fuel ;combustion andgasification ofbio¬
mass ;treatment ofeffluents andliquid waste .
251

7.
The potential ofbiomass islarge ;inaddition Europe disposes ofa
considerable expertise inagriculture .These two elements have ensured
that R&D,inthefield ofbiomass ,should attract numerous applica ¬
tions ofwhich thefirst results arealready encouraging .
With respect togeothermal energy ,Europe hasalso excellent RD&Dand
exploitation experience .Although high enthalphy geothermal energy is
fully under control and increasingly used throughout the world ,low
enthalphy energy onthe contrary isdifficult toexploit ,due tothe
absence ofacontinuous warm source close tothe location ofutiliza ¬
tion .More fundamental research concerns very deep drilling inhotdry
rocks ,injecting water andrecuperating steam athigh pressure .These
projects are inprogress inEurope ,USAandJapan .Finally ,geothermal
isanarea where technological and economical information isreadily
transferred due totheassociation ofpublic bodies ,large energy pro¬
ducers andimportant consumers .TheCommission has ,byitscoordination
andfinancing ofnumerous programmes ,strongly contributed tothis situa ¬
tion .
Concerning energy ,environmental and economic modelling ,Europe has a
number ofcentres ofexcellence cooperating inthe Commission 'spro¬
gramme .
This isafield where theeuropean studies are well recognized .They
concern both tools foranalysing supply anddemand ofenergy andthose
forinvestigating theinterface between energy ,economy andenvironment .
These well known studies ,andinparticular "Energy 2000 "andthe "Costs
ofNon-Europe "have seen the light ofthe day ,due tothe tools for
analysis and modelling and have allowed decision-makers toclarify a
number ofpolitical choices inthearea ofenergy andeconomy .
252

8.
Indications for the future
Ofalltheinstruments atthedisposal oftheCommunity formanaging its
energy policy ,R&D isone ofthe essential elements determining the
energy future inthelong run .The time horizons 2010-2020 andbeyond
areofgreat interest toR&Dendeavours today .Hence ,today 'sresearch
isgeared towards thehopes forresources that maybeavailable in25or
30years .
Itisdifficult toorganize anenergy research programme onaprospec ¬
tive basis undistorted bytemporary events .Onemayobserve that during
thepast sixyears ,thedominant views onthefuture ofenergy changed
considerably ,and sohave theprincipal objectives oftheenergy policy
andtheRD&D priorities .These rapid evolution oflong term views illus ¬
trate thedifficulty ofdesigning anRD&D strategy ,which byitsvery
nature aims atthelong term .
Despite thedifficulties ofappreciation ,RD&D hastoensure that three
keyquestions areanswered .Will theenergy available in2020 meet the
needs ofoureconomy ?Will this energy beavailable atareasonable and
stable price ?Shall this energy beclean ?
Theoutlook oftheEuropean Community onenergy issuch that anaverage
growth rate oftheneeds interms ofprimary energy ofabout 1.1 %per
year from nowonuptotheyear 2010 isforeseen .Itwill reach alevel
ofannual consumption ofaround 1.5Milliard toe ,against 1Milliard toe
in1985 .Theworld energy consumption might reach 14.000 Mtoe ,against
7.500 in1985 .With regard toforecasts onalonger term ,(2025 ,2030 ),
many publications onthe subject have been presented bydifferent
authors .Even ifone records aratio of3between the highest and
lowest predictions ,onemaynonetheless conclude from these studies that
*theenergy demand will ingeneral maintain aslight increase inthe
industrialized countries ,slowed down bytheprogressive saturation
ofthepare ofdomestic equipment ,thesteady reducing speed ofthe
activities ofthe heavy industry and the constant progress of
techniques ;
*the technological development will continue sufficiently flexibly
with respect totheenergy prices inorder tofollow theevolution
ofenergy demand .
Thedevelopment oftechnologies ,using fuels other than oil ,inorder to
reduce their costs and topass the threshold togain access toan
unlimited resource (e.g. fusion )constitutes animportant motivation for
energy research .
Inthelong run ,these perspectives will collide with twoobstacles :
theavailability ofenergy resources andtheshorter-dated environmental
constraint .
Ifoneexamines global energy resources ofall kinds ,onediscovers an
abundance ofenergy that could meet therequirements ofmankind forthe
next few centuries .But onemust realise ,onthe one hand ,that energy
isunevenly dispersed ingeographic terms andontheother hand ,that it
exists informs notreadily adaptable toconsumption either due tothe
high extraction andtransformation costs ordue toserious ecological
problems ,which mayarise .
253

9.
Tobemore precise ,theclassical forms ofenergy (oil ,gas ,uranium ,
coal )should allow ustoreach thebeginning ofthe21st century without
physical shortage noranyparticular effort inprospection (oneshould
notexclude tensions onthemarket resulting from psychological orpoli ¬
tical actions ). Ifalarge prospection effort inoil ,gasanduranium
were maintained ,the reserves discovered could maintain aproduction
level sufficient tosecure theneeds upto2025-2030 .Bythat date ,the
physical limits will have been reached .However ,coal isvery abundant
and will remain available for centuries .
The production andutilisation ofenergy have their ecological conse ¬
quences atevery step inthefuel cycle .Public opinion wasaffected at
theendofthesixties bytheenergetic impact onenvironment .Different
problems appeared ,notably the thermal pollution ofwater bypower
plants ,thedestruction ofsoil andsurfaces bytheexploitation ofopen
pitmining ,airpollution ,acid rain ,thereliability ofnuclear reac ¬
tors ,waste treatment andstorage ofradioactive waste .
Twoproblems areatpresent ofmajor concern tothepublic .Primarily
theacid rain caused bytheutilisation offossil fuels (S02andNOx
emission )and secondly the radioactivity related tothe operation of
nuclear reactors andstorage ofnuclear waste .Athird point regarding
thegreenhouse effect caused byC02,isstarting todraw theattention
ofthepublic viathemedia (asaconsequence oftheToronto conference
June 1988 ).The increased consumption offossil fuels will only rein ¬
force the need for pollutants emission constraints ,aproblem tobe
solved byR&D .
254

10.
RD&D orientations
What should european research doinview ofthese perspectives andcon¬
straints ?What canbeexpected from thetechnology ?
From what hasbeen said three time horizons canbedistinguished andfor
each theproblem ofsecurity ofsupply isofadifferent nature :
-Upto2000 ,thegreatest threat lies inasudden supply interruption
orasteep price-increase ofcrude oil asaresult oftensions ofa
geopolitical character .The techniques employed for theuse orthe
production ofconventional fuels other than crude oilarenotsuffi ¬
ciently developed .•The strategy tobeadopted inorder toavoid
tensions onthe oil prices should bebased ontwo themes :demand
reduction and increase ofsupply capacities .Inthis respect itis
necessary to:
*Develop techniques which reduce theliquid fuel demand ,both by
theuseofequipment with more efficient liquid fuel consum ¬
ption incases where liquid fuel isspecific and cannot be
replaced (ex.transport )and bymeans ofequipment which is
adaptable fortheuseofother forms ofenergy where substitu ¬
tion ispossible (multi-fuel boilers ).
*Develop techniques which allow theincrease inoilproduction ,
inparticular byprospection andexploitation ofnewfields and
byreactivating drained oilfields .
-Fortheperiod 2000-2020 ,onemight hope that production technologies
forfuel ,competitive tooilandproduced from coal andgaswill be
operational .Thegeneration ofelectricity will still rely onhydro ,
coal and nuclear .
-Onalonger term ,beyond 2020 ,itwill berequired tofind solutions
forthereplacement offossil fuels anduranium (LWR )forwhich the
fields will bepractically exhausted .Inthis period theonly avail ¬
able conventional source ofenergy will becoal .
The mentioned elements have been broadly utilized asabasis for
reflexion bynumerous countries and bytheCommission inorder to
establish their RD&D programme ,todevelop energy technologies able
tosatisfy theenergy supply atshort ,medium and long term and to
secure asmooth transition into theXXIcentury .
Itmaybeuseful tostructure RD&D programmes according tothis main
sense ofdirection into thefollowing five categories according toan
IEAclassification :
*Technologies able toextend the availability ofthe energy
carriers ofour present supply system atshort and medium
terms ;
*Technologies more efficient inenergy consumption ;
255

11.
*Technologies exploring renewabie energies ;
*Technologies with ahigh production potential inthe future ,
but which presently still contain ahigh technical and
economic risk ;
*Technologies with thesame assets astheabove categories ,for
which the R&D has ahorizontal character .
Thefirst category concerns inthefirst place those technologies improv ¬
ingexploration andexploitation ofliquid andgaseous fuels ,andsolid
fuels .Regarding theoffshore exploitations ,the conception anddesign
fortheachievement ofsubmarine production athigh searequire import ¬
antprogress .The same holds fortechniques toprotect health andenvi ¬
ronment andtoincrease safety .
Research onsolid fuels should concentrate onrendering these resources
less pollutant ,more efficient {which will imply emissions' reduction )
andeasier touse .Itisurgent todosobecause thequality ofthe
main part oftheworld 'sresources islowandparticularly detrimental
totheenvironment .Itappears that thecombustion influidized bedand
gasification areinteresting todevelop ontheshort term ,asthey red¬
uce the pollution inherent tocoal conversion .Onthe longer term ,
liquefaction ,gasification insitu and combined cycles with magneto ¬
hydrodynamic (MHD )energy conversion arepromising .
Parallel tothe research onfossil fuel ,the possibility todevelop
technologies forCC^abatement atthesource hastobeexamined .
Research onconventional nuclear and fast breeders should also increase
theavailability ofenergy inEurope ontheshort andmedium terms .
Considerations regarding nuclear safety canbefound inannexe 9.
Themain butnotexclusive objective oftechnologies that useenergy in
amore efficient manner isthe reduction offuel demand and ofinvest ¬
ment needs forlarge power plants .These technologies may also reduce
theimpact ontheenvironment and inparticular reduce thetension bet¬
ween energy supply anddemand .Thenecessary research items are :
*introduction ofenergy efficient vehicles inthetransport sector ,
development ofengines with improved efficiency andlighter mater ¬
ials .Electric cars arealso apossibility ;therefore itisneces ¬
sary todevelop lowweight batteries ofhigh energetic density
with multiple loading andunloading facilities .
*inthe industrial sector :introduction inindustry ofefficient
processes with reduced energy needs inhigh energy consuming sec¬
tors such asthe iron ,steel ,aluminium and other basic material
industries .Ingeneral ,global energy management inindustry
should include measurements ,control ,regulations ,recycling of
lost energy ,recycling ofproducts ofhigh energy intensity etc .
*with the residential andtertiary sectors reduction oftheenergy
demand ispossible byrefurnishing existing buildings andconstruc ¬
tion ofnewbuildings with high energetic efficiency .The techni -
256

12.
ques are already well-known :for example insulation ,passive
solar architecture ,"intelligent "cooling and heating systems ,
district heating andheatpumps .Regulation ofcontrol andmeasure ¬
ment techniques based onmicro-electronics canstrongly contribute
tothedemand reduction .Anincrease ofenergy efficiency inhouse ¬
hold appliances should beclearly monitored .
Thecontribution ofrenewable energies totheglobal energy supply (with
theexception ofhydropower andbiomass combustion )will remain small in
thenear future .Itiswell known that these energies canhave aregio ¬
nalimportance andcould beadapted andutilized inthedeveloping coun ¬
tries reducing their demand for oilproducts andhence contributing toa
relaxation ofworld tension regarding thedemand for oil .
These energies represent avery high potential .Even ifsome ofthem
have already reached acommercial maturity (passive solar heating ,geo¬
thermal ,wind energy ,biomass and small scale photovoltaics ),further
improvement and extension oftheir area ofapplication isessential .
Large scale solar photovoltaic must for that matter beconsidered on
long term from acost reduction viewpoint .R&Dinthis field must be
continued inorder toimprove theefficiency and toensure along life
time and low degree ofmaintenance ofthe installations .Ingeneral
development ofenergy storage systems ,improvement ofknowledge regard ¬
ing theavailability ofresources ,comprehension ofenergy needs which
can bemet byrenewable energies ,examination oftechnological aspects
and of production ofsmall scale components for regional application
and theassembling ofinformation onthepotential ofrenewable energies
remain subjects forfurther development .
The final objective oftechnologies ofhigh potential ,containing high
technical and economic development risks istosubstitute gas and oil
sources ,the reserves ofwhich will unavoidably become exhausted .They
concern mainly ,fusion reactors .This subject will bedealt within
annexe 6.
Horizontal research concerns the four preceding fields ofactivity and
includes inparticular basic technologies ,reduction ofthe impact on
theenvironment ,transport and storage ofelectricity and thedevelop ¬
ment ofenergy systems using hydrogen .
Research anddevelopment insystems analysis andmodelling isfundamen ¬
talandbyitsvery nature horizontal .
The research orientations which have been discussed are ofinterest for
thefuture ofenergy inEurope ,butalso intheworld .Agood number of
them have already been embarked upon intheUnited-States and inJapan
and inparticular those which concern the short andmedium term energy
future .The European Community has ,byconsequence ,adouble motivation
topromote theresearch orientation already discussed and thenext pluri -
annual energy R&Dprogramme illustrates this preoccupation .
257

13.
Conclusions for the future
Theconstruction ofafuture forenergy inEurope will bedominated by
twofactors :technological innovations andtheprotection oftheenvi ¬
ronment .
Theenvironmental dimension issteadily growing inimportance duetothe
conciousness ofthepopulation .Itisinconceivable tocontinue animpor ¬
tant nuclear programme ifone isnotconvinced ofthe safety ofits
installations .Itisequally inconceivable tolaunch alarge coal utili ¬
zation programme without consideration oftheeffect that acid rain and
greenhouse effects have ontheecosystem .
With respect totheenergy problems onshort andmedium term itisabso ¬
lutely necessary tocontinue research 1nenergy saving because itisone
ofthebest ways toincrease thesecurity ofsupply and todiminish the
energetic impact ontheenvironment andtoensure cleaner andmore effi ¬
cient combustion offuel ,inparticular that ofcoal .
Infunction ofthemedium term problems ,themain problem tobesolved
istheextension ofliquid fuels available inEurope aswell asthe
development ofliquid orgaseous fuels derived from coal ,gasorbiomass
inorder tosubstitute oil .Theefforts undertaken attheEuropean level
andinparticular bytheCommission areproportionally superior tothose
oftheIAE,although signals from theUSandJapan seem toindicate that
research inthis field has become more intense .
Thelong term horizon forenergy implies that adefinite effort should
beundertaken inEurope inthefield ofnuclear reactors which should
lead toasubstantial cost reduction offast breeder reactors and a
design ofintrinsically safe reactors andacceptable bythepopulation .
The effort inthe field ofrenewables should bemaintained because in
thelong runrenewables could contribute significantly toenergy supply
when prices andcosts ofother forms may have increased significantly
and when the environmental constraints may become more difficult to
overcome .Themain emphasis ofthis research should belaid ontoreduc ¬
tion ofexploitation costs .
Regarding fusion ,there isstill avery ,very long way togo.When the
technical demonstration phase has been accomplished ,the technique
should prove economically feasible .
Oneshould notforget that energy R&Dwill notbecarried out inisola ¬
tion but inparallel with other research ,with possible cross fertili ¬
sation ,allowing thecreation ofnew concepts bynew combinations of
technologies .All technologies may indirectly have spin-off onenergy
demand andcontribute tonewtechnologies forenergy production .
Forexample ,research onmaterials (e.g. supraconductors )canhave a
significant effect onthe transportation and storage ofenergy .The
subject ofradioprotection inthe "life quality "programme oftheECmay
provide impacts ontheconception andacceptance ofnuclear power by
public opinion .
258

H.
Thank tomankind 'sinventivity andtechnological innovation ,solutions
toenergetic problems should always befound ,butthey have come atthe
right moment sothat thechange-over from oiltoother forms ofenergy
may besmooth .
One should not ,due topressure oftemporary events oraction groups ,
abandon aresearch subject without anin-depth analysis ofthe advan ¬
tages and inconveniences ofthe techniques concerned .The Commission
must maintain and intensify itsaction considering the needs ofenergy
RD&D incollaboration with itsMember States ,even iftheoilprice were
at$10perbarril .
259

1A.
Thank tomankind 'sinventivity andtechnological innovation ,solutions
toenergetic problems should always befound ,butthey have come atthe
right moment sothat thechange-over from oiltoother forms ofenergy
maybesmooth .
One should not ,due topressure oftemporary events oraction groups ,
abandon aresearch subject without anin-depth analysis oftheadvan ¬
tages and inconveniences ofthe techniques concerned .The Commission
must maintain and intensify itsaction considering theneeds ofenergy
RD&D incollaboration with itsMember States ,even iftheoilprice were
at$10perbarril .
260

ANNEX 6
CONTROLLED THERMONUCLEAR FUSION
1.Fusion asapotential energy source
Every source ofenergy has itsowneconomic ,health andenvironmental
t
costs ,and risks . '
Theneed forthe development of adiversity ofwidely accessible
long-term energy sources -which show promise ofbeing notonly
technologically feasible but also acceptable from the economic ,
safety ,environmental andproliferation points ofview -istherefore
being perceived more andmore accurately .
Because controlled thermonuclear fusion has the potential ofbecoming
oneof theenergy sources sought for ,industrialized countries have
been grappling with R&Donalong-term and priority basis inthis
field .Fusion has the long-term potential toopen anewway ofpower
generation ,making amoderate impact on the environment ,having
inherent safety ,andutilizing practically inexhaustible andreadily
accessible fuels .Asthe fuel consumption offuture fusion reactors
will bevery low the electricity generating costs ofacommercial
fusion reactor will bedominated bycapital investment .For instance ,
the amount ofprimary fuel consumed togenerate 1Million kWhof
electricity inafusion plant isabout 35grams of lithium converted
into tritium and 10grams ofdeuterium ,ascompared to,forexample
240 tonnes ofoilor360 tonnes ofhard coal inafossil-fired plant .
Itis .however ,tooearly tomake definite statements onfusion asan
economically competitive energy source ;preliminary studies ofthe
cost of fusion indicate that it isofanacceptable order of
magnitude .Asubstantial contribution byfusion tothe world energy
supply cannot beexpected before well into thenext century .The long ¬
term potential of fusion justifies to vigorously continue its
development ,whatever canbetheshort-term fluctuations ofoilprice .
Fusion could bring anessential contribution tothe reduction ofthe
economic ,ecological andpolitical vulnerability ofEurope inthenext
century .
2.European Actions
Inview offusion’s potential advantages forEurope and the size and
duration of the R&D required for its eventual implementation ,
Community member countries decided tointegrate their individual
national efforts into asingle European programme which would support
261

2
and coordinate the activities of all thespecialized laboratories
located inMember States .Since then ,these laboratories have been
bound totheCommunity bycontracts ofassociation which provide for
Euratom participation inpersonnel andfinancing .TheCommission has
full executive responsibility for theprogramme and isassisted bya
consultative committee forthe fusion programme (CCFP ),composed of
national experts .Inaddition ,ajoint undertaking has been
established for theJETproject ;aJETCouncil has theresponsibility
for themanagement ofthis undertaking whose chief executive and legal
representative isthedirector ofthe project .The collective nature
of the Community fusion programme and its remarkable spirit are
testified toby several decisions of the Community 'sCouncil of
Ministers .These describe the Community fusion programme as"along ¬
term cooperative project embracing allthe work carried out inthe
Member States inthe field ofcontrolled thermonuclear fusion .Itis
designed tolead induecourse tothejoint construction ofprototype
reactors with aview totheir industrial production andmarketing ".
Such aventure issufficiently attractive for non-member states to
have joined with full rights and duties the European fusion effort
(Sweden ,Switzerland ).
Themain reasons forconducting research anddevelopment inthe field
offusion onaCommunity basis are :
thescale ofthe human and financial resources required ,which
suggests that such adevelopment could hardly becarried outon
national basis ;
the long time-scale of the effort (extending into thenext
century )needed toarrive attheconstruction ofthereactor ;
theexistence ofacollective need ,common toallMember States ;
therealization ofaEuropean market forEuropean industries in
domains ofhigh-technolog ies ;
inthe event ofsuccess ,the opening-up ofawide Community
market for theEuropean reactor ;
toprovide apotential partner ofcomparable size tothe 3other
world fusion programmes ,fostering thereby international
collaboration inthe field offusion ;
the quality of the European Fusion Programme whose leading
position isacknowledged worldwide ,and towhich Sweden and
Switzerland are fully associated .
Fusion istherefore inline with thecriteria pertinent toCommunity
R&D programmes .
262

3
3.Objectives and content oftheprogramme
Thepath towards fusion reactors forenergy production canbedivided ,
albeit arbitrarily ,into three stages :demonstration ofscientific
feasibility ,of technological feasibility ,andeventually ofeconomic
feasibility .These steps arenot independent and interfere inmany
respects .The Community fusion programme hasbeen able toconcentrate
onthemost promising line ,the toroidal magnetic confinement ,and
within this approach tomaintain thenecessary breadth .Presently ,
with JET (Joint European Torus ),the medium-size tokamaks and their
foreign equivalents ,weare still primarily inthescientific stage .
TheNext European Torus (NET),now inthe pre-design phase ,is
conceived atpresent as adevice which should fully confirm the
scientific feasibility of fusion in a first stage and the
technological feasibility inasecond stage .
Within this strategy (JET and other tokamaks ,NET ,DEMOnstration
reactor ),themain objectives for the programme (1st January 1988 to
31March 1992 )recently adopted bytheCouncil ofMinisters are :
toestablish thephysics and technology basis necessary for the
detailed design ofNET ;inthe field ofphysics andplasma
engineering this implies the full exploitation ofJETandof
several medium-sized specialized tokamaks inexistence orin
construction ,and inthefield oftechnology thestrengthening of
thecurrent fusion technology programme ;
toembark onthe detailed design ofNET before the endofthe
programme period ifthe necessary data base exists atthat time
(but not before the next revision foreseen for January 1st ,
1991 );
toexplore the reactor potential ofsome alternative lines
(mainly Stellarator andReversed Field Pinch ).
The above-mentioned adopted programme concerns only JET and the
General Programme (NET ,Technology ,and physics and plasma
engineering conducted inthe associated laboratories ).The fusion
activities of the Joint Research Centre ,which from ascientific and
technical point ofview are fully integrated within theoverall fusion
programme ,are,' however ,governed byanother Council decision .In
current money ,theamount ofCommunity resources available forthe
period (4 1/4years )mentioned above (exclusive ofJRC ,Sweden and
Switzerland )isestimated at735MioECU ,ofwhich : 263

4
-~406MioECU are for thegeneral programme (rate offinancing by
the Community varying between 25% and 100% according tothe
priority character ofthese activities )
329MioECU are forJET (80% financing bytheCommunity ).
Tosuch anamount of 735 MioECU incurred by the budget ofthe
Communities ,corresponds nearly 1,100 MioECU tobeincurred bythe
national administrations andother sectors atnational level ,sothat
the overall expenditure for fusion (exclusive ofJRC ,Sweden and
Switzerland )for 41/4years will amount toabout 1,800 MioECU .
4.Present situation inEurope
Scientific and technical achievements place Europe intheforefront of
world-wide magnetic fusion research ,as ithas recently been
acknowledged attheConference organized by theInternational Atomic
Energy Agency (IAEA )atNice this year (12to19October ,1988 ).
JET ,the flagship of the Community fusion programme ,isthe
world 'slargest experiment .Itachieved its initial objectives
for the basic performance phase on time and inbudget ,and the
implementation oftheextension tofull performance iswell under
way .Ithasmade alarge step towards thedemonstration ofthe
scientific feasibility of fusion .Athalfway stage of the
scheduled experimental programme ,JEThasnotonly reached plasma
(ionandelectron )temperatures above 100 million degrees (and ,
even ,ion temperatures upto150million degrees ,i.e. ten times
hotter than inthe centre of the sun )but also achieved the
required plasma density and thenecessary confinement time fora
reactor ,but not at the same time .Nevertheless ,thehighest
"fusion product "(density xtemperature xconfinement time atthe
same time )wasobtained onJETandcorresponds toone fourth of
thenecessary value for "breakeven "(total fusion power equal to
additional heating power ).JET isthe only machine tohave
achieved confinement times greater than one second .The record
plasma heating current of 7million Amperes ismore than twice
that ofanyother fusion experiment .
TheEuropean medium-size tokamaks contribute inapowerful way to
theprogress offusion and tothesuccess ofJETbyexperimenting
with different configurations and exploring newheating methods
264

-5-
andbydeveloping newdiagnostics .As anexample , .theso-called
"magnetic divertor "operation on theASDEX tokamak atGarching
(D)has led to the discovery of the favourable "H-mode "
confinement .
Europe isalso leading inresearch onStellarators andReversed
Field Pinches (alternative configurations tothetokamak ).
The construction and commissioning ofnew devices proceeds
according toschedule .The largest superconducting tokamak inthe
world -TORE-SUPRA atCadarache (F)-has started operation in
April 1988 and should reach itsfull performance (1.7million
Amperes andplasma pulse of30seconds )intwo-year 'stime .The
(modular )advanced Stellarator WENDELSTEIN-VI I-AS atGarching (D)
hasjust come into operation . Other machines :ASDEX-UPCRADE
(Garching ,D),RFXandFTU (Padova andFrascati respectively ,I).
COMPASS (Culham ,UK)and TCV (Lausanne ,CH)are in the
construction phase .
European industry has built all these devices (togive an
example ,more than 98% incost ofJET contracts has been placed
within Europe )andhasalready been entrusted with some long-term
advanced development .Itsinvolvement should make aqualitative
andquantitative jump when adecision istaken onthestart of
theengineering design ofNET .
NET is in the pre-design phase .The main performance
specifications have been tentatively selected ,resulting ina
coherent setofparameters which ispresently being used for
further optimization and for guidance of the technology
programme .
Theorderly implementation of the technology programme isan
important achievement ofthe recent years .Themain part ofthe
work isoriented towards NET ,but there are also longer term
activities .Efforts are concentrated in the fields of
superconducting magnets ,tritium ,blanket ,remote handling ,
materials ,safety andenvironment .
Outside magnetic fusion ,a"keep intouch” activity ismaintained in
the field oflaser-fusion ,and muon-catalysed fusion iskept under
review .
TheCommunity approach ,which hasmade possible thesetting upofthe
JETJoint Undertaking 0978 )andoftheNET-team (1983 ),has ledalso265

6
totheimplementation ofanintensive collaboration between thefusion
laboratories .Most oftheAssociations dowork foranother Association
and all ofthem work for JETand forNETthrough different types of
contracts and agreements .The Community Fusion Programme has
efficiently built atrue scientific and technical community oflarge
and small laboratories ,readily able towelcome newcomers ,and
directed towards acommon goal .Among themany dispositions taken to
ensure thetrue Community character of the Fusion Programme ,staff
mobility deserves aspecial mention :each year more than 200
professionals (outofatotal ofabout 1,200 professionals )are sent ,
via "mobility contracts ",towork outside their home laboratory for
periods upto 1year .JETrepresents anextreme case inthis domain ,
since this mission-oriented project isrun bypersonnel from the
national organizations ,which committed themselves tore-integrate
their staff after termination ofsecondment toJET .
5.International collaboration
This leading position of theCommunity fusion programme makes Europe
anappealing partner for international collaboration both in
bilateral frames (Canada ,Japan ,United States )and within
multinational organisations (OECD ,IAEA ). While in the past
international collaboration was mostly theobject ofagreements on
specific points ,ittakes atpresent wider and more substantial
aspects :
Bilateral Framework Agreements .Thesituation isthefollowing
with :
Canada :Memorandum ofUnderstanding signed inMarch 1986 .
USA :Agreement ofCooperation signed inDecember 1986
Japan :thetext ofthe Agreement has been agreed upon atthe
technical level and the procedure aiming ataCouncil decision
approving the Conclusion of theAgreement started inSeptember
1988 ,sothat thesignature isexpected for theend of1988 .
Implementing Agreements inthe framework ofthe IEA (OECD )
* Tokamaks :
o TEXTOR (signed in1977 ):15years duration
o ASDEX andASDEX-UPGRADE (signed in1985 ):10years duration
Z66

7
o THE THREE LARGE TOKAMAKS (JET ,TFTR andJF-60 ),signed in
1986 ):5years duration
# Alternative lines :
o STELLARATORS (signed in1985 ):5years duration
o REVERSED FIELD PINCHES :inpreparation andpossibly tobe
concluded atbeginning 1989
* Technology :
o LARGE COIL TASK (signed in 1977 ) :joint experiment
concluded and final report inpreparation
o FUSION MATERIALS (signed in 1981 ):Annex Idiscontinued ,
duration ofAnnex IIof10years .Annex III inpreparation
o SAFETY AND ENVIRONMENTAL ASPECTS OFFUSION :inpreparation
and possibly tobeconcluded atbeginning of1989 .
Quadripartite cooperation on an International Thermonuclear
Experimental Reactor (ITER )under IAEA auspices
The Agreement ofparticipation by theEuropean Atomic Energy
Community inthe ITER Conceptual Design Activities ,together with
Japan ,the Union ofSoviet Socialist Republics ,and theUnited
States ofAmerica ,has been signed inFebruary 1988 .The four
large fusion programmes oftheworld (EC,Japan ,USA ,USSR )have
decided tocoordinate their efforts aiming ataspecific goal :
producing by 1990 through acollaborative effort offour parties
having equal status and making equal contributions aconceptual
design of an ITER ,and coordinating supportive research
activities .Such acollaboration hasbeen made possible because
these four programmes have similar strategies towards the
demonstration fusion reactor .The NET activity ,which will
continue asplanned until apossible international solution
offering convincing guarantees isfound for theNext Step ,forms
the focal point for this collaboration .Indeed ,notonly the
technical site for joint work on ITER conceptual design
activities has been chosen tobethe same asthe site ofthe NET -
team (Garching ,D),but also the reference parameters chosen
preliminarily at theend ofthe definition phase for ITER are
similar tothose ofNET .
The importance of this world-wide collaboration issuch that
ITER was explicitly mentioned inthejoint Statements ofthe
Washington and Moscow summits between President Reagan and
General Secretary Gorbachev . • p

8
Finally ,following theapproval bytheCouncil of-the conclusion
by the Commission of aMemorandum ofUnderstanding between
EURATOM and theGovernment ofCanada onthe involvement ofCanada
inthe EURATOM contribution to the ITER Conceptual Design
Activities ,this Memorandum wassigned onOctober 3rd .1988 .The
quadripartite collaboration on ITER isstatutory so that any
collaboration to ITER byanyother country should beimplemented
through oneofthefour partners .
6.Situation intheworld
Asalready mentioned there exists ,besides theECfusion programme ,
three other large programmes having similar strategies :sequential
demonstration ofscientific ,technological andcommercial feasibility
with some differences on thenecessary overlapping between thethree
phases .Asfarasstaff andfunding areconcerned ,each programme is
also comparable tothe ECprogramme inthe field ofmagnetic
confinement .
USprogramme :Itfollows both themagnetic confinement approach
(twothirds ofoverall expenditure )and the inertial confinement
approach (one third ).
Within themagnetic confinement approach ,the tokamak line is
intensively followed with TFTR (theUSequivalent ofJET),and
DIIIDmainly .
Scientific progress and limitation infunding have led theUS
magnetices fusion programme tonarrow itspreviously very broad
spectrum ofactivities .It isactively supporting itsresearch
work onalternative toroidal configurations but hassharply
decreased its efforts onmagnetic mirror configurations .A
Compact Ignition Tokamak (CIT )isinthedesign phase :this high
field tokamak should allow tostudy experimentally thephysics of
aburning plasma .
The US inertial confinement programme is thelargest inthe
world :its future development isdifficult topredict ,in
particular because of its many links with military programmes
(SDI ).
268

9
Japanese programme
Although Japan isalate-comer ,fusion research hasreceived high
priority inJapan inparticular under the initiative ofthe
Japanese Atomic Energy Commission .TheJapanese effort isnow at
alevel comparable totheoneoftheECandoftheUS .
Themagnetic confinement effort iswell illustrated by thelarge
tokamak JT-60 inwhich aplasma current of2MAcould non-
inductively bedriven .JT 60needs modifications inorder to
improve its performances .The stellarator line (Heliotron-E is
thelargest stellarator intheworld )andother alternative lines
arealso investigated .
Acomprehensive inertial confinement programme ofhigh quality is
underway inaspecialized Institute ofOsaka University .Itis
totally unclassified .
Soviet programme
The Soviet Programme hasproduced brilliant results (Tokamak isa
Soviet concept !);atpresent it ischaracterized by alarge
number of well trained physicists ,relatively modest
technological realizations (nodevice ofthesize ofJET),and a
wide spectrum ofactivities .Here also ,thetokamak line receives
thelargest attention .Anew tokamak with high magnetic field
(TSP )came into operation at the beginning of 1988 ;itis
designed fortritium operation .Asuperconducting tokamak T15,
similar to the European TORE-SUPRA already inoperation ,is
nearing completion .
7.Near-term issues offusion
Tokamaks will continue tooccupy the forefront ofmagnetic fusion
research .The most impressive results sofar infusion research have
been obtained inthese devices :the "fusion product "(iontemperature
times ion density times confinement time ),which isthebest figure of
merit ontheway tothereactor ,has increased byalmost four orders
ofmagnitude during thepast 20years and isnowonly afactor 4away
from breakeven ,andslightly more than oneorder ofmagnitude from
ignition ,which isour longed formilestone marking theachievement of
theproof ofthescientific feasibility offusion .Theprincipal key
tosuch progress has been the increase ingross machine parameters
and therelative simplicity ofthetokamak concept .The last untouched269

10
physics problem sofar ,alpha-particle heating ,should become
accessible toexperimentation inabout 3years from now ,when TFTR ,
JET andTSPwill enter their phase oftritium operation .
The technological problems associated with Deuterium-Tritium fusion
reactors ,which will have tobreed their own fuel (tritium )ina
blanket containing lithium and surrounding thereacting plasma ,have
gradually been revealed by the many conceptual reactors designs
produced within theworld fusion community over more than adecade .
These studies have also evidenced that achieving the potential
environmental and safety advantages offusion will notmaterialize
automatically but will depend ina large measure ondesigns
specifically tailored tothis end ,inwhich theuseoflow-activation
materials could play an important role .They have shown also how
economic competitiveness will depend onattaining plasma and
engineering performances which arenotyetassured .
Although some mysteries still remain ,theconclusion ofthescientific
phase of fusion isnow insight ,and itistherefore timely toplan
for theNext Step device ontheroad towards aprototype reactor .
Next Step machines are atpresent inthepre-design phase both within
the large fusion programmes (for example ,NET inthe European
Community )or inthe quadripartite venture :ITER .ITER ,whose
definition phase hasjust come toanend ,isconceived asatokamak
device which ,toquote from itsTerms ofReference ,"will provide the
data base inphysics and technology necessary forthedesign and
construction ofademonstration fusion power plant ".It isestimated
that three decades ofR&Dwill berequired before such ademonstration
reactor canbecome operational .
With theNext Step ,there exists theneed notonly todevelop ,test
anddemonstrate technologies applicable tofuture fusion reactors ,but
also todefine safety standards for these reactors .And itwill be
only during theconstruction andexploitation oftheNext Step that we
will reach asufficient basis toevaluate with some certainty the
overall potential of,fusion asanenergy source .
Asinthecase ofanymajor decision onhigh technology ,adecision to
embark onthedetailed design of theNext Step ,will have astrong
political component .This decision shall besubstantiated onthree
different grounds :
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11
Asound scientific and technical basis isneeded :work in
progress onboth thescientific and thetechnological sides makes
usreasonably confident about this point .
The scientific Community should present convincing safety ,
environmental and ,as far aspossible ,economic arguments in
favour offusion .Soalready now ,long before thecharacteristics
ofapractical reactor areknown insome detail ,itisessential ,
even if very challenging ,toundertake asystematic and
continuous assessment offusion 'spotential toachieve attractive
combinations of environmental , safety and economic
characteristics .International collaboration should be used to
its maximum extent tomake progress inthese fields where it
could beparticularly helpful .Indeed ,first steps arebeing
taken inthis direction inthe framework ofthe IEA .
Concrete plans should bedeveloped onhow themajor fusion
programmes could take full advantage of awide international
cooperation ,cooperation which could lead toasingle device or
to the joint planning of Next Step activities .Indeed
international cooperation will become more andmore anecessity
ifwewant tomake the most efficient use ofthe resources ofthe
world fusion community .These include ,asaparticularly precious
element ,ahighly qualified staff ,whose dedication will bea
necessary condition for the success oftheNext Step ,butwhose
full utilization requires that the Next Step beundertaken as
soon astechnically feasible .
Itshould bestressed that International cooperation ,even if
extrapolated toanunprecedented level ,cannot substitute forstrong
"domestic” programmes .Thefour large fusion programmes oftheworld
are atpresent working together inthe ITER Conceptual Design
Activities toprovide ,attheend of1990 ,adesign which will then
beavailable forallParties touse ,either intheir own national
programme or aspart ofalarger international cooperative programme .
Some ofthe ITER Parties have also national plans toembark atabout
thesame time on thedetailed design of asimilar Next Step .Itis
difficult tomake anyprediction on theframework inwhich theNext
Step(s )will eventually bebuilt ,butalloptions should bekept open

12
inorder tolaytheground foradecision tostart therealization of
theNext Step(s )early inthenineties .
8.Financial Implications for Europe
Byvirtue of its important objectives ,its excellent record ,its
technological interest and itsabsolute Community character ,fusion
should remain one of the most important R&D programmes ofthe
Community .
The Community funding foreseen within therecently adopted fusion
programme amounts toabout 200MioECU peryear (including JRCfusion
activities )corresponding toanoverall yearly expenditure forFusion
inEurope ofabout 450MioEcu .While the physics activities inthe
European fusion laboratories will have thetendency todecrease inthe
long term ,thetechnology will increase sothat onecould foresee the
need of aroughly constant level offunding forresearch outside (but
supporting of)theNext Step proper .
Thepresent andvery preliminary cost estimates for theconstruction
ofthe Next Step amounts tosome 3,000 MioECU .Thedetailed design
would cost about 10%of this figure ,i.e. about 300 MioECU .Such
detailed design will last at least three years sothat almost 100
MioECU peryear will benecessary for theNext Step proper during the
design phase ,tobeinitiated possibly in1991 /92 .
Insubsequent years ,JET would bephased out ,and NET would
progressively take upmomentum insuring continuity (with gradual
expansion )intheuseofthehuman ,technical and financial resources .
Asfar asthe construction oftheNext Step isconcerned ,this phase
could start around 1995 and last about six years .Thenecessary
increase ofCommunity funding will depend on :
whether such Next Step will bebuilt onaCommunity basis (NET )
oratworld level (ITER ).The construction of theNext Step by
four parties instead ofonealone would represent foreach one ,
inspite ofalldifficulties ,areduction incost ofabout a
factor 3.
which framework will beestablished atCommunity level (aJoint
Undertaking ,asforJET ,with 80% Community funding ,orsome
other scheme ?). -,

13
Within the strategy of theCommunity fusion programme ,amilestone
for theassessment of these financial implications will bethenext
revision (tobepreceded byan independent evaluation )of the
programme foreseen on 1January 1991 .At that time itwould be
appropriate todecide when tostart the detailed design ofNET ,
taking into account the results of the ITER Conceptual designed
activities (due tobecompleted attheendof1990 ).
273

ANNEX 7
ENVIRONMENT
A. INTRODUCTION
1. The environment ,Itsprotection ,and thequality oflife
*
forMan ,aresubjects ofhigh public '‘and policy Interest .Pressures
for Improved environment protection ,continue unabated .They are
fueled byIncidents such asthepollution oftheRhine ,the ozone
hole ,algal bloom Inthe North Sea and the death ofseals ;by
Improved communications and relentless press coverage ;and by
greater public awareness reinforced bygrowing recreation and
leisure activities .The Community 'spolicies inevitably reflect
these pressures .Environment protection isaCommunity issue InIts
own right .Itisalso Included ,under the European Single Act ,as
anImportant element Inother Community and wider policies for
industry ,agriculture ,fisheries and aid todeveloping countries .
Such policies must increasingly seek topredict andprevent natural
andman-made problems oftheenvironment .Wecannot continue tobe
reactive totheproblems oftheday ;wemust probe thefuture .
*
2.Thus ,environmental research ,Isdirectly linked toawell
defined Community policy .Ithas torespond tospecific problems
derived from the Environmental Action Programme ;this imposes
certain prerequisites inthecontent oftheprogramme .
The term "environmental research "inthis context does not
Include problems linked tonuclear energy andradioactive
pollution (cf.annex 9).
274

2
3.Unlike other programmes which are aimed at advancing
technologies inorder toincrease Europe 'scompetitivity world
wide ,environmental research has toidentify the constraints to
technological developments ,imposed bytheneed tomaintain oreven
Improve thequality oflife inEurope and toprotect our resources .
Itshould help toovercome theconflict ofinterest between economy
and ecology .Thebenefits from environmental research can therefore
not bemeasured indirect economic terms .
4.Under the pressure ofenvironmental legislation ,technologies
for the abatement ofenvironmental pollution ,without any doubt ,
have conquered asubstantial market .This isofconsiderable
economic significance .The basis ofsuch technologies is,however ,
not substantially different from that which applies in the
production cycle .Their promotion isvery much aproblem of
adaptation anddemonstration and toalesser extent offundamental
research .In certain areas ,however ,in particular in the
development ofnew ,low-emission production technologies ,Community
environmental research has an Important role .Through the
definition ofnorms and standards the Community will have a
considerable Impact onIndustry ,and anassociation ofindustry to
research activities inthis field seems advisable .
5.Many environmental problems have aglobal dimension ,such as
global change orstratospheric ozone depletion .Insuch areas ,
European research cannot beseparated from the world-wide effort
which expresses itself inprogrammes such asIGBP (International
Geosphere-Biosphere Programme ).Inthese areas the role ofthe
Community programme istoassist inproviding coordinated European
input tothe global efforts ,thus strengthening the position of
Europe inaworld-wide context .
B. RESEARCH TRENDS AND NEEDS
6.The complexity ofenvironmental problems makes abreakdown to
specific research areas very difficult ;the traditional separation
ofproblems bymedia (air ,water ,soil )has been abandoned in
favour ofaholistic view .Toacertain extent ,research problems
may ,however ,becategorized under three Interdependent sets :
275

-3-
-understanding thebasic phenomena
-detection andinterpretation ofenvironmental changes
-prevention ofthedegradation oftheenvironment .
The most Important environmental issues are addressed inthe
following ,with anindication ,asfaraspossible ,oftheresearch
requirements identified .
7.Climate and Climate Change -the Greenhouse Effect .Weare
dependent upon climate and its variability for our survival .
Climate controls the basic parameters ofour water supplies ,
agriculture and forestry ,energy and water requirements ,and
transport Infrastructure .Societies have evolved tocope with
their characteristic climates and associated extremes .But climate
isvariable not only interms oflonger term oscillations (eg
glaciations ).Individual events andlong term trends canhave major
Impacts upon theenvironment and onsocio-economic structures .
8.There isascientific consensus that asignificant climate
change will occur during the next century asaresult ofhuman
activities .Greenhouse gases such asCO^andtheir climatic effects
may bethe biggest single issue orthreat facing man and the
environment asweenter the 21st Century .Aswith all climate
issues ,wewill need tounderstand the processes involved and to
develop the means topredict change and its consequences .This
Includes investigation of cloud-radiation interactions ,ocean
circulation andair/seafluxes ,andeffects ofCO^,warming upon
the melting ofthe ice caps together with the consequences for
Europe andfordeveloping countries .
9.Itisimportant tonote that there isnocomplete explanation
ofnatural and man-made fluctuations inclimate ,and that there are
noreliable methods for their prediction especially atregional and
local levels .Also ,some interactions between
276

-4-
climate change and environmental pollution are obvious ,but others
are more subtle .There are ,for example ,strong suspicions ofthe
interactions between atmospheric pollutants ,climate extremes and
climate change inthephenomena offorest decline .
10. Sea-Level Rise could be one of the most striking
consequences ofclimate change .Over the past 100 years ,global
mean sea level has risen 10-15 cm.Future warming from the
greenhouse effect could lead toasea-level rise of50-100 cmby
the year 2025 .The coastal lowlands ofthe North Sea Basin ,
Atlantic Seaboard and Mediterranean would bevulnerable tosuch a
rise .These include many ofour most fertile agricultural and
densely populated areas aswell asdeltas ,estuaries ,sand dunes
andwetlands ofrecreation ,amenity andconservation Interest .This
applies equally todeveloping countries and especially tothose
already under threat byfrequent and extreme climatic events .They
would all besubject toerosion ,inundation ,salination and storm
surges which would overcome sea defences designed tomeet lower
mean and extreme sea levels .
11. Climatic Change Impacts on Land ,Water and Other
Resources .This isamuch more complex area because ofthepossible
regional variations in climate change .But how can climate
variations and changes affect our basic resources ?What are the
means ofpredicting climate extremes such asdroughts ,floods ,
severe frosts ,snow storms ,tides and wave surges ?Itisthese
events that cause such heavy tolls oflife and property .
How canweforespell the Impact ofchanges intemperature
and rainfall and variations inextreme events upon agriculture ,
forestry and water resources ,and which remedial oradaptive
measures canbeenvisaged ?
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5
12. Natural Hazards .Many natural hazards aggravated bythe
action of man ,link with the Issues described above thus
underlining thehorizontal andvertical dimensions ofenvironmental
andclimatological research .The interactions between these sectors
arecritical interms ofmutually reinforcing protection policies .
Processes involved in salinisation ,erosion ,flash
flooding andwildfires have tobebetter understood toprotect man ,
livestock ,crops andforests from local catastrophies .
13. Seismic Hazards are also ofconcern especially inthose
areas intectonicly active areas .NoEuropean country isentirely
free ofrisk .Man-induced hazards are also ofconcern inthe older
industrialised countries with abandoned deep mine workings .Our
aims are tounderstand andmeasure strong motion phenomena ,and to
develop seismic hazard monitoring ,data and information ,and
warning systems .
14. Stratospheric Ozone .The appearance ofholes above the
polar regions alerted ustothedepletion oftheEarth 'sprotective
ozone layer bychlorof luorocarbons (CFC's)and other chemicals .
Whilst initial actions have been taken tocontrol CFC emissions ,
there are strong indications that depletion continues ,posing
serious global threats toman and theenvironment from increased UV
irradiation .
Atthe same time ,depletion and/orredistribution of
ozone could have feedbacks on climate .The possibility of
reinforcement ofclimate changes induced bythe greenhouse effect
cannot beignored ,over andabove anypossible effects ofincreased
UVirradiation .Causes ,processes and rates ofchange involved ,and
their possible consequences need tobebetter understood .
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-6-
15. Air Pollution ,and ItsEffects onTerrestrial andAquatic
Ecosystems .Increasing emphasis Isbeing placed upon problems of
photooxldant pollution ;and onmore complex issues such asthe
interactive effects ofmixtures ofpollutant and other stresses
upon trees and forests Inrelation toforest decline ,ofpollution
and land use upon aquatic systems ,and ofdefining pollution
climates Including the actual fluxes and critical loads to
sensitive parts ofecosystems .
16. Assessment ofChemicals .There isalack of standard
procedures which reduce the use ofvertebrate animals ,and take
advantage ofdevelopments in the assessment ofmutagenicity ,
carcinogenicity ,cellular toxicity ,metabolic activity and
structural activity relationships ofnew and existing chemicals .
Procedures forassessing both abiotic degradation ,and thepathways
andecological effects ofchemicals ,must also bedeveloped .
17. Environment and Human Health .Atarget orientated and
preventive approach tothe protection ofthe groups most atrisk
throughout the Community includes ,inter alia ,the development of
population monitoring methods and systems toidentify such groups ,
and todetect and measure preclinlcal effects (egnephrotoxicity ,
neurotoxicity ,biological markers ).These canbeapplied tostudies
ofboth indoor air quality and general environmental quality ,and
their effects onman .The most challenging and urgent priority ,
however ,is toovercome the notorious problems ofdeveloping
Community-wide approaches to epidemiological surveillance in
co-operation with WHO andother international agencies .
18. Toxic Waste Disposal .Intractable wastes continue to
create problems ofdisposal .Often ,advances come bychanges in
manufacturing processes and in new products which reduce
established problems -amajor force inthe improvement of
environmental standards .Yet they sometimes create new problems .
Modest advances will continue tobemade but spectacular progress
279

7
isunlikely without thedevelopment ofnew ,clean technologies .The
potential exceptions may lie inthe applications ofcomputer
assisted optimisation processes ,although current evidence suggests
thelatter need tobetailored tospecific disposal processes and
wastes .
19. Soils and Groundwaters .There isprofound concern in
Europe about the state ofour soils ,their conservation and their
optimal management asasustainable resource .Initiatives inthe
Community must bebased onsound scientific guidelines .Weneed to
understand the reactions ofsoils tomanagement practices which
accelerate erosion , desertification , etc.; to excessive
fertilisation ;towaste disposal ;and tomany forms ofpollution
(egacidification ),together with their mediating effects upon
surface and groundwater quality .The significance ofsoil-derived
particulates and associated chemicals inriver ,estuarine and
marine pollution ,isbecoming increasingly apparent .
20. Freshwater Quality .The primary need istodevelop the
techniques and methodologies tosample rapidly ,awide range of
complex and potentially hazardous chemicals ,notably in the
organo-metalllc andnon-volatile groups .These include pesticides ,
and their breakdown products .Progress is also needed in
understanding the transformations ,fates and effects ofsuch
chemicals .Increasing attention must bepaid totheriverine Inputs
ofthese chemicals to,and their behaviour and Impacts inestuarine
and Inshore marine systems .
21. Quality ofthe Marine Environment .Asexamplified by
recent events the main issue is the eutrophication and
contamination ofthe rather closed regional seas surrounding the
European continent ,the North Sea ,the Baltic and the
Mediterranean .Anunderstanding isneeded ofthe sources ,fates and
stresses ofcontaminants from rivers and other sources ,ofnutrient
dynamics andofalgal blooms .
280

8
22. Conservation ofSpecies andHabitats .European ecosystems
support awide range ofhabitats and associated species ,albeit
often man-made inthepast .Few are truly natural but they are the
remnants ofsemi-natural ecosystems -therefuges and staging posts
ofendangered flora and fauna ,and the last islands ofnatural
genetic diversity .Research must aim todefine the critical loads
which such systems can support ,and todevelop methods for their
sustained management andrestoration .
23. Basic Research onProcesses and Ecosystems .Progress on
applied issues isfrequently dependent upon advances inbasic
knowledge .For example ,understanding the processes Involved in
forest decline requires ustowork onthebasic physiology oftrees
todetermine how they react tovarious stresses .Findings atthe
sub-cellular ,cellular andwhole organism level must beInterpreted
interms ofImpacts upon populations andecosystems .This ,inturn ,
requires ustounderstand thebehaviour andpopulation dynamics of
species ,predator :prey relations ,and thestructure andfunctioning
of ecosystems .Thus ,forest ecosystem research isImportant
underpinning toapplied research onforest decline ,acidification ,
andtheimpacts ofclimate change .
24. Cultural Heritage .Europe 'scultural heritage isour
legacy from thepast ,andourtestament tothefuture .Theacademic
and social values ofthis heritage are enormous ,and they often
play acrucial role inthe economies ofmember countries .Wemust ,
therefore ,provide the scientific basis ofprotecting avast range
ofIrreplaceable objects made with different materials andexposed
toawide range ofclimatic andenvironmental stresses .
25. Major technological hazards .To alarge extent ,man
Interacts with his environment .Natural hazards such aserosion ,
landslides and seismic shocks are often exacerbated byman's
activities .However ,onehas only tomention Seveso ,Chernobyl ,
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9
Frenchman 'sFlat ,Flixborough orBhopal ,torealise that major
technological installations imply potential major hazards .
Statistically ,most dangers tothepublic and theenvironment arise
from the manufacture ,storage and transport ofbulk flammable
and/ortoxic chemicals .Therefore ,the phenology and early
dispersion ofchemical releases ,combustion ,and risk analysis
taking into account thehuman factor require further research .
26. Biotechnology and the "Sunrise "Industries .Traditional
heavy industries continue toloose importance .The effects ofnew
technologies upon the environment are byand large ,beneficial .
New technologies ofproduction are bringing enormous economic
benefits .However ,they raise important questions for the
environment .Biotechnology has attracted the greatest public
concern inthis context .The consequences ofdeliberately or
accidentally releasing engineered organisms or even genetic
material are scarcely understood .The need foradequate safeguards
based onscience ,16paramount .Other new technologies also pose
threats by their use of complex chemicals of uncertain
environmental impact and the production oftoxic and complex
effluents ,albeit insmall qualities .
C. ACTIONS INEUROPE
27. The Community and its member countries rightly target
their resources upon the environmental Issues which concern their
citizens and Impact upon their environments ,societies and
économies .These Issues may beoflocal concern orrégional or
global inscale .But even with local concern there ismuch
commonality intheir natures ,and in the methodologies and
technologies for their investigation and amelioration .Europe is
thus not anisland but itisanIntegral part ofthe global
community interms ofenvironmental problems ,their study andtheir
resolution .Appropriate co-operation between theCommunity and
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10
non-member European states (egEFTA ),Economic Summit countries ,
developing countries and the full range ofGovernmental and
non-Governmental International organisations ,is thus both
inevitable and essential .Asimilar co-operation can beenvisaged
inthe future with East European countries .
28. Community research has totake ,ofcourse ,fully into
account what isdone byIndustry ,national research programmes ,and
within other transnational frameworks ,inorder toensure optimum
benefits from its resources .
29. Industry was until recently rather defensive in
environmental matters ,butmakes now ,under thepressure oftougher
legislation andpublic opinion ,considerable efforts ,also inR&D .
Industrial research isclosely linked to the advancement in
production processes ;the economic pressure toreduce energy and
rawmaterial consumption and toavoid unnecessary wastes leads to
new production processes which normally imply benefits for the
environment .Environment-related R&D inindustry can therefore not
beconsidered onitsown right ;substantial resources ,however ,are
allocated totheImprovement ofdown-stream abatement processes .
30 . All Member States have more or less substantial R&D
programmes ontheenvironment ,which inpart are ,ofcourse ,aimed
atproblems ofregional character and tomonitoring environmental
quality .There are ,however ,important components ofnational
programmes ofavery basic nature which should beprogressively
Integrated into aEuropean context .Flexible means ("concerted
actions ")have been developed inthepast forthis purpose andthey
turned out tobeefficient .
31. Except for some EUREKA projects and afew cooperative
projects implemented inparticular byESF ,nomajor cooperative
mechanisms ofEuropean scale exist .All COST projects inthe
environmental field are Implemented through and under full
Integration oftherelevant sections oftheCommunity programme .
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11
32.Environment research hasbeen part oftheCommunity research
programmes since 1972 ,within the JRC programme and through
contract research and coordination within the COST framework .
33.Inthecontext oftheframework programme ,amajor review of
theaims and themeans ofImplementation took place ,leading toa
review ofthe JRC activities aswell astoaproposal for two
programmes through contract research :
-STEP (Science andTechnology forEnvironmental Protection )
-EPOCH (European Programme onClimatology andNatural Hazards )
submitted tothe Council inNovember 1988 .These are complemented
byanewprogramme onMarine Science andTechnology (MAST ).
34.The new Community programmes STEP ,EPOCH and MAST treat most
ofthe important environmental issues mentioned above ,tobe
pursued with vigor .While itisimportant generally todevelop the
means for flexible and responsive actions toemerging issues ,the
following research requirements were given particular emphasis in
these programmes .
35.Global Environmental Research (GER ).The coincidental
developments mentioned earlier which areresulting inrethinking of
our approaches toglobal environmental issues get due attention .
TheNSFEarth Systems Science Report isbreathtaking inscope .The
Community' 8study ofremote sensing R&D pointed inthe same
direction .STEP ,EPOCH ,MAST and the JRC Programme contain
important elements ofGERwhich must bewelded into aco-ordinated
andmultidisciplinary European efforts ,aneffort that encompass
elements ofother Community programmes inagriculture ,aid and
industry .But certain elements have immediate priority .Europe
should play amajor role inthe1GBP .
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12
(i) Climate and climate change and itsconsequences are now seen
asprobably the biggest challenge tomankind over the next
few decades .The European Inputs tointernational research
onGlobal Climate Models and the development ofscenarios
appropriate toEurope and its regions ,and todeveloping
countries ;and onpriority problems such assea-level rise
will undoubtedly throw up specific issues requiring
Community research action .Additional European Inputs will
benecessary toinvestigate climate change Implications for
European and world trading ,and for aid todeveloping
countries .
(ii)Stratospheric ozone depletion and its consequences .The
European move toco-ordinate EC/EFTA research should be
treated byaspecial task force .
(iii )Wider Implications .The rapid evolution ofGER isgoing to
require co-ordinated European initiatives inremote sensing
(with ESA and others )ofearth resources ,processes and
phenomena .It will require significant inputs from
biologists working onblogeochemlcal processes such asthe
carbon cycle ,atglobal level .The task ismassive but must
not beshirked .Wemust also consider responsive policies
and actions toclimate change interms ofenergy production
options ,improved sea and flood fences ,groundwater
protection (egagainst saline intrusion ),etc .
36. These developments atglobal level impinge upon many other
European programmes .Current work onclean technologies ,for
example ,could assist indeciding future energy options .The
proposed Conmunlty Initiative inBiology has acritical role to
play inrespect ofblogeochemlcal processes .
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13
37. Regional and local environmental issues .These issues which
concern theregional orlocal environment andhuman health are not
less important than research dealing with theglobal environment .
The following issues are ofgrowing concern and require more
Community action .
(i) Human health .Development ofhighly sensitive and rapid
methods for identifying and estimating internal dose and
early reversible effects of exposure to arange of
environmental stressors ingroups atrisk ;progress in
epidemiological surveillance through suitable
interconnection of health statistics with environmental
data .
(ii)Air Pollution and its effects .Research onsuch Issues as
forest decline ,early specific indicators for forest decline ,
tree physiology ,air/land use/water quality interactions ,
and Improvements in the means to conserve European
monuments .
(iii)Soils andGroundwaters .Public and political concern about
thestate ofour soils andgroundwater isgrowing throughout
Europe .Priority must begiven tothestudy ofproblems of
contamination and ,inMediterranean countries ,tothose of
erosion and desertification .More emphasis should begiven
tothe off site consequences ofcontamination and erosion
forthequality ofsurface andgroundwaters .
(iv)Marine research .Ways must befound offurther co-ordinating
European actions and facilities inthis field inflexible
but cost effective programmes ,in co-operation with
competent international bodies .
The Community has important roles toplay inco-ordinating
research which contributes tothe North Sea Task Force and
tosimilar activities intheMediterranean .
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14
(v) Ecosystems Research .The need for baseline ecological
monitoring and research was stressed earlier .The need to
understand the structure and functioning ofterrestrial ,
aquatic and marine ecosystems and their constituent
organisms Isassuming Increasing Importance In somany
contexts -agriculture and environment ,marine pollution -
toname afew .There Isaparticular need tostudy and
understand relict and threatened European ecosystems such as
wetlands ,montalne systems ,clean deep lakes ,coastal
saltmarshes andlagoons andupland bogs .
INFRASTRUCTURE AND FACILITY REQUIREMENTS
38. The above environmental Issues raise the basic question of
whether ornot Europe has the infrastructure and facilities to
achieve Itsambitions inresearch atregional andglobal levels .In
many cases wehave facilities atnational level (egresearch
vessels )but they are deployed onarange ofissues from local to
global ,andmay berestricted Incapacity orfunding ,orbyage and
design .Afundamental part ofour research programmes must beto
review Infrastructure and facilities toimprove their co-ordination
and cost effective deployment ,and toplan for future needs in
support oflikely research priorities .The following are important
items forconsideration and assessment inEurope .
(1) Research Vehicles .Inthe longer term ,the design and
compatibility and thedevelopment ofresearch vessels must be
planned atEuropean level .The case for aEuropean ocean
drilling vessel tooperate insupport of,orInsuccession
tothe USODP ship ,isalready being examined .Work on
manned and autonomous submersibles for use inresearch must
beprosecuted .Also ,aircraft for stratospheric research ;
Europe must develop aco-operative facility .Industry hasan
Important role toplay inthese areas .
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15
(ii)Data Networks and Bases .Global research will require much
more European effort devoted todeveloping scientific data
and Information services (egseismic hazards ,pollution
data ,ecological reference monitoring ).European policies
for these need tobedeveloped ,along with policies for
research computing ,not least forsupercomputers capable of
storing and analysing massive quantities ofdata ,and
modelling environmental processes onaglobal scale .The
experiences of the oceanographers ,meteorologists and
climatologists inEurope ,will bevital here .
E. SUMMARY
39. The main issues for future environment and related research
were reviewed ,and ,atthehand ofafewexamples ,theposition and
role ofthe Community and ofEurope inalarger sense inthis
context was indicated .The importance and priorities ofCommunity
research programmes are confirmed interms ofdetecting and
combatting current and future environmental problems .Also their
contributions tothewell-being ofsociety ,toemployment and the
economy ,and toEuropean trade are becoming increasingly evident
while new areas ofresearch offer real prospects ofEurope
contributing inmajor ways toglobal sustainable development ,and
assistance todeveloping countries .
AO. Awide range ofenvironmental issues requiring research was
identified .But there are certain issues which require special
attention .
(i) Co-ordinated European contributions toglobal environmental
research including stratospheric ozone depletion ,climate
and climate change ,desertification ,and resource
management .
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16
(li)Basic ecological monitoring and research onecosystems end
environmental processes -essential underpinning toawide
range ofapplied problems .
(ill)Co-ordinated European research onthemarine environment and
itsproblems ,especially inour regional seas but linked to
global programmes .
(lv)Supporting socio-economic research onenvironmental problems
and options for their solution .
(v) Development in co-operation with industry of new
technologies forresearch and environmental improvement .
41. Important Infrastructure Issues which must betackled and
solved toprovide essential support toEuropean research were also
ldentif ied .
(vi)Development of appropriate and flexible co-ordination
procedures especially atEC/EFTA level .
(vli )Development ofrigorous research assessment ,planning ,
Implementation ,and evaluation procedures including those
for efficient conversion of results into policy and
practical actions .
(vlii )Assessment ,planning andprovision ofessential research
facilities and services such asresearch vessels ,aircraft ,
computers ,data bases ,Information networks ,and advisory
and information services .
i
(ix)Special investment inremote sensing andgeographical
information systems tosupport global environmental research
and toexploit itsresults .
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17
(x) Improved co-ordination with ,andpositive European inputs to
international governmental and non-governmental bodies ,
working inthe above fields .
42. These actions must besupported byadequate resources ,
especially skilled manpower ,efficient communications andequipment
inthe relevant organisations ofthe Commission ,Europe and its
Member Countries .
(is)290

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ANNEX 8
HEALTH RESEARCH
1.INTRODUCTION
Inspite oftheenormous progress trade infundamental biology ,several
groups ofdiseases threaten human health ;intheless-developed countries
malnutrition andparasitic diseases (e.g. malaria ,schistososniasis ,
filariasis ,trypanosomiasis andleisltmaniasis )dominate thescene ,while
thenewly developed viral disease AIDS spreads with appalling rapidity .A
real problem here istheneed tosupport expensive R&Daction for amarket
which ,though driven bypressing needs ,isdramatically deficient in
financial resources .Various agencies ,both public (e.g. \torxd Health
Organization )andprivate ,areactive inthis field ,yet ,inspite ofsofi*e
recent advances inthetreatment ofparasitic diseases ,those needs are
farfrom being satisfied .
Intheindustrialized world bacterial diseases arelargely controlled
tlirough antibiotics andhygiene ,andmany viral diseases aregreatly
reduced orinched eliminated (e.g. smallpox )through effective vaccination
campaigns .However ,many health problems still require fundamental and
applied research ,namely some viral diseases (e.g. AIDS ,anddiseases
caused byslow viruses ),degenerative and iimvane diseases ,genetic
diseases ,traumatology andpoisoning ,aswell asproblems ofprocreation
andageing .Inthese parts oftheworla ,thecost ofhealth ishigh and
still increasing ,(more than 200,000 million ECUyearly inthe EC).In
Western European countries thehealth market has avery special feature ,
namely that thefunds used tosatisfy itarelargely public (about 60%cf
theEChealth expenditure )ascompared with only 40% intheUSA .Atthe
same time ,however ,public investment inmedical andpharmaceutical
research intheECisonly about half that oftheUSA .TheEuropean health
industry isgenerally competitive ;however ,therelatively modest support
which fundamental health sciences receive from European governments
induces seme large European firms totransfer their research laboratories
totheUSA .Akey issue forthefuture istheinteraction ofhealth
policies with thelarge high-technology market ofhealth industries ,
exploiting ,whenever possible ,theeconomy ofscale provided bythelarge
internal market .Inhuman health ,"half-way "solutions (e.g. thetreatment
oftuberculosis around theturn ofthis century -bylengthy isolation m
sanatoria -orofpoliomyelitis inthe 19?Cs )areoften expensive while
"alltheway"solutions (e.g. antibiotics inthetreatment oftuberculosis
orvaccines against poliomyelities )areoften cheaper inthelonger term .
Research hasanirreplaceable role inthepursuit of"ailtheway "
solutions ,andEurope should developaproper strategy fortheir
continued achievement onanappropriate scale .
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2.MAIN ISSUES FOR R&D
Health hasbeen defined bytheWorld Health Organization as"Astate of
complete physical ,mental andsocial well-being andnotmerely theabsence
ofdisease orinfirmity "(1).That reflects avery positive andwide-
ranging outlook onthis subject -which isbydefinition onethat vitally
affects every single citizen ,whether living inEurope ,U.S.A. ,Japan or
therest oftheworld .This universality oftheimportance ofthesubject
isprogressively being recognized bycountries atgovernmental aswell as
atindividual level ,andthere isageneral tendency forricher nations to
spend ahigher proportion oftheir gross domestic product (GDP )onhealth .
InSeptember 1988 theOffice ofHealth Economics inLondon published a
'Briefing' on"Health Services inEurope :1988 ",andthis provides amost
valuable andup-to-date commentary ontheincreasingly important and
increasingly costly question oftheprovision ofhealth care inMember
States .
Table 1reveals thelevels ofpublic andprivate health expenditure as
apercentage ofGDP ,(1984 ):
Total Private Public
Sweden 9.4 0,8 8.6
France 9.1 2.6 6.5
Netherlands 8.6 1.8 6.8
West Germany 8.1 1.7 6.4
Ireland 8.0 1.1 6.9
Switzerland 7.8 - -
Italy 7.2 1.1 6.1
Denmark 6.3 1.0 5.3
Belgium 6.2 0.5 5.7
Great Britain 5.9 0.6 5.3
Spain 5.8 1.5 4.3
Source :OECD (1987 )'Financing andDelivering Health Care' ,Paris
Theauthor ,George Teeling Snith ,ccmnents :
"Thetable shows both thepublic expenditure onhealth andtotal
expenditure asapercentage ofeach country 'sgross domestic product
(GDP ).Thefigures arelargely what would beexpected from the
description ofthevarious countries' health schemes .France ,for
example ,shews thesubstantial margin between public finance andtotal
expenditure which islargely covered byprivate 'top-up' insurance .
Sweden ,ontheother hand ,which isanother high spender ,covers
Constitution oftheWorld Health Organization :Basic Documents ,
15th edition ,1961 .
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almost all itscosts from public funds .Theamount covered byprivate
expenditure inSweden represents 0.8percent ofGDP ,asagainst 2.6
percent inFrance .Britain ,also ,covers almost allofitshealth
expenditures from public funds :private expenditure accounts foronly
0.6percent ofGDP .Bycontrast ,again ,theNetherlands leaves 1.8
percent ofGDP tobecovered byprivate expenditure ,reflecting the
large proportion ofthepopulation covered byprivate insurance .In
West Germany private expenditure amounts to1.7percent ,suggesting a
relatively high expenditure forthe 9percent ofpopulation privately
insured .Ingeneral ,thecontinental schemes allow greater freedom
forthepublic tospend directly onhealth care inaddition topublic
expenditure .
Overall ,Spain andGreat Britain arethelowest spenders ,andFrance
andSweden thehighest .Ashasoften been pointed out inthepast ,
there isageneral tendency forricher nations tospend ahigher
proportion ofGDPonhealth ".
Hisconclusions areextremely pertinent toanyconsideration ofhealth
services provision inthenext decade andbeyond :
"Itisclear from these brief descriptions ofthe national health
schemes indifferent European countries that there isaconsiderable
variation intheir approaches totheproblem .Methods offunding
vary :theownership andorganisation ofthefacilities varies ;theway
doctors andothers areemployed andpaid differs ;andtheextent to
which individuals must paypart ofthecosts themselves also
varies .... There is,however ,onecommon similarity .Nocountry
believes that ithas anentirely satisfactory solution tothequestion
ofhowbest tocover thehealth needs ofitspopulation atan
acceptable price ....
More fundamentally ,in1992 theEuropean market isintended tobe
unified ,and itmight beexpected that sate degree ofuniformity in
theprovision ofhealth care should follow .... Itisclear that it
will beextremely difficult tointroduce anyintegrated system of
health insurance orEuropean health service fortheEuropean Community
asawhole .Even within individual countries there arevariations ,
without anyclear indication ofwhich variant issuperior .The
priority must beforcautious experiment ,andrigorous evaluation ,
rather than radical change .
Above all ,what islacking insuch anevaluation isanymeasure ofthe
outcomes ofdifferent systems ofhealth care .Theunique contribution
oftheEuropean Commission after 1992 could betoorganise andsponsor
theevaluative studies which have sofarlargely been absent .
Anymore drastic form ofEuropean Community interference ,inthe
present state ofignorance ,would beunwise .Health economists have
inrecent years been developing thetools with which tomake the
necessary evaluations .Sofarthey have been used only onalimited
scale .However ,there isnoreason why ,with appropriate resources ,
larger international studies should notnowbeundertaken .
Oneconcept under discussion atpresent istolimit the free
provision ofhealth care totherelatively less affluent andto
those suffering from some form ofmedical catastrophe -whether
itisacostly acute medical crisis oralong-term chronic
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disease .Thenearest approach tothis policy inEurope sofar
appears tobetheDutch model .Astudy scare years ago
suggested that thehealth status oftheNetherlands was
conparable tothat inBritain andFrance .(2)These latter
countries hadwidely differing types ofcover ,butboth
provided comprehensive health care forthewhole population
through their national schemes .Butaccording tothe
information received from theNetherlands during the
preparation ofthis 'Briefing ',theDutch donotconsider their
present position satisfactory .They areconsidering more
extensive cover .Clearly ,therefore ,other countries -and
Europe asawhole -need tobecautious inpursuing theconcept
oflimited cover only fortheless affluent andforthe
catastrophically sick .
Ontheother hand ,there isalmost universal concern attherising
cost ofcomprehensive free health care .Perhaps scare balance needs to
bestruck .Butonce again thekeynote must beevaluation .Thebrief
reports from thevarious countries collected forthis study still
suggest general public satisfaction with their health care ,even
though theproviders andtheorganisers realise itsshortcomings ....
Ifchanges aretobemade ,andinparticular ifagreater degree of
uniformity across Europe istobeachieved ,thechanges must increase
analready relatively high level ofpublic satisfaction rather than
reduce it.This ,above all ,must bethemessage fortheEurocrats as
1992 approaches ...."
Aswell asthese economic andorganizational factors another major
aspect must increasingly betaken into account -theageing ofthe
population ,often called the "Greying ofEurope ".This keyissue has
been explored inanOccasional Paper written inMarch 1988 byMr. M.
Freisinger fortheEuropean Commission 1sownDivision of"Forecasting
andAssessment inthefield ofScience andTechnology ".Under the
title of"TheOver-Fifties ",Mr.Freisinger hassummarized the
position asfollows :
"Theinterest inthedemographic processes today results mostly from
theapprehension that these changes could affect theefficiency ,
stability andequity (3)ofsocieties which areinaninternationally
competitive environment .
1)Some Selected Demographic Trends : 1Explosion 1,Ageing Populations ,
Stagnation andDecline
Maynard AandLudbrook A(1981 )‘Thirty years ofFruitless
Endeavour ?1In:VanderGaag JandPerlman M(Editors ),Proceedings
oftheWorld Congress ofHealth Economics ,North Holland .
SeeChapter :'Seme Theoretical Propositions andConcepts' inPadoa -
Schioppa ,T.,etal;'Efficiency ,Stability andEquity -AStrategy
fortheEvolution oftheEconomic Systems oftheEuropean
Community' ,Oxford ,1987 ,p.17.
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Until theyear 2050 ,itisestimated that theglobal population
will double to10billion .Asaconsequence ofthechanging
fertility trends ,thefuture demographic increase will belower
than atthetine oftheso-called 'population explosion 1.Given
theassumption ofanincreasing average life expectation ,there
will beafurther cause fortherelative shift intheageing
population onaglobal level .
This ageing process issignificant inindustrialised countries .
Compared with theUSAandJapan ,Europe has anexceptional
position .Until theyear 2000 ,thepopulation oftheEuropean
Communities ,theUnited States andJapan will still increase (2000 :
EUR 12-330million ,USA -268million ,Japan -120million
compared to1984 :EUR 12-321million ,USA -236million ,Japan -
120million )butafter theyear 2000 thedemographic development of
thetotal population will bemarked bystagnation ,and inthecase
ofEurope (EUR 12)byapartial decrease .
Between 1900 and 1950 theproportion ofelderly (more than 65years
old )inEurope hadincreased byabout 50% .Intheperiod 1975 to
2075 this proportion ofthepopulation will increase inthemore
enveloped countries byabout 72% ,(from 10.5% to18.1% ).
Intheagegroup ofeighty years andover theestimated rate of
growth inthemore developed countries is153% ,(from 1.7% to
4.3% ).Asaconsequence ofthis trend ,the average life
expectation inthis period would increase from 33.6 to39.6 years .
Within theEuropean CotrmunitY ,thetotal population figures until
theyear 2000 will Decrease inBelgium andtheFederal Republic of
Germany .The same will apply after theyear 2000 inDenmark ,
Luxembourg andtheNetherlands .
Because ofthe netreproduction rates ofthe 1980s ,thepopulation
figures inGreece ,Portugal andSpain will bemore stable .All
countries intheEuropean Ccrmunity -including Ireland -now
reveal decreasing reproduction rates between 1970 and 1980 .
Thelarge number ofbirths oftheso-called 'Baby Boomer
Generation 1will represent inthe first half ofthetwenty-first
century thegrowing proportion oftheelderly .
Theproportion ofOver-Fifties inEurope until theyear 2000 will
only increase from 31%to33% .This means agrowth inthis age
group ofabout 10.4 million people ,bringing ittoatotal of110
million .IntheFederal Republic ofGermany ,Belgium andDenmark ,
thepopulation share oftheOver-Fifties until theyear 2020 will
increase to49% ,41%and42%respectively .
With regard totheincrease intheOver-Fifties agegroup from
1985-2000 France ,theNetherlands ,theFederal Republic ofGermany ,
Portugal andSpain will beabove theaverage European growth rate
(10.4% )intheEuropean Community .Until theyear 2010 ,this
growth rate will be48% intheNetherlands ,and31% inFrance .
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Thenumber ofvery oldpeople (more than 70years ofage )inthe
European Community will decrease atanegligible rate until 1990
(1985 -33.1 million to1990 -32.7 million ).Around theyear 2000
this number will increase again to37.4 million .
Thenumber ofwomen intheelderly agegroup will increase
considerably compared tothenumber ofmen .This unsymmetrical
distribution ofboth sexes will bevery significant ,especially in
North America ,Europe andtheSoviet Union .
From aregional point ofview thedemographic ageing process inthe
European Community ispresented very differently .Inparticular ,
inindustrial centres andovercrowed regions itwould seem that the
ageing process oftheregional populations will beabove
average' 1....
"Inthefield ofhealth ,thedemographical changes create a
quantitative increase ofage-typical illnesses .Atthesame time ,
theestimated number ofpersons infamily networks which would be
able togive care totheelderly will decrease .With regard tothe
experience that nowadays only 5-10%oftheolder people requiring
care live inspecial institutions andtheassumption that the
number ofsingle households -especially within theolder
population -will undergo alarge increase ,thequestion isposed :
what arethepossible andprobable other forms oforganisations and
conditions fororganising theeveryday life andcare ofolder and
very oldpersons ?Many elements inthis sphere will depend on
changing life-styles andmental attitudes .
Thegrowing demand cnservices fortheelderly leads inthehealth
sector tothenecessity forareorganisation inpart (education ,
internal care ,structure inhospitals )andbeyond ittoan
increasing relevance inmedical ,medico-technological and
pharmaceutical performance inprophylactics ,early perceptions and
therapy ofage-specific illnesses ."
Against theabove background information itcanbeseen how
crucially important health provision is;this underlines theneed
foracontinuing expansion ofresearch into allaspects ofthe
subject ,sothat individuals canjustifiably expect tobenefit from
advances inknowledge denied totheir forebears .Newtechniques ,
inparticular those ofmolecular biology ,have started tomake
possible agreater degree ofprogress inhealth research than has
ever been possible previously -these efforts must bestrongly
encouraged andsteadily enlarged .
3.INTERNATIONAL COLLABORATION
Perhaps uniquely ,andprobably reflecting itsuniversality of
personal relevance andimportance ,health isaresearch field where
international cooperation isnotonly readily forthcoming but is
actively sought onasteadily increasing scale .Thetradition of
widespread dissemination ofresearch results bypublication isa
long-established one inhealth matters andso,fortunately ,health
isnota"competitive "subject vis-a-vistheU.S.A. andJapan asis
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thecase insomany other areas such asinformation technology or
telecommunications .Many research workers donotconsider their
careers tobesufficiently rounded without having spent some tine
intheU.S.A. ,somuch sothat theacquisition ofa"BTA"iswidely
thought essential forprofessional advancement totopresearch
posts -theacronym stands for "Been toAmerica ".This degree of
international experience-gathering isoneofthemost benefical and
self-evidently valuable aspects ofmodem career progression in
health research ,andallMember States must continue toplay their
part inthis .
4.WHAT NEEDS TOBEDONE INEUROPE
Tolook ahead tothedevelopments needed inEurope ,both inthe
next fewyears andbeyond ,necessitates acareful andthoughtful
look atthenature ofhealth research itself andthegoals which
should besought .DrD.F. Horrobin ,Director oftheEfamol Research
Institute inKentville ,Nova Scotia ,Canada (4),hasexpressed this
point well :
"Oneofthesimplest andbest definitions ofscience isJohn
Ziman 's(5)term 'reliable knowledge' .Medicine isascience with a
purpose ,theimprovement ofpatient care .When reliable knowledge
hasbeen used toimprove patient care ,therecord shows that
scientific medicine hasbeen aresounding success .Butrecently we
have failed tokeep firmly inview thetrue aimofmedicine .
Medicine hasacquired theattitudes ofpure science where things
aredone with noclear practical end interms ofbenefit tothe
patient .Itisthedamaging proliferation oftechnologies which
have noproven value interms ofcure ,care orcomfort which has
ledtosoaring costs without anypatient perception of
substantially greater clinical success .Unless werigorously keep
inmind theidea that thestandards wenowapply tonewdrugs
should beapplied also toevery form ofinnovation inmedical care ,
weface thespectre ofarbitrary andunreasoning political and
economic intervention inthemedical care system ."
DrM.King ,University ofLeeds ,United Kingdom (®)hasenlarged on
this concept ,stressing thepatient 'spoint ofview andrightly
drawing attention totheinternational aspects ofthesubject :
"Make thecommunity master
Thebest interests oftheindividual sick patient inbedhave always
been theultimate objective ofthebest medical care .Theultimate
authority ,economy ,andconvenience ofpatients collectively ,rather
Oxford Textbook ofMedicine ,Oxford University Press ,Oxford ;1987 ,
p.2.3 .
Ziman ,J.'Reliable Knowledge' .Cambridge University Press ,
Cambridge .
Oxford Textbook ofMedicine ,p.3.1 .
2S7

-8-
than that ofourselves ,their physicians ,have been given less
attention .Hence theincreasing dissatisfaction ofmany corrmunities ,
both rich andpoor ,with theservices they get ,andtheimportance
ofmaking these services acutely sensitive tocommunal need .
Communities must ,wherever possible ,begiven abigger say ,and
indeed theultimate responsibility fortheservices they get .
Listening forthis still small voice ,obeying it,andencouraging it
tospeak up,decide ,andtake charge ,must infuture beccxne an
integral part ofmedicine .Itisalso oneofthemajor inspirations
ofthe section which follows .
Health forallbytheyear 2000
Comprehensive primary health care (PBC )
What canwedotoprevent disease ,disability ,anduntimely death in
two-thirds oftheworld 'speople ,especially those locked into
absolute poverty ?Themost hopeful solution iscomprehensive primary
health care ,andthis wasdefined attheinternational conference
held byWHOandUNICEF atAlma Ata inSoviet Asia in1978 .The
Declaration ofAlma Atawhich followed this meeting hasasitsaim :
Theattainment byallpeople oftheworld bytheyear 2000 ,ofa
level ofhealth that will permit them tolead asocially and
economically productive life .Primary health care includes ,at
least ,education concerning theprevailing health problems and
themethods ofpreventing andcontrolling thou ,thepromotion of
anadequate food supply andproper nutrition together with a
sufficient supply ofsafe water andbasic sanitation .Italso
includes maternal andchild health ,family planning ,and
immunization against themajor infectious diseases ,aswell as
theprevention andcontrol oflocally endemic diseases ,the
appropriate treatment ofthecommon diseases andinjuries ,and
theprovision ofessential drugs ."
Aworthwile research organization inhealth -such aswill help to
achieve theabove aims -demands nowadays anincreasingly wide range
ofskills ,andthis need inEurope iscertainly inline with the
needs asseen from outside this continent .Professor P.Wasi from
Mahidol University ,Bangkok ,Thailand 0)hasmade aparticularly
relevant comment concerning this breadth ofneed andcloseness of
cooperation :
"Vast areas ofresearch areneeded tosupport PHC including health
policies research ,information research anddevelopment ,health
services andhealth manpower research ,health economy research ,
management andevaluation research andtechnical research needed to
support health services .While biomedical research mayconcern
individual scientists orresearch units ,health services research is
anintegrated approach which mayinvolve ontheonehand thepolicy
makers andprogramme administrators andontheother thepeople and
thecommunity .This newtype ofresearch needs anewmechanism for
research promotion andmanagement .Medical Research Councils ,while
good forbiomedical research promotion andmanagement ,maynotbe
Oxford Textbook ofMedicine ,p.3.7 .
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equipped todeal with health services research .Aco-ordinating
mechanism involving theMinistry ofPublic Health ,theUniversities ,
and the Medical Research Councils isdesirable ."
Itisprecisely that balance between "Governmental "health
activities and those of "Medical Research Councils "which issowell
struck and maintained inthe cormittee structure for the
Conmission 1sownMedical andHealth Research progrannie (vide infra ),
andwhich issonecessary ifresearch discoveries aretobe
implemented atanearly date bypolicy-makers ontheGovernmental
side -itisavery efficient mechanism supported byallMS.
Thesubjects which particularly need tobeconcentrated upon inthe
caning years include AIDS andCancer ,aswell asdiseases which
particularly affect anageing population ,aswill increasingly cotre
tobethecase inEurope .There hasbeen anexcellent recent survey
ofthescene bySirWalter Bodmer inhisPresidential Address tothe
British Association fortheAdvancement ofScience inSeptember
1988 ,andsome short extracts indicate the v/ayahead :
"Thenewbiological revolution ishaving itsimpact inmost areas of
biological andmedical research .HadAIDS been discovered asa
disease even just 15years earlier ,itwould notthen have been
possible toidentify thecausative agent asavirus ,through that to
devise tests toidentify those that have been exposed tothevirus ,
andthen begin todesign effective strategies forthedevelopment of
vaccines against thevirus and fortreating thedisease .All of
these possibilities aretaking place within anincredibly short
time ,following theinitial description ofAIDS only afewyears
ago .AIDS maynow ,andforsome years inthefuture ,beaserious
epidemic butwere itnot forthegenetic revolution ,thedisease
could have been atotal catastrophe .
Cancer isnot asingle disease but awide variety ofdiseases which
canaffect anyorgan ortissue ofthebody .Nearly onethird ofthe
population will atsome time beaffected bycancer ,andabout one
fifth will diefrom it.Though many advances have been made in
cancer treatment ,andsimply stopping cigarette smoking could
prevent 30%ofallthecancers ,effective prevention andtreatment
especially oftherelatively common cancers such asthose affecting
thebcwel ,thebreast ,thestomach andthe lungs ,isstill a
challenge forfuture research .Inthese cancers only treatment at
early stages isusually truly effective .Abetter understanding of
cancer atafundamental level isundoubtedly thebest and ,
ultimately ,theonly effective way toadvance substantially its
prevention andtreatment .This ,again ,iswhere thenewbiology is
leading tomajor advances .
Thetechniques ofgenetic engineering andworking with cells that
canbemanipulated inthelaboratory arebeginning toreveal those
errors which arecritical forthedevelopment ofcancer .Through
this wearebeginning tolearn howthefine processes which control
thenormal growth ofcells arederanged inacancer andso,how
these changes mayeither bedetected sufficiently early for
treatment tobeeffective ormayform thebasis formore specific
andeffective forms oftreatment .When ,atsome time inthefuture ,
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cancer isadisease which canbeprevented andtreated as
effectively astuberculosis andmost other infectious diseases can
now ,thecredit forthis will largely beduetothenewrevolution
inbiology .Asimilar story could betold forthestudy ofheart
disease ,orofmental disease which isaccompanied bythegreat
challenge ofunderstanding thedetailed functioning ofthehuman
brain .
Advances inphysics andinchemistry have been asessential forthe
study ofbiology asthey have ,forexample ,forthedevelopment of
computers .X-rays andradioactivity ,andtheinstruments which use
andmeasure than ,have been particularly important inbiomedical
research .
X-rays arenotonly used todiagnose andtreat cancer andother
diseases ,but also toprobe thestructure ofcomplex molecules .
Structure largely determines function ,andsoitisonly through
establishing thethree-dimensional structure orshape ofproteins
that wecanhope ,eventually ,tounderstand thewaythey work .Then
theprotein engineer candesign modifications ,orchemicals to
enhance orblock aprotein 'sfunction ,andsoprovide new
'designer 'drugs foreffective disease treatment .Thehigher the
power oftheX-ray source ,thelarger andmore carplexthe
structures that canbesolved .Inthese areas thebiologists and
physicists nowwork hand inhand ,helped bythepower ofmodem
computers .
Radioactivity isused ateach step intheanalysis ofthegenetic
language .Thus radioactive tracers ,andthefilms andinstruments
which measure radioactive decay ,areessential tools forthegenetic
engineer .
X-rays ,because they canpenetrate bodily tissues ,have been the
classical basis forimaging thebody from theoutside inorder to
diagnose abnormalities indicative ofdisease .'CAT 'scanners ,which
aredependent ontheapplication ofsophisticated computer analysis ,
have enormously refined theX-ray picture .Recently ,even more
remarkable advances inimaging have come from newphysical
techniques ,based on'nuclear magnetic resonance' orMRI ,for
magnetic resonance imaging asitisnowcalled .Using MRI ,pictures
ofthebrain appear tocome tolife and ,mayforexample ,reveal the
smallest tumours .Radioactive tracers ,which when injected into a
patient canhome inCHIaparticular organ ortumour andthen be
viewed fran theoutside like X-rays ,provide another newapproach to
thediagnosis ofdiseases .Using yetanother newtype ofscanner ,a
small amount ofradioactive fluid injected into theblood stream can
yield pictures oftheblood flow inthebrain ,which canidentify
regions involved inthecontrol ofspeech andreasoning .
There seems tobenolimit totheingenuity ofthephysicists and
theelectronic engineers inproviding newapproaches andinstruments
forthemeasurement and ctetection ofbiological functions inliving
organisms .Thepower ofcomputers isasimportant forthecontrol of
these instruments andtheanalysis ofthedata they produce ,asit
isforthebanker ,theairline company ,theaeroplane orthe
physicist with hishuge machines forstudying thefundamental
properties ofmatter .
Science ,including technology andengineering ,nowpervades
virtually allaspects ofourdaily lives andistheessential basis
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forourfuture health andprosperity .Ourindustry depends onit,
andtherefore sodoes thewhole basis ofoureconomy .There is
hardly anypublic policy issue that does not insome way ,involve
scientific questions .The advances Ihave described inthe
biological andphysical sciences ,andtheir prospects ,show that the
scientific revolution nowhas agreater potential than ever before
forimneasurable improvement ofourwealth andwelfare .The
challenge istoachieve this potential .
The Nobel Prize inEconomics for 1987 was awarded toSolow for his
demonstration that technology isthemain determinant ofeconomic
growth .Since today 'sbasic science islargely thefoundation for
tomorcw 'stechnology ,Solcw 'sconclusions clearly imply agood
economic return for aninvestment inscientific research .
Technology initsbroadest sense istheapplication ofscience or
knowledge topractical ends ,most often inanindustrial context .
Though scientific understanding isnotapre-requisite byanymeans
forthesuccess ofatechnology ,technological progress nowadays
increasingly depends onscientific advances .Major newtechnologies ,
such asgenetic engineering ,often depend ,asIhave described ,on
thecombination ofaseries ofscientific advances intechnique and
understanding ,brought together tocreate anewtechnology .Once
that major step hasbeen taken ,many further gradual changes ,
improvements andadditions tothetechnology ,induecourse
enormously improve itsefficiency .This improvement isaform of
evolutionary process ,whereby pivotal changes arefollowed by
gradual evolution ,andonly thefittest ,namely those which aremost
productive economically ,survive inthe long run."
Onemost topical development ,andonewhich iscertain toprove most
productive economically isthat ofPredictive liadicine :
Predictive Medicine :Human Genere Analysis
TheDChasrecognized thegreat andstill increasing .importance of
genome research ,anddetails ofcurrent andplanned activities are
given inAnnex 4,"Biology ",notably those involving yeast andplant
genomes .Research involving thehuman genome will take place under
theheading of"Predictive Medicine ",asindicated above .
Ithasbecome clear that having access toa"human gene dictionary "
will prove asfundamental tobiology andmedicine asaworking
knowledge ofanatomy orchemistry .Buttodate ,nolxxly even knows
exactly howmany genes wehave .Thebest estimate leaves avery wide
margin :from 50,000 to100,000 human genes .
Each gene isaunique fragment ofDMA (deoxyribonucleic acid ),the
long ,thread-like substance that contains theinstructions forthe
survival andpropagation ofevery living organism ,from ,ablade of
grass toanelephant .Inthenucleus ofeach human cell ,these genes
arestrung along the 23pairs ofchromosomes .Finding thelocation
ofindividual genes onachromosome andanalyzing these genes down
totheir chemical components (nucleotides )isonly nowbecoming
possible onalarge scale ,thanks tonewtechniques derived from
reccmb inant DNAtechnology .
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-12-
Knowing theposition ofthese genes andthen zeroing inonthem are
major steps towards finding newmethods ofpreventing ortreating
the4,000 inherited diseases recognized sofarthat arecaused by
single-gene defects .
Beyond these rarer conditions ,gene mapping will give doctors anew
understanding ofsuch widespread ills ashypertension ,heart
disease ,certain cancers anddiabetes ,which arecaused bythejoint
action ofseveral genes .Itwill explain who isparticularly
vulnerable tothese disorders andhowtoprevent their onset ,orat
least reduce their symptoms .
Most significantly ,research onthese aberrant genes will enable
scientists toanalyze normal life processes with extraordinary
precision .Gene mapping andanalysis will bekeytools ofbiology in
the21st century .They will enable scientists todecipher howhuman
beings function attheir molecular level -howtheinformation
stored inDNAbecomes translated into themyriad messages and
complex feedback systems that tell thebillions ofcells inour
bodies howtokeep usalive andhealthy .
Since about onethird ofhuman genes areturned oninthebrain ,for
instance ,gene mapping will give researchers powerful newways to
investigate howthebrain functions .Andasresearchers identify the
genes responsible forgrowth anddevelopment ,they will find clues
totheenduring mystery ofhow afertilized eggevolves into a
unique ,mature human being .
Twokinds ofgene maps arenowbeing created .One ,thegenetic
linkage map ,shows thedistance between various genes andmarkers as
calculated from thefrequency with which they areinherited
together .Genes that lieclose together onachromosome generally
stay together during meiosis -theformation ofeggandsperm cells
-when some segnents ofthechromosomes recombine .Geneticists have
calculated that ifagene andamarker onthe same chromosome are
separated only 1percent ofthetime ,thedistance between them is
approximately 1million base-pairs ofDNA .(Base-pairs arethepairs
ofcomplementary nucleotides that form theDNAdouble helix ).
Bycontrast ,physical maps show theactual distances between
landmarks onthechromosomes ,regardless ofinheritance .These
distances aremeasured inbase-pairs ofDNA ,andtheultimate
physical mapwould betheprecise sequence ofbase-pairs inagiven
stretch ofDNA .
Sofar ,only small portions ofthehuman gene dictionary are
available .Buteven these have ,forexample ,unravelled thebasis
forthe corrmonest form ofmuscular dystrophy ,andsolved ata
biochemical level theage-old riddle ofthecontrol ofcolour
blindness ,which isacomparatively common defect amongst European
men .
ThePredictive Medicine Programme will contain thefollowing
strands :
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-improvement oftheresolution ofthehuman genetic map ,i.e.
creation ofamapofthehuman genome ,consisting ofDNAmarkers ,
which would enable researchers tolocate genes easily and
quickly ;
-thesetting upofordered clone libraries ,i.e. ofcollections or
ordered sets ofDNAfragments which fully represent theDNA
present intheentire genome ,selected chromosomes orchromosomal
fragments ;
-theimprovement ofadvanced genetic technologies and ,through a
training programme ,thespreading ofthese advanced technologies
throughout theMember States .
Inthecourse oftheprogramme ,newgenes will belocalized ,cloned
andsequenced -many ofthese will bedisease reiaced .Inaddition ,
substantial improvements will bemade inthefollowing advanced
genetic technologies :
-Newreagents ,such asrestriction enzymes ,
-Methodology forcloning large DNA fragments and forthe
transfection ofchromosomes ,
-Gene vectors adapted tohuman cells invitro ,
-Methods for thedetection ofaparticular gene inacell ,
-Newcomputer software forthestorage ,collation andanalysis of
DNA sequence data .
Medical and Health Research
TheCommission itself hashadaresearch programme inthemedical
andhealth field since 1978 ,and itssteady enlargement hasbeen a
very significant one .Thecurrent Medical andHealth Research
Programme (1987-1991 )isthefourth one ,(MiTR4 ),and thegrowth of
theprogramme clearly reflects both theincreasing knowledge ofit
inMember States andtheincreasing interest ofresearch workers in
taking part intransnational collaboration through "Concerted
Actions "without theaward ofdirect research support from theEC:
Programme Duration NoofConcerted
ActionsNational teams
participating
First 1978-1981 3 100
Second 1980-1983 7 230
Third 1982-1986 34 1,400
Fourth 1987-1991 72 2,500 +
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Themain reasons forconducting MHR4 bymeans oftheconcerted
action method arise from thefollowing twofacts :
.most national research programmes inthefield ofmedecine and
health consist ofalarge number ofrelatively small projects ,
predominantly orientated todisease-related targets andcarried
outbymany scattered andrelatively small research teams ,often
working independently atuniversities ,hospitals ,etc .
.there isnotyetacannon health policy and ,therefore ,the
existing national research policies /strategies differ widely as
between thenational organizations competent inmedical and
health research .
Accordingly there arealso differences inthestructure ofthese
organizations aswell asvariations intheir ways ofworking ,of
categorizing research work atnational level ,andofctefining
priorities .
Theprincipal characteristics ofsuch acoordination programme are
that the Member States themselves :
.select theresearch projects forcoordination atCommunity level
andhence participate wholly orpartly intheprogramme according
totheir interests andavailable facilities ;
.execute theactual R&Dwork intheir participating institutes
andtotally finance itfrom national resources according tothe
rules andprocedures applicable totheir national programmes ;and
.consequently determine thescale ofthecoordinating activities
andensure theoverall programme management .
TheCommission isresponsible forthecoordination atCommunity
level ofthenational research contributions totheprograimie and
thefinances needed forthat purpose ,which aremodest (about 3-4
%oftheglobal costs oftheresearch contributions from theMember
States )butofhigh return value duetotheir great catalytic
effect .IntheECitisestimated that theyearly global
expenditure onhealth care isatleast 200,000 million ECU ;ofthis
sumaround 1,500 million ECU isspent onmedical andhealth
research .
The MI3R4 programme aims atpromoting :
.Community actions injointly defined research areas considered
critically relevant tothesolution ofmajor health problems ,and
.Coordination ofnational research policies /strategies through
programme implementation by,orinclose association with ,the
competent research organizations oftheMember States .
Themain objectives ofthis European collaboration areto:
-optimize thecapacity andeconomic efficiency ofhealth care
efforts ,andthus tocombat their steadily mounting costs ,by
initiating orimplementing concerted projects indefined areas
considered ascritically relevant tothesolution ofmajor health
problems andtheir effects onoccupational health ;
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-15-
-increase theefficiency ofrelevant R&Defforts intheMember
States through themobilization oftheavailable research
potential ofnational programmes andthrough their gradual co¬
ordination atCommunity level ;and
-improve scientific andtechnical knowledge intheR&Dareas
selected fortheir importance byalltheMember States ,andto
promote itsefficient transfer into practical application ,taking
particular account ofpotential industrial andeconomic
development intheareas concerned .
Specific research andcoordination EGprogrammes areadvised upon
byManagement andCoordination Advisory Committees (CGCs ),andthe
MHR4 programme hasCGCNo9which isitself entitled "Medical and
Health Research ".Itismade upofsenior medical ,scientific and
administrative Member State representatives whowork atpolicy ¬
making levels intheir owncountries ,andthey aretherefore well
qualified ,together with their own nomin£ited national experts ,to
consider future health research needs fortheDC.They accordingly
setupearlier in1988 special Programme Working Parties (made up
ofexperts inthesubject fields within the sixMHR4 research
Targets )toreview thecontent ofthefourth programme andtohelp
toestablish asabasis fordiscussion thesubjects tobeincluded
inthe fifth programme ,(already being planned for1992-1996 ).The
deliberations ofall theexpert Working Parties were considered by
theparent CGC inJune 1988 ,and aconsolidated document agreed
entitled "Research Gaps and/orResearch Opportunities ".This
expresses intheform ofresearch needs thecurrent state ofthe
art inMedical andHealth Research intheopinion ofthemost
senior ECcommittee inthis field ,andaccordingly itwarrants
inclusion infull inthis Annex .Tne order follows that ofthe six
research Targets formally agreed upon prior totheapproval ofthe
MHR4 programme in1587 ,andthose Targets provide between them a
full coverage ofMedical andHealth research :
1.) TARGET 1.1 CANCER RESEARCH
Area 1.1.1 Cancer research training scheme
Inorder topromote training incancer research inEurope ,afellowship
programme isconsidered tobeanextremely important andeffective means of
support ;this isthesingle most immediately constructive measure which can
betaken ,andthefirst 22fellowships were awarded inJune 1988 .
Workshops toprovide forfurther education ofEuropean oncologists will also
bemost valuable .
Area 1.1.2 Clinical treatment research
Support forclinical treatment research hassofarbeen channelled mainly
through theEuropean Organization forResearch andTreatment ofCancer
(EQRTC ),but itcould also bedirected towards other groups ifsufficiently
premising projects aresubmitted inthefuture .
Area 1.1.3 Epidemiological research
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Main areas forresearch oncancer epidemiology intheECcould best be
determined onthebasis oftliree criteria :theglobal importance ofa
particular problem which could betackled byEuropean scientists ;the
existence offavourable conditions intheECasawhole orinpart forthe
study ofspecific cancers orofexposure toparticular carcinogenic
substances ;andtheexistence ofEC-specific cancer-related public health
problems .
Area 1.1.4 Early detection anddiagnosis
Development ,orfurther development ,ofmethods regarding :
Colorectal cancer
Prostatic cancer
Malignant melanoma
Early diagnosis ofcancer using monoclonal antibodies
Radioimmunoasssays ofvarious markers
- DNAanalysis with probes
Chromosome analyses .
Regarding breast cancer andcervical cancer ,major questions remain open :
Specific methodological aspects
Social aspects ,e.g. compliance
Evaluation ofscreening andearly diagnosis programmes
Exchange ofinformation between various screening groups .
Area 1.1.5 Drug development
Clinical testing ofhigh-technology biological products ,especially of
those products which cannot betested inexperimental animal tumour
systems .Examples areinterferons ,cytokines ,interleukins ,growth
factors ,etc .
Preclinical studies inhuman tumour xenografts innude mice
Tumour targeting ,using synthetic microspheres ,liposomes and
monoclonal antibodies linked tochemotherapeutic agents ,cell-toxins
orradio-active isotopes
Development ofthemethodology forlarge-scale chemo -intervent ion
studies ,(with retinoides forinstance )
Invitro studies onhuman tumour cells forpreclinical screening .
Area 1.1 .6Experimental (fundamental )research
Oncogenes ,growth factors andtheir receptors ,cytokines
Anti-oncogenes andrepressor-substances
Gene régulation
Hereditary cancers
Genomic changes incancer cells
DNA-repair
Cell adhesion and de-adhesion
Plasma membrane composition andcell surface molécules
Proteases ,sécrétion andrégulation
Angiogenesis factors
Viral integration inthegenome
Soluble mediators .
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17-
2).TARGET 1.2 AIDS RESEARCH
This Target issorecent that what follows is,exceptionally ,alist ofwork
planned oralready inprogress in1988 -theresearch gaps and/or
opportunities thus mainly fall between thevarious headings below .
Area 1.2.1 AIDS Disease Control and Prevention
1.1 Monitoring oftrends ofHIVinfections inspecific population groups
1.2 Statistical analysis andmathematical modelling ofHIVinfections
1.3 Heterosexual transmission -prospective follow-up
1.4 Prospective study ofchildren born toHIV-positive mothers
1.5 Assessment ofpreventive strategies
1.6 HIVinfections among intravenous drag abusers .
Area 1.2.2 Viro -immunological Research
2.1 Production andassessment ofpurified research reagents
2.2 Testing andquantitation ofHIVinfections ,(antigens ,antibodies
and nucleic acids )
2.3 Pathophysiology andimmunology ofHIV-related diseases
2.4 Inmunogenetics ofAIDS
2.5 Design ,synthesis andevciluation ofnewantiviral compounds
2.6 HIVvariability atgenomic ,antigenic andbiological level
2.7 Vaccine davelooinent
2.8 Development ofanimal models ,(excluding chimpanzees ).
Area 1.2.3 Clinical Research
3.1 Clinical trials onopport unis ticinfections
3.2 Oral problems related toHIV infections
3.3 Clinical studies and trials ofHIV infections .
3.)TARGCT 1.3 AGE-RE !ATi-D HIAJ.TH PROHfJjg S
Area 1.3.2 isconsidered tobeparticularly relevant topresent and fut’ire
needs ,ashasalready been mentioned earlier .Although diseases occurring at
allages need research studies ,andtheMull programme provides for chis ,an
emphasis will beplaced onthose diseases ofparticular relevance tothe
increasing proportion ofolder people inMember State populate ons .
Area 1.3.1 Reproduction
- Environmental andgenetic influences enreproduction anddevelopment
Male reproductive functions with specific reference toinfertility .
Area 1.3.2 Ageing andDisease
Identification ofthebiological ,psychosocial ,cultural ,
environmental andeconomic determinants ofhealthy ageing ,e.g. cross -
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-18-
national longitudinal studies todescribe theage-related transition
from health andautonomy through handicap todependence
Identification ofrisk factors foranolder person 'sloss ofautonomy ,
andminimization ofthat risk through preventive measures andmore
effective services ,e.g. community intervention studies onelderly
populations
Production ofmeaningful data which canbecompared internationally
Multidimensional assessment offunctional disability .
Multidisciplinary activities will beparticularly encouraged .
Area 1.3.3 Disabilities
Prevention ofdisability
Prospects forthetreatment ofdisability where thepresent state of
knowledge permits
Strategies formedical andsocial care .
4.) TM85ET 1.4 BWHOaMEm 1AND LLEFE-ST£LE RELATED HEALTH PRQBLB4S
Area 1.4.1 Breakdown inhuman adaptation
Health risks assessment
Early pathological markers ofenvironmental exposure (mechanisms of
homeostatic breakdown )
Research into environmental andlife-style factors relating to:
.Cardiovascular diseases
.Neurobehavioural andneurotoxicity problems
.Biological monitoring ofindividual exposure
.Iimvonotoxic ity
."Sick building syndrome ".
Area 1.4.2 Nutrition
Methodological issues ofthenutrition-health relationship
Research into objective biological markers ofthose dietary patterns
which could berelated tospecific diseases
- Evaluation oftheeffects ofdifferent national prevention prograitmes
atEClevel
- Research into theeffects ofcertain food products ,ofchemical
additives andofcontaminants including human milk .
Area 1.4.3 Consumption ofillicit drugs
(Illicit drugs ,tobacco ,alcohol andprescribed drugs )
Comparable databases
Monitoring ofschool-age populations
- Drug abuse andthe iitmune System
Detection oftheeffects ofnewly-synthesized drugs ofabuse
- Evaluation both ofexisting treatment prograitmes such asmethadone
prograitmes andofsocial rehabilitation orself-help prograitmes
Abuse liability ,i.e. thefactors affecting themaintenance of
compulsive drug-seeking behaviour
308

Changes inlife-style duetoEuropean mobility anddrug consumption
Evaluation oftheimpact ofcompletion oftheECInternal Market ,tax
harmonization ,andnational drug control policies .
Area 1.4.4 Infections
Hospital infections
- Hypersensitivity andallergy
Chronic respiratory distress andasthma
- Enteric infections (immune response ;useofmunicipal sludge in
agricultural applications ;"Montezuma 1srevenge ")
- Users ofillicit drugs
Congenital toxoplasmosis
Infectious mononucleosis
- Légionnaires 1disease
Lyme disease
Tumour patients .
5.)TARGET II.1MfcDICAL TECHNOLOGY DEVELOPMENT
Area II.1.1 Diagnostic Methods andMonitoring
Area II .1.2 Treatment and Rehabilitation
Simplified and low-cost technology
- Ambulatory monitoring technology .
Area II.1.3 Tec'nnical and Clinical Evaluation
Lithotripsy
Percutaneous transluminal coronary angioplasty
Newbiomaterials andimplants
Appropriate techniques fortherelief ofurinary incontinence
Appropriate techniques fortherelief ofspeech impairment .
6.)TARGET II.2HEALTH SERVICES RESEARCH
Area II.2.1 Research onprevention
Diseases ofthelocomotor system such asarthritis andlowback pain .
Area II.2.2Research oncare delivery systems
Appropriate care forterminally ilipeople
Impact of"non-orthodox "medicine (e.g. homoeopathy ,acupuncture ,
chiropractice )onhealth care expenditure .
Area II.2.3Research onhealth care organizationBiomédical signal acquisition
Imaging techniques .
3Ü9

-20-
- Community expectations andconsumer participation inhealth care
organi zation
Health care indisaster situations
Health interview surveys aspart ofhealth information systems
Quality assurance inhealth care .
Area II.2.4Health technology assessment
Health scenarios inrespect oftechnological envelopments andhealth
economy
Economic appraisal linked with clinical outcome ,both incondition -
specific andingeneral health status .
InplsDentation
Thecontinued expansion oftheMHRprogramme along thelines mentioned above
will implement thewishes oftheMember States with regard tohealth research ,
andthesuccess ofthis programme isclearly shown bythesteadily increasing
numbers ofEuropean terms wishing towork onatransnational basis .Allmember
countries participating in'COST *(European Cooperation inthefield of
Scientific andTechnical Research )areeligible totake part intheprogramme
orinanycombination ofitssixresearch Targets ;inaddition totheECMember
States ,five other COST members arealready participating ,namely Austria ,
Finland ,Norway ,Sweden andSwitzerland -allofthese have chosen towork in
between three andfive ofthesixTargets .Informal liaison arrangements also
exist with the National Institutes ofHealth inthe USA andwith the Canadian
national health research authorities .
ooooo
310

1 ANNEX 9
Nuclear Fission energy -Safety
Introduction
The Countries ofthe Community ,because oftheir different degrees of
energy dependance and levels ofeconomical development have applied
different energy policies .The disparities found during the70'shave
lately increased after theChernobyl accident .However agreat number
ofnuclear power stations have been built inEurope .Initially they
were ofthegas-graphite type ,followed bythe light water reactors at
thebeginning ofthe 70'swhile thedevelopment ofliquid metal fast
breeders wascontinued .Atthe same time ,apowerful nuclear industry
wasdeveloped inthemost committed countries (France ,United Kingdom ,
W.Germany )both inthe construction ofpower stations and ofthe
upstream and downstream fuel cycle .Thepower stations which have been
commissioned ,namely the light water reactors have reached aremarkable
degree ofmaturity ,both intheir design and their exploitation .While
this maturity hasbeen confirmed the national R&D programmes financed
bypublic and community funds focussed onsafety aspects ofthe
protection ofman and the environments against specific development
aspects .Although theproduction ofnuclear energy compared tooiland
coal isless polluting formanand theenvironment ,this evolution was
logical because of the potential risk bywrongly controlled useof
nuclear energy and incase ofanaccident .The TMIaccident intheUSA
in1979 confirmed this trend .The impact ofTMIonpublic opinion has
revived inmost of the European countries the worries of the
Ecologists’ movement toward nuclear risks .This preoccupation involves
nuclear power stations ,fuel cycle facilities ,problems ofstorage and
theelimination ofradioactive wastes .
TheCommunity 'sactivities inthis field derive from the Euratora Treaty
that recognized thedevelopment ofastrong European nuclear industry .
This development was tobeachieved with respect tohealth ofthe
public andofinvolved workers .Regarding this acertain number of
arrangements were foreseen inchapter IIIoftheTreaty .
Atpresent the Community Research Programmes inthenuclear energy
fission field aremainly related tosafety and radioprotection ;the
exceptions are theprogramme onthe nuclear fuel and theactinides ,
part ofwhich isrelated todevelopment of fast reactors and the
programme onsafeguards andfissile materials management that supports
international activities controlling the peaceful utilisation of
nuclear energy .Research onradioprotection hasbeen amajor Community
action since theenforcement ofthe Euratom Treaty .Research onthe
safety ofreactors ,onthemanagement andstorage ofradioactive wastes
andonthedecommissioning ofnuclear power stations ,where Community
action isvery important ,will beexamined intheworld context and
also intheCommunity perspective .
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2
A.Reactor and Safety
1.Principal objectives
Thesafety ofreactors concerns the design ,the construction and the
operation ofpower stations ,and it isachieved byacting ontwo
levels :the prevention of accidents and the reduction of the
consequences ifthe preventive measures were notable toavoid the
accident .Themeasures applied toarrive atthese objectives are
largely based on the results ofthe research programmes .The
orientation ofthese programmes has been influenced as far asthe
safety ofwater reactors isconcerned bytheTMIaccident .Before TMI
this type ofpower station had acquired ahigh degree ofmaturity .
Prevention was directed toward abetter understanding and improvement
ofthequality andreliability ofmaterials ,ofcomponents andsystems
rather than improvement at the level ofdesign .The limitation of
accident consequences was restricted to the area ofdesign basis
accidents ,that isthose events which could bedealt with bythesafety
systems working asassumed inthedesign ofpower stations .
After TMI ,emphasis shifted towards the prevention ofaccidents by
systematic utilisation ofexperience and ,because oftheimportant role
played bytheoperator inthe development ofthis accident ,onhuman
factors .Quite anumber ofstudies aredevoted tohuman reliability .
There isanattempt tosimulate therole ofoperators andtoinclude
them inrisk studies and probabilistic safety studies ,where the
principal aim istoverify that allpossible scenarios ofincidents and
accidents have been taken into account inthedesign and theoperating
rules .Since TMI the limitation ofconsequences ofaccidents has
shifted towards thestudy ofsevere accidents beyond thedesign basis
inorder toevaluate the extent ofexisting safety margins and to
optimise accident management .The Chernobyl accident hasnotchanged
this orientation ofsafety which ispresented inaschematic form but
hasgreatly increased thenecessity totake into account more andmore
severe accidents whose probability ofoccurrence isvery low .Forthe
fast breeder reactors the problem ofsafety isconsidered differently
andtheresearch programmes areintended toanalyse thephenomenology
ofthe accident andthebehaviour ofmaterials ,components andsystems
with theaimofimproving thedesign andconception offuture plants .
Onecansaythat nowresearch onthe safety ofproven reactors is
justified at the operational level ,in normal and accidental
conditions ,andforreactors now being developed atthe design and
cons truct ion leve 1.
2.Thesafety ofreactors outside Europe
Atthe beginning ofthe 60'sthe USA launched avery important
programme ontheconstruction oflight water power plants .In1976 ,
this programme wasslowed down bytheCarter administration while the
development offast reactors wasretarded andwas practically stopped
in1979 after the TMIaccident .Thedevelopment andconstruction of
American light water reactors wasbased onmulti-disciplinary research
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programmes .Alarge part ofthis research dealt with safety ,notably
all thework used bytheNRC toestablish the detailed regulations for
theconstruction andoperation ofthese reactors .The results ofthese
programmes have been largely available tothose countries importing
reactors from USA ,intheframe oflicensing andbilateral agreements .
In 1979 the TMI accident provoked areorientation ofresearch
programmes on safety intheUSA andother countries .Without doubt the
TMI accident has led toasystematic internationalisation ofAmerican
programmes with the direct financial participation ofEuropean and
Japanese partners and the involvement of these partners inthe
execution of these programmes inAmerican laboratories .Atthe time of
the TMI accident theAmerican budget for the research ofwater reactors
was 50% bigger than European budget .When newprogrammes following TMI
hadbeen completed this budget was decreased and nowone cannotice
both on the industrial level andgovernmental organisation atrend to
R&Dresearch oninherently safe reactors .
TheJapanese have atpresent abudget for R&D for water and fast
reactors similar to the European budget of 1970 for light water
reactors .Japanese programmes have lately been disclosed toEuropean
countries as ameans for international cooperation .There islittle
information onresearch programmes ofUSSR but it isclear that their
accelerated construction of nuclear plants of theVVR type (light
water )andRBMK (graphite light water )and their development work on
fast breeders arebased onavery bigresearch programme .However the
Chernobyl accident caused byaRMBK reactor has shown that theUSSR’s
main preoccupation isnot at the same level as in theWestern
countries .Since theChernobyl accident there isanoverture from the
Soviets for international cooperation inthe field ofresearch namely
onnuclear safety .
Besides the above mentioned three countries Canada hasdeveloped
important research programmes onsafety for theCANDU type reactors ,
heavy water moderated and light water cooled .
3.The safety ofreactors inEurope -what isEurope 'sposition inthe
international context -successes and failures
Thedevelopment ofEuropean nuclear programmes hasonly been possible
due toamajor effort attheresearch level .One must consider onthe
one hand the generic safety research andapplied research onlight
water reactors and ontheother hand the R&D offast breeder reactors .
Inthe first area the level ofcompetence ofmember states reflects
more orless thesize oftheir nuclear power programmes .
The German ,French ,British and Italian programmes are multi ¬
disciplinary andcover many problems inconnection with safety .The
British programme hasbeen directed lately towards specific problems of
water reactors but ithasprofited from theexperience acquired atthe
endof the60’s onSGHWRs .The Italian programme issmaller than those
ofGermany ,France and United Kingdom .The research activities in
Belgium ,Netherlands andSpain areofamore specific nature .
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Originally European countries relied very heavily onAmerican
programmes through cooperation agreements and the exchange of
information permitting Europeans toconfirm American results and to
acquire knowledge andalevel ofcompetitive competence .Specific areas
such asthe strength ofcomponents ,structure ofprimary circuits ,
study ofdesign basis accidents and thermo-hydraulic phenomena were
favoured .Programmes inW.Germany and France have progressively
increased andnowbenefit from asteady exchange ofinformation with
theUSA .In1978 prior totheTMIaccident ,theUSAboasted abudget on
research ofsafety reactors that was 50%higher than that oftheall
theMembers States oftheCommunity combined .
The TMI accident of 1979 shifted emphasis ofEuropean research
programmes towards severe accidents ,until then neglected due totheir
lowprobability ofoccurrence .Special attention and much work was
spent ontheevaluation ofsource terms invarious levels ofaccidents .
Thermohydraulic accidents focussed on loss ofcoolant accidents ;the
methods ofprobabilistic safety analysis and evaluation ofrisks were
developed and improved . The inclusion of the human factor asa
contributing element ofsignificant value toglobal risks became the
subject ofmany investigations .
By1985 asthese programmes reached completion ,there was atendency to
theallocation offunds tosafety research programmes inboth theUSA
aswell asthe countries of theCommunity . TheChernobyl accident
however put astop tothis tendency byrenewing the necessity tostudy
thephenomenology andsevere accident management more systematically .
TheJRC research programme onthesafety ofreactors progressed along
parallel lines .In1987 theamount expended by theMember States and
theJRC onthe safety ofwater reactors wasmore than twice that of
theUSA (238MECU to113MECU ofUSA).The JRCprogramme alone accounts
for 15%ofthecombined European effort .
Proven reactors ,especially light water reactors have been an
undisputed success inEurope ,notonly onanindustrial andtechnical
butalso onasafety level .European power plants that accumulate more
than 1000 reactor-years ofoperation can boast anexistence free of
severe accidents .Their design safety and regulation safety areona
parwith American plants andtheir operational safety ,that ofcontrol
andoperation isbetter than intheUSA where acertain complacency
contributed toTMI .
Theconcentration ofoperating responsibility toalimited number of
companies ,thestandardisation ofequipment andvigilance atallstages
have allowed Europe toattain ahigher level ofreliability andsafety .
Asaresult ,European research programmes arenowcompetitive with
those intheUSA tothe point where the latter iseven envisaging
participating in aFrench Community programme "PHEBUS-f ission
products” .Inthepast itwasmainly European partners whoparticipated
inUSAprogrammes .
Inthearea offast reactors .R&Dactivities arevery closely connected
andarecoordinated inthe frame of the Club ofFive consortium
(France ,RFA ,UK,Italy andBelgium )andthescientific andtechnical
results areatthe level oftheextensive resources utilized .TheJRC
participates significantly inEuropean research inthearea offuels ,
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5
andanalytical andexperimental activities in themodelling oflarge
core accidents . As far as the fast breeder isconcerned European
success injoint development between France ,RFA and Italy ofthe
SUPERPHENIX prototype plant and itsfailure would certainly question in
thefuture this type of reactor : in fact the political influence
caused by theChernobyl accident inconjunction with anaccident in
198?oftheauxiliary system ofSUPERPHENIX ,which hadnothing todo
with the safety of thestation ,risks todelay oreven jeopardise the
commercial advent of this reactor and questioning the EFRreactor
(European Fast Reactor )which was launched byagroup ofutilities of
the countries ofthe Club ofFive (EFR'JG ).
4.What remains tobedone inEurope ?Which are the gaps to fill and
what are the new opportunities toseize ?
Research on thesafety oflight water reactors has tobepursued in
Europe .Agreat number of theprogrammes launched 10years agohave
finished orwill finish soon ,especially thework onthermohydraulics
and source terms .However ,the Chernobyl accident reactivated the
necessity of taking into account thepossibility ofsevere accidents ,
and leads totheanalyses ofthephenomology ofless probable accidents
within an increasing number ofaccidental scenarios .Thephenomena for
which some research will have to beconducted more thoroughly falls
into the following areas but the list isnotexhaustive :cooling of
corium inside andoutside the vessel ,the phenomena ofinteraction
between corium andconcrete resulting intheproduction ofaerosols ,
phenomena inconnection with the behaviour ofhydrogen inthe
containment ,aleaktightness ,possibility ofventing and filtration and
evaluation ofcorresponding releases .
The results ofthese investigations should beused todefine severe
accidents management procedure ,and methods ofsophisticated remote
handling should beworked out .The study ofbehaviour and modeling of
operators indisturbed situations toinclude inprobabilistic should
also bepursued .
Inrecent years some studies have been carried out foreconomical
reasons onthepossibility ofextending the life oftheplants to35-40
years instead ofthe25-30 years initially foreseen .Some research work
already exists on the structure ofprimary circuits especially the
steel ofthevessels .Also other materials ,components and systems will
be involved where it isnecessary tostudy thecombined effect of
ageing inhazardous environments (radiation ,temperature ,etc...). In
spite of theimportance ofthese research topics which need some more
investigations ,thehigh degree ofperformance andreliability ofthe
present installations istheconsequence ofthesolution ofmost ofthe
problems inthecorresponding research programmes . It islikely that
the level ofsafety research activities will decrease progressively .
Therefore one should understand thenecessity tomaintain ateam of
competent researchers andresearch facilities with theaim toutilise
efficiently the experience accumulated ,that is tosayallknowledge
pertaining totheoperation ofthe plants can beutilised toimprove
reliability and safety .This team should beable tocope effectively
andpromptly incase ofanaccident stuation .
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6
Fast breeder reactors safety research isstill being conducted ,as
opposed to that of light water reactors ,and thework will depend on
thepolitical choice ofthemember states regarding thefuture ofthis
type ofreactor .Inthe possible hypothesis that adecision isso
delayed astocorrespond to amoratorium the salvage ofacquired
knowledge will beobtained only bymaintaining aminimum activity and
competence .
Asfarasnewopportunities tobetaken ,increased interest hasarisen
with the reactors of thenew generation i.e. :optimisation offuel
utilisation (spectral-shift reactors ), new designs ofimproved
inherently safe reactors (power limited to100MWe).Thedevelopment of
these reactors will require studies andresearch onsafety .Itisnoted
that interest has been shown forsmall inherently safe reactors by
smaller countries andbythose where theChernobyl accident hasmade an
impact .
Asregards the energy strategy one canseethat theproduction of
nuclear energy isanecessity intheshort term foracertain number of
European countries and inthe long term formost ofthem .This form of
energy innormal conditions ofoperation isless polluting than other
forms ofenergy of fossil origin .Requirements inconnection with the
protection ofthepopulation and the preservation of theenvironment
are thenecessary counterparts forthedevelopment ofhuman activities ,
inparticular industrial activities .This iswhy theCommission ,
confronted with thepotential risks ofnuclear energy utilisation from
badcontrol orincase of anaccident ,had inthe 70'sgiven broad
priority toactions inthearea ofsafety .
Atpresent concerning energy strategy ,some member states have made
some irreversible choices ,others under thepressure ofpublic opinion ,
particularly after theChernobyl accident ,arehesitating orareonthe
verge ofrenouncing theuseofnuclear energy .
TheCommission must play its role as aEuropean public service in
reinforcing its activities and initiatives inthearea ofreactor
safety inorder toensure that thecountries ofthe Community whohave
chosen nuclear energy have taken all thepossible guaranties with
regard tothehealth ofthepopulation andtheenvironment and tobring
tothese populations and their neighbours theguaranty ofathorough
independent evaluation .
The Commission’s actions should also help the countries of the
Community whoareasyetnon-nuclear toreach adecision notinfluenced
bypressure groups andsubjective psychological arguments but based on
objective technical arguments .
Asfar astheaction tobeinitiated orperceived tobepursued atthe
Community level onecanmake thefollowing considerations .Inthepast
Community research onreactor safety covered generally speaking the
area where member states carried outnational programmes .TheCommunity
contribution wascomplementary tothis programme andbenefited from the
support ofcountries which did not have alarge research
infrastructure .Inthefuture taking into account thegeneral trend of
internationalisation ofsafety research and acertain decreasing of
funding ofthese activities ,itwill assist most probably inabetter
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7
optimisation of the existing human resources and facilities .
Accordingly ,Community research can play asignificant role andwith
theJRC has theappropriate means todoso .
Asanexample one can choose twocategories ofaction which could with
advantages betreated atCommunity level :
-problems where the phenomenology transcends frontiers :thesource
term isatypical programme inthis connection
-general safety problems not specific tocertain types ofplants :
mechanical and material problems ,aging ,probabilistic risk
assessment methodology human factors ,phenomenology of severe
accidents .
Common exercises such asRound Robins (forexample thePISC programme )
orbenchmark exercises (such asthose carried out on PRA orsource
terms )should be used tocarry out such actions .One should foresee an
extension ofthis type ofactivity to exercises ofcomparison of
methodologies followed indifferent countries ,comparison ofthesystem
ofcodes employed ,modelling ,safety margins etc...The aimbeing the
demonstration of the equivalent the margins of safety invarious
countries oftheCommunity and anincentive inmember states tochoose
common analytical tools (modelling code packages )validated andproven
byall .Inaccident management and thereduction ofradiation doses of
workers the progress ofremote handling techniques will play an
important role .The proposition of the Commission for a
Telemanipulation programme in hazardous and disordered nuclear
environments (TELEMAN )will contribute to the development ofmuch
needed knowledge .
The development of second generation reactors ,namely those with
inherently safe characteristics and arange ofadvanced reactors (high
temperature reactors ),will commence intheyears tocome andwill
demand big efforts from constructors .Efforts will need tobe
accompanied by studies and research in the area ofsafety .The
Commission should support theaction carried out in this direction and
participate inrelated studies .
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8
B.Nuclear fuel cycle ,Radioactive waste management and
Decommissioning ofnuclear installations
1.General
The nuclear fuel cycle includes the total ofactivities which is
necessary forthesupply offuel fornuclear power plants ("front-end "
ofthecycle )andforthetreatment andpossibly recycle ofspent fuel
("back-end "ofthecycle ):Front-end :-■Extraction andtreatment of
uranium ore -Conversion into appropriate form for enrichment -
Enrichment (increase inU-235 contents )-Manufacture offuel elements
forreactors ;Back-end :-Reprocessing ofspent fuel (possibly )-
Semanufacture offuel elements (possibly )–Management anddisposal of
theproduced waste (andofthespent fuel ifnotreprocessed )
Some ofthese activities raise from classical industrial sectors ,e.g.
mining industry ;others are special industrial activities often of
high technology character such asenrichment andreprocessing ;finally
themanagement and thedisposal ofradioactive waste produced bythe
nuclear power plants and the associated fuel cycle facilities ,to
which should beadded the decommissioning ofnuclear Installations
shut down ,areactivities linked with environmental safety andprotec ¬
tion and don't contribute (atleast directly )tothe development of
nuclear energy .All these industrial activities are characterized by
the presence ofradioactivity and bythe necessity torespect the
strict rules ofradioprotection .
Mastering ofthe front-end offuel cycle emancipates from thedepen ¬
dence onsupply ofenriched uranium Mastering oftheback-end ,charac ¬
terized bythemastering ofthereprocessing process ,gives access to
plutonium ,governs thesupply offuel for fast reactors andpermits ,
onlonger term ,aquasi-total Independence innuclear energy matters .
Such mastering however has appeared tobeout ofreach for themajo ¬
rity oftheCountries ,because ofthehigh technology and theimpor ¬
tant Investments necessary and finally because ofthe links existing
between theapplied technologies and theproduction offissile mate ¬
rial formilitary usewhich give rise tovarious constraints (secret ,
international treaties like NPT).
Insummary ,the nuclear fuel cycle Includes anumber ofactivities
often ofahigh technology character andofstrategical andcommercial
Importance .
2.Situation outside the Community
Outside theCommunity ,theUSA not only mastered but had theworld
monopoly for the production ofenriched uranium from after thewar
until the early seventies .Since then ,the Federal Government
followed apolicy ofdisengagement ,leaving totheprivate industry
thepossibility tofinance onitsownboth theR&D and thenew fuel
cycle facilities .Given this situation and theone onthedomestic
nuclear market ,there was noreply from the private industry ;the
civil reprocessing industry has been stopped and the facilities
dismantled ;the enrichment industry survived thanks tothe old
installations which were successively shut down asthey were low
profitable inusing theoldgaseous diffusion technology ;theindus ¬
trialization oftheultracentrifuge process hasbeen stopped ;theR&D
programme isfocussed onthelaser enrichment process which could put
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9
new life into this USindustrial sector bymid ’SO .Today Europe is
exporting enriched uranium tothe USA .One can however state that ,
thanks tothe military programmes ,the USA keep the knowledge toa
level which enables apossible revival bytheendofthecentury .The
management ofradioactive waste isnotmuch developed inspite ofthe
large budget provided bythe electricity producers .All progress is
infact blocked bythecomplex political-social -juridical machinery of
afederal state which isfaced tothe problem ofstoring inone or
several states thewaste produced onthewhole territory .
TheUSSR masters thetotal fuel cycle and isinparticular animpor ¬
tant exporter ofenriched uranium ;reprocessing activities onan
Industrial scale are practised aswell with aview tosupply the
russian fast reactors and for military use ;little detail isknown
about these facilities .
Japan continues with persistence its effort tomaster the total of
fuel cycle phases ;success was already achieved onreprocessing thanks
toaclose cooperation with France which provided the technology and
know-how ;atpresent spent fuel isbeing reprocessed intheTokai-Mura
prototype plant orintheUnited Kingdom and/orFrance ;alarge plant
with acapacity of800 t/yisunder construction atRokkasho Mura and
isscheduled tobeoperational by1995 .Japan considers itnecessary
todevelop the utilization ofplutonium asnuclear fuel inorder to
guarantee itsnuclear independence (Japan has nouranium oremines ).
Japan remains still dependent upon USA and France for supply of
enriched uranium ;however ,aprototype with acapacity of200 tons
SWU/year followed by aplant of1500 tons SWU/year ,using the
ultra-centrifuge technology ,should on 6hort term guarantee the
Japanese supply ;for the long term the advanced enrichment technique
bylaser isbeing studied .Along andimportant effort ismade onthe
management and disposal ofradioactive waste ;vitrification ofhigh
level waste should start from 1990 onwards and disposal ingeological
formations inthebeginning ofnext century .
China masters also toacertain degree the fuel cycle ,mainly asa
consequence ofits military programmes ;anenrichment plant ,by
gaseous diffusion ,isoperational since 1965 and apilot facility for
the reprocessing ofLWR fuel should gointo service in1996 .The
management ofradioactive waste isthesubject ofarecent effort and
along term programme has been launched for the study ofdisposal of
waste indeep geological formations .
India ,Pakistan ,South Africa ,Brazil ,Argentina ,etc .donot master
onanindustrial scale the entire fuel cycle ,but have prototype or
pilot installations forenrichment orreprocessing .Their development
iscurbed byinternational measures concerning exchange oftechnology
with proliferation risk .
3.Situation inEurope -What has tobedone ?
The Community isthe part oftheworld where the fuel cycle has been
mastered atthe most inall its phases ,and developed both onan
industrial scale and inacommercial sense .
Large uranium enrichment facilities areoperational since atleast one
decade ;they apply thegaseous diffusion technique (Eurodif company ,
plant inFrance )ortheultra centrifuge process (Urenco company ,with
plants inthe Netherlands ,the Federal Republic ofGermany and the

10
United Kingdom );they supply Europe and export ontheworld market
this incompetition with the USSR and USA .The enrichment bylaser
which process should replace bytheend ofthecentury the tooexpen ¬
sive gaseous diffusion technique ,issubject toimportant research
programmes ,especially inFrance .Itconcerns here asector ofhigh
scientific qualify andofvery advanced technology ,ofwhich mastering
onanindustrial scale could contribute totheenergy independence of
the Community inthe first part ofthe next century .Taking into
account thedifficulties ,thecost andthestake ,acooperation within
theCommunity could bemost desirable .
The reprocessing ofspent fuel islikewise applied onanindustrial
scale atdifferent levels inFrance ,the United Kingdom and the
Federal Republic ofGermany .The plant atLaHague inFrance isthe
largest intheworld andwould within afewyears beaccompanied by
the Thorp plant atSellafleld inthe United Kingdom and bythe
Wackersdorf plant inGermany ,the latter with alower capacity .A
certain concertatlon exists between these three big ones onrepro ¬
cessing via theUnited Reprocessors company .Finally the industrial
development ofthefuel cycle stages involving uranium -plutonium for
light water reactors isunder way inthese same three countries which ,
only together with Japan ,seem toachieve its complete mastering in
the near future .
The importance ofinvestments toconsent tothese different installa ¬
tions ,inorder toobtain aprofitable capacity ,excludes practically
initiatives from smaller countries .Nevertheless ,other Member States
ofthe Community ,inparticular Belgium ,are closely associated with
thecountries mentioned above onvarious fuel cycle phases (e.g. fuel
fabrication ).
The management ofradioactive waste isinparticular developed and
supported atR&D level inmost ofthe countries ofthe Community
having anuclear programme .(Forexample ,thetwoexisting commercial
vitrification processes are from french and german origin ). The
disposal indeep geological formations islikewise being studied with
large financial means .
Research inthe area ofradioactive waste has been and iscurrently
supported atCommunity level byashared cost programme 1985-1989 ,
with abudget of62million ECUwhich isalready thethird five year
programme onthis subject ,andadirectly research programme 1984-1987
executed bytheJoint Research Centre atIspra .
The shared cost programme Includes ,inits first part ,studies on
waste management and research and development actions onsystem
studies ,treatment and conditioning of radioactive waste ,
qualification ofengineered barriers ,thedevelopment ofrepositories ,
thesafety ofgeological disposal and theelaboration ofmanagement
policies .Asecond part concerns theconstruction and/orexploitation
ofunderground facilities open tojoint activities :in the
underground facility intheclay atMol ,Belgium ,(HADES project )the
Belgian nuclear research centre SCK/CEN cooperates with french and
british companies inthe framework ofactivities supported bythe
Community programme and the tests intheAsse salt mine inGermany
continue with participation from theNetherlands ,France andSpain .
120Theprogramme oftheJoint Research Centre atIspra covers three big
items :management ofradioactive waste and fuel cycle ,safety of

11
waste disposal Ingeological formations and feasibility ofwaste
disposal into ocean sediments .
Moreover ,inall countries having nuclear power programmes there exist
nuclear installations being shut down ofwhich only asmall number
have been dismantled and ,inthe future ,more and more large
installations will arrive attheir end ofnormal lifetime .Research
activities inthis area inEurope were rather dispersed atthe
beginning .Amore systematic and coherent action has been undertaken
atcommunitary level and ashared cost community programme 1984-1988 ,
with abudget of12.1 millions ofECU ,has been put inplace ,which
aims atajoint development ofthe management ofinstallations shut
down and the waste arising atdismantling .This programme covers
mainly ,inits first part ,research and development actions onthe
long term integrity of structures ,decontamination ,dismantling
techniques ,treatment ofspecific waste ,containers oflarge dimen ¬
sions and system studies ,and ,inits second part ,trial ofnew
techniques under real conditions inthe framework ofdecommissioning
operations atlarge scale .
Politico-strategical ,military end commercial aspects have generally
Impeded ordiscouraged possibly Initiatives atcommunity level onmost
ofthe nuclear fuel cycle phases ofwhich some are moreover safe ¬
guarded bysecrets .This explains also the present concentration of
community R&D onactivities having apublic service orsafety charac ¬
ter (Community R&Dprogrammes onmanagement andstorage ofradioactive
waste ,thedecommissioning ofnuclear installations ).
Inthe future ,the main action should remain onsafety and the envi ¬
ronment ,that istosay the storage ofwaste and the dismantling of
installations .Toamuch lower degree than the industrial toxic waste
itistrue ,these are the two main daily nuclear problems inthe
beginning ofthenext century .
With regard tonuclear waste *thenewprogramme 1988-1991 oftheJoint
Research Centre Includes studies onthe treatment and solidification
ofreprocessing waste ,waste characterization and the safety of
geological disposal .Anew five year 1990-1994 shared cost programme
onmanagement anddisposal ofradioactive waste isunder preparation .
The main lines ofthe present programme will bemaintained byintro ¬
ducing some modifications ,for example ,inIncreasing the activities
onnatural analogues and inenlarging thesupporting activities tothe
projects onconstruction and/orexploitation ofunderground facili ¬
ties .
Inthe field ofdecommissioning ofnuclear installations ,the new
shared cost programme 1989-1993 ,approved bythe Commission onthe
19th ofJuly 1988 with abudget of31.5 million ECU ,conserves also
the main lines ofthe previous programme .However ,tothe research
anddevelopment actions ,anaction onqualification andadaptation of
semi-autonomous telecommanded handling systems has been added .The
part regarding practical testing ofnew techniques should becarried
out inthe framework ofdecommissioning operations performed atlarge
scale inthe Member States .
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12
Asregards the basic research supporting the fuel cycle activities ^
research onactinides constitutes anelement ofimportance .
This research implies high cost ,high risk ,licensing problems and
unusual safety precautions ,which exclude universities and conventio ¬
nal national research institutions from entering into the field .It
thus constitutes anexcellent examples for the beneficial effect of
Community efforts providing facilities which otherwise could not have
been available .
Actinide Research ,executed almost exclusively at the European
Institute forTransuranium Elements ,isdealing with theinvestigation
ofproperties ,handling risks and possibilities oftechnological
application oftheheaviest elements inthePeriodic Table ,elements
all ofwhich are radioactive and some fissile .
All the activities related tofuel cycle have tobecarried out in
such away astoguarantee the peaceful use ofthenuclear materials
concerned and thework onsafeguards and fissile materials management
responds toaCommunity obligation toimplement nuclear safeguards in
theframework oftheEuratom Treaty ,theNon Proliferation Treaty and
nuclear material supply agreements with third countries .The JRC
through its research and development programme ,acquires the basic
scientific knowledge and gets acquainted with new technologies needed
toprovide ,later on,aneffective support tosafeguards inspectorates
oftheCommission (DGXVII )and ofIAEA .Fissile materials management
byplant operators ,which has animpact onthe implementation of
safeguards ,will influence the orientations ofthe JRC'sspecific
programme .Efficient cooperation ,including task sharing ,with ESARDA
(European Safeguards Research and Development Association )and with
theUSDepartment ofEnergy ,hasbeen established tominimize duplica ¬
tion efforts inR&D activities .
Inthesafeguards area ,theresearch will beoriented towards :
.The study ofthesafeguards andfissile material management techni ¬
ques and thedemonstration oftheway they canbeintegrated inthe
inspection andplant operation activity .
.The performance assessment Instruments and devices under realistic
field conditions .
Due tothe strong demand for training ofEuratom and IAEA inspectors
inthe use ofmeasurement systems ,substantial increase ofthis
training activity isforeseen .
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C.Radiation Protection .
1)Aims ofRadiation Protection .
Radiation Protection aims toprotect man and his environment from
the possible harmful action ofionizing radiation .Man isexposed to
the following sources ofradiation ofwhich natural exposure followed
bymedical diagnostics are the most important one :
-natural sources (cosmic radiation ,"external "radiation from natural
radionuclides inman 'senvironment , "internal "radiation from
natural radionuclides inthe body including inhaled radon and its
daughter nuclides ),
-exposure inthe context ofradiological medical diagnostics ,
-exposure from industrial activities such as nuclear power
production .
Inline with the expanding use ofionizing radiation innuclear
industries and medicine and the increased concern ofthe public about
radiation risks ,itisimperative that man and his environment be
adequately protected .The persons ofconcern inthis respect are
workers innuclear industries who receive their exposure mainly inan
occupational context and the general public which isexposed primarily
to natural sources and medical diagnostic irradiation .Radiation
protection research isneeded toprovide the scientific background for
the establishment and updating of basic safety standards and
regulations inradiation protection .Such research must also help the
relevant authorities toreach rational decisions onthedevelopment of
technologies involving exposure toradiation and oncrisis management
incase ofanaccident .Radiation protection research ingeneral and
the CEC Radiation Protection Programme inparticular thus have a
central role inall policies related tonuclear development .
Consequently ,research inradiation protection aims todefine more
accurately :
-thevarious sources ofnatural ,medical and industrial exposure ,how
these sources reach manvia environmental and other pathways andhow
they contribute tohuman exposure ,
-the biological effects ofradiation ,particularly from low doses ,
themost prevalent type ofexposure ,aswell asthe consequences of
accidental exposure tohigh doses and how these can beprevented or
treated ,
-the problems related tothe management ofradiation protection of
workers innuclear industries aswell asthe possible consequences
of exposure to the population in the neighborhood of such
installations ,
-the potential radiological consequences ofradiation accidents ,
their management and thedevelopment ofcountermeasures ,
-the realistic assessment ofthe risks from the different types of
radiation exposure ,how they compare toother risks inthe
industrialized society ,and how radiation protection can be
implemented inanoptimal way .
323

2.Kistorv and Present Status ofRadiation Protection :
Radiation protection research andregulatory activities started soon
after the discovery ofX-rays and artificial radioactivity .Interest
inradiation protection research expanded rapidly during the fifties
and sixties inresponse tothe development ofnuclear energy and the
fear ofnuclear warfare .Ithasdeclined somewhat inrecent years ,but
interest inradiation protection has been renewed asaconsequence of
the Chernobyl accident .Radiation protection has been ,inmany
respects ,apacesetter forprotection against other harmful agents in
man'senvironment .Theunderstanding ofradiation exposure ,effects and
risks has made considerable progress ,and radiation protection
philosophy ,regulations and practices have followed closely the
expanding scientific knowledge ,providing astimulus and methods for
protection from other harmful agents .
Nevertheless ,asaresult ofthis progress ,theremaining gaps and
uncertainties have become more apparent ,andother problems have arisen
inrelation tothedevelopment ofnewtechnologies involving radiation
exposure and themanagement ofradiation accidents .Public acceptance
ofsuch technologies will depend onanunderstanding ofwhat radiation
is,how itacts ,what hazards itpresents under operational conditions
and after accidents andhow the benefits ofradiation application are
perceived .Substantial social andeconomic considerations areobviously
involved inthe development oftechnologies involving exposure to
radiation .
The scientific information used todevelop radiation protection
philosophy ,concepts andpractices comes from many various sources and
requires the integration ofinformation from several disciplines .
Research inthe Community isofahigh scientific and technical level
and ,largely asaresult ofthe Commission' sprogramme ,has achieved
alarge degree ofcoordination andintegration .Itiscrucial ,however ,
that adequate research effort becontinued sothat the expertise now
available intheCommunity ,needed for the every-day protection ofman
and essential for crisis management intimes ofanemergency be
maintained inthe future .
Community research in radiation protection contributes a
considerable share ,inthe order ofone third ,tothe worldwide
activities inthis area ,and the interchange ofinformation ,the
discussion oncommon research priorities and even joint experiments
among Community institutes and those inother countries are very
intensive .This interchange hasrecently received aboost through newly
concluded memoranda ofunderstandings bythe CEC with the USA and
Canada .Itischaracteristics for radiation protection that certain
international organizations play animportant role inthe scientific
assessment ofrisks and inrecommendations forregulations ,forexample
the International Commission onRadiological Protection (ICRP ),the
International Commission onRadiation Units and Measures (ICRU ),the
United Nations Committee onthe Effects ofAtomic Radiation (UNSCEAR ).
Community scientists and the CEC Radiation Protection Programme
participate actively and decisively inthe activities ofthese
organizations .
3)The Role ofthe Commission inRadiation Protection
TheEURATOM Treaty has given theCommission animportant task inboth
regulatory and research activities inradiation protection inthe
324

15
Community and has linked these two activities together .Indeed ,since
its conception the Radiation Protection Programme ofthe Commission of
the European Communities has become anintegral and important part of
European research efforts inradiation protection sponsoring directly
more than 30%ofall the relevant research inthe Community and
coordinating about 80%ofthis work .This coordination andcooperation
ofresearch have allowed Member States toconcentrate onthose topics
which they considered ofpriority with respect toenergy production ,
health and environmental protection ,and underlying basic research
while relying ontheir partners inthe Community and the coordination
bytheCommission 'sProgramme forinformation onother subjects orfor
the use ofspecial installations .This complementary structure with
intensive cooperation and very little duplication ofeffort has been
one ofthe most successful aspects ofthe Commission 'sRadiation
Protection Programme resulting notonly inaremarkable interdependence
ofEuropean radiation protection research but also insubstantial
savings toMember States .
4)Future Needs inRadiation Protection :
Protection ofhuman health ,i.e. ,ofworkers andthegeneral public ,
and ofthe environment are goals which will continue tobeimportant
for the future .The Radiation Protection Programme thus remains an
essential element inthe Commission 'spolicies toprotect human health
and todevelop safe sources of energy .Consequently ,radiation
protection research inMember States aswell asthe Commission 's
Radiation Protection Programme should continue atthe present level of
funding thereby maintaining the scientific ,economic and politic
advantages gained bythe Community approach .
Itshould beemphasized ,that radiation protection has now entered
aparticularly critical phase because the number of competent
scientists has declined substantially andwill continue todosounless
support for training and research can beprovided .At atime when
technologies involving radiation ingeneral and nuclear power in
particular meet increasing resistance bythe public ,aloss of
Community expertise inthis field could have economic and social
consequences which could harm the European development to a
considerable extent .
The Commission 'sservices have prepared adocument ofthe Community
Research Needs inthe Field ofRadiation Protection for the Period
1930-1994 .
These needs concentrate on
A)Human exposure toradiation and radioactivity .
-Measurement ofradiation dose and its interpretation .
-Transfer and behavior ofradionuclides inthe environment .
B)Consequences of radiation exposure toman ;their assessment ,
prevention and treatment .
-Stochastic effects ofradiation .
-Non-stochastic effects ofradiation .
-Radiation effects onthe developing organism .
C)Risks and management ofradiation exposure .
-Assessment ofhuman exposure and risks .
-Optimization and management ofradiation protection .
325

-1-
BASIC RESEARCH ANNEX 10
Thespeed ofscientific development inthelater 20th century
dictates that scientists must grapple with processes ofchange
both atthemacro andmicro scale .Soacomprehension ofdynamic
nonlinear andcomplex phenomena isfundamental toprogress in
all spheres ofscience and technology .Inmany cases the
greatest benefits from science have been derived from what was
originally Judged tobe'useless' scientific enquiry .Despite
the ever decreasing gap between fundamental investigations and
economically significant applications theview isstill current
among science policy makers andIndustrial leaders that science
(atleast publicly funded science )hastobepractioed notfor
thepursuit ofnewknowledge but forthesake oftechnological
and industrial applications with direct economic benefits .By
itsvery nature basic research moves into unknown territory and
fewcanjudge inadvance what might bethefuture consequences or
applications ofthenewknowledge tobeacquired .ItwasFaraday
who most neatly compared asking about the usefulness ofnew
scientific discoveries with asking what anewly bom baby was
good for .Totake acrude example ,ifpast scientific research
hadbeen limited tomlsalon-oriented andsocially relevant topics
wemight now have better candles and oil lamps than our
forefathers butnothing making useofelectricity .
There isnoroom for complacency however .Although Basic
Research has led tobreakthroughs onmany fronts and isboth
fuelling transformations insociety andhelping ittoadapt to
these changes itissubject tofashion andinertia atoertain
points .Thus there are topics which for years polarise the
efforts of hundr eds of scientists .In the same way ,
technologists andindustrialists find themselves trapped inthe
inertia andrigidity ofa^system where attitudes still block free
interchange between countries ,between disciplines andbetween
theacademic andindustrial sectors .Sothere isatendency to
pursue marginal improvements infields which arealready well
developed rather than more topical orpromising themes .Itmust
be that many politicians ,often more interested inshort
term results are also too little oriented tosubstantial
innovations .
Inthis context Europe ,with itswealth ofhumanistic ,scientific
andtechnological culture ,with itspluralism anddiversity of
traditions ,its methods oforganization and production ,its
patrimony ofknowledge ,experience ,history ,professionalism and
n-rha -ncentres (asProfessor Colombo ,Chairman ofENEA ,wrote ten
years ago)isideally placed ,indeed better placed thananyother
326

-2-
zona ,tomaintain afresh dynamic and unfettered approach to
Basio Research .Andwemust dosoifwearetokeep abreast of
social transformations ,live up to the expectations that
Europe 'scitizens have ofitsscientists andofitspoliticians ,
and overcome the continuing imbalances intheworld economy so
thatancountries candevelop their full potential .
For the purposes ofthis report the rapidly expanding and
combining fields ofscience have been grouped into four main
areas :
1)-Physics
2)-Mathematics
3)-Chemistry
4)-Earth Sciences
This isbynomeans toignore the importance oflife sciences
which are dealt with inother annexes tothis document .

-3-
1)PHYSICS
From thesubnucloar world ,ofelsnentary particle tothewhole of
the cosmos ,physics examines phenomena across arange whose
breadth and diversity istruly breathtaking .Although itis
concerned with fundamental questions about the origins ofthe
universe and the structure ofmatter ,its impact extends far
beyond thesatisfaction ofman'sdesire tounderstand nature .
Physics bears aspecial relationship with most ofthesciences .
Progress inphysics has touched almost every science ,by
contributing -theoretical concepts andexperimental techniques and
itsapplications have changed curdaily lives .Inventions such
asthetransistor andthelaser have generated entire industries
-microelectronics and optical technology for instance -with
revolutionary consequences that will continue totransform our
society .Atthesame time remarkable developments such asX-rays
and the most recent nuclear magnetio-resonanoe imaging have
improved the human condition .Whether itisthe magnifloent
complexity ofproteins andnucleic acids orthegrandeur ofthe
universe ,physics provides theprinciples andmodels tocarry out
thenecessary studies .
Recent discoveries inphysics axeamong thegreatest achievements
of our time .Synchrotron radiation sources and tunneling
microscopy have made possible newclasses ofexperiments .Fusion
research continues toprogress towards the goal ofnew energy
sources ;Particle accelerators andtelescopes arebeing used in
order togive theanswer tothenature ofenergy andmatter and
their transformations .All these developments confirm the old
axiom that physics isfundamental toallthenatural sciences ,a
field where the sum ofthe parts accounts for more than the
total .
Europe 'sposition inphysics isareflection ofthe position
common to«.nthenatural sciences .Here aselsewhere Europe has
along scientific tradition ,promising scientiflo potential and
results which are first rate ,especially inbasic research ;at
the same time ,however ,there are chronic weaknesses such asa
continuing seepage oftalent into better resourced environments
outside Europe ,aninadequate and outdated infrastucture ,
barriers between traditional areas andbetween physics andother
disciplines ,between thedifferent sectors (whether academic or
industrial )andofoourse between thevarious national scientifio
communities .Bynomeans theleast oftheweaknesses inEuropean
physics isthewidespread difficulty that isexperienced in
turning knowledge into successful industrial applications .
328

-4-
Inphysics perhaps more than elsewhere ,the experimental
facilities needed areincreasingly sophisticated andcostly .At
thesame time existing equipment grows more rapidly obsolescent
astechnological breakthroughs are made .There remain barriers
ofmutual suspicion atleast between basio and applications -
oriented research although itisincreasingly difficult and
unreal istlo toseparate the two .Inmany fields physics is
moving closer toother disciplines and this isreflected bya
growing awareness oftheneed foramatching imiltidisciplinarity
ofapproach and thedevelopment ofaltogether new fields atthe
interfaces .
Lastly and again incommon with other areas ofscience one of
Europe 'sbiggest weaknesses isthefragmentation ofphysics into
restricted national scientific circles and thewasted strength
andpotential this represents compared with ourcompetitors .
Physicists have always sought touncover theultimate structure
ofmatter ,the elementary particles from which the infinite
variety around usisbuilt ,and toformulate thelaws that bind
these constituents together building upnuclei ,atoms ,
molecules ,stars andgalaxies .
Progress inthe last fewyears has led tothebelief that the
answers tothese questions are close athand .The subnuclear
world of'elementary particles' ,which was onoe likened toa
zoo ,hasbecame agratifyingly orderly place :wenowpossess a
standard model oftheuniverse asbeing made of
quarks andleptons ,bound together byforoe-carrying particles .
Qiantum chroraodynamics seems tobeproving the correct theory
ofthe strong nuclear force .Weak and electromagnetic forces
have been unified inasingle gauge-field theory .And the
current objective 1stodevelop aGrand Unification scheme which
will embrace the three fundamental forces ,gravity ,theunified
electromagnetic-weak and the strong nuclear force ,that control
thebehaviour ofallbulk matter aid .ofbiological ,chemical and
nuclear phenomena .
The contribution ofEurope ,where many ofthe most recent
discoveries were made ,has been outstanding ,both at the
theoretical and experimental level .Much ofthe success isdue
toCERN ,the European centre forHigh Energy Particle Physics .
Designed initially torespond tothe ever growing costs of
experimental facilities for Subnuclear Physics ,ithas become
themeeting place oftheEuropean scientific community working in
the field ,the melting pot for new ideas and acentre of
excellence ,where major advances have been achieved :the
discovery ofa-meson 'srare decay mode which bad escaped
detection inprevious U.S.A. experiments ,wasfollowed some years
later bythediscovery ofneutral currents andmore recently by
thediscovery oftheW&Zparticles ,which established the
theoretical predictions foraunified electromagnetic andweak
329

-5-
force .These results represent impressive triumphs of
accelerator art ,experimental technique and theoretical
reasoning .Infact ,GERN 'sengineering skills aswell asthe
accumulated know-how and the numerous spin-offs such asthe
superconducting magnets technology are additional sources of
success .The world 'sbiggest particle accelerator ,LEP ,is
currently under construction ,anundertaking whose forbidding
costs atnational level dictated ajoint effort .CERN ha-q inri<=*yi
served asanencouraging example for many simiiAT-joint
initiatives ,either inthesams field such asHERA inHamburg or
inother fields such asSpace (ESA)andNuclear Fusion (JET).
Recent progress inparticle physics has generated stimulating
ideas incosmology which isalso concerned with thenature of
forces and constituents ofmatter .Grand Unified theories are
tested through their cosmological implications andquestions on
theorigin andtheevolution oftheuniverse might find theright
answer inscenarios inspired byelementary particle physics .
Astrophysics isnot theonly discipline tohave benefited from
its interaction with particle physics .The same istrue for
statistical mechanics andcondensed matter physics .Further ,the
needs ofparticle physics foradvanced computational methods have
led tothe development and implementation ofnew computer
architectures .
Within the handful of scientific discoveries that have
revolutionized society isthediscovery ofsemiconductors ,upon
which thecomputer andcommunication technologies were based .A
stream ofnew materials with remarkable qualities isalready
flowing from laboratories :glass that bends without breaking ,
plastics astough assteel ,metals that stretch .
Plastics and composite materials ,transistors and semiconductor
chips arebutafewofthepractical oonsequeaoes ofresearch in
this has thegreatest impact on
ourdaily lives through thetechnological developments towhich
itgave andgives rise .Thefield 'sclaim isinfact that it
holds thereoord forconverting basio science into sophisticated
industrial technology onatime scale of5to10years .Itis
equally true that technological achievements provide afeed-back
for more fundamental research .Itisafield ,where the
interplay between science andtechnology isunique andtherefore
afield where joint community effort isrequired inorder toface
thechallenge from both theU.S. andJapan .Community activities
should inparticular encourage initiatives that will help break
down thebarriers between basic andapplied research .Moreover ,
theexperimental infrastructure required becomes quite rapidly
obsolete and thenewequipment even more expensive .Community
efforts phrmiri ».imatabetter exploitation ofthe existing
facilities «rrighmild reinforce the collaboration ,whether
existing ,asintheoase ofILLatGrenoble ,ornot .
3

-6-
Infact ,inrecent years theemphaais has shifted towards non-
classical systems :from organic conductors and liquid crystals
tosuperconductors andsuperf luids ,from amorphous animetastahle
materials tothehighly speculative quasi-cxrystals ,spectacular
results have been produced .
Much oftheearly oollabor&tive research inthese fields financed
bytheCommunity hasbeen supported bytheStimulation Action .
Euperoavriuotlvity .the ability ofelectrical currents toflow
without resistance inpertain conductors ,isaphenomenon of
great intricacy ,that has led toremarkable and essential
applications inthe most ambitious technologies ,with an
explosive growth inthetechnical andindustrial spin-offs :from
medical diagnostics imaging tothe world 'sbiggest particle
accelerator ,from fast-switching devioes tofusion research .
Itisestimated that bytheyear 2000 ,theworldwide economic
impact ofsuperconductivity will betens ofhidlions ofECOS
which mayexplain whyreoent discoveries innovel superconducting
materials have created such anexcitement intheworld scientific
community .Thehigh potential forstill wider applications makes
superconductivity anattractive andchallenging area forfurther
research and development .This isindeed afield where joint
European action 1surgently needed ,areality which hasalready
been faced bythe relevant scientific departments of the
Commission .
Gnoe held tobeatheoretical tool for understanding 3-
dimensional real systems ,one-and two-dimensional models have
become aphysical reality with striking technological
applications .Wenowhave quasi -ane-dirrensional magnetio systems
and quasi -two-dimensional systems oflayered compounds .These
modern low-dlmensl oral material shave properties which include a
non-classical behaviour oftheelectronic conductivity andapart
from their technological interest they have themselves been the
source offundamental discoveries such asthe fractionally
quantised Hall effect .Hetero Junctions , quantum-well
heterostructures andsuperlattices ,that isdeliberately designed
cpiasi -two-dimensional structures ,are achievements of a
revolutionary nature forthefuture ofmore sophisticated lasers ,
detectors ,higher-speed transistors and advanced optoelectronic
devioes .
One ofthe most remarkable advances inthe last decade was the
creation of a-rt.1 f1o1allystructured materl als .including
superlattioes and two-dimensional electron gases .These
materials possess properties that candiffer considerably from
those of their constituents in the bulk state and these
properties canbetuned indesirable ways .Inparticular the
method ofion implantation has made itpossible tocreate
materials with newproperties that oannotbeproduced bymore
classical means .

-7-
Research ,within thepast decade hasshown also that asmaterials
axesubjected tomore extreme physical conditions ,they display
neworspecial properties .Ontheother hand ,thedevelopment of
newexperimental tools ,such ,astheintense synchrotron radiation
source and vacuum tunneling microscopy ,capable ofahigh
resolution probe ,have Shifted theemphasis incondensed-matter
physics tosystems more interesting than theclassical ones from
ascientifio andtechnological joint ofview ,
To complement these ,new theoretical tools ,such as
renormalization group methods and the imaginative use ofthe
computer have been used toembrace ever-more complex phenomena :
iiirperfect aiddisorder edsystems ,strongly perturbed rather than
are now
atthe forefront ofscientists 'attention .
Studies of condensed matter at ever lower and higher
temperatures ,athigher magnetic andelectric fields ,athigher
andlower pressures andatmuch higher purities will continue to
provide uswith materials andproperties ever more surprising and
interesting from atechnological point ofview .
Itisafield where progress has and will depend onhighly
sophisticated and modem equipment ,such asMolecular Beam
Epitaxy (MBE)machines andvacuum tunneling microscopy .Thehigh
cost of such apparatus is forbidding for many European
laboratories ,andaStimulation activity ofscientifio exchanges
could give access toexisting equipment for more European
soientists .
Having started from thestudy ofliquid crystals based onsmall
organio molecules ,more effort iscurrently being devoted to
those formed bypolymers ,colloidal ,suspensions andbiological
structures .The variety ofsubstances exhibiting the large
number ofunusual macroscopic phenomena found uniquely inthe
liquid-crystal phase isInfact thereason whyagreat deal of
research is being undertaken at present .
Their non-linear response torather simple external forces and
thesubsequent complex structural charges have provided arich
testing ground fortheoretical ideas inthefields ofnon-linear
phenomena ,molecular ordering andphase transitions .
Ona-gj -c-ry^ -hala.aneven more recent discovery ,are materials
which mayprove topossess major industrial interest .Thestudy
oftheir physical properties andtheir atomic arrangement has
just started ,following thefabrication oflarge samples inthe
laboratory .
332

-6-
Themost dramatio device created amused inoptics ,aswell as
inalmost every branch ofscience ,medicine andindustry ,isthe
laser .Its uses Include atmosphere analysis ,laser surgery ,
laser printing ,laser chemistry ,home electrord.cs and
manufacturing aswell asbasic research into the optical
properties ofmaterials ,which has made possible today 's
ultralong -distance optical-fibre communications systems .
Semioonduotor lasers can nowadays send signals exceeding a
billion bits ofinformation per second and electro-optic ,
magneto-op tlo and acouto-optio devices have already found
speciality applications .
Community Stimulation support tothe European Joint optical
Bistability (EdOB )project made itpossible toproduce not just
thefirst optical version ofatransistor intheworld ,butalso
proved the feasibility ofanall-optical computer .Optical
bistability has also became anew arena for tire study ofnon¬
linear systems ,turbulence andchaotic motion .
The field ofnnnl 1nmr dynamics .Instabilities and ,chaos isin
fact undergoing aperiod ofrapid extension .Anewmathematical
language and way ofthinking about nonlinear dynamics has been
developed bymathematicians and ,more recently ,byphysicists .
Computer techniques have been essential forexperimental studies
of complex dynamics .The engineering community is also
performing crucial research infiuid mechanics .Itisafield of
ahighly interdisciplinary nature withwidespread possible
applications to superconducting devices ,astrophysics and
biology .Itisafield where theStimulation Action conplay an
important role byencouraging andstrengthening mult^disciplinary
and multisectoral research .Details of current activities ,
results and future trends will beneniioned inthe chapter on
Mathematics .
Although the physics ofthe nucleus itself isamong the least
understood fields of basic sciences ,tiie principles and
techniques ofnuclear physics have been used foryears inalarge
number ofapplications :from solid-state physics tomolecular
genetics ,from food technology toforensic medicine ,from mineral
prospecting tocareer therapy ,with nuclear fusion promising to
beanewenergy souroe .Nuclear medicine hasbynowbeen firmly
establ ished asastandard port ofmodem medical pratlce .
Specifically tailored radioisotopes and accelerator beams are
used for both diagnostic and therapeutic procedures and X-ray
radiology and nuclear magnetic recoiexce tomography are two of
themost valued techniques fordiagnosing disorders ofthebrain
andblood circulation aswell asmalignancy .
Medical instrumentation isinfact one ofthe many areas where
the contribution ofphysics has been outstanding and where
Community support will produce results that will directly improve
the human oondltion .
333

-e-
2)MA33ŒMÂTICS
Inthe history ofModem Mathssstics one does not speak of
'Revolutions' .Unlike the Physical Sciences ,progress in
Mathematics does notnecessarily require you .toprove yourself
wrong asscon aspossible' (ELP .Feynman ).Aproven mathematical
result stands forever .Nevertheless wecandistinguish periods
ofintense activity during which ,newtrends appear resulting in
deep andlasting changes inmethodology ,goals andperspectives .
Mathematical Science ,like all other sciences Iscurrently
undergoing such aperiod oftransition .This ismanifest ,ina
variety ofways .First ,weare witnessing rapid progress in
soientif ioresults .Some long standing problems have been
solved ,newones arebeing formulated .Newfields areopening
upinthe frontiers ofknowledge (topology ,geometry etc...).
Entire branches ,which ,have been developed separately ,arecoining
into contact .The advent of high speed computers has
revolutionized whole subjects from abstract mathematical logic
andnumber theory tothemost applied areas ofnumerical analysis
andmodelling .Butwhat maybemore important isthechange in
methods and perspectives .The barriers between different
branches aregradually disappearing .Theolddistinction between
pure andapplied mathematics isbecoming lees andless visible .
Mathematics andmathematicians are earning outfrom their ivory
towers and .finding their inspiration incontact with other
sciences .Inthis respect they goback tothetradition ofthe
oldMasters such asPoincard ,Hilbert orCartanwhose fundamental
contributions inpore mathematics were often made inresponse to
outstanding problems inother sciences .Inthesame waywesee
today abstract fields such astopology ,K-theory ornon-
coinmutatlve geometry which arefinding direct applications tothe
classification ofdefects incrystals orthetheory ofelementary
particles .Even more important isthe fact that some ofthese
mathematical theories are being developed precisely toanswer
questions raised inthe context ofproblems inphysics .The
theory ofinfinite dimensional Liealgebras isbeing developed
jointly bymathematicians andphysicists .
Inthelimited space available wecannot review thewhole ofthis
exciting andrapidly changing field .Wechoose tomention only a
single example notbecause itisintrinsically more important but
simply because itillustrates very clearly theinterdisciplinary
character ofmodern mathematical research .Theexample chosen is
the mathematical theory ofnon-linear phenomena and the
geometrical ideas that are revolutionising the theory and
applications ofdynamical systems .
Most real ,-world problems confronting theanalyst being neither
11-nAa-p nor even nearly linear fall outside the domain of
traditional closed-form analysis .At^present time weare
witnessing aspectacular blossoming ofnon-linear dynamics made
possible onthe one hard ,bygreat theoretical strides in
Poincar6 'stopological approach andontheother bythewide
334

-10-
availability ofpowerful digital and analogue computers .This
has been stimulated endsustained byimportant am exciting new
applications that have multi piled throughout the biological ,
ecological ,social aid economic sciences ,farbeyond the still
vibrant tradional fields ofmechanics ,physics andchanistry .
Indeed ,'wherever the time evolution ofanatural orman-made
system needs tohemodelled and explored ,the subtle and
versatile techniques ofdynamical systems theory are being
invoked .
Asignificant element inthis major thrust which nicely
epitomises its most advanced theoretical ,c:arputiaual and
experimental features isthediscovery anddelineation ofchaotic
motions Inremarkably simple deterministic medals from agalaxy
ofdisciplines ranging from population dynamics andmeteorology
tolasers and particle accelerators .The recent discovery of
quite large regimes ofchaos inthe long-f amildar ,sinusoidally
driven Duffing aidvan tier Fol oscillators emphasizes just how
much was missed by tlie classical analysis of ordinary
differential equations .
With the advent ofhigh speed computers ,itmight have seemed
that dynamical systems theory would simply fade away .Butquite
thereverse istrue and itisindeed oneofthefastest growing
fields ofinterdisciplinary mathematics .The reason isthat on
theonehand theproblems itraises and tliechallenges itsets to
pure mathematics aretruly fascinating andontheother itsbroad
yet precise geometrical ideas are vitally needed toguide the
analyst through the bewildering variety ofcomplex behavior that
heislikely toeroounter .
Tims evolutions must normally bemodeled bynrn-lin>ear equations
for which closed form analytical solutions are unobtainable .
Tney axe however readily integrated numerically byroutine
computer algorithms sothat the response from given starting
conditions iseasily established .Butthestarting conditions of
areal system are rever known precisely and may betotally
unknown :wnat initial conditions should beassumed foracomplex
model ofthe atmosphere ormioilrig atsea inadeveloping'
storm ?Sosince tiemotions ofanon-linear system candepend
crucially anthese conditions ,aformidable task begins to
emerge .How can wehope toexplore the responses from all
possible starts ?
Clearly weneed seme overview ofwhat -canhappen Intheevolution
ofasystem and how this isIniTaenoed .bythe starting
conditions .Here wehave ourfirst major guidance from dynamical
systems theory inthe concept ofan attractor ■Typical ,
dissipative dynamioal systems exhibit astart-up transient ,after
which the action settles down towards some form oflong-term
recurrent behaviour ,holloas from adjacent starts tend to
converge towards sldhlfi attracting solutions .
Toe simplest isestationary equilibri-rc point atwhich all
335

-11-
motion has ceased .The archetypal example ofthis ,stvdied
experimentally byNewton ,is the pendulum .Fran whatever
starting values ofposition end velocity ,'this returns toits
vertical hanging state ,damped byairresistance andother forms
ofenergy dissipation .
Introducing more technical language ,wesay that inthe two-
dimensional abstract phase-Rp^rsA whose co-ordinates are
displacement and velocity all possible motions appear asnon-
crossing spirals converging asymptotically towards the resting
state attheorigin .This focus inthe phase portrait ofall
possible motions iscalled apoint attractor .
Secondly wehave theperiodic attractor .Ifathin steel strip
isdriven into resonance byanelectromagnet carrying an
alternating current ,thestrip will normally settle into asteady
vibration atthefrequency oftheforcing .After asmall knock ,
transients will slowly decay and the stable fundamental
oscillation will be re-established .But given abigger
disturbance anentirely new state my beobserved .Different
starts ofagiven system my thus lead toalternative final
states with multiple attractors coexisting inastate of
competition .
Athird ,recently discovered ,attractor ,whose -unexpected
featux-es have generated anexplosion ofinterest ,isthe strang e
or chaotic attractor that captures thesolution ofaperfectly
deterministic andwell defined equation into astate ofsteady
but perpetual chaos .But although asingle time history
possesses anaspect oftrue randomness ,acomprehensive phase -
space investigation reveals anunderlying order intheensemble
ofall trajectories whose elucidation isamajor topic of
research amongst mathematicians andphysicists .Itisthefinal
settling in the multidimensional phase space ofalarge
dissipative system toattractors oflowdimension that validates
ourpresentation ofgeneral concepts via specific equations of
low dimension .
Multiplicities cfallthree attractors cancoexist inthephase
portrait ofagiven ,system sothat insimulations andexperiments
abewilderi-tig variety "offinal time histories maybegenerated by
different starts .Clearly analysts and experimentalists should
bevitally aware that such apparently random non-periodic outputs
maybethecorrect answer andshould notbeattributed tobad
technique and assigned tothe wastepaper basket ashas
urdoubtedly happened inthepast .
This description of multiple attractors isnotintheleast
fanciful or"rare .Multiplicities ofcompeting steady states ,
ii-a ■;,dixg .„ areconstantly being discovered even forvery
simple non-linear systests (egDoffing 'sequation ).
How even the most exact ofthe physical sciences ,the
coefficients ofany modal are never known with absolute
336

-12-
precision .Sohaving previously discussed thephysical stability
offinal states ofagiven system ,wemust explore thestandi ity
ofthemodelling process itself .Would veget roughly thesame
answers ifour equations had been slightly different .This
question isformalized intiecouoept ofthestriictursl stability
ofaphase portrait .
Many systems are inaslowly evolving environment sotheir
coefficients andparameters urdex40gradual change .Then ,ifthe
evolving system isinasteady state ofequilibrium ,periodio
oscillation orchaos ,theprediction ofanysudden change isof
crucial importance .Such . ofbehaviour will occur
when the phase portrait urdergoes aqualitative charge of
topological form atapoint ofs.note !alInstability .
An important distinction is between those catastrophic
bifurcations atwhich ,there isfi.r5.te rapid jump toanewsteady
state and subtle bifurcati on inwhituh the criange inresponse
manifests itself inthe smooth growth ,ofanew local attractor
after thebifurcation point .
Aswementioned already tils fascinating theory grew out ofa
cooperative effort among mathematicians a.d scientists from all
disciplines .Ithasalready revolutionized ourunderstanding of
long standing problems suen asthe problem ofturbulence which
have resisted allprevious attempts atquanti.tat±ve analysis .It
has been along time since welast witnessed such ,afruitful
collaboration .Nor isityet ;atanei .Veare still actively
involved initand weare looking oonil .dentiy forward toeven
greater discoveries .

-13-
3)GHEMISTflY
The Chemical industry hasbeen oneofthemost important factors
inthe economic development aM social change that has taken
place inWestern Europe over thelast thirty years .This isan
intrinsically innovative sector characterised bythemanufacture
ofnewproducts andmaterials which integrate with and replace
natural ones ,calling fordifferent processes and technologies
from those known hitherto .
Asindicated inmany recent reports onthesubject ,notably that
which surveyed opportunities intheChemical sciences under the
chairmanship ofProfessor George Pimentel oftheUniversity of
California ,this isatime ofmajor opportunity foradvances ona
number offronts .These advances arise from continuing progress
inourunderstanding cftheplienomena ofChemical change andthe
molecular complexity involved in it.This growth in
understanding isref3ected inthe ever more rapid rate of
discovery ofnew ccorpoiurds .Atthesame time techniques used in
Chemistry ere expanding and more and more importance isbeing
attached totheuse ofnew instrumental techniques ,which ,hold
outthepremise ofanexcellent ratio ofresults toexpenditure
onmachinery ,For example ,the chemist isnowusing extremely
sophisticated andmore andmore costly instruments anddiagnostic
aids :lasers ,spectroscopic instruments ,the electron
microscope ,thetunnel-effect microscope ,NMRneutron diffraction
andsynchrotron light .Many laboratories canafford nomore than
afew ofthese instruments .Atthe same time agreat deal of
work onthe frontiers ofthe discipline and onthe interface
between itand disciplines such asphysics orbiochemistry is
heavily dependent onmodelling and computing facilities .It
would seem that ataEuropean level there isaneed forexisting
instrument resources tobepooled andmade available tochemists
inMember States which might notyetbeinaposition toprovide
access tothe whole range ofinstruments and techniques
themselves .At the same time ,given the rapidity of
developments ininstrumentation certain existing facilities could
make good use ofassistance with the expense ofnecessary
upgrading activities .
Exciting dicoveries inanumber ofareas atthe forefront of
chemistry canbeanticipated .Forexample inchemical kinetics
(touseaterm coined inthePimentel report ),theeffect of
photon absorption byanatom ormolecule canbestudied .The
best-known example which hascaptured theattention andmotivated
thework ofnumerous chemists andbiologists isphotosynthesis .
Even though thehopes placed intheuseofsolar radiation to
dissociate thewater molecule into hydrogen andoxygen onthe
pattern ofliving mechanisms have notyetbeen crowned with
success ,theresearch ,done hasnevertheless ledtothediscovery
338

-14-
ofanImpressive series ofstages inphotosynthesis andhaslaid
the foundation forextremely fruitful applications ,for example
hydrogen production bydissociating alcohol ortheproduction of
optically active aminoacids .These new processes inwhich
molecules interact inintense photon fields aremade possible by
the powerful lasers now available ,which can probe chanical
reactions onatime soale that isshort compared tothelifetime
ofany transient substances that can besaid topossess a
molecular identity .Another field highlighted in 'Opportuniti.es
inChemistry' istheoretical chemist ry (application ofquantum
mechanics tochemistry ),one ofthe fields inwhich Europe
dominates .Itshould beemphasized that itsleadership hasbeen
made possible bymeasures such asthe estahl 1shment ofmajor
computer centres accessible to numerous laboratories and
opportunities ofexchanging computer programmes ,which have
encouraged widespread cooperation atEuropean level .
One ofthe areas ofquantum chemistry now undergoing major
development involves the calculation and liaracterization of
intermediate structures and transition structures inorganic
reaction models .Thepossibility ofcalculating analytically the
energy gradients and second derivatives ofwave functions has
started to transform the methods used to study chemical
reactions .ItIspossible tostudy thevarious reaction paths and
toselect those that are the most probable .Most ofthe
calculations arecarried outonmodels ofsimple chemical systems
and are used asareference for afamily ofsimilar systems .
Qualitative models ofthetopology and energy properties of
potential surfaces have been developed sothat itisnowpossible
tointerpolate between the available experimental data ,given
that oily alimitod number ofmodels canbeanalysed numerical 1y
indetail .
Cato -lysis isanother field undergoing major transformation .
Fundamental advancesin heterogeneous . electrochemical ,
photochemical and enzymatic catalysis are being made .As
chemistry isessentially the art ofeconomically converting
abundant substances into useful products ,the study ofchemical
processes and the conditions under which reactions can be
improved and speeded upInevitably accounts for much ofthe
research effort .Inparticular the study ofcatalysis and
catalysts ,i.e. substances that can speed upchemical reactions
without themselves being consumed Inthe reactions ,has always
played anImportant role from both trie scientific and the
economic aspects .Itiseven more useful tobeable selectively
tomodify the role ofvarious intermediate reaction soasto
promote agiven final product attheexpense ofothers .
Research into catalysis istoday enjoying anewlease oflife as
aresult ofthenew instrur.rcr.ts available and theanalytical aid
digital techniques that have recently been developed .Relatively
simple models have been developed torepresent the electron
properties ofsimple molecules (carbon monoxide ,hydrogen )during
crucial stages ofcatalytioal reactions ;these theoretical
339

-15-
results can then be compared with experimental ones ,
With these models ithasbeen passible tocollect essential data
ontheelementary stages ofcatalysis .Anunderstanding ofthese
models will eventually facilitate thedesign anddevelopment of
newoatalysts forindustry .
Itshould bepointed out that recently acombination of
favourable conditions hasemerged andshould lead tointeresting
results .Numerous new techniques and arange ofextremely
efficient instruments are now available toresearchers .
Surface chemistry and ,thestudy ofmetallic clusters have also
undergone significant developments inrecent years sothat
catalysis research ,hasnowceased tobe "black magic ",asitwas
sometimes dubbed inthepast ,andbecome anexact science .
The American analysis highlighted the role ofchemistry in
systematic strategies for the discovery and design ofnovel
materials .In this 'most dramatic frontier of materials
science' several techniques arebeing developed .Oneofthem is
Intercalation chemi stry .Some solids consist oflayers orfibres .
Under certain conditions foreign substances ,ions ormolecules ,
canbeaccommodated between these layers orfibres .Originally ,
intercalation chemistry was developed inthe field oflamellar
solids .Nowtheconcept hasspread toallphenomena where guest
ions ormolecules are reversibly inserted into asolid .There
are numerous intercalation compounds innature •some ofthe
micas ,our bones and our teeth are examples . The most
attractive applications ofintercalation compounds are tobe
found inthe area ofmaterials .
Several examples can begiven .Byintercalating lithium or
sodium ions inlamellar dichalcogsnides (derived compounds of
sulphur ,tellurium orselenium ),theconductivity ofthesystem
isgreatly improved .The advantage ofsuch systems isthat
energy perunit mass isfour tofive times higher than that of
conventional lead ,accumulators .
Manufacturers have also shown interest inthe applications of
intercalation compounds ofgraphite :graphite compounds are
often good conductors (Insome cases nearly asgood ascopper )
which would give exceptional energies perunit mass (tentimes
that oflead accumulators ).
Asprogress inchemistry accelerates the traditional border
between organic andinorganic chemistry isdisappearing andthe
use ofmodern instrumentation isleading totechniques which
quicken thediscovery aidtesting ofnewreaction pathways aid
strategies involving synthesis .Some ofthemost spectacular
results have been obtained with zeolites (silicates inwhich
sites are wide tunnels ).Other applications have been found in
light displays ,inparticular with tungsten axdde XO3 .Over
and above their
340

-16-
HI...yapplications ,newand extremely premising synthesis routes
hue been developed ,based in .particular ontopctactic reactions
(.^actions after which ,some of the rain structural elements
present intheinitial compound arefound inthefinal compound ).
...nthis wayanewtitanium oocULe liasbeen developed andistoday
used asacatalyst support .Vanadium disulphide VS2 ,a
compound that was not known previously ,has also been
successfully prepared .
.allowing onfrom thesynthesis ofmaterials andmaking use of
coeir ability todeal with molecular complexity chemists are
helping toinvestigate aadclarlfy the molecular origins of
Xlologlcal proces ses^
C'oemists are today faced with increasingly complex problems of
synthesis .They need toproduce mere and more sophisticated
joleculas but ofuen the conventional organic synthesis methods
ore nolonger adequate for this work .There are innature
E.ibstanoes capable of transforming simple molecules into
tiousands ofdifferent molecules macrcmolecules having
hundreds of thousands of atoms .These transformations are
carried outwith outstanding efficiency and accuracy .Chemists
rave therefore started tostudy theabilities ofenzymes andare
•trying toprofit from thelessons tobelearned from nature .
Xuanyorganism thecoistituerts ofliving natter aresynthesized
bymeans ofchauical reactions catalyzed byspecific effective
substances ,the enzymes .Tie extraordinary speed and enormous
selectivity ofthereactions induce !byenzymes aredue totheir
conformation inspace -thereagent istrapped inacavity ofthe
iozvme .Toimitate the chemical action ofenzymes without
copying their complete chemical structure isoneoftheambitious
aims ofsynthesis chemists .
lie roost promising approach ,although also themost complex ,is
iosynthesize amolecule ofadifferent chemical nature from an
enzyme tutbehaving inthesame way ,soastocatalyze asp*3Cif±c
product that isuseful tothechemist .Theaimistomanufacture
catalysts based onenzymes that are just asefficient butdiffer
fundamentally from theusual catalysts bytheir organisation in
space .Theartificial enzyme must becapable ofrecognizing its
substrate and transforming itinto one product only ,even if
several are theoretically possible .Tne artificial enzyme must
>.uveagenuine catalytic activity -itmust notbeconsumed in
zeereaction ,must becapable ofproducting the reaction ona
large number ofsubstrate molecules one after the other and
finally must release theproduct into tlieenvironment .
Vrilst thebenefits ofachieving this will bevery great itis
czear that major progress can bemade only byencouraging
luterdiscd.pl lnary research collaboration ,between biological and
caemical research teams .

-17-
4)ЕАКШ mm ICEa
Asthepreservation ofcrurenvironment through intelligent and
sensible use ofthe earth 'sresources assumes ever greater
importance ,the earth sciences are gaining fresh eoonomio and
political significance .Atthesame time ,this scientific sector
isundergoing radical change asitmoves onfrom thedisciplines
ofobservation tothose ofexperimentation and modelling .
Moreover ,because its very subject 1sthe whole earth ,this
research isessentially ofaninternational nature .
With this shift from making observations ofstatic andsuccessive
situations tothereconstruction andexplanation ofthemechanism
ofevolution ,theearth sciences asthey areconceived today call
foraglobal approach supported bynumerous accurate analyses .
The research relates toboth structures and materials onell
scales from theatomic structure ofcrystals tothe texture of
rocks andeven thedynamics ofplate tectonics .
Several types ofactivities canplay afederating andstimulating
role for the European scientific camraunity .The direct and
indirect study ofthedeep structure ofthelithosphere isone
example :today more isknown about thesurface ofthemoon ,Mars
orVenus than the sub-soil ofthe earth .
Crystals ,the very constituents ofthe earth ,still present
numerous problems ,ifnotasregards their structure atleast in
their genesis .The demand inhigh technology for flawless
crystals has led toconsiderable advances intheknowledge of
crystalline imperfections and growth inodes .However ,phase
transitions and interface problems still call for both
theoretical andexperimental research .This isafield inwhich
thetransfer ofbasic research results toapplications could be
particularly fast andbeneficial .
Space observations provide thekeytothestudy oftheEarth as
anintegrated system .From these observations bysatellites and
space platforms alarge volume ofdetailed data canbecollected .
This data canbeutilised innumerical andconceptual modelling
which together with thetraditional earth-science disciplines can
help toobtain ascientific understanding ofthe earth asa
whole .One ofthe most obvious benefits ofthis increase in
urders tarring ha.qbeen theimprovement intheaccuracy ofweather
prediction which resulted from thenumerical simulation ofthe
atmosphere with high-speed computers .

-18-
llieAtmosphèr e
Theeffect ofhuman activity cntheatmosphere hascaused marked
charges ±Qreoent years .Since theindustrial revolution alone ,
theamount ofCarbon dioxide released into tireairthrough the
burning offossil fuels hasincreased byalmost 25%ardthis is
anticipated todouble within thenext 100years .Carbon dioxide
insulates theearth preventing heat radiation .Asaresult ,the
temperature oftheearth hasbeen rising atanunprecedented rate
such that there have been noticahle changes inprecipitation
patterns .Other so-called “greenhouse "gases have been
Increasing inconcentration ataneven greater rate than Carbon
dioxide and itisestimated that their effects can beeven more
pronounced than 002 .
Apart from causing changes totheatmosphere through theburning
offossil fuels ,nan has also destroyed large tracts of
vegetation resulting inafurther increase inatmosphere Carbon
dioxide levels andadepletion ofOxygen sources .
The changes intheatmosphere asaresult oftheactivities of
nan are difficult toassess but they are clearly ofgreat
importance .Itisnecessary tomeasure end document these
changes globally and toidentify catusal relationships between
them .
Theocean sciences arearelatively newandhighly promising area
ofresearch ,anddevelopment .Scientific activity has ,inavery
fewyears ,moved from thedescriptive totheexplanatory oreven
the predictive stage .Ittouches onasphere ofessential
knowledge which ourvanishing resources and theneed toprotect
ourenvironment have putinthespotlight .
Since itis ,atoneand thesame time anenormous reserve ofraw
materials andfoodstuffs ,agigantic dustbin ,aprimary factor in
climatic balance and the world ecology ,and ,lastly ,an
environment the understanding of which can add to the
fruitfulness ofnumerous branches ofthe life sciences ,theocean
isahugely rewarding field ofstudy .
Oceanography isaninter and multidisciplinary ofafield in
which there ishardly anyreal demarcation between basic research
andmore applied research activities .Cross-fertilization between
disciplines isessential here .
343

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Itisalso ascience inwhich thescale oftheproblems issuch
that they naturally call for international cooperation and in
which the size ofthe technical resources needed leads (and
should more often lead )tothe joint establishment ,between
various partners indifferent countries ,ofoneshared research
tool .Programmes tostudy large-scale phenomena are very
difficult toorganize and finance .Lastly ,cooperation is
required between theCommunity and thedeveloping nations who
possess vast tracts ofsea .
Asfarassectors ofscientific activity areconcerned (physical ,
chemical orbiological oceanography ),there isatpresent aneed
tofocus more onlarge-scale phenomena (intime orspace ),tut
choosing the appropriate scale intine orspace poses many
problems because studies ofthevarious dimensions areclosely
interdependent .
Coastal zones
Stretching asthey doright totheedge ofthecontinental shelf ,
these zones axe the locus ofstrong interactions between the
continent and the ooeans and for this reason they are doubly
interesting .Ontheonehand thekey toanunderstanding ofthe
overall workings ofthe ooeanio system isabasic knowledge of
ooean .continent interface phenomena ;which can bestudied in
these zones .Ontheother hand they areanarea oftheseawhere
intense biological activity (inthe form ofwastes )ismost
marked .
Bearing inmind the direct socio-economic implications ofa
greater knowledge ofthe physical ,chemical and biological
phenomena taking place in these zones ,research into
continent /ocean interactions andinto coastal ecosociology isof
paramount importance .It calls for new or reinforoed
interdisciplinary work .
Onthe basisofwork undertaken inthis way byanumber of
disciplines itispossible tomove towards thedevelopment of
conceptual andforecasting models which will lead toabetter
understanding andbythesame token amore thorough mastery of
theworkings ofcoastal ecosystems .
Research will basically require the avail ability ofan
infrastructure ofmarine stations andexperimental installations .
TheCommunity has great potential inthis respect ,aquality
which currently constitutes aconsiderable asset .
344

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Secondly the vitality ofscientific ;aid .technical progress in
this field ,isvery much afunction ofthert3s>Turoes (particularly
human resources )which are available ,aid tne extent towhich
integrated approaches within amuItMtsodplinary system are
possible .Atthis level certain weaknesses must beadmitted ,
arising Inpart from thelack ofrescniroes dedicated tocertain
sectors and also from acertain fragmentation ofwork
(particularly sofarastheuniversities areconcerned ).
ButiftheConmmity ean :
build up the milriiilroJ pllnary character of
research centres aid the cooperation between
specialized centres ;
promote cooperation between marine stations ard
university centres ,which are often widely
separated geographical ly .
The effectiveness ofEuropean R&Dinthis field could be
greatly enhanced .
TheGreat Deeps
The deep ooean isagigantic ecosystem ,adeeper knowledge of
which isavital prerequisite formaking useoforexploiting the
material which lies hidden there .Whether ,forexample ,toensure
that waste products dumped into the abyss byman are safe and
innocuous ,ortoexploit the areas cental nlng polymetallic
nodules ,itisfirst necessary tolearn more about themeiofauna ,
the relief andthephenomena (e.g. hydrothermal )which exist at
these depths .Ibis knowledge will only begained viainterlinked
RyDwork inanumber ofsectors (geology ,geochemistry ,
geophysics , chemistry , biology , bacteriology , maritime
engineering ,etc ...)and tne availability ofcomplex and
frequently onerous observation aidanalysis techniques .
Inthe overall world RS’Dranking inthis field ,Europe 's
scientific community occupies anentirely honorable position ,
with some particularly strong points (ingeology ,geophysics ,
sedimentology aidresearch techniques ,forinstance ).However ,it
isclear that where theCommunity has theadvantage ,itslead is
precarious .This isparticularly true sofar asmethods of
exploring and analysing the great deeps are concerned .Hie
Community was the first tohave multibeam acoustic sounders ,
which were arevolutionary tool .
Today this method isbeing avertaken and new technologies are
coming forward ,including lateral sonars which are able to
analyse agreater volume ofacoustic information from much larger
areas ofooean floor .These newtechnologies areemerging outside
theCommunity ,which might give attention therefore tothejoint
development oflarge "instruments "(such asships )aid major
projects .
345

-21-
Theooean isoneofthevital components oftheclimatic system
and asfar asthe atmosphere isoonoemed ,itfulfils three
essential functions :storage ,transport and interchange of
energy .These arenot independent functions inthe ooean since
they arebound bythelawofenergy conservation ;they arenot
independent ofinterchanges with theatmosphere either since the
ocean isasystem which iscoupled toit .Atthe interface ,
energy isexchanged invarious forms (heat ,mass animovement )
andonvarious scales .Allthis therefore makes upagroup of
complex physical phenomena ,which arefurther complicated bythe
differences in reaction time between the ooean ani the
atmosphere .
Knowledge of "ooean andatmosphere "phenomena isclosely linked
toand interdependent with climatology know-how ,ofwhich it
forms asubset .Depending onprogress inthescience ofearth -
atmosphere exchange phenomena ,anatural complement tothis
science ,and understanding ofthese phenomena isessential in
order tobeable topredict climatio variability over alonger
period than ispossible atthemoment .Inthis way tools more
rigorous than those which ,exist atpresent could bemade
available for the planning of various economio balances
(particularly inagriculture )ortowarn ofthe irreversible
imbalances which human activity canbring about (thedanger of
toogreat aquantity ofcarbon dioxide intheatmosphere ,for
example ).
Tothis enditwill benecessary first tohave available afund
ofbasic knowledge which isstill lacking inorder toarrive ata
more complete understanding ofooean dynamics orphysical
phenomena related totheooean /atmosphere link .Todevelop this
knowledge will mean first ofallcontinuous systematio andwide-
scale observation ofthe ooean ,with aooess toconsiderable
rescruroes (satellite remote measurement ,tomographic grid
squaring ,automatic measurements via groups ofbuoys )and ,
lastly ,acapacity toanalyse andassimilate thedata which has
been gathered .
Thevery size oftheproblem andofthefield inquestion has
brought about theimplementation ofhuge international projects
inwhich theEuropean scientific community hasplayed alarge
part .Inthis waymajor discoveries have been made (about energy
transfers forexample )which axeapromising basis forfuture
developments .
The problems and the field involved gowell beyond the
Community 'sgeographical limits andinterests .Nevertheless it
isvery much intheCommunity 'sinterest tostrengthen still
further thescientific and technical potential itpossesses in
this sphere .
346

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Certain specific objectives should therefore bepursued :
theimprovement ofmathematical models tosimulate
intraooeanio flows ,
- the encouragement ofcooperation between teams of
different disciplines (physical oceanography and
chemical dynamics byway ofexample )inorder to
make acontribution to the development of
conceptual tools facilitating the explanation of
such basio phenomena asthe nitrogen orcarbon
cycle atooean /atmosphere level ;
building upthe human resources available for
research work inthis field bygiving aid for
training andtherecruitment ofnewresearchers for
existing teams .
Biological aspects ofearth sciences
Biological processes exert animportant influence ontheglobal
system .Thi=>earth 'secosystems arehighly vulnerable tochanges
intheexternal environment .Thediversity that istobefound
has developed over billions ofyears and evolution can be
aocuratedly documented through the study ofsedimentary rocks ,
ooean sediments and ioe-oores .The changes which have occurred
intheclimatio conditions Kayalso bemonitored inthis wayand
their influence onthe biota estimated .This knowledge isof
vital importance totheunderstanding ofrecent changes .
Tho distribution oflife onearth islargely determined bythe
physical climate system which inturns depends onthevariation
onsolar heating with latitude .The physical climate processes
which Include circulation patterns ,precipitation ,evaporation ,
vegetation etc axe currently being elucidated using satellite
techniques .
Thecycling oftheprincipal chemical constituents oftheearth
(Carbon ,Nitrogen ,Sulphur andOxygen )arealldependent atsome
stage onbiological processes .This cycling ties inwith the
production of “greenhouse “gases anddetermines theextent ofthe
pollution oftheatmosphere .While satellite observations area
useful tool for studying hiogeochemioal cycling ,itmust be
supplemented byin-si tusampling .
Thedistribution ofrainfa ll,snow ,evaporation andrunoff onthe
earth governs theextent andproductivity ofbiomass .Changes in
land use can affect the global climate through hydrological
alterations .
347

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Current areas ofinvestigation ofthesolid earth irvyiiv^the
study ofcontinental deformation andevolution ,thestructure and
convective patters inthemantle andthedynawv -nvy;Ka-ni gmofthe
earth 'score itself .New tools such asVery T^ng Baseline
Interferometry (VLBI )andsatellite laser ranging arebeing used
tomeasure continental separation .Bygaining aninsight into
plate deformation ,earthquakes maybepredicted with greater
accuracy .Satellites arenowable toprovide date formrrfpig of
plate motions and establish connections between mantle
circulation andtectonic activity .
Thesource ofearth 'smagnetic field arises from thecore ,the
detailed structure ofwhich isnotyetwell known .Bystudying
theearths' magnetic field thecore 'sstructure maybeelucidated
andgeological history calibrated .
The evolution ofthe earth isclosely interlinked with the
evolution oflife upon itandbycontinuing tostudy geology a
better comprehension ofthe evolution ofthe Earth may be
achieved .
THE EXPLOITATION OFSPACE
Space can betackled from anumber ofdifferent angles :
knowledge ,getting there ,using itasafield ofhuman activity .
Atanational and/ormultinational level (theESAforexample ),
allofthese aspects arenowbeing tackled andarethesubject of
considerable work .
Nevertheless ,bearing inmind the Community 'sscientific and
technical objectives and the needs aswell asthe existing
potential in this field in terms ofEurope 'sscientific
competitiveness ,aCommunity activity would seem tobeboth
necessary and opportune inone particular sector :theuse of
space asastudy medium .
Forspace Is ,asalaboratory ,something special .Whilst itis
possible tocreate hypergravity situations onearth itisnot
possible tocreate prolonged conditions ofweightlessness .And
already micrograyity seems tobeuseful ,sometimes even vital ,
forthestudy ofmany phenomena .
348

-TA-
Twosubjects areofparticular concern inthis respect :
(a) Space biology and .medicine ,which seems certain to
beattheorigin ofmajor practical spin-offs (so
farasbiology andbasic physiology areconcerned ,
through theknowledge that will begained about the
effects ofcosmio rays and gravity onliving
organisms ).Dptonewtheknowledge gained by(and
for)space flights hasmade itpossible todevelop
atrauma tio systems ofmeasuring circulation the
echotamographio study oforgans ,theuse ofwhich
cannowbeanticipated inhospital medicine .
(b) The study ofphysioo-chemioal processes under
conditions ofmicro gravity and thediscovery and
development of new materials with special
properties (electrical ,magnetic ,optical or
mechanical ).Apart for these problems ,which ,are
linked tothe development ofraw materials in
classic “terrestrial "conditions ,it is also
important inthis sector toimprove ourknowledge
oftherole ofmicrogravity inmaterials science .
For whilst gravity cannot have aninfluence onthe ideal
structure ofasolid itcertainly can onfluids .Furthemore as
solid materials are often prepared via afluid phase (steam ,
melting pot orsolution )gravity might beexpected tohave an
effect ontheproperties ofthegrowth environment andhence the
actual structure ofasolid ,that istosayitsproperties .
Bearing inmind theknowledge which isalready available here ,
together with itsinterest (both scientific and practical )and
the promising prospects which these two sectors hold out ,they
seem tobeexcellent bets for the future and really ought to
benefit from an increased R &Deffort .This would mean
supporting basic research work so as to complement the
theoretical foundation now tohand ,and itwould also mean that
there would have tobeadequate resources (both human and
financial )aswell asthe "tools "for weightlessness studies
(towers ,aircraft ,rockets ,satellites ,orbiting space stations ).
Only the U.S.A. and the U.S.S.R. themselves posses all the
necessary facilities forthis type ofR8fD.Itwould seem that
these two countries devote considerable resources tothe field .
IntheCommunity only afewcountries (acting ontheir own ,via
bilateral cooperation orcollectively within theESA)play any
part inthe exploration ofthis new area ofscientific and
technological investigation ,and they only devote fairly modest
resources toit ,foranumber ofreasons .
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1
AUJtEX 11
SPACE
In its communication (COM 88 417 final )ofJuly 1988 ,"The
Community and Space :aCoherent Approach ", the Commission
reviews Europe 'sposition inspace ,itsstrengths andweaknesses ;
itshows that ,increasingly ,Community policies and activities
have abearing on the evolving space field andvice-versa ;it
concludes that there isaneed and opportunity for theCommunity
toplay abroader and more active role inspace ,arole which
must be complementary to the one of ESA and the national
agencies .
Asthings stand ,the overall verdict onEurope 'sspace activities
seems tobealtogether positive :space isan area inwhich ,by
establishing the ESA ,Europe opted from the outset for
cooperation ,and that cooperation has rapidly led to some
spectacular successes ,such as the Ariane launcher ,Spacelab ,
Meteosat ,the Giotto mission ,and the European Communication
satellite system .
Created in 1975 out of the merger of the first European
cooperative structures (ESRO and ELDO ),the task of the European
Space Agency istodevelop and promote ,for exclusively peaceful
purposes ,cooperation among European states inspace research and
technology and their space applications ,with aview totheir
being used for scientific purposes and for operational space
applications systems .
The first generation of programmes developed bythe ESA amply
attained their objectives giving Europe technological and
industrial capability ,inparticular through the Ariane launcher
and the applications technology (telecommunications and
meteorology ).By deciding in The Hague in1987 tolaunch anew
generation ofprogrammes (the heavy launcher ARIANE V,the Hermes
spaceplane ,and the participation in the international Space
Station through the Columbus programme ) Europe firmly
established its presence and its ambitions inthe field ofspace .
The new ESA long-term plan not only maintains the continuity of
the scientific research programmes and the continued development
ofapplications technology ,but also represents aleap forward in
both qualitative and quantitative terms .
However ,alongside the strenghts to which these successes
testify ,Europe 'sspace effort also suffers from anumber of
weaknesses .Uhile agreat deal of effort has been pu-t into the
development of space systems ,there is still aneed for a
matching effort to encourage exploitation of the potential
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2
offered bythese techniques .
In its Communication ,the Commission defines how it can
contribute to the realisation ofEurope 'sambitions inspace and
proposes six action lines that will guide the future development
of its activities in this field ofspace .These action lines
concern R&D and also other aspects ofspace relating toCommunity
policies orcompetences (industrial ,commercial ,legal ,etc .).
For what concerns R &D,the Commission has identified several
areas in which the Community strategy for research and
technological development (RTD )could complement and support the
research effort ofthe space agencies .
1.Improvement ofthe synergy between the Community technology
programmes and those ofthe space agencies .
Implementation of the new ESA programmes (Ariane V,Hermes and
Columbus inparticular )will call for the acquisition ofnew
knowledge and technological expertise in anumber ofgeneric
fields also relevant toother industrial sectors :information and
communications technologies , robotics , advanced materials ,
aerodynamics ,man-machine interface ,reliability and safety of
complex systems , quality control , energy sources ,medical
sciences and technologies ,etc .
Acomparative analysis of the technological requirements ofthe
ESA programmes and the objectives ofthe Community 'sresearch
programme shows many points of convergence .Alarge number of
Community programmes are concerned :Esprit ,Brite ,Euram ,RACE ,
medical and health research ,radiation protection ,non-nuclear
energy ,several JRC programmes and new programmes in the
aeronautical sector and on robotics in hostile environments
(Teleman ).
Regular exchanges ofinformation and coordination with the ESA
are therefore indispensable both atthe planning level and inthe
implementation of research programmes soastoavoid duplication
and facilitate use by the space industry of the technologies
developed under Community programmes .
The space programmes also generate new knowledge and technologies
that could beused bynon-space industries .
The space agencies' efforts to exploit technological
opportunities could benefit from the experience and support from
the Community activities to promote technology transfer and
innovation .
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3
2.Space technologies and facilities :tools atthe service of
research .
2.1Study _of_our planet :climate .environment and impact of
human activities .
Earth observation satellites are amajor source of
information for thedevelopment ofclimate models and the ;
study of the impact of human activities onclimate and !
environment .
Thedevelopment ofnew remote sensing techniques and the ]
gradual establishment ofaworld space observation network ;
make itpossible to plan for the systematic study ofthe !
planet and its global change (inparticular greenhouse !
effect and depletion of the ozone layer )leading tothe :
acquisition of knowledge vital to the more efficient !
management ofour environment and ofhuman activities .
Since this isaproblem that has international implications
and raises major issues for society ,Europe must organize ,
itself soas to play an active and consistent role in !
international programmes relevant to these areas (in
particular the programmes Global Change and Mission to
Planet Earth ). It must rapidly define its objectives and
priorities and set upthe necessary mechanisms and resources
enabling it toparticipate onamore even footing with the
United States and the USSR .
Consultations with the parties concerned are being pursued
to define the appropriate modalities to stimulate and
coordinate efforts at European level and to ensure that
there is aproper balance between space missions and the
requirements ofthe scientific community .
2.2Microgravitv :encouraging preparations for the use ofthe
orbital infrastructure
Like the United States and Japan ,Europe isspending large
amounts ,mainly within the ESA ,on setting up anorbital
infrastructure which will greatly increase the
opportunities for microgravity experiments ,inparticular ,
inthe fields ofadvanced materials and biotechnology .
The ESA activities are focused essentially onthe financing ;
amajor additional effort istherefore needed toprepare for
the use ofthis experimental potential .
Under existing research programmes the Commission intends to
encourage afew collaborative projects that will bring
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4
together various user groups on particularly promising
subjects .At the same time it will continue its
consultations with the ESA and other parties concerned in
order todetermine more precisely the priority objectives
and procedures for apossible Community programme ,ona
wider and more ambitious scale ,that would complement the
activities ofthe ESA and the Member States .
3.Research and development to promote applications ofspace
systems
3.1Earth observation
The Community isalready active inthis field with the JRC 's
remote sensing programme which covers :research and
development onmethods and techniques for the interpretation
of space data ,pilot projects todemonstrate applications
useful to the implementation of Community policies
(agriculture ,aid todevelopment ,environment )and training .
The Commission intends tobroaden and expand its efforts not
only for the requirements ofits own policies but also to
contribute toensuring the optimal exploitation ofthe space
sensing techniques ingeneral .
Additional actions considered necessary include in
particular :
-to stimulate through shared-cost projects ,European
cooperation and coordination in R&Don methods and
techniques for processing and interpreting satellite
data with particular attention to the needs ofthe
users .
-topromote ,in cooperation with the space agencies ,
the establishment of European experimental facilities
(inparticular airborne sensors )needed toprepare for
the use ofdata produced bynew types ofsensors .
3.2 Télécommunications
Through its R&D activities the Commission will help to
promote the development of applications of satellite
systems ,whether under the RACE programme (development of
technologies for a pan-European integrated broadband
telecommunications network ), the new Delta programme
(distance learning applications )or specific projects
concerning the adaptation of ground equipment tothe Third
Uorld Market .
353

ANNEX 12
SCIENCE &TECHNOLOGY _POLICIES AND TRENDS
IN THE HEHBER STATES
354

Nov .1988
8&T IN BELGIUH
1.General policv objectives .
Atthe beginning of1986 the Minister for Science Policy declared
that spending level ofBelgium for R&D activities compared with
the G.D.P. uas insufficient and Belgium had tocatch upuith its
neighbours and mainly uith its closest neighbour :Netherlands .
Since that time the situation has changed someuhat and the
emphasis is more on the means and incentives toencourage
industry toincrease its investments in R&D activities rather
than increasing the public budget for research .Public financing
should become more selective inchoosing research programmes to
support national public investment programmes . However ,
fundamental research uill bethe subject ofincreased attention .
Anumber ofmeasures have been devised tostreamline the whole
structure ofthe public financed R&D including drafting anew
statute for government researchers .
Another topic of science policy is increased Belgian
participation inEuropean research programmes .
2.Priorities .
Inthe period from 1983 to1986 ,the following were regarded as
priority areas for projects designed to "mobilize "Belgium 's
industrial and scientific potential :
-data processing ;
-aero-space (E.S.A. activities and new airliners );
-neu materials ;
-microelectronics (mainly introduction of microelectronics in
SHE );
-télécommunications ;
-oceanography (pollution control ).
Inthese fields ,special attention was paid topossible ways of
integrating national initiatives within the framework ofacommon
European approach .
Inthe period since 1986 ,more emphasis was put in "stimulation "
programmes and these relate ,among others ,to :
-artificial intelligence ;
-1ifesciences .
R&D activities inspace sector have also increased .
355

2
The following table gives some hints ofthe shift inpriorities
inGovernment funded research .
Br.fiaKdatfa-.af –ex.0vl3lanal R&D budgets bvobjectives In 1986 and 1987 (%).
ObJectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 2.5 3.1
Infrastructures and general land-use planning 0.6 0.7
Control ofenvironmental pollution 2.4 2.2
Protection and improvement ofhuman health 2.1 3.0
Production ,distribution and rational
utilization ofenergy 10.1 9.5
Agricultural productivity and technology 7.2 7.6
Industrial productivity and technology 16.2 12.8
Social structures and relationships 0.7 0.5
Exploration and exploitation ofspace 7.3 9.8
Research financed from general university funds 22 .8 22.3
Non-oriented research 20.5 23 .6
Other research 6.1 3.8
Total financing ofcivil R&D 98 .5 98 .9
Defence 1.5 1.1
Total financing 100.0 100.0
Source :EUROSTAT :Government financing ofR&D inCommunity countries .
3.implémentation .
3.1 .Legal framework and institutional mechenl gJLS ^-
For the Government funded research ,different Ministries ,
concerned with R&D activities .supply the Interministerial
Committee for Science Policy with their budget proposals which
arepresented inan annual "programme "through theMinister for
Science Policy .The final decision on this "programme "is
eventually taken bytheMinisterial Committee forScience Policy .
The Minister for Science Policy (also Deputy Prime Minister and
Minister for theBudget )plays acoordinating role within the
government with regard to scientific and technological
development .However ,coordination does not extend towhole
"science budget "because asignificant part ofthis budget isthe
direct responsibility of the different Ministerial Departments
concerned .
Itmust benoted that arecent law (August 1988 )sets upfederal
structures for the Belgian State and a part of the
responsibilities intheformulation ofscience policy isshared
among theregions ,the linguistic communities and tonational
authority .Nevertheless ,responsibility for Community and
international R&Dactivities rests with thenational authority .
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3
3.2 .Strategy and research bodies .
The five following "action lines "are another element inthe
current strategy for the implementation of Belgian science
policy :
1.Increased support for fundamental research ;
2.Increased cooperation between universities and industry ;
3.Promotion of greater private sector investment inR&D through
State "incentives ";
4.Large scale coordination of public authority involvement in
science policy ;
5.Maximum encouragement of participation in international
projects .
Among the most important bodies implementing RDactivities ,other
than University research institutes are the following :
-F.N.R.S. National Funds for Scientific Research (fundamental
research );
-I.R.S.I.A. Institute for the encouragement of scientific
Research inIndustry and inAgriculture (applied research );
-C.E.N. Centre for Nuclear radioelements .
-I.R.E. Institute for radioelements .
4.National Resources .
PersonneL (1)
Exact figures for R&D personnel are not available for recent
years .Itisestimated that :
Total R&D personnel (full time équivalent f.t.e .) :about
32,000 units (1983 )
About 10,000 units (1985 )are scientists orengineers employed by
industry .
New administrative measures are being prepared togive scientists
opportunities tomove from university toprivate industry without
jeopardising their career .
4,.2,FinppCljil pnegn ?(21
Government financing ofR&D in1987 :673.2 Hio ECU (provisional
budget )
(1)Source :SPPS (1988 ).
(2)Source :OSCE (1988 )
357

4
Defence R&D as %oftotal R&D Government appropriations :1.1 V.
(1987 )
Gross domestic Expenditure for R&D CGERD ) :1,542.6 Mio ECU
(est .) (1985 )
5.international coopération .
Senior officials in charge of S&T research state that
participation inpresent and future European cooperation inthe
field ofRTD isapriority element inBelgian research policy .
So , the commitment of Belgium 's potential to programmes
implemented by European Communities or to EUREKA (Belgium
participates in 27 EUREKA projects ,as of 01.07.1988 )will
necessitate the allocations ofappropriate resources atnational
level .
Belgium is represented in almost all international research
organizations (CERN ,EMBO ,ESA ,Airbus 330-340 ).
358

Nov .1988
S&T IN DENHARK .
1.General policv objectives .
Science and Technology has been atop priority area since the
mid-1980s in Denmark .Public Research &Development spending
increased in the 1980-86 period by about 8 Xper year (1980 =
100 ),one ofthe highest trends inthe Community .The aim isto
have aglobal national Research &Development Expenditure of
2.28 XofGDP bythe year 2000 .
In1985 total R&D expenditure (GERD )amounted to about 1.26 Xof
the GDP .This placed Denmark in the category ofthe ECMember
States uith amedium degree of R&D spending per capita (atthe
same level asItaly ,for example )but inabetter position than
Ireland ,Spain ,Portugal and Greece .
R&D isperformed in the business sector (55 %), the higher
education sector (24 X)and in public institutes (21 X) (uith
reference toR&D expenditure 1985 figures ). The trend inR&D
execution indicates ,like the trend in R&D funding ,ashift
towards the business sector .
The policy objective uith respect toresearch atuniversities and
other institutions ofhigher education istomaintain freedom of
research and alarge measure of autonomy ,but atthe same time
changes are desired inthe research and teaching world .Togreat
extend ,this demand for change is reflected in budget planning
and interms ofappropriations .
2.Priorities ..
The Government intends toincrease the collaboration between the
relevant technical bodies at home and abroad ,and toput more
emphasis on concentrated inputs into developments areas uith
promising short orlong terms economic prospects .
The newer initiatives include :
-Encouragement ofcollaboration between enterprises and centres
of expertise in long-term technological development with
government co-financing ofco-operative industrial projects ;
-Implementation ofco-ordinated development programmes inareas
vital to Danish trade and industry which call for aconcerted
inter-ministerial effort and comprehensive government
initiatives in support of basic research and technological
development and diffusion .
Emphasis will beput on :
-Improvement of researcher training and strategic research
planning ;
-Increased coordination and priority setting inthe overall
effort aimed aturban activities ;
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2
-Statements onagricultural and fisheries policies emphasize the
increasing degree towhich primary production industries are
dependent ondevelopment efforts intheprocessing industry .
Thetechnology -oriented R&D ismainly concentrated inthe
manufacturing sector which accounts for 20%ofthecountry 's
GDP .Inthefield ofhigh technology ,priority hasbeen given to
thefollowing topics :Information Technology ,Materials Research
and Basic Biotechnological R&D .
Thebreak down ofthepublic R&D funding bygroups ofobjectives
indicates the priorities ofthe Government .
Breakdown ofProvisional R&Dbudgets bvobjectives in1986 »nH1987 <%)
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 1.3 1.5
Infrastructures and general land-use planning 2.4 2.3
Control ofenvironmental pollution 1.5 1.3
Protection and improvement ofhuman health 3.3 4.a
Production ,distribution and rational
utilization ofenergy 6.7 4.4
Agricultural productivity and technology 7.0 8.5
Industrial productivity and technology 20 .6 16.2
Social structures and relationships 4.3 3.6
Exploration and exploitation ofspace 3.1 2.6
Research financed from general university funds 29.5 32.1
Non-oriented research 19.7 22.3
Other research 0.1-
Total financing ofcivil R&D 99 .5 99 .6
Defence 0.5 0.4
Total financing 100.0 100.0
Source :EUROSTAT :Government financing ofR&D inCommunity countries .
3^Implémentât ion
Research in Denmark ismainly the responsibility ofthe Ministry
of Education and Research . The Ministry of Industry is
responsible for technological development intrade and industry .
Infact each ministry has responsibility for supporting research
related to its functions (agriculture ,energy ,etc ). The
coordination is assured by the Ministry of Education and
Research .The Research Directorate within this Ministry isalso
responsible for thecoordination ofthe Danish participation to
the EC Research and Demonstration Programmes ,and toOECD inthe
field ofS/T.
360

3
The trend inR&D funding is shifting ,as in roost ECMember
States ,tomore industrial financed R&D .Atpresent ,the business
sector funds about 49 Xof the country 's GERD .This places
Denmark among those Member States where the business sector’s
contribution to the global national Research &Development
spending is highest .Only in the FR of Germany and inthe
Netherlands the share ofthis sector was higher in1985 .
InDenmark there are nogiant manufacturing enterprises which can
provide a "technical drive "asin most European countries .The
manufacturing Industry isdominated byenterprises ofsmall and
medium size by international standards . Only about 80
manufacturers have aworkforce ofmore than 500 .
The national objective of industrial research policy isto
develop and diffuse new technologies to these rather small
industries through aservice network ,development programmes and
co-finane ing .
The Developing Fund and government Product Developm entGran tsare
the two schemes which jointly administer the part of
technological promotion policy devoted tothe co-financing of
enterprise development activities .
In1986 ,the commitments through these schemes amounted to314
Mio DKr (about 40 MECU )and 171 Mio DKr (about 21MECU )
respectively . The sum of the two schemes represent
approximatively half the total R&D costs ofthe Danish trade and
industry .
Tax Incentives are additional instruments to promote industrial
R&D and innovation .According toatax law from july 1981 costs
ofresearch can bededucted from taxable income . Anew tax law
from December 1987 provides for a125 Xtax deduction for
expenditures inthe framework of the participation inBRITE ,
RACE ,ESPRIT and EUREKA .
4.Nationa lB<?agy.r£s_s -«_
4.1 .Human Resources (1)
The total of R&D workers inDenmark in1985 was about 20,000
(full time equivalent ), broken down as follows :researchers
43 X,technicians and others 57 X.
The industrial sector employed about 50 X,the higher education
sector and the Government institutions about 25 Xeach .
The number ofresearchers per 1000 labour force equals to3.1
(1985 ).
(1)Source :Danish research administration and OECD .
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4
A.2.Financial Resources .
TheDanish R&D funding in1985 showed thefollowing break down :
Business sector :3,759 Mio DKr 469 Mio ECU 49 X
Government funds : 3,567 Mio DKr 445 Mio ECU 46 X
Other fund : 366 Mio DKr 45Mio ECU 5X
Total 7,692 Mio DKr 959 Mio ECU 100 X
Source :Danish Research Administration .
The national R&D budget amounted to4,036 Mio DKr (about 509 Mio
ECU )in1986 .This corresponded to aratio ofthe national R&D
budget to the national budget of 1.55 X. The Government
appropriated 0.4 Xofthe national R&D budget to defence R&D
(1986 ) (1).
The financial contribution towards the R&D Expenditure inthe
public sector in1985 came mainly from the Ministry ofEducation
and Research (54X), the Ministry ofAgriculture (8 X)and the
Ministry ofEnergy (7 X)(2).
For R&D promotion inDanish industry the Ministry ofIndustry
provided roughly 1/4ofthe public R&D expenditure .Estimates in
the 1987 Finance Act indicate 1,050 Mio DKr (nearly 135 MECU )for
this purpose (3).
5._International Coopération .
Danish research and technology relies onthe accessibility of
results ,regardless of source ,and are dependent on wide
International co-operation among researchers ,institutes and
laboratories irrespective ofnationality .About 5X (225 Mio DKr
or32 MECU )ofthe national Research &Development resources are
attributed to the participation in international co-operation
including the ECResearch &Development programmes .Furthermore
the participation inthe Nordic research co-operation isofgreat
interest tothe country .
The EUREKA scheme was highly welcomed by Denmark .The
Government 'sAction Plan earmarks 110 Mio DKr (about 14MECU )for
participation inthe period 1986-1990 .Denmark participates in27
ofthe 213 EUREKA project (situation asof01.07.1988 ).
(1)Source :OECD .
(2)Source :Danish research administration .
(3)Source :OECD .
362

Nov .1988
S &T POLICY IN FRANCE
1.Objectives .
The Government 'sResearch Policy can besummarized asfollows :
-priority toindustrial research ;
-tomaintain and even increase ,involume ,the means for basic
research ;
-toencourage ordevelop collaboration between fundamental and
applied research ;
-toencourage the involvement ofthe entire industrial sector in
the national research effort ;
-toprovide areasonable support to the "grands programmes "of
technical development ;
-topromote the development ofeuropean co-operation .
During recent years ,there has been anincrease inR&D financing
aspercentage ofGDP from 2.01 in1981 to2.31 Xin 1985 and the
target is to reach 3%by1990 .InFrance research has been
designated asanational priority .
2.Priorities .
The on-going programmes give aclear indication ofthe prevailing
priority choices .
Programmes are oftwo main types :
-technological development _Programmes (PDT )with the objective
toachieve large technological goals in nuclear energy ,space
aeronautics ,telecommunications ,electronuclear equipments ;
-national programmes which regroup the actions ofthe Research
and Technology Funds (FRT )and aim topromote the diffusing of
basic technologies through many industrial branches .
The national programmes ,which are subdivided inthirty-three
priority research actions ,are the following :
-Biotechnology
-Alimentation
-Medical research
-Human and social sciences
-Technology and production
-Electronics
-Research onland use &Transports
-Natural resources
-New materials
-New chemistry
-Research for development .
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2
Breakdown of_pefl.V-l.sl ona1R&Dbudgets bvobjectives in 1986 and 1987c/.i
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 1.5 1.4
Infrastructures and general land-use planning 3.2 3.2
Control ofenvironmental pollution 0.5 0.A
Protection and improvement ofhuman health 3.8 3.6
Production ,distribution and rational
utilization ofenergy 7.1 6.7
Agricultural productivity and technology 3.6 3.6
Industrial productivity and technology 12.1 10.6
Social structures and relationships 2.9 2.7
Exploration and exploitation ofspace 5.8 5.9
Research financed from general university funds 11.8 12.0
Non-oriented research 15.1 14.7
Other research 1.6 1.1
Total financing ofcivil R&D 69 .0 65.9
Defence 31.0 34.1
Total financing 100.0 100.0
Source :EUROSTAT :Government financing ofR&D inCommunity countries .
3.Implémentation ■
3.1 .LegalFramework andInstitutional Mechanisms
Each year ,the R&D national policy inFrance isdescribed in
great details inareport entitled "The State ofResearch and
Technological Development "annexed to the annual Budget (Projet
deLoi deFinance ).
Since June 1988 ,anew Ministry for Research and Technology (MRT )
has been created who isresponsible for the S&T policy .The Space
policy isunder the Ministry of Post ,Telecommunications and
Space .Other Ministries have also animportant roleinanimating
scientific and technical activities .Coordination is assumed by
MRT through the procedure of the establishment ofthe Civil
Budget for R&D (BCRD ).
3.2 .Decentralization
Among the several actions topromote decentralization ,one can
mention the following :
-The "Contrats de Plan Etats-RSgions ".as well as joint
agreements linking national research institutes with the
regions ,have been devised tobring thedecision making closer
tothe periphery .The central state remains however the prime
mover .
-The number of regional innovation and technology transfen
centres (CRITTs )has been increased .Their activities mainly
concern areas which are essential tothe development ofthe
regional industrial structure ofsmall andmedium-sized firms .
Some ofthe main actors for aconcerted regional policy are :
-Regional Delegates for Research and Techn ology_ (DRB.T )with a
role toprovide information and promote awareness ofthe
regions concerning thenational policy ;toco-ordinate research
and technological development activities atregional level ;to
organize thetechnology transfer ;toencourage thediffusion of
scientific and technical culture and information ;
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3
-The representation ofresearch organisms inthe regions .
The principal research organisms have been endowed with
representatives in the regions in order to facilitate the
dialogue between the different research partners .
3.3 Industrial Research
Industrial research inFrance ascompared topublic research has
not yet reached alevel similar toits main competitors ,not only
in terms of research financing bythe companies ,but also in
terms ofthe share they are taking inresearch execution .This is
due tothe fact that inFrance the public research centres have a
long tradition ofbeing the main research actors and assuch they
continue toweigh heavily inthe overall national R&D structure .
In1986 ,43Xofthe GERD was financed by the enterprises as
opposed to57 Xbythe administrations and 58 Xofthe GERD was
performed by the enterprises as opposed to 42 Xby the
administrations .The largest share ofthe increase inindustrial
expenditures on R&D came from big national enterprises and high
technology groups .
ANVAR has the mission tohelp companies totake more benefit from
the results of technological development programmes ,and will
more and more favour small and medium size companies (for which
itdevoted 80Xof its credits in1987 )aswell asthe creation
ofnew enterprises .
Loans onfavorable terms provided mainly bythe ANVAR should help
set upapplied and goal oriented Research programmes with the aim
todevelop collaboration between the various bodies involved :
public research establishments ,industry orfirms inthe services
sector ,technical centres and research companies under contract .
Such programmes should make itpossible toallocate public funds
tosectors inwhich the need for strong research stimulation is
being felt .
3.3.1 .Direct Support toIndustrial Research
Direct support goes through thematic programmes funded bythe
"Fonds delaRecherche etdelaTechnologie -FRT "mainly devoted
to basic technology ,the so-called "generic "or "diffusing
technology ".
There has been asignificant increase indirect aid toindustrial
research granted inthe form ofsubsidies orrepayable aids which
the State or its public establishments tend to give for
innovation projects orresearch presented byindustrialists .
Indirect Support
The tax credit infavour ofresearch consists of areduction in
income tax ofenterprises representing 50 Xofthe increase in
volume ,from one year tothe next ,in their R&D effort ,with a
ceiling of 5millions F.
In1988 ,this ceiling of 5millions francs will beraised to
10million francs in cases where the enterprises present a
research programme incollaboration with auniversity ,aresearch
centre ,oranother enterprise .
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4
ANVAR hasproposed for Small Medium Enterprises (SME )afinancial
aidinhiring high level researchers .Foreach researcher hired ,
theSME will receive 150,000 F (22,000 ECU),half ofitatthe
moment ofrecruitment and therest oneyear after hiring .
3.4.Research Training
TheFrench government hasdevised thefollowing mechanisms :
-Research grants financed directly by the previous ministry
responsible for Research and higher Education
-Aids for training financed directly by public research
organisms
-Industrial agreements for training byresearch (CIFRE )
-Centres for the technology training ofengineers byresearch
4.National Resources
4.1 .Human Resources (1)
In1985 ,there were 273.014 people (full time equivalent )working
inResearch ,from which 102.336 researchers .
4.2 .Financial Resources (2)
Gross Domestic Product (GDP ) :674.8 Billion ECU (atcurrent
prices and exchange rates (1985 )
Gross Doraestic Expenditure for R&D (GERD ):15,587.4 Mio ECU (1985 )
GERD /GDP :2.31 X(1985 )
R&D Budget :10273.1 Mio ECU (1986 )(3)
R&D Budget /National Budget :6.34 X (1986 )
In1986 ,43 XofGERD was financed byenterprises .This figure is
considered low as compared to FRG and Japan and that isthe
reason why the strengthening ofindustrial research figures among
the top priorities ofthe French government .
In 1986 ,the R&D financing for research inDefence represents
32.5 Xofthe total R&D government appropriations .
5._International Coopération ^
France participates inall the programmes included in the E.C.
framework Programme .
Agreat importance is also attached tothe International co¬
operation inR&D .Under aFrench impulse ,three international
initiatives have sofar been launched :
the International Co-operation in the domain ofTechnology ,
Growth and Employment (TGE ) (Versailles 1982 ), the EUROPEAN
NETWORKS (Council ofEurope ,Paris 1984 )and EUREKA (July 1985 ).
France participates in105EUREKA projects (asof01.07.1988 ).
Among European cooperation inwhich France participates ,the
following can bementioned :C.O.S.T. ;CERN ;ESA ,THE EUROPEAN
SYNCHROTRON RADIATION FACILITY (E.S.R.F. ) and other heavy
equipments ;...
(1)Source :Projet deLoi deFinances pour 1988 .
(2)Source :OCDE
(3)Source :OSCE 366

Nov .1988
S&TIH THE FEDERAL REPUBLIC OFGERMANY .
1.Generalpolicy objectives .
Science ,research and technological development are amainstay
ofthe German economy 's innovative capacity .The orientation of
the S&Tpolicy inthe Federal Republic ofGermany isdirected
bythe following closely interrelated precepts :
-adherence to the principle of "freedom of research "and
promotion ofindividual initiative ;
-accordance with the principle of "subsidiary funding ";the
Government therefore acts with restraint vis -S-vis R&D in
industry and acknowledges "entrepreneurial self-reliance ";
-apositive attitude to technological progress and economie
growth .
The country 'sgross domestic Expenditure onR&D (GERD )was 2.66 %
ofGDP in1985 .Estimates for 1987 indicate aGERD of2.8 %of
GDP .These figures are very close to the comparable indicators
ofGermany 's main competitors onthe world market USA and JAPAN
and ranks itinfirst place amongst its partners inthe EC .
^–Prloritisa ...
Inaccordance with the guidelines and objectives the Federal
Government will focus onthe following fields :
Increased promotion ofbasic research through joint financing
bythe Federal and Lander governments according toexisting
agreements .
Expansion of "preventive "research (particularly :ecology ,
health ,climate research ).
Promotion of research and subsidiary funding ofindustry in
the area ofmarket-oriented technologies particularly :
-information technologies and materials research ;
-the completion ofthe Airbus family ;
-biotechnology with emphasis on genetic engineering ,
molecular biology and regenerative raw materials ;
-selected physical technologies (laser , thin-film
technology );
-regenerative energy technologies .
Improvement of the basic conditions for introduction of
innovations insmall and medium-sized companies .
Strengthening ofareas of research with long-term prospects
(nuclear fusion ,polar research ,apace research ).
Expansion and intensification ofinternational cooperation .
Research and responsible discussion about the impact and
implication oftechnology .
367

2
The percentage break down ofthe public R&D funding ingroups of
objectives indicates thepriorities which are attributed bythe
Government .
Breakdown ofprovisional R&D budgets bvobjectives In1986 and 1987 (7.)
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 2.1 1.9
Infrastructures and general land-use planning 1.9 1.9
Control ofenvironmental pollution 3.3 3.3
Protection and improvement ofhuman health 3.0 3.2
Production ,distribution and rational
utilization ofenergy 10.5 8.7
Agricultural productivity and technology 2.0 2.0
Industrial productivity and technology 14.3 15.3
Social structures and relationships 2.3 2.3
Exploration and exploitation ofspace 4.5 A.9
Research financed from general university funds 31.8 31 .5
Non-oriented research 11.8 12.3
Other research 0.1 0.2
Total financing ofcivil R&D 87.6 87.5
Defence 12.4 12.5
Total financing 100.0 100.0
Source :EUROSTAT :Government financing ofR&D inCommunity countries .
3.Implémentation .
The responsibility for the German S/Tpolicy ispartly with the
Lander Governments ,which are responsible for the universities
and their R&D ,and with the Federal Government mainly with the
Federal Ministry for Research and Technology (BMFT )which directs
the non-university R&D .
Inlaying down the guidelines for its policy the Government is
supported byindependent institutions like the German Research
Society (DFG ),and the Max Planck Society (MPG ).The link between
science and industry isprovided bythe Fraunhofer Society (FhG ).
Research ,development and innovation ,which today form themajor
part of R&D expenditure ,are considered as fundamental and
necessary tasks of the firms .There isagreement between
government and industry that disadvantages ininternational
competition cannot be overcome by government financing .The
appropriate efforts have tobemade bythefirms themselves ,the
government 'sR&D policy having the task of creating an
environment for private innovation that is conducive to
performance and growth .
Particular importance however isattached totherole oftheSMEs
which ,intheGovernment 'sview ,are animportant factor forthe
performance and competitiveness ofGerman industry .
Thepromotion ofR&D inindustry byindirect –measures and tas .
reductions isbased on incentives ,but thedefinition ofthe
content of the R&D is left to the firms themselves .The
development of these appropriations and tax concessions to
industry over the last years gives thefollowing pictures :
368

3
Year 1983 1984 1985 1986 1987 *
Global Government Mio DM
contributions Mio ECU852
375982
4391,185
5321,258
5911,139
550
Source :Bundesbericht Forschung 1988 (BUFO ) * :estimates
The promotion of R&D in specific areas oftechnology orof
product groups focused mainly onmicroelectronics ,manufacturing
techniques ,microperiphery components and biotechnology .The
development ofthis spending ,the so called indirect specific
finane ino .are asfollows :
Year 1983 1984 1985 1986 1987 *
Global Government Mio DM 151 161 133 135 117
spending Mio ECU 66 72 60 63 57
Source :BUFO 1988 * :estimâtes
4.National Resources .
4.1 .Human Resources (1)
The number ofresearchers per 1000 labour force equalled to4.8
in1983 .The total ofR&D workers in the Federal Republic of
Germany in 1985 was 398,328 (full time equivalent ),broken down
asfollows :researchers 36 X,technicians 30 X,others 34 X.
The industrial sector employs byfar the largest part of the R&D
personnel (about 2/3)of which 34 Xare researchers and 31.4 X
technicians .Anincrease of 10.3 Xof the R&D personnel was
registered between 1983 and 1985 inthis sector .
Inthe other sectors the researchers form the greatest part of
the R&D staff .In the universities 42.7 Xare researchers but
this figure was slightly decreasing between 1983 and 1985 .
4.2 .Financial Resources (2)
The national R&D budget amounted to 21,375 Mio DM (10,049 Mio
ECU )in1986 .This corresponded to aratio ofthe national R&D
budget to the national budget of 4.2 %.The Government
appropriated 12.4 Xof the national R&D budget todefence R&D
(1986 ).
(1)Source :BUFO .
(2)Source :OECD (provisional data ).
369

4
The country 's R&D expenditure has increased substantially in
recent years ,mainly the industry 'spart (61 Xofthe total R&D
expenditure in 1987 ).The tables belou indicate the development
over the last years .
R&D expenditure share byfinancing sectors .
1981 1983 1985 1986 1987
Federal Government
AsXoftotal R&D spending 26.3 25.9 24.6 24.0 24 .3
Länder Governments
AsXoftotal R&D spending 16.2 14.7 13.7 13.5 13.4
Industry
AsXoftotal R&D spending 56 .1 57.9 60.3 61 .1 61.0
Private non-profit inst .
AsXoftotal R&D spending 0.4 0.4 0.3 0.3 0.3
Total domestic financed R&D
AsXoftotal R&D spending 99 .1 98.9 98 .9 98.9 98.9
From abroad funded R&D
AsXoftotal R&D spending 0.9 1.1 1.1 1.1 1.1
Source :BUFO 1988
Over 90 Xofthe Federal research appropriations are provided by
four Federal ministries ,the Federal Ministry for Research and
Technology (BMFT ), the Federal Ministry of Defence (BMVg ),the
Federal Ministry of Economic Affairs (BMUi )and the Federal
Ministry ofEducation and Science (BMBU ).The BMFT supplied some
55 Xofthe funds in1987 .
5._International Coopération .
The Federal Republic ofGermany ,with its heavily export-oriented
economy ,has agreat interest ininternational cooperation .
In 1987 the funds which went abroad or to international
organizations amounted toabout 8%ofthe Federal Government 's
R&D appropriations .According to estimates the expenditure from
government and industry will amount tosome DM1,700 million
(about 630 million ECU )in1987 .
The Government attaches great importance to EC research and
technology policy . It sees safeguarding Europe’s economic ,
industrial and technological capabilities by coordinating and
promoting R&D asanother means ofuniting Europe .
EUREKA is seen as acooperation beyond national boundaries in
which economic activities can be pursued by appropriate
coordination .The German industry particularly wants standards to
beharmonized atanearly stage and inparallel with research and
development . German firms and research institutes are
participating in 66 of the 213 EUREKA projects .The German
participation to these projects was estimated to1,150 Mio DM
(about 575 Mio ECU ) (asofJune 1988 ).
370

Nov .1988
3&T_POLICY IN GREECE .
The main objectives set bythe 1988-92 National plan for research
and technology are :
Creation of the necessary infrastructure with increasing
importance to the creation ofhuman research and managerial
potential .
Formulation of specialised sectoral programmes in
agriculture ,industry ,energy ,etc .Particular efforts will
bemade topromote the development ofhigh technology .
Diffusion of S&Tinformation (creation ofnetworks ).
Promotion of technology transfer and international
cooperation .
Encouragement ofinnovation .
GERD asapercentage ofGDP has increased steadily from 0.21 Xin
1981 to0.35 Xin1985 .The aim istoreach 0.65 Xin1992 .
2.Priorities .
High priority has been given to :
Industrial research Development Programme ;
Social and human sciences ;
Information technology ;
Biotechnology ;
Energy ;
Agriculture .
Breakdown ofprovisional _R&D budgets bvobjectives in1986 and 1987 (X)
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 5.5 7.1
Infrastructures and general land-uee planning 0.4 0.3
Control ofenvironmental pollution 3.4 2.1
Protection and improvement ofhuman health
Production ,distribution and rational9.3 7.4
utilization ofenergy 2.6 3.6
Agricultural productivity and technology 24.9 26 .0
Industrial productivity and technology 8.7 11.2
Social structures and relationships 6.4 7.3
Exploration and exploitation ofspace 0.6 0.4
Research financed from general university funds 26 .9 25.3
Non-oriented research 6.1 6.7
Other research 2.2 0.3
Total financing ofcivil R&D 97 .1 97.7
Defence 2.9 2.3
Total financingL100.0 100.0
Source :EUROSTAT :Government financing ofR&D inCommunity countries .
371

2
3.Implémentation .
3.1 .–Legal Framework and institutional mechanisms .
The lau (1514 /85)on the "Development of Scientific and
Technological Research "has been promulgated and aims atsetting
the foundations for anew policy with concrete objectives and
organization ofthe R&Tactivities related toGreece 'ssocio ¬
economic development .
The General Secretariat for Research and Technology (G.S.R.T. )is
anautonomous body within the Ministry ofIndustry ,Energy and
Technology and isresponsible for the drawing up and the
implementation of the five-year plan for Research and
Technological Development ,the elaboration ofnew programmes ,the
promotion of technological development , the activation and
development of Research and Technology potential ,the importing
and exporting ofknow-how ,research evaluation and coordination
ofR&D activities between the various actors .
There are ,however ,other ministries that organise and fund their
own R&D activities over which the G.S. R.T has not ,sofar ,any
jurisdiction .Toimprove consistency and topromote coordination ,
all the competent ministries have participated inthe preparation
ofthe new Plan (1988-1992 ).
3.2 .Research Centres and Universities .
Intense efforts will be made to attain the larger possible
participation ofGreece inprogrammes issued within the framework
ofbilateral agreements .
In order to improve the technical infrastructure ,efforts are
made todraw agreater advantage from the EEC programmes ,FEDER ,
etc .and tomake amore efficient use ofthe existing research
equipments bythe research units and universities .
Uith the exception of Universities who are free tochoose the
topic oftheir research ,public financing ofresearch centres and
institutes will depend ontheir ability to obtain grants from
third parties (specially from the EEC ),towork closely with the
production sector ,tocontribute inthe technological development
ofthe country ,to execute programmes ofagreater national or
social interest and to promote the country 'sreputation inthe
domain ofresearch .
Efforts are made toinstitutionalize concrete research incentives
toresearchers and technicians ,which with their own initiative
will bring to the research centre or institution external
subsidies from financing organizations orincome from services ,
orselling ofproducts .
Inorder tobring Research closer tothe production sector ,the
Cofinanclng Programme has been devised according towhich Higher
Education Institutions (Universities or Technical Colleges ),or
372

3
research centres can submit proposals for financial subsidies of
some research projects provided that they have previously managed
toobtain 30 Xfinancing ofthe total cost ofthe project from a
production unit orasocial body .
3.3 .Industry ^
Until recently Greek firms have been little involved in
technological research activities ,and the research work carried
out in State research institutions have been cut off from the
productive branches ofthe economy .
The following measures have been adopted inorder toencourage
research inthe industry :
Inthe Industrial Research Development Programme ,itis
foreseen asubsidy of 40-50 Xofthe research work carried
out byanenterprise .
Inthe law 1262 /87 ,it is foreseen asubsidy for the
establishment or expansion of laboratories in the
enterprises .
There isapossibility ofdeducting research expenses from
the taxable sum and amortization ofresearch equipment costs
within three years (Law 1731 /1987 ).
Financing the creation of prototypes by the Greek
Organization for SHE and handicraft (EOMMEX )and the G.S.
R&T.
3.4 .Technology Transfer .
Anew law 1733 /22.09.1987 on "Transfer ofTechnology ,Inventions
and Technological Innovations "has been recently passed which
aims toassist the firms with technology transfer into Greece ,
and endogenous technological development .The law provides for
the establishment of an organization for industrial property
rights which will be incharge ofmonitoring the application of
this law .
Inorder tosolve effectively the problems oftechnology transfer
insome selected industrial sectors and the linkage ofresearch
with production ,some technical sectorial companies have been
created for technical assistance tothe existing SME inthose
sectors .
3.5 ._Patents and "Know-how ".
Topromote the role of patents in the exploitation ofthe
research results and the innovation ,Greece modernised the
national legislation covering this sector with the enactment of
the law 1733 /1987 mentioned above and the ratification ofthe
European Patent Convention .In collaboration with the European
Patent Organization ,afive year programme has been formulated
for the development ofthe corresponding Greek Organism (OBI ).
373

3.6 .Innovation .
In1982 ,the Greek Organization ofSmall and Medium Enterprises
and Handicraft (EOMMEX )started aprogramme for the promotion of
innovation inthe SHE inGreece .Inthis way aCentral Innovation
and Technological Development Directorate (DIKTA )was created as
well as 5local offices ofinnovation infive different cities of
Greece .
4.National resources .
4,1 .Human Resources (1)
Number ofresearchers per 1000 labour force :0.8 (1983 ).
To reverse the acute problem of "brain-drain "Greece is
determined to proceed with the creation ofthe proper working
conditions in order to attract back some of the eminent Greek
scientists who work abroad .
4.2^Financial Resources (2)
Gross Domestic Product (GDP ) (at current prices and exchange
rates ) :42.8 Billion ECU (1985 )
Gross Domestic Expenditure for R&D (GERD ) :148.9 Mio ECU (1985 )
GERD /GDP :0.35 X (1985 )
Percentage ofGERD financed byindustry :26.3 X (1985 )
R&D Budget :99.5 Mio ECU (1986 )(3)
R&D Budget /National Budget :0.67 X (1986 )
Defence R&D asaiof total Government appropriations :2.7 X
(1986 ).
5.International Coopération .
The participation ofGreece inthe Community R&D programmes has
increased substantially over the period 1984-1987 ,and the total
Community funding for this period reached the sum of38.6
Millions ECU . Bilateral and multilateral agreements for
cooperation on R&Texist between Greece and several countries
from the Western and Eastern bloc .
For example ,within the framework of abilateral agreement
between Greece and Germany ,aunique solar energy village (435
dwellings utilising seven different energy systems )has been
constructed inthe Athens area .
Among the activities devised within the framework ofbilateral
collaboration ,40 X (in number )will concern exchange of
scientists and the other 60 Xjoint application programmes .
Greece participates in8EUREKA projects (asof01.07.1988 ).
(1)Source :OECD .
(2)Source :OECD
(3)Source :OSCE374

S&T IH IBELANDNov .1988
1General ..Policv ,
During 1987 Irish Science and Technology was considerably
reorganised .AMinister for Science and Technology was appointed
for the first time .The Ministry ofScience and Technology is
located within the Department ofIndustry and Commerce .
Within awide general programme of rationalization ofGovernment
activity ,Ireland 's major public scientific and technological
institutions were amalgamated .
Government has accompanied this reorganization with ashift of
S&Tfocus towards fostering agreater effort byindigenous
firms inscience and technology .
Atatime of widespread cuts inall Government expenditure the
Minister for Science and Technology allocated £2.5 m (3.2 MECU )
additional toearlier budget provision .Indigenous development
played amajor part inthe programme set out (1).
"This programme :
-will support the placement ofthe best and brightest science
and engineering graduates inindustry ;
-will develop centres ofexcellence and applied research inour
higher education institutes ;
-will establish anational programme oftechnological innovation
to extend and enhance existing research grant schemes
administered bythe National Board for Science and Technology ;
-Institute for Industrial Research and Standards toacquire much
needed test equipment soastogive Irish industry the range of
services needed intoday 'scircumstances ."
2.Priorities .
S&T Strategic Research Programme emphasizes application -
orientated research and has identified Biotechnology ,
Engineering ,Advanced Materials and Information Technology as
priorities .
Additional Policy aims consistent with concentrating natural S&T
effort onindigenous firms are :
i) increasing the innovation rate inIrish enterprises ;
ii)tackling the structural barriers ofindustry which inhibit
better technological capacity and performance .
iii )developing amodern information and intelligence network .
iv)accelerating the adoption and application ofnew industrial
technologies .
v) creating greater awareness ofthe importance ofscience and
technology and animproved climate for entrepreneurship .
(1)New Science and Technology Development Programme "
Dr S. Me Carthy ,Minister for Science and Technology ,
Dublin ,11th June 1987 .
375

2
vi)mobilising and optimising public and publicly funded S&T
agencies and services insupport ofthe innovation drive by
ensuring coordinated programmes of actions within and
between agencies by :
supporting mobility ofpersonnel ;
making efficient use ofscarce national facilities ;
gaining maximum benefit from international cooperation ;
focussing selectively on areas oftechnology assessed as
priorities ;
ensuring viable quality programmes with prospects of
successful outcome assumed bygood management and technical
capability ofthe teams .
vii )partic ipating wherever possible incollaborative R&D .
The South East Region ,one ofthe weaker regions inS&T ,has been
declared apilot region for S&T related economic development .
Table 1
Breakdown ofprovisional RAD budgets bvobjectives In19B6 and 19B7 (X)
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 0.7 0.6
Infrastructures and general land-use planning 3.9 4.2
Control ofenvironmental pollution 0.8 1.0
Protection and Improvement ofhuman health 4.9 3.9
Production ,distribution and rational
utilization ofenergy 1.2 1.1
Agricultural productivity and technology 27.3 24 .2
Industrial productivity and technology 26.1 27.2
Social structures and relationships 8.0 10.0
Exploration and exploitation ofspace 1.1 2.3
Research financed from general university funds 23.9 23.0
Non-orlented research 2.1 2.5
Other research-
Total financing ofcivil RAD 100.0 100.0
Defence- -
Total financing 100.0 100.0
Source :EUROSTAT :Government financing ofRAD InCommunity countries .
3.Implémentation .
Inthe wide ranging changes conducted in1987 and implemented in
1988 ,the primary policy and resources management agencies were
changed .
The National Board for Science and Technology (NBST )-the
primary S&T policy advising and co-ordination agency and the
Institute for Industrial Research and Standards (IIRS )-the
primary S&T application agency -have been amalgated toform the
new body EOLAS .
An Foras Taluntais (AFT )-the Agricultural Institute -the
primary agency for agricultural research and ACOT -the primary
agricultural training and development agency have been
amalgamated toform the new body TEAGASC -The Agriculture and
Food Development Agency .
376

3
The functions of the environmental Research Institute (AFF )-
have been either taken into the Dept of Environment or given to
TEAGASC or EOLAS .The functions previously carried out bythe
Medical Social Research Board and Medical Research Council were
subsumed into the neu Health Research Board .
All fee earning S&T services have been forced toseek higher
returns .Dependence onfee income has undoubtedly resulted in
greater efficiency inthe provision ofS&T services .There isa
danger ,however ,that non-fee earning developmental work will be
curtailed atthe expense offee-earning activities .
Overall reduction in exchequer funding ofS&T activities has
resulted in the curtailment of certain S&T activities ,
particularly those which are not fee earning .
4.National Resources .
4.1.Personnel <1>
Considerable reductions in staff at the main public S&T
institutes have also been sought as part of Ireland 'sgeneral
drive toreduce public expenditure inits attempt toovercome the
economic difficulties arising form its foreign debt .
The number ofresearchers inIreland per 1000 Labour force is
2.8 X.
2.Financial Resources .
S&T has had asmall budget increase in1987 despite widespread
cuts inmost other spending departments .Government Expenditure
onS&T increased in real terms by 1.4Xper annum average from
1981-87 .Current expenditure onS&T increased by 3Xper annum in
real terms 1985-87 .However R&D Expenditure as XofGDP has
remained around 0.8 XofGDP .All ofIreland 'sR&D expenditure is
Civilian R&D .
S&T Expenditure has declined in Agriculture and Energy and
increased inS&T for the Manufacturing Sector .
Table 2provides pattern ofexpenditure .
Table 2
GOVERNMENT EXPENDITURE ONSCIENCE AND TECHNOLOGY ,1982-1986 IREMILLION
1982
(IRCm)1983
(IRCm )1984
(IRCm|1985
(IRCml1986 *
(IRCml (MECU )
Voted Current Monies 213.2 221.5 237.7 258.9 278.4 363
Voted Capital Monies 342 38.5 34.4 347 46.6 61
Non-Exchequer Monies 24.4 49.4 62.9 70.4 73.396
Total 271.8 309 4 33S.0 3640 3983 520
•Budgened expenditure Source NBST
(1)Source :NBST Annual report .
377

4
Current expenditure ,which represents mainly labour costs ,
provides abetter guide tooverall activity levels .Total current
expenditure increased by3.1 Xin real terms between 1985 and
1986 .
The Government component ofthis expenditure has ,however ,
decreased inreal terms between 1981 and 1986 ,with current
expenditure decreasing by2Xand capital by 1X. This decrease
inexchequer funding had been matched byareal increase innon -
exchequer income of68 Xbetween 1981 and 1986 .
Indigenous firms contribute one third of total expenditure by
firms inIreland onR&D .In1982 of5,652 owned firms only 74had
formal R&D departments ,only 231 conducted any R&D .
There was adrop infunding for R&D due almost entirely toa
reduction inGovernment support for the Agriculture Sector .
Agricultural R&D expenditure has decreased in real terms by
17.7 Xsince 1981 .
Government support for R&D inthe Manufacturing sector has grown
steadily however since 1981 -recording areal growth of99 X
over the five year period to 1986 .GERD /GDP is0.8 X.R&D to
support manufacturing isnow the largest element of State R&D
activities .
The higher education sector was the other major recipient of
Government funds for R&D , indirectly through the general
education block-grant from the Department of Education and the
Higher Education Authority ,and directly through specific
research -support schemes .
As a small economy ,peripherally located ,Ireland regards
international S&T participation of crucial importance and seeks
participation . In Community programmes in which Ireland
participates ,itisvery successful relative topopulation size .
Itregards the main benefits asenhancement ofthe scientific and
technological competence byoffering it :
i) the means to develop an outward orientation and
participation inthe wider world ofscience ;
ii)opportunities for sharing the costs of specific research
programmes and facilities ;
iii )the means to access specific scientific and technical
information and to gather technological and commercial
intelligence ;
iv)opportunities foracquiring technology through licensing and
other methods oftransfer .
Ireland participates asofJuly 1988 in6EUREKA projects .
378

Nov .1988
S & T IN ITALY
1.General Policv Objectives .
Scientific research and technological development are acurrent
priority for the Italian Government and business enterprises .
The ratio Gross_domestic _Expenditure _£U__ (GEPD )/Gross
Domestic Product (G.D.P. )increased from 0.74 Xin1980 to1.40
in1988 .
The overall objective istoincrease the GERD for the next 4or 5
years inasuch way astoreach the ratio GERD /GDP value ofabout
2.4 Xcomparable to that of other Community countries such as
France and U.K.
For research personnel .between 1969 and 1985 Italy was the
second country (of the OECD geographical area )to show the
highest annual increase rate for researchers (about 5.9 */.).
Aparticular effort will bemade intraining and recruiting young
scientists for which aserious shortage isforeseen inthe near
future .
Italian researchers are also eager todevelop more than before as
much international cooperation aspossible .
The percentage of scientific papers published by Italian
scientists with foreign co-authors isthe highest ofall OECD
countries .
2.Priorities -
Specific priorities are set inthe field ofadvanced technologies
inorder togive anedge toItalian industry inthe competition
for supplying the internal and foreign markets .
Amajor emphasis will beput onthe following sectors :
biotechnologies and fine chemicals ;
electronic data processing (micro - and molecular
electronics ) ;
new materials (semi-conductors ,ceramics ,etc .) ;
thermonuclear fusion ;
broadband télécommunications ;
optics and lasers ;
advanced transport ;
satellites and space crafts ;
biomédical instrumentation ;
educational training technique .
379

2
One field ofresearch is to bereduced inimportance ,viz ,
nuclear fission because themajority ,inanational referendum in
1987 ,expressed anegative position towards the continuation of
electricity production with the present generation ofnuclear
reactors .However ,research iscontinuing atareduced scale on
an "intrinsically safe "fission reactor .
The following table highlights the shift inthepriorities
between 1986 and 1987 ingovernment funded research .
Breakdown ofprovisional R&D budgets bvobjectives in19B6 and 1987m
Objectlves Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 1.1 1.4
Infrastructures and general land-use planning 0.9 0.8
Control ofenvironmental pollution 1.0 0.9
Protection and improvement ofhuman health 4.4 4.5
Production ,distribution and rational
utilization ofenergy 17.4 11.1
Agricultural productivity and technology 3.7 3.5
Industrial productivity and technology 19.1 19.1
Social structures and relationships 1.1 1.2
Exploration and exploitation ofspace 6.9 9.3
Research financed from general university funds 28 .6 31.9
Non-oriented research 7.0 6.6
Other research 0.4 1.9
Total financing ofcivil R&D 91.6 92 .2
Defence 8.4 7.8
Total financing 100.0 100.0
Source :EUROSTAT :Government financing ofR&D InCommunity countries .
3.Implémentation
Several ministries ,research bodies and industry are responsible
for carrying out R&D activities .Atpresent the Minister for S&T
research has acertain amount of coordination power for the
public financed R&D .Alaw ,approved by the Senate and now
presented to the other branch of the Parliament ,will set upa
Ministry responsible for University and the scientific and
technological research .
The Minister for University and S&T research will have his own
budget and should beinaposition tocoordinate the whole public
financed R&D activities and todraw guidelines for the private
funded research via fiscal and other incentives toindustry .
The most Important decision-making body at ministerial level ,
which has an overall competence inall matter concerning the
Italian economy ,isthe C.I.P.E. (Intermlnisterial Committee for
Economic Planning ). The new Minister ,above quoted ,will bea
permanent member ofC.I.P.E.
380

3
Among the largest bodies , other than University
Institutes ,responsible for carrying out research ,the following
can bequoted :
C.N.R. (National Research Council ) ;
I.N.F.N. (National Institute for Nuclear Physics )
responsible for research inhigh energy physics ;
A.S.I. (Italian Space Agency )established inJune 1988 ;
I.S.S. (Central Institute for Public Health ) ;
E.N.E.A. (National Organization for R&D of Nuclear and new
Energy sources ).
The targeted projects ("progetti final izzati ")promote applied
research with reference to well-defined topics involving the
adoption of multi-disciplinary methods and having recourse to
integrated scientific skills at different levels ,e.g. the
Universities ,C.N.R. ,industry and other central ,regional and
local administrative bodies .
Inaddition tothe attainment ofspecific economic relevant goals
inthe short term ,the targeted projects are concerned with the
medium -/long -term examination of particular problems affecting
production and social development .
Asfar asindustrial R&D isconcerned ,itmust benoted that the
general picture produced by the examination ofthe statistical
indicators ofindustrial research reveals the tendency ofItalian
industry to give priority to products having an average
technological content .
The share of industrial R&D inthe formation ofthe GERD has
these last years been about 50 Xof the total ,but industry 's
share asaperformer ofR&D was about 57 Xin1985 .
4.National Resources
é*l.i .Personnel (1)
Total R&D personnel (full time équivalent f.t.e .) :117,887 units
(1985 )
Total R&D Scientists and Engineers ,Researchers (f.t.e .) :63,759
units (1985 )
Number ofresearchers for 1000 labour force :2.7
(1)Source :O.C.D.E. ,Paris :Main S&T Indicators 1988 .
381

4
Thehigher education system ofItalian universities delivers only
onequalification innatural sciences andengineering while three
types of university qualifications (diploma ,degree and
doctorate )are required for being in line with most Western
countries .
Inorder tocope with the shortage ofresearchers forecast for
the coming years it isplanned torecruit 50,000 young
researchers inthe next five years .
4.2.Financial Means (1)
Government financing ofR&D in1987 :4,754.5 Mio ECU
(provisional budget )
Defence R&D as XofTotal R&D Government Budget :7.8 X(1987 )
Gross domestic Expenditure for R&D (GERD)in 1985 :6,307.3 Mio ECU
GERD /GDP :1.33 X (1985 )
5.International Coopération
Senior officials in charge of S&T research think that
participation in research projects based on international
cooperation at both European and non-European level isessential
for maintaining Italian science and technology inthe orbit of
more advanced countries .
Moreover ,there isnot only an attempt toopen Italy 'sscience
programme tointernational cooperation onabroad scale but also
adesire for interaction and adjustments between Community or
international programmes and national projects .
Therefore the Italian scientific world has expressed its interest
for participation in the first and second Community framework
programmes mainly in large Community actions such asESPRIT ,
RACE ,Fusion ,BRITE and EURAM .
Italy is present in 59EUREKA projects (as of01.07.1988 )and
participates to EMBO and other international research
organizations .
Italy is anactive member of CERN as well as ofthe European
Space Agency (ESA )and about one half the Italian funds for space
research are allocated tothe ESA projects .
(1)Source :OSCE
382

Nov .1988
S&T IN LUXEMBOURG
1.General Policv Objectives .
Upto1987 all the R&D activities inthe Grand-Duchy were carried
out byprivate enterprises .Alaw approved in March 1987 bythe
Parliament gave power to the Government toset upacertain
number ofPublic Research Centres (PRC ). These centres will be
financed by public funds .Moreover acertain amount ofpublic
money isset aside for special scholarships designed totrain
researchers .
Uith the establishment of PRC the Government wishes tofoster
industrial innovation through the transfer ofresearch results to
private enterprise .Nevertheless the role of Government inthe
whole process oftechnological innovation shall remain only and
exclusively as an encouraging role ,with business enterprises
managing entirely the function ofinnovating their products .
2.Priorities .
The broad guidelines of the science policy for the publicly
financed research are set out byaspecial Commission "Research
and Innovation "ofthe Parliament and professional Guilds are
consulted for advice .
One of the most important priorities isthe training ofhighly
specialised researchers inall fields .
Cooperation with foreign scientists isalso considered ofprimary
importance given the limited fields ofcoverage ofthe PRCs now
operational .
Particular attention is devoted to the transfer ofresults ,
gathered in public research establishments ,to industrial
innovation .
Spécifie priorities are the following :
-data processing and bureautics (software );
-raicro-electronics ;
-biotechnology for the protection ofthe human health and for
the environment ;
-new materials (mainly for steel and chemical products ,ceramics
and composite materials ).
Î^Implem entât ion .
The Interministerial Committee for Research and Technological
Development ,whose members are appointed by the Government ,is
responsible for coordination and funding of Government financed
research and training scholarships .Moreover ,this Committee acts
asanadvisory body for the Minister responsible for scientific
and applied research (the Minister for Education and Youth ).
383

2
Atpresent only three PRCs are operational but other three or
four more areplanned andthey will beprogressively established
inthe next four orfive years .
Industry is,atpresent ,totally responsible forfunding its
research activities which aremainly carried out inabout ten
sectors :
-steel ,rubber and metal products ;
-metallic building structures ;
-chemistry ,thermoplastics andpcwder metallurgy ;
-electric house appliances .
More than onehalf ofthe industrial research isperformed in
cooperation with foreign firms .
The new Government structure for fostering industrial innovation
set upmeasures and incentives toindustry for investments inR&D
activities and in :
-feasibility studies inSHE ;
-prototypes ;
-pilot plants ;
-services processes ;
4,National resources .
Statistical data (expenditure and personnel ) on research
activities are not yet systematically collected byLuxembourg
statisticians ,however the new ministerial structures ,recently
set up ,shall beinposition todosointhe very near future .
5_._International ceoperation .
National authorities and Luxembourg scientists have indicated
their interest for Community and international cooperation and
this isdemonstrated bythe fact that thepossibility towork in
the PRCs ofLuxembourg isalso offered toforeign scientists .
Luxembourg cannot bepresent inall theresearch fields sothe
choice ofparticipating ininternational projects isimposed by
theneed tocomplement the national effort byinternational
participation .
Luxembourg 'sparticipation ininternational programmes islimited
tothree EUREKA projects (CERISE ,COSINE and IQ133 ), totwo
Community programmes ,ESPRIT ,and BRITE and toCOST .
384

S&I IN THE NETHERLANDS .Nov .1988
1.General Policv Objectives .
The formulation ofthe Dutch science policy for the next 10to15
years will bedetermined bythe following three issues :
-Aspiration ofascientific basis inthe 1990 's for the benefit
ofits key societal functions .
-Achievement of animportant role inresearch inthe process of
internationalization .
-Endeavour for awell balanced development _and application of
science and technology ateconomic ,social and cultural needs .
The total R&D expenditure (GERD )increased remarkably inthe
recent years and will amount to 2.4 Xofthe country 'sGDP in
1988 .This ranks the Netherlands under the high R&D spending EC
Member States .The Netherlands will spend 10,682 Mio Gld (about
4,600 MECU )in1988 .This corresponds toan increase of3,7 X
with reference to1987 .Only the Netherlands ,France ,U.K. and
the FRofGermany contribute more than 2Xofthe GDP for R&D .
2^Priori tles ,.
The largest share of R&D is performed bythe private sector
(about 2/3by the multinational corporations ). The general
expansion of the technological base inindustry mainly inthe
SMEs ,isakey target ofthe Dutch technology policy .
Concerning the Government financed R&D five main issues have been
set out inthe 1988 plan :
-fundamental and strategic research ;
-replacement ofand investment inresearch equipment ;
-international orientation and cooperation ;
-promotion ofand innovation inspecific research fields ;
-throughput of know-how within the research system and the
society .
Beside the general priorities ,the 1988 Science Budget notes a
number ofspecific subjects ormedium term trends :
-Major developments inbiology with emphasis on :biotechnology ,
marine and ecological research environmental problems (cross -
boundaries ),energy ,healthcare .
-In the fields of fundamental and strategic research :high -
energy physics ,neuro -inforroat ic ,geophysics ,microelectronics ,
Information Technology ,optical techniques and superconductors .
-Inmedical /behavioural science and humanities the gaps between
fundamental research and professional practice have tobe
closed .
-The assessment and public diffusion tothese new technologies
toavoid unforeseen consequence for society isamajor concern .
385

2
The percentage break down ofthe public R&D funding ingroups ofobjectives indicates thepriorities which are attributed bythe
Government .
Breakdown –fifprovisional R&D budgets byobjectives in 1986 and 1987 m
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 0.6 0.6
Infrastructures and general land-use planning 4.2 4.6
Control ofenvironmental pollution 3.0 3.1
Protection and improvement ofhuman health 2.2 2.5
Production ,distribution and rational
utilization ofenergy 4.6 4.0
Agricultural productivity and technology 4.4 4.3
Industrial productivity and technology 14.8 17.6
Social structures and relationships 3.5 2.4
Exploration and exploitation ofspace 2.9 2.8
Research financed from general university funds 43 .1 40.7
Non-oriented research 9.8 10.3
Other research 4.3 4.3
Total financing ofcivil R&D 97.4 97.2
Defence 2.6 2.8
Total financing 100.0 100.0
Sourc e :EUROSTAT :Government financing ofR&D inCommunity countries .
3.Implémentation ,
The Government 'sresponsibility for S/Tisborne by :
-The Ministry ofEducation and Science asregards fundamental
and long term research .This Ministry administers alarge share
ofthe Government financed R&D (about 54%in1988 ).
-The Ministry ofEconomic Affairs deals with innovation-oriented
R&D and the different stimulation schemes (about 24 in 1988 ).
-Other Ministries are responsible for the support ofparticular
research related totheir functions .
The decision making is based onabroadly structured network of
advisory bodies .S/TPolicy is prepared by the Council for
Science and Technology ,chaired bythe Prime Minister .The Policy
ispartly market-oriented ,aiming toimprove competitive strength
ofthe Dutch industry .
The structure for R&D funding and promotion isorganised as
follows :
a)Government-financed fundamental and strategic research is
submitted tothe principles oftask-related funding .
Block grants apply for free research attheuniversities and
the research promoted by the Netherlands Organizations for
Applied Scientific Research (TNO );
15)386

3
Specific grants provide for the performance ofwell defined
programmes ;
Customer designed projects or conditional funding are
exceptional cases .
b)Policy-oriented research (atspecific research institutes )is
contracted out byvarious ministries .
c)Innovation-oriented R&D schemes tostimulate the effort ofthe
industry are promoted bythe Ministry ofEconomic Affairs .
The most important schemes and programmes inthis context
are :
-The INNOVATION STIMULATION SCHEME (INSTIR )(a five year
programme )focusses onSMEs .Itprovides support tothe R&D
labour cost ,its financial volume amounted to360 Mio Gld
(nearly 150 MECU )for the 1984-1989 period .
-The TECHNOLOGICAL DEVELOPMENT SCHEME (TOK )offers risk -
bearing loans at 5%interest .
The SHE Business Research Programme (OMK Project )stimulates
firms to carry out advanced research bygranting about half
ofthe project costs .
The STIMULATION ofBUSINESS-ORIENTED RESEARCH byCOLLECTIVES
offered 10Mio Gld (about 4.3 Mio ECU )in1987 (for research
and feasibility studies ).
-The BUSINESS-ORIENTED TECHNOLOGY STIMULATION PROGRAMME
(PBTS )focuses on specific areas such as IT ,Material
Technology ,Biotechnology and Medical Technology .
d)The Government aspurchaser and first buyer plays animportant
role inthe Dutch innovation stimulation policy .
4.National Resources .
4.1 .Human Resources (1)
The number ofresearchers per 1000 labour force was 3.7 in1983 .
The total ofR&D workers inthe Netherlands in1985 was slightly
above 61,000 (full-time equivalent ).
The industrial sector employs about half ofthe R&D manpower
mainly inthe electrical and the chemical sectors .
The Dutch R&D Performing Organizations employed 27,550 R&D
workers in 1985 .The overwhelming part (54 *4)carried out R&D at
the universities and technical universities .
(1)Source :OECD .
387

4
4.2 .Financial Resources C1)
The national R&D budget amounted to 4,093 Mio Gld (about 1,700
Mio ECU )in1986 .This corresponded toaratio of the national
R&D budget to the national budget of 2.4 ’4.The Government
appropriated 2.6 Xofthe national R&D budget to defence R&D
(1988 ).
The trend inR&D funding shifted ,asinmost ECMember States to
more industrial financed R&D . This sector increased it
contribution to the country 's GERD between 1985 and 1988 from
50.2 Xto55.3 X (estimate ).
The total R&D expenditure bysource offunds isgiven below :
1985 1986 1987 1988 *
Public sector (%oftotal )
ofwhich43 .5 41 .6 40 .6 40 .1
Universities 18.4 17.1 16.8 15.4
Other public 25 .1 24 .5 23 .8 24.7
Private sector (%oftotal ) 51 .1 53 .5 54 .7 55 .3
Others IXoftotal ) 5.4 4.9 4.7 4.ó
Total Mio Gld 9,119 9,909 10,297 10,682
Mio ECU 3,632 4,127 4,412 4,577
as XofGDP 2.18 2.31 2.39 2.40
Source :Uetenschapsbudget 1989 ,Ministry of Education and
Science
* :estimâtes
Industry and Government are convinced that the high costs and the
rapid succession ofinnovation cycles innew technologies require
an adequate market and consequently abroad international
cooperation .In this context the Ministry of Education and
Science published acomprehensive report dealing exclusively with
"the Internationalization ofEducation and Research ".
The Government appreciates the shape of the EC Framework
programmes with its action lines and the strong emphasis on
industry oriented programmes and the industry welcomes the
cooperation beyond national border .
The Dutch participation inEUREKA isvery important amounting to
550 MECU or14,4 Xofthe total project costs .The country is
involved in52ofthe 213 projects (asof01.07.1988 ).
(1)Source :OECD .
388

S&T IN PORTUGALNov .1988
1.General Policy Objectives ,
Inthe XIGovernment programme (APRIL 1987 )the main goals for
R&D development were announced asfollows :
The maximum utilization and valorization of all national
resources ofevery type ;
Promotion ofinnovation ;
National contribution to the enlargement of scientific
knowledge ;
Promotion ofpublic expenditure onR&D ,aswell as private
expenditure ,in order tobring Portuguese level towards other
developed countries ;creation of anew budget heading for
science and technology .
2,Priorities ,
The methodology applied to achieve these goals will beto
institutionalize a"budget for science and technology "todefine
expenditure inthis sector .
Along list of other aims which must betaken into account is
also included inthe Government programme .
They concentrate on :
Measures tostimulate and increase greater research activity
byPortuguese firms and especially within firms ;
Increase the linkage between research facilities in the
education domain and firms ;
Improve the quality of S&T personnel and the career
opportunities for researchers ;
Stimulate and support the S&T régional demand ;
Strengthen S&T information services and improve the technology
transfer process ;
Encourage Portuguese participation in international
programmes ,particularly EEC programmes .
Seek research programme opportunities with African countries
(Portuguese speaking ).
Breakdown ofprovisional R&D budgets byobjectives in1986 and 1907 <%>
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 10.2 90
Infrastructures and general land-use planning 8.9 10.5
Control ofenvironmental pollution 3.0 3.4
Protection and improvement ofhuman health 0.2 0.2
Production ,distribution and rational
utilization ofenergy 5.0 4.7
Agricultural productivity and technology 14.4 14.2
Industrial productivity and technology 7.3 6.2
Social structures and relationships 0.2 1.3
Exploration and exploitation ofspace- -
Research financed from general university funds 35.5 30 .5
Non-orlented research 1.8 0.5
Other research 13.5 19.5
Total financing ofcivil R&D 100.0 100.0
Defence- -
Total financing 100.0 100.0
Source :EUROSTAT :Government financing ofR&D inCommunity countries .389

2
3.Implémentation .
Since 1986 there has been considerable change and new investment
inPortuguese Science and Technology . The establishment ofthe
Superior Council for Science and Technology working in
conjunction with JNICT (Junta Nacional deInvestigacao Cientifica
eTecnologica )contributes tothe planning ,global co-ordination
and balancing of sectoral science ,technology and research
policy .
JNICT ,which isunder the auspice oftheMinistry forPlanning
and Territorial Administrations plays aunique role inPortuguese
S&TPolicy since itsimultaneously represents the "supply "side
aswell asthe "demand "side ofS&Tand steadily promotes the
best interests ofall ,internationally and nationally .
Action Programmes .
These are integrated R&D programmes ,going from fundamental
research toincrease research values inindustrial application
through an effort tostimulate Portuguese scientific groups .The
aim ofthese programmes is the medium-term development ofthe
S&T field ,selected by its strategic position inthe national
development .
JNICT started by launching "action programmes "for horizontal
fields :
Biotechnologies ;
Microelectronics ,Informatics ,Robotics ;
Material Sciences and Technologies ;
Marine Sciences and Technologies .
These actions programmes are privileged instruments ofscientific
policy ,which enable through the co-ordination ofhuman ,material
and financial efforts the following actions tobeundertaken :
Training of human resources inthree areas -scholarships ,
probations ,training -;
reinforcement ofR&D strategy for productive sectors already
established ,involving firms and universities ;
technological approach to new fields ,asyet with limited
significance within the Portuguese industrial body .
LNETI (National Laboratory for Industrial Engineering and
Technology )is the connecting research institution between
research units ,universities and firms and promotes the technical
base for development ofhigh technology units .Itdevotes much of
its research (60 X)toindustrial technologies .
390

3
4.National Resources .
4,1 .Personnel
Table 2summarizes the allocation ofpersonnel numbers ofthe
National Research Laboratories and illustrates the concentration
inIndustrial and Agriculture Research .
Table 2
S&E Staff ofthe National Research Laboratories .
Laboratories Field ofactivity S&E Staff
INIA Agricultural Field 296
INIP Fishing 150
LNIV Veterinary Sciences 103
LNETI Industrial and Energy
technologies 493
LNEC Civil Engineering 300
INMG Meteorology 112
IICT Tropical
Sciences 150
IH Hydrography 71
TOTAL 1.675
Source :JNICT 1987 .
4.2 .Financial Resources . (Table 3)
R&D Expenditure in1986 /87 doubled 1985 'sallocation with plans
tosteadily increase ittoreach 1%ofGDP by1990 .JNICT budget
has been increased 4.5 fold during the last four years .
Table 3
R&D Expenditure
(end ofperiod values )
Years Pubi ic
institutionsTotal Against
previous
Year %7.
GDP
MEsc MECU MEsc MECU
1986 13.470,4 96 ,2 20.440,7 146,0- 0.47
1987 18.554 ,3 115,9 28 .440 ,7175,9 37,7 0.57
1988 (*)22.108,2 130,15 35.370,7 202 ,1 19,2 0.61
1990 (*)43.136,0 227,0 65.456,8 344,5- 1.00
(*) Estimâtes .
Source :JNICT .
391

4
5.International Coopération .
In asmall rapidly developing economy ,the need for external
technology far outweighs its current national ability toprovide
itand far outweighs its export oftechnology .
International participation in H&D isincreasing rapidly since
Portugal joined EEC and Portugal more than doubled its
participation inCommunity programme from 1986 to1987 aswell as
securing EUREKA participation (13 projects ,as of01.07.1988 ).
Bilateral S&T agreements have also been established with U.K. ,
Spain ,Germany ,France and an interchange of Scientists and
technologists with Brazil inthe last 3years .
392

3&TPOLICY IN SPAIN Nov .1988
1,Objectives .
The national plan (1988-1991 )for scientific research and
technological development focuses essentially on the following
objectives ofgeneral interest :
-improvement of knowledge and progress in innovation and
technological development ;
-conservation ,upgrading and optimal exploitation ofnatural
resources ;
-economic growth ,promotion of employment and improvement of
working conditions ;
-development and strengthening of the competitive capacity of
industry ,trade ,agriculture and fisheries ;
-development of public services and more particularly those
concerning housing ,communications and transport ;
-improvement ofhealth ,social security and thequality oflife ;
-strengthening ofnational defence ;
-protection and conservation of Spain’s artistic and historic
heritage ;
-encouragement of creativity ,the development and dissemination
ofculture inall forms ;
-improvement inthe quality ofeducation ;
-adaptation ofSpanish society tothe changes brought about by
scientific development and the new technologies .
InSpain GERD as apercentage ofGDP has increased from 0.4 in
1981 to 0.53 in 1985 .The Spanish Government isdetermined to
increase the national R&D efforts even further ,to levels
comparable with the other advanced European countries .
2.Priorities .
The first national plan defined three main priority areas :
-information and production technologies ,
-natural resources ,agricultural and food technologies ,
-quality oflife .
The importance that has been attached tothese areas isclearly
demonstrated bythe following table :
Breakdown ofprovisional R&D budgets bvobjectives In19B6 and 1967_Lii
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 5.3 77
Infrastructures and general land-use planning 3.A 0.2
Control ofenvironmental pollution 0.A 20
Protection and Improvement ofhuman health A.0 8.6
Production ,distribution and rational
utlll2atlon ofenergy 12.3 3.1
Agricultural productivity and technologyA.9 6.7
Industrial productivity and technology 17.1 21.5
Social structures and relationships 0.9 0.9
Exploration and exploitation ofspaceA.8 8.8
Research financed from general university funds 18.1 19.8
Non-orlented research 20 .6 8.5
Other research 2.A 3.3
Total financing ofcivil RtD 9A.2 91.1
Defence 5.8 8.9
Total financing 100.0 100.0
70 -;O sJSource :EUROSTAT :Government financing ofR&D InCommunity countries .

2
3.Policies and Implémentation .
3_Legal _framework and institutional mechanisms .
Aset of laws has been recently promulgated tomodernize and
unify the legal framework for R&D and technological innovation .
The law 13/86 on the development and general coordination of
scientific and technical research ,amongst other things ,provides
for :
i)the establishment ofanational plan for scientific research
and technological development which will be instrumental in
harmonizing the country 'sscience and technology effort inthe
medium term ;
ii)harmonizat ion and redefinition of the legal status ofthe
various public research centres (OPIS ).
The Interministerial Science and Technology Commission CCICYT )is
responsible for the whole ofthe government 'sscience policy and
is made up of representatives from the nine ministries
responsible for R&D activities (chairman :Minister for Science
and Education );
Other institutions involved are astanding committee (Comision
permanente ),the general council for science and technology for
co-ordination between Autonomous Communities and central
government ,the Advisory Council for Science and Technology
consisting from representatives from public and private sector ,
the joint committee of the National Assembly (Cortes )for
monitoring the implementation of the national plan and the
general secretariat for the national plan .
The Spanish constitution gives central government the
responsibility for general promotion and co-ordination of
scientific and technological research .However ,the 17Autonomous
Communities also have responsibilities for scientific research
and technological development and have set uptheir own bodies
for the planning , management and implementation of R&D
activities .The various ministries and research institutes have
already transferred tothe Autonomous Communities management and
implementation responsibilities for several research units ,while
maintaining centralized planning and co-ordination .However ,
according toexisting legislation ,international relations are
the exclusive responsibility ofcentral government .
3.2 .Education and training .
The recently adopted law onuniversity reform has created amore
flexible legal framework for R&D activities inuniversities ,
encouraging in particular contracts with private companies and
the temporary recruitment of research scientists .Itallows
research scientists who work oncontracts concluded with public
orprivate bodies toreceive supplementary remuneration .
Various programmes for the training of scientific staff are
managed not only by the Ministry ofEducation and Science but
also by the Autonomous Communities ,by various ministerial
departments and byprivate foundations .
394

3
3.3 .R&D inundertakinqs .
This sector (public and private undertakings )isresponsible for
slightly over half the R&D carried out inSpain .
i)Public undertakinqs
Inpublic undertakings roost research isdone in the Instituto
Nacional de Industria (INI )which isanindependent public
holding company although it is subject to economic policy
directives laid down bythe government .
The two sectors with the greatest intensity inR&D are ,first
the defence and aeronautics industry with efforts often taking
place in an international co-operation framework and second
the motor industry .
ii )Private undertakings
In1987 ,R&D expenditure by private companies represented
about 0,7 %of their turnover ,but itwas very unevenly
distributed not only between different sectors but also within
each sector .
Tax incentives for R&D in private companies consist ofa
deduction of10% of total R&D investment from the taxable
amount .
The technological development programmes for companies known as
"concerted plans " are mainly intended for technological
development projects atthe pre-competitive stage .They take two
different forms :
1.Research iscarried out by the company that proposed the
project or inco-operation with other companies ;inthat
case the aid consists ofaninterest-free loan covering upto
50% ofthe total cost ofthe research .
2.Research is carried out inco-operation with public research
centres ,inwhich case funding may cover upto50% ofthe part
for which the company is responsible and 100% ofthe part
carried out bythe public research body .The total funding may
not exceed 80% ofthe total cost .
Since Spain has joined the Community ,itisbecoming less rare
for manufacturers to invest jointly in R&D and technological
innovation in association with universities and public research
centres and with the benefit of state funding which may beas
much as70% ofthe total .
nnovation .
The Centre for Industrial Technological Development (CDTI ),isa
body for the implementation and development of the industrial
innovation policy and , through anumber of co-operation
agreements ,has taken on the role oftechnological adviser for
the Autonomous Communities .
395

4
Inaddition toseveral functions that itperforms ,itconstitutes
also asort ofpublic bank specialized inloan operations on
extremely favorable terms ,tocompanies wishing toundertakeinnovation activities .
3.5 .Technology transfer .
Theratio oftechnology imports totechnology exports wasonly
about 24.4% in1986 ,and technology transfer expenditure
represents 0.34 oftheGDP ,almost half Spain 'sR&Dexpenditure .
Aregulation enacted in1987 ,hasliberalized thepurchase of
foreign technology and the provision of foreign technical
assistance for Spanish firms andabrogated earlier legislation .
Anadministrative procedure ofverification prior totransactions
has been set upfor statistical purposes .
4.National Resources .
4.1 .Human Resources (1)
In1983 ,the number ofresearchers per 1000 labour force was 1.0 .
In1987 there were 19.000 researchers (full time equivalent ).
4.2 .Financial Resources (2)
Gross Domestic Product (GDP ) (at current prices and exchange
rates ) :216.2 Billions ECU (1985 )
Gross Doroestic Expenditure for R&D (GERD ) :1,444.4 ECU (1985 )
GERD /GDP :0.53 % (1985 )
R&D Budget :801.7 Mio ECU (1986 )(3)
R&D Budget /National Budget :1.46 % (1986 )
Strengthening ofnational defence isone ofthe main objectives
set by the national plan and this isthe reason that defence R&D
appropriations represent 5.8 % of the total Government
appropriations in1987 .
5._International coopération .
Spain has concentrated its international co-operation effort
mainly onEurope (both bilaterally ,mainly with the Community
countries ,some EFTA and COMECON countries and multi1ateral ly
within the large European research organizations and
installations )and on the developing countries ,especially the
Latin American countries .
Spain participates inall theR&Dprogrammes ofthe EEC ,inthe
European Space Agency (ESA),Airbus programme ,EUREKA programme
(Spain participates in55EUREKA projects ,asof01.07.88 ),CERN ,
EMBL ,ESRF ,ILL .
(1)Source :PLANI CYT
(2)Source :OECD
(3)Source :OSCE
396

Nov .1988
S&T IN UNITED KINGDOM
1*General Policv Objectives .
The three main themes running through the UKGovernment 'ssupport
ofcivil science and technology are the importance ofmaintaining
and enhancing quality in science and technology activities ;
increasing the economic and social returns (including quality of
life )from science and technology ;and better management ,greater
concentration and selectivity of science and technology
activities .The Government has considerably strengthened its
central structure .
Priorities ?,
Uhilst there isanannual review ofGovernment R&D Funding and in
future there will be amore centralised R&D focus inthe public
expenditure survey ,there is no overall U.K. Government R&D
budget .Each Department determines its individual R&D programmes
inthe light of its own policy objectives and priorities .The
Department of Education and Science has overall responsibility
for R&D inthe higher education sector and Research Councils .
Inaddition ,the Government has begun asearching review ofR&D
priorities across Government ,defence aswell ascivil ,with a
view toincreasing the contribution of Government funded R&D to
the efficiency ,competitiveness and innovative capacity ofthe
United Kingdom .
Uhilst the "searching review ofR&D priorities "isstill underway
itispossible todiscern anumber ofbroad policy assumptions as
suggested bythe UK'sChief Scientific Adviser .Hedrew attention
tofour broad assumptions :
"- better industrial and commercial exploitation ofscience ;
focussing Government support for industrial innovation on
technology transfer ;
adopting amore international approach toR&D ;
contracting out more of the R&D which Government requires
for its own purposes and further concentrating Government 's
intramural spending on fulfilling an intelligent customer
role ."
and placed most importance onachieving much better exploitation
ofUKscience .
397

2
Table 1
BJ£flkdown..Qf Provisional R&D budgets bvobjectives in 1986 and 1987 (7.)
Objectives Provisional budgets
1986 1987
Exploration and exploitation ofthe earth 1.7 1.7
Infrastructures and general land-use planning 1.4 1.6
Control ofenvironmental pollution 0.7 1.5
Protection and improvement ofhuman health 3.7 3.3
Production ,distribution and rational
utilization ofenergy 4.6 3.6
Agricultural productivity and technology 4.6 4.3
Industrial productivity and technology 6.7 9.9
Social structures and relationships 1.3 1.2
Exploration and exploitation ofspace 1.8 2.6
Research financed from general university funds 14.9 15.3
Non -oriented research 6.8 3.3
Other research 0.2 0.5
Total financing ofcivil R4D 48.4 48.8
Defence 51 .6 51 .2
Total financing 100.0 100.0
Source ,:EUROSTAT :Government financing ofR&D inCommunity countries .
The changes in technological objectives taken as awhole is
mainly due tothe increases allocated toindustry and space .
For industry ,the increase reflects almost exclusively the
development ofgeneral research .
Space appropriations tend to reflect commitments under
multinational coopération programmes .
Incontrast ,funding for energy research shows asubstantial fall
which mainly affect nuclear research and inparticular nuclear
fission research .
Finally ,the reduction ofmore than 50 Xinnon-oriented research
appropriations affects almost all disciplines .
3.Implémentation .
S&Tstructure has been strengthened by Government into central
structure within the Cabinet Office under the Prime Minister with
ACOST asexpanded advisory body .The Chief Scientific Advisor
reports to Prime Minister .The S&TAssessment Office assists
Departments ,Research Councils and University Grants Committees
(UGC )inevaluating R&D expenditure proposals .
U.K. Government isdetermined tosecure greater industry funding
ofR&D and also toensure that industry takes more responsibility
for R&D .46.1 XofGross Expenditure onR&D in1985 was funded by
industry .
Virtually all "near-market "research initiatives ,should bethe
subject of commercial judgement and therefore should bethe
responsibility ofindustry .
398

3
la medium and long-term research .Government accepts more
responsibility ;however there is atendancy even here toregard
research asalong term investment option .
Basic research is almost entirely the responsibility of
Government .The Government also has amajor role infunding
strategic research ,often incollaboration with groups offirms .
The Government ,in its response tothe Education ,Science and
Arts Committee Report 1986-87 ,committed itself "tomaintain and
enhance the strength and quality ofthe science base ".
Criteria used onthe distribution ofthe science budget revised
in1987 are 1.Internal Factors of Excellence -Timeliness &
Pervasiveness .
2.External Factors -Exploitabil ity ,applicability
and significance for education and training .
3.Financial Factors -Benefits and Costs .
Concentration of location and subject is occurring due to
equipment expense and width ofmodern research .Two-thirds of
SERC 'sresearch grants goes to16universities .
Emphasis has shifted away from individual project support to
collaborative research .Greater attention isalso being paid to
non-project support such astechnology transfer schemes .
4.National Resources .
411,Human Resources in3&T ,
The number ofscientists and engineers engaged inresearch and
development per million population in1986 isgiven (1)as1540
for the U.K. (2,090 -U. Germany ,3,110 -USA ,and 4,440 -
Japan ).
Universities in general in the U.K. tend tobequite small .One
third ofUniversity have less than 3.000 students .Approximately
70 Xhave less than 5.000 students .Only 8universities ,which
includes the very large (London ,Oxford and Cambridge ),have more
than 7.000 students .
Total members employed inR&D declined by10 Xfrom 1981 to1985
but this declined has now been halted .
4.2 .General funding ofR&D ■
Total Government expenditure onR&D in 1985 /86 as set out in
table 2was 6,745 MECU which represents 1.3 %ofGDP inthe U.K.
and 3Xoftotal Government expenditure .
Funding ofR&D has provoked considerable debate in the U.K. The
universities and longer term research projects have expressed
substantial reservations about Government policy funding .
(1)UNESCO Statistical Yearbook .
399

4
While some of the reservations and criticism must beseen as
position taking inadvance of the Government review there has
been agrowing undercurrent ofunease over what isfelt tobe
"inadequate funding ofS&T".
Table 2
Government Exoenditure onR&D .
Outturn Estimâtes
1984 /85 1985 /86 1986 /87 1987 /88
Total Civil Departments 1,610 1,466 1,381 1,369
Total Research Councils 860 788 801 869
University Grants
Counci 1 1,068 .2 998 999 1,040
Total Civil 3,537 3,252 3,185 3,279
Total Defence 3,688 3,494 3,331 3,410
Total all Government (net )7,225 6,745 6,518 6,689
Source :U.K. Annual Review 1987 .
5.International coopération .
There is aclear and long recognised need for the U.K. to
collaborate internationally on technological matters .The
benefits of international collaboration on R&D can be
considerable ;costs per participant are reduced ;the risks
associated with advanced technologies are more widely spread ;new
markets are easier to open and establish ;or European R&D can
more easily achieve the scale needed tocompete with the USand
Japan .
The U.K. Government supports international collaboration inR&D .
However ,since collaboration can also add costs the Government
must becertain that collaborative projects make the best use of
scarce and valuable resources .
The new central structure will address priorities for
international collaboration ,including the allocation between
Departments ofresources .
Agrowing number ofU.K. firms see their future inEurope ,partly
stimulated byinitiatives like ESPRIT and EUREKA ,and recognise
the importance ofcollaborating with other European partners if
they are toremain competitive ,open upmarket opportunities and
survive -perceptions which ,judging for example bycontinuing
commitment to EUREKA ,are shared by firms and Governments
elsewhere .InEUREKA ,the U.K. are particularly keen toencourage
U.K. ledprojects .AsofJuly 1988 ,ofEUREKA list projects ,the
U.K. participate in73projects .
400

ANNEX 13
REGIONAL _TRENDS _LN_SCXENCJL _&_TECHNOLOGY
401

Commission oftheEuropean Communities
STRXBE
SCIENCE km TECHNOLOGY FOR REGIONAL
INNOVATION AM6 DEVELOPMENT INEUROPE
Report totheCommunity Programmes Division ,D6XVI
ofthe Commission ofthe European Communities
by
THENATIONAL BOARD FORSCIENCE ANDTECHNOLOGY
DUBLIN
FINAL REPORT
NOVEMBER 1987
Document
402

L
EXECUTIVE SUMMARY
THIS STUDY WAS UNDERTAKEN ON BEHALF OFTHE COMMISSION OFTHE EUROPEAN
COMMUNITIES .PREPARATORY TO THE INTRODUCTION OFANEW COMMUNITY
INITIATIVE OF SCIENCE AND TECHNOLOGY FOR REGIONAL INNOVATION AND
DEVELOPMENT INEUROPE (STRIDE ).AIMED ATTHE LESS FAVOURED REGIONS
(LFR’S )OFTHECOMMUNITY .
THE OBJECTIVES OF THE STUDY WERE TO DETERMINE THE RELATIVE
TECHNOLOGICAL CAPACITY OF THE REGIONS OFTHE COMMUNITY -AND .IN
PARTICULAR .THE TECHNOLOGICAL DEFICIT OFITS LESS FAVOURED REGIONS ;
AND .ALSO .TOEVALUATE INTERNATIONAL BEST PRACTICES FOR GENERATING
EFFECTIVE REGIONAL TECHNOLOGICAL CAPACITIES .
INADDITION .THE STUDY ANALYSED THE IMPACTS OFEXISTING COMMUNITY
SCIENCE AND TECHNOLOGY PROGRAMMES ONITS LFR 'S,AND SPECIFIES THE
COMPLEMENTARITY BETWEEN THESE PROGRAMMES AND THE PROPOSED STRIDE
INITIATIVE .
THE ROLE OFRESEARCH AND TECHNOLOGY DEVELOPMENT (RTD ) IN FUELLING
ECONOMIC CROWTH AND MODERNISATION ISNOT DISPUTED .EVEN IFTHE PROCESS
BY WHICH THIS TAKES PLACE ISCOMPLEX .AND PRECISE QUANTIFICATION
REMAINS ELUSIVE .
THE STUDIES OFBC.H SCIENTISTS AND ECONOMISTS ALL POINT TOTHE SIMPLE
REALITY THAT STRONG ECONOMIES ARE BASED ONRESEARCH AND TECHNOLOGY .
RTD -RESEARCH AND TECHNOLOGY DEVELOPMENT -DESCRIBES ACOMPLEX OF
ACTIVITIES RHEATED TOTHE GENERATION .ACQUISITION .TRANSFER AND USE OF
TECHNOLOGY . IT INCLUDES RESEARCH . DEVELOPMENT . DEMONSTRATION ,
TECHNOLOGY TRANSFER AND TECHNICAL INNOVATION .ITCOVERS THE SPECTR'JM
OFKNOWLEDGE GENERATION .TRANSFER AND APPLICATION .
RiJD INTENSIVE INDUSTRIES ARE INNOVATIVE .PRODUCE MORE NEW PRODUCTS .
HAVE RICHER LEVE1S CT PRODUCTIVITY .EXPAND THEIR EMPLOYMENT BASE MORE
RAPIDLY AND ULTIMATELY ARE MORE COMPETITIVE THAN TRADITIONAL AND LOW
TECHNOLOGY BUSINESSES .
403

ii
FORTHESE REASONS THESTRONG NATIONS INEUROPE ANDTHEWORLD .CONTINUE
TOINVEST HEAVILY INRTD .
INMORE GENERAL TERMS .ITISACCEPTED THAT STRONG NATIONAL ECONOMIES
ARE BASED ON STRONG LOCAL ECONOMIES .ITISALSO AGREED THAT THE
REGIONAL ECONOMY .NOLESS THAN THENATIONAL ORINTERNATIONAL ECONOMY .
NEEDS ACONTINUOUS PROCESS OFTECHNICAL CHANGE AND INNOVATION .
THE DYNAMICS OF THIS PROCESS WILL VARY BETWEEN REGIONS .THE
TECHNOLOGY ACQUISITION BEHAVIOUR OFLOCAL ENTERPRISES ,THEIR SOURCES
OFSUPPLY AND MODES OFACCESS TO TECHNOLOGY WILL REFLECT THE UNIQUE
RTD ENVIRONMENT OF*THEREGION .BUT ,IMPROVEMENTS INTHEQUALITY OF
THIS ENVIRONMENT FOR LOCAL ENTERPRISES .EITHER INLOCAL RTD GENERATING
CAPACITY .ORINTHE TECHNOLOGY TRANSFER AND ASSIMILATION CAPABILITIES
OFTHE REGION WILL .CETERIS PARIBUS ,HELP THE ECONOMIC PERFORMANCE OF
LOCAL ENTERPRISE AND HENCE IMPROVE REGIONAL AND NATIONAL ECONOMIC
PERFORMANCE .
THE ECONOMIC PERFORMANCE OFAREGION IS .THEREFORE .AREFLECTION OF
WHETHER ITS ENTERPRISES ARE TECHNOLOGICALLY INNOVATIVE AND
DYNAMICALLY GROWING ,ORTECHNOLOGICALLY BACKWARD AND DECLINING .
HOWEVER .THE COMPLEX NATURE OFTHE DEVELOPMENT PROCESS OF REGIONS
MEANS THAT ACONFLUENCE OFMANY RTD FACTORS ISREQUIRED .ISOLATED RTD
ELEMENTS .WILL , INGENERAL ,NOT BESUFFICIENT .THIS IS THE
INTERNATIONAL EXPERIENCE .
THE ROLE OFTECHNOLOGY INTHE DEVELOPMENT OFREGIONS HAS BECOME
INCREASINGLY RECOGNISED INRECENT YEARS .THIS REPORT SHOWS THAT ASA
CONSEQUENCE .THERE _HAS__BEEN ANEXPLO SION OF INITIAT IVES AT_MED AT
RAISING THE RTDPOTENTIAL OFREGIONS INCOUNTRIES SUCH ASTHEUSAAND
JAPAN .
INTHE U.S. MANY STATES TRYTOREPLICATE LOCALLY THERESULTS OFROUTE
128 .THERESEARCH TRIANGLE OFNORTH CAROLINA ANDSILICON VALLEY .OVER
^0STATES NOWHAVE LOCALLY DRIVEN RTDPROGRAMMES .
AUNIQUELY JAPANESE EXPERIMENT -TECHNOPOLIS -ISDESIGNED TO
DECENTRALISE TECHNOLOGY ANDTOBUILD STRONG SELF-STANDING TECHNOLOGY
BASED LOCAL ECONOMIES OUTSIDE THEMAIN CITIES OFTOKYO ANDOSAKA .

iii
IT IS NOT AIMED SIMPLY ATATTRACTING INDUSTRY TO REGIONS .IT IS
DESIGNED TOACHIEVE THE MAXIMUM DEVELOPMENT OFEACH REGION 'SEXISTING
RESOURCES AND SPECIALISATIONS .
THERE ARE NOW 18RECOGNISED TECHNOPOLIS REGIONS INJAPAN .EACH WITH
IT'SOWN INTEGRATED TECHNOLOGY BASED DEVELOPMENT PROGRAMME .
INCONTRAST .EUROPE LAGS BEHIND .
THERE ARE SOME EXCEPTIONS .HOWEVER .FRANCE .FOR EXAMPLE .HAS ALONG
ESTABLISHED POLICY OFREGIONALISATION OFRTD .INADDITION .THERE ISA
NOTICEABLE TREND TOWARDS SPECIFIC REGIONAL RTD INITIATIVES EMERGING OF
LATE WITHIN CERTAIN MEMBER STATES NOTABLY ITALY .ATBARI INPUGLIA .
GREECE .ATHERAKLION INCRETE ,DENMARK ATHIRTSHALS INNORTH JYLLAND .
SPAIN ATCADIZ INANDALUCIA AND IN THE SOUTH EAST REGION OFIRELAND .
OTHERS ARE DESCRIBED INTHE REPORT .
BUT THESE EXCEPTIONS APART .THE NATIONAL GOVERNMENTS OFMEMBER STATES
HAVE NOT TOANY SIGNIFICANT EXTENT RECOGNISED THE NEED FOR ASTRONG
REGIONAL DIMENSION INNATIONAL SCIENCE AND TECHNOLOGY POLICIES .AND
WHILE MUCH OF THE NATIONAL RTD INFRASTRUCTURE MAY BE REGIONALLY
LOCATED .IT'SORIENTATION ISBYAND LARGE NATIONAL AND INTERNATIONAL .
THE REPORT .THEREFORE .MAKES THE CASE FOR ANEW APPROACH TO SCIENCE
POLICY -WHAT MIGHT BETERMED 'MICRO SCIENCE POLICY’ -WHICH WOULD BE
FIRMLY FOCUSSED ONTHE REGION ASTHE UNIT OFACTION .
SUCH MICRO SCIENCE POLICY WOULD BE DIRECTED TOWARDS THE MORE ORGANIC
DETERMINANTS OFREGIONAL DEVELOPMENT ,SUCH ASHUMAN AND INTELLECTUAL
RESOURCES .SKILLS .RESEARCH .TECHNOLOGICAL CAPACITY AND INNOVATION .
AND WOULD SEEK TOESTABLISH ASELF-GENERATING DYNAMIC INAREGION .
THIS TYPE OF UPGRADING OFREGIONAL POLICY HAS BECOME AN IMPORTANT
POLICY DEBATE INRECENT TIMES AND .IN PART .REFLECTS ACONCERN ABOUT
THE ABILITY OFINDUSTRIAL POLICY TOASSIST DEVELOPMENT OF PERIPHERAL
AND DISADVANTAGED REGIONS IF IT CONTINUES TO FOCUS ONINDUSTRIAL
LOCATION STRATEGIES .
4“COHESION
WITHIN THE COMMUNITY .TECHNOLOGICAL ADVANCE CAN MAKE AMAJOR
CONTRIBUTION TO BRINGING ABOUT GREATER ECONOMIC CONVERGENCE AND
COHESION BETWEEN MEMBER STATES AND REGIONS .
405

iv -
BUT ,THEBULK OFTHECOMMUNITY 'SRTDRESOURCES ARECONCENTRATED INTHE
CENTRAL ORCORE REGIONS AND INTHELARGER ANDSTRONGER MEMBER STATES .
THE PERIPHERAL AND LESS FAVOURED REGIONS HAVE ALOWER LEVEL OF
INVESTMENT INRTD .HAVE WEAKER RTD INFRASTRUCTURE ANDOTHER RELATED
INSTITUTIONAL RESOURCES ANDARESLOW TOADOPT NEWTECHNOLOGY AND TO
INNOVATE .THE CORE REGIONS DOMINATE INTHE INTRODUCTION OFNEW
TECHNOLOGY WHILE PERIPHERAL REGIONS ARETHE LATE ADOPTERS .MORE
FUNDAMENTALLY THEY LACK AVIGOROUS TECHNICAL AND ENTREPRENEURIAL
CULTURE .
THIS STUDY DEVELOPS ANUMBER OFNEW INDICES WHICH REVEAL THE EXTENT OF
THETECHNOLOGICAL DISPARITIES WHICH EXIST WITHIN THECOMMUNITY .AND
WHICH ARE NOW ASERIOUS OBSTACLE TOACHIEVING COHESION AND
INTEGRATION .
THESE DISPARITIES EXIST BOTH BETWEEN MEMBER STATES AND BETWEEN THE
REGIONS OFMEMBER STATES .
ALMOST ALL THE FACTORS WHICH DRIVE TECHNOLOGICAL DEVELOPMENT .FAVOUR
THE CORE REGIONS -COMMUNICATIONS .INFRASTRUCTURE .ACCESS TOSKILLS
AND MARKETS .INFORMATION AND SERVICES AND MANY OTHERS .
THIS IS ACUMULATIVE PROCESS .ANAGCLOMERATIVE DYNAMIC TAKES OVER
ONCE ACRITICAL MASS ISREACHED .THE STRONG GET EVEN STRONGER .
THIS NATURAL TENDENCY OFRTD TOWARDS AGGLOMERATION REINFORCES EXISTING
DISPARITIES AND MAKES THE PERSISTENT LOW LEVEL EQUILIBRIUM OFTHE LESS
FAVOURED REGIONS (LFR’S )MORE ENDEMIC ANDDIFFICULT TOBREAK .
DISTORTIONS AND DISPARITIES INTHE COMMUNITY 'S RTD CAPABILITIES ARE
THUS BECOMING DEEPROOTED .THIS IS CREATING BARRIERS TOLESS FAVOURED
REGIONS ENTERING AND SHARING THE DOMAIN OFMODERN TECHNOLOGY BASED
TRADE AND COMMERCE INTHE COMMUNITY .
DISPARITIES WILL WIDEN ASTECHNOLOGY ADVANCES .AND THESE COULD BECOME
APERSISTENT AND PERMANENT FEATURE OFFUTURE ECONOMIC PROGRESS INTHE
COMMUNITY ,SLOWING DOWN THE OVERALL RATE OFADVANCE .
THE DRIVE TOWARDS ATECHNOLOGICAL COMMUNITY MAY THEREFORE LEAVE MANY
STANDING STILL .INTHE LONG TERM .THE PROGRESS OFALL WILL BERETARDED
UNLESS POSITIVE ACTION ISTAKEN TOINFLUENCE THENATURAL AGCLOMERATIVE
ANDCLUSTERING TENDENCIES OFTECHNOLOGICAL DEVELOPMENT .
406

V
ЕЕИЗИ N0t0GV^6APS ^
THIS REPORT QUANTIFIES ,FOR THE FIRST TIME ATREGIONAL LEVEL ,THE
SIZE AND EXTENT OFTHE TECHNOLOGY GAPS WHICH HAVE EMERGED BETWEEN THE
PERIPHERAL /LESS FAVOURED RECIONS ANDTHE MORE DEVELOPED PARTS OFTHE
COMMUNITY .
THE EVIDENCE WHICH HAS BEEN ASSEMBLED POINTS INDISPUTABLY TOTHE NEED
FOR NEW COMMUNITY POLICIES FOR THE TECHNOLOGICAL DEVELOPMENT OF THE
PERIPHERAL AND LESS FAVOURED REGIONS .
LESS FAVOURED MEMBER STATES REPRESENT ONLY 10*OFTHE RJJD ACTIVITY IN
THE COMMUNITY .WHILE THEY REPRESENT 40%OFITSPOPULATION .THEY TEND
TOWARDS TECHNOLOGICAL DEPENDENCY ,HAVE WEAK RTD INFRASTRUCTURES AND
HAVE APOOR RTD UTILISATION CAPACITY INTHEIR INDUSTRIES .
THE DANGERS OFA'TWO-SPEED' COMMUNITY ARE EVIDENT . DIFFERENTIATED
INITIATIVES FOR THE LFR 'S ARE JUSTIFIED . BUT .CAREFULLY BALANCED
COMMUNITY PROGRAMMES WILL BEREQUIRED INORDER TOAVOID APERSISTENCE
OFTHE TECHNOLOGICAL GAP BETWEEN LESS FAVOURED AND MORE FAVOURED
MEMBER STATES .
THE AVAILABLE EVIDENCE SHOWS THAT THE MOST TECHNOLOGICALLY
DISADVANTAGED REGIONS ARE PORTUGAL .GREECE .SPAIN .IRELAND AND THE
REGIONS OFSOUTHERN ITALY .
MANY REGIONS HAVE ALMOST ZERO RTD CAPACITY .THEIR TECHNOLOGY LEVEL
CAN BEAFACTOR OF100 TIMES LOWER THAN THAT OFMORE DEVELOPED CORE
REGIONS (SEE MAPS SHOWING THE REGIONAL DISTRIBUTION OF GROSS
EXPENDITURE ONRID ASAPERCENTAGE OFGDP .AND BUSINESS EXPENDITURE ON
RLD ASAPERCENTAGE OFGROSS VALUE ADDED ).
THE SCALE OFTHE TECHNOLOGICAL CAP ISESTIMATED AT7BILLION ECU PER
ANNUM .THIS INDICATES THE LEVEL OFADDITIONAL ANNUAL INVESTMENT WHICH
LESS FAVOURED MEMBER STATES WOULD REQUIRE INRID TO REACH AVERAGE
COMMUNITY LEVELS .
ACAP OFTHIS MAGNITUDE SUGGESTS THAT SOLUTIONS WILL BELONG-TERM .

FM REGIONAL DISTRIBUTION OFGERD /GDP
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INALL CASES THE TECHNOLOGY GAP IS CONSIDERABLY WIDER THAN THE
ECONOMIC GAP .FORGREECE .FOR EXAMPLE .THE TECHNOLOGY GAP IS ALMOST
TEN TIMES THE ECONOMIC CAP .YET .IT IS THE ECONOMIC GAP WHICH IS
FORMALLY RECOGNISED INCOMMUNITY POLICIES .THE SYMPTOMS ARE TREATED .
BUT NOT THE CAUSE .
THIS REPORT PRESENTS THE CASE FOR FORMAL ACKNOWLEDGEMENT OFTHE
EXISTENCE OF TECHNOLOGICAL DISPARITIES AND FOR THE ESTABLISHMENT OF
NEW COMMUNITY RTD POLICIES AND PROGRAMMES TOADDRESS THEM .
ACONTRAST OFTHE ECONOMIC AND TECHNOLOGICAL GAPS OFITALY .IRELAND .
SPAIN .PORTUGAL AND GREECE .ASAGROUP .ISSHOWN OVERLEAF .
|SËXiSl^NC^OMMÜNH¥<S^PROGIW«mES ^
CURRENT COMMUNITY SCIENCE AND TECHNOLOGY POLICIES AND PROGRAMMES ARE
BASED ONEXCELLENCE .AND ARE AIMED ATCOMMUNITY-WIDE PROBLEMS .THEY
ARE NOT DIRECTED TOWARDS STIMULATING REGIONAL DEVELOPMENT ORREDUCING
REGIONAL DISPARITIES .
I
MONIES ALLOCATED FOR COMMUNITY RTD ARE ONLY ASMALL PROPORTION OF THE
TOTAL RTD EFFORT INMEMBER STATES .REPRESENTING LITTLE MORE THAN 1%OF
NATIONAL RLD SPENDING .
THE POTENTIAL BENEFITS FOR LFR 'SFROM COMMUNITY PROGRAMMES MUST BE
CONSIDERED INTHIS CONTEXT .
NONETHELESS COMMUNITY RTD PROGRAMMES OFFER MANY OPPORTUNITIES TO
LFR 'S.INPARTICULAR THEY OFFER ACCESS TOACONSIDERABLE VOLUME OF
RESEARCH AND ARE AVALUABLE SOURCE OFCONTACTS WITH EXPERTISE AND
INFORMATION INOTHER REGIONS .ALSO .THE PSYCHOLOGICAL AND ATTITUDINAL
BENEFITS ASSOCIATED WITH PARTICIPATION INCOMMUNITY RTD MAY BE AS
IMPORTANT TOLFR'SASTHE MORE OBVIOUS AND DIRECT FINANCIAL CAIN AND
PREFERENTIAL ACCESS TORESULTS .
PARTICIPATION INLINKAGES AND NETWORKS THROUGH INVOLVEMENT INTHE
FRAMEWORK PROGRAMME AND INDEED INOTHER PROGRAMMES SUCH AS SPRINT .
FOREXAMPLE .ISPARTICULARLY IMPORTANT FORPERIPHERAL REGIONS (SEE FIG
2FOLLOWING ).
MAP 5FOLLOWING ILLUSTRATES THE REGIONAL DISTRIBUTION PERCAPITA OF
OVER 7.000 COMMUNITY RTDCONTRACTS .

Technological andEconomic Gaps ofItaly ,
Ireland ,Spain ,Portugal andGreece -in
Aggregate .
100 r--
50 •
S o.
CDP/CAP .GERD /CAPTechnological andEconomic Gaps ofItaly ,
Ireland ,Spain ,Portugal andGreece -in
Aggregate .
CDP/CAP .GERD /CAP

FIG 2.
~ (^| BRITE WULTI PARTNER CONTRACTU
ANATOLI KISTEREA KAI NISI A
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412

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^ ETLTR1°-
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9Ш
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-60
-30
21-JUTIOKAI TOT 1L(c)1*6?

PARTICIPATION BYLFR'SHASBEEN STRONGEST INPROGRAMMES RELATED TO
NATURAL RESOURCES ANDENERGY .BUTHASBEEN WEAK INTHECORE TECHNOLOGY
PROGRAMMES ANDHASINVOLVED INDUSTRY ONLY TOALIMITED EXTENT .
STRIDE COULD ENHANCE THE BENEFITS TOLFR’S BYSTRENGTHENING THE
CAPACITY TOPARTICIPATE INCOMMUNITY PROGRAMMES ANDBYDEVELOPING THE
CAPABILITY TOACCESS AND UTILISE THE RESULTS OFTHE COMMUNITY
RESEARCH .PARTICULARLY BYSMALL ANDMEDIUM SIZED ENTERPRISE (SME'S).
SPECIFICALLY .PARTICIPATION COULD BEENHANCED .FOREXAMPLE ,BY:-
• AREGIONAL SOURCE OFINFORMATION ONFORTHCOMING COMMUNITY RTD
PROGRAMMES AND ONPOTENTIAL TRANSBORDER PARTNERS ANDSOURCES OF
EXPERTISE
• AREGIONAL FOCUS OR CENTRE CAPABLE OF ASSISTING IN THE
FORMULATION OFPROJECT PROPOSALS
• DEVELOPMENT OFTHE EXCELLENCE AND CRITICAL MASS NECESSARY TOBE
REGARDED ASAPOTENTIAL PARTNER INCOMMUNITY RTD PROGRAMMES
« FOCAL POINTS ORCENTRES CAPABLE OFASSISTING THE MORE EFFECTIVE
DISSEMINATION OF INFORMATION ON THE RESULTS OFCOMMUNITY RTD
PROGRAMMES
• CENTRES .INCLUDING WITHIN COMPANIES ,CAPABLE OF DEMONSTRATING
TECHNOLOGY DEVELOPED BYCOMMUNITY RTD PROGRAMMES
• DEMONSTRATION PROGRAMMES ALONG THE LINES OFTHE EXISTING ENERGY
DEMONSTRATION PROGRAMMES BUT FOCUSSING ONNOVEL APPLICATIONS OF
TECHNOLOGIES DEVELOPED BYOTHER COMMUNITY RTD PROGRAMMES AND OF
PARTICULAR RELEVANCE OFLFR'S
• COMMUNITY FACILITIES :WHEN ANEWRTD ORTEST FACILITY IS
ENVISAGED .CONSIDERATION COULD BEGIVEN TOTHEPOSSIBILITY OF
SITING THIS INANLFR .ASSUMING THIS ISCOMPATIBLE WITH THE
DEVELOPMENT STRATEGY OFTHE LFRANDWITH THEREQUIREMENTS OFTHE
MORE ADVANCED REGIONS
• NETWORKS OFREGIONAL TECHNOLOGY CENTRES FACILITATING LINKAGES
BETWEEN LFR'S.ENCOURAGING EXCHANGE OFEXPERIENCE ,COOPERATIVE
ACTIVITIES AND TRANSFER OFCOMMUNITY RTD .ESTABLISHMENT OF
LINKS WITH EXISTING E.C. PROGRAMMES INTHIS AREA .PARTICULARLY
SPRINT .ANDTHENEWSMEACTION PROGRAMME .
414

STRIDE SUPPORT FOR RTD INFRASTRUCTURE WOULD PROVIDE APARTICULARLY
EFFECTIVE COMPLEMENTARY ACTION .
ENHANCED UTILISATION OFRESULTS COULD BEASSISTED BY
a DEVELOPMENT OFDEMONSTRATION PROGRAMMES
• IMPROVED INTER AND INTRA REGIONAL LINKAGES AND NETWORKS
• STRENGTHENING OFREGIONAL RTD CAPABILITY
THE POSSIBILITY OFINFRASTRUCTURAL FACILITIES SERVING A NUMBER OF
LFR’S SHOULD BECONSIDERED .FACILITIES WHICH ENABLED RTD COOPEPJYTION
ON PROBLEMS OFPARTICULAR INTEREST TOANUMBER OFLFR’S WOULD ALSO BE
OFVALUE .
OVERALL .ASIGNIFICANT ADVANCE INTHE CLOSER LINKING OF STRUCTURAL
POLICIES WITH SCIENCE AND TECHNOLOGY POLICIES WITHIN THE COMMISSION
COULD BE MADE BY HELPING TO IMPROVE THE BASIC TECHNOLOGICAL
INFRASTRUCTURE OFTHESE REGIONS .THIS OUGHT TOBEAPRIMARY OBJECTIVE
OFTHE NEW REGULATION .
•-REGIONAL *?RTD TWECHANISMSW
THIS REPORT PROPOSES NEW STRUCTURAL MEASURES SPECIFICALLY TARGETTED AT
IMPROVING THE TECHNOLOGICAL INFRASTRUCTURES AND NETWORKS OFTHE
DISADVANTAGED AND LESS FAVOURED REGIONS .
THESE COMPRISE ARANGE OFRTD MEASURES IN6BROAD CATEGORIES .AS
FOLLOWS :-
• RESEARCH AND ADVANCED TECHNOLOGY DEVELOPMENT ;
a HIGHER EDUCATION INDUSTRY LINKAGES ;
• TECHNICAL EDUCATION AND SKILLS DEVELOPMENT ;
• APPLIED RESEARCH AND TECHNOLOGY TRANSFER ;
• ENTREPRENEURS !!IPASS ISTANCE ;
• RTD PROMOTION .AND TECHNICAL AWARENESS .
SEE TABLE 7.1 FOLLOWING .
41

TABLE 7-1 MAIN CATEGORIES OF RTD MECHANISMS
A RESEARCH AND ADVANCED TECHNOLOGY
'Leading edge' facilities primarily concerned with the
generation of knowledge ,as distinct from its immediate
application ,and mostly ,though notalways ,located onor in
close proximity toafirst class University . Non-physical
support schemes for basic orfundamental research would be
included .
3 HIGHER EDUCATION -INDUSTRY LINKAGES
Mechanisms andprogrammes with the primary aimofencouraging
and promoting closer interaction andpartnerships between 3rd
level Colleges and industry .
C TECHNICAL EDUCATION AND SKILLS DEVELOPMENT
Facilities for technological education and training ,provision
and upgrading ofspecialist skills forscientists and engineers
andpreferential encouragement forindustry toemploy scientists
and engineers .
0 APPLIED RESEARCH AND TECHNOLOGY TRANSFER
Mechanisms andprogrammes toassist orpromote thetransfer and
applications of technology .The orientation isessentially
applied and developmental ,with the emphasis onpractical
applications .
E ENTREPRENEURSHIP ASSISTANCE
Awide range of mechanisms exist tohelp theentrepreneur or
small business bring new ideas tothemarket .These provide
business and commercial services and training tostart up
entrepreneurs who have thetechnology buthave difficulty in
organising andpaying forother services .
F RTD PROMOTION AND TECHNICAL AWARENESS
Programmes andmechanisms toimprove technical awareness and
appreciation with the aimofencouraging manufacturers and
industry generally tomodernise and upgrade their level of
technology .
416

WITHIN THESE 6CATEGORIES ATOTAL OF56INDIVIDUAL RTDMECHANISMS WERE
IDENTIFIED .CONSOLIDATING THESE MECHANISMS INTO ACORE CROUP PRODUCED
THE FOLLOWING 10’PHYSICAL *AND 10'NON PHYSICAL’ MECHANISMS .
PHYSICAL RTD MECHANISMS
• CENTRES OFEXCELLENCE
• SCIENCE PARKS
• UNIVERSITY-INDUSTRY RESEARCH CENTRES
• CAMPUS COMFANIES
• INDUSTRIAL LIAISON OFFICES
• APPLIED RESEARCH AND TECHNOLOGY CENTRES
• BRANCH PLANT PROGRAMMES
• TECHNICAL INFORMATION CENTRES
• INNOVATION CENTRES
• RESEARCH EQUIPMENT SCHEMES
NON PHYSICAL RTD MECHANISMS
• COOPERATIVE RESEARCH SCHEMES
• SKILLS PLACEMENT
• CONTINUING TECHNICAL EDUCATION AND TRAINING
• MOBILITY AND EXCHANGE PROGRAMMES
• DEMONSTRATION
• RTD EXTENSION AND CONSULTANCY
• ENTREPRENEURSHIP TRAINING
• TECHNICAL AWARENESS PROGRAMMES
• NETWORKS
• SUB-CONTRACTING AND SUB-SUPPLY
SELECTING THE MOST APPROPRIATE INSTRUMENTS OR MODALITIES -THE RTD
MECHANISMS -TO MATCH DIFFERENT REGIONAL CAPABILITIES IS VERY
IMPORTANT .IFMONIES ARE TOBEWELL SPENT .
THIS SELECTION MUST BEBASED ONAPRECISE ASSESSMENT OF LOCAL
CONDITIONS ANDCIRCUMSTANCES .INTHIS PROCESS ITISESSENTIAL THAT
CONSIDERABLE AUTONOMY ISALLOWED TOTHE REGIONS THEMSELVES .
417

THIS REPORT DEMONSTRATES AWIDE VARIATION INREGIONS' RTD CAPACITY .
THECAPABILITY TOABSORB RTD THEREFORE ,ANDTHESPEED ATWHICH THIS
CAPABILITY CANBEBUILT WILL VARY BETWEEN REGIONS .
REGIONS HAVE TOFIND THEIR OWNPATHS TOPROGRESS -THEIR 'VOCATION
REGIONALE' -BUILDING ONTHEIR RTD STRENGTHS .ANDWITH AREALISTIC
ASSESSMENT OFWHAT ISPOSSIBLE .RATHER THAN WHAT MIGHT BEDESIRABLE .
BUTTHIS LOCAL AUTONOMY WILL BEBEST EXERCISED WITHIN THEFRAMEWORK OF
GENERAL GUIDELINES WHICH CAN BEPROPOSED INORDER TOASSIST REGIONS IN
MATCHING MECHANISMS TOREGIONAL NEEDS ANDTOREGIONAL TYPES .
FOR EXAMPLE .THE KEY FACTORS ORCONSIDERATIONS WHICH SHOULD BE TAKEN
INTO ACCOUNT INSELECTING MECHANISMS ARE IDENTIFIED INTHE REPORT .
BASICALLY .THESE FALL INTO TWO CROUPS :-
« FACTORS KNOWN TOINFLUENCE THE PERFORMANCE AND EFFECTIVENESS OF
THE MECHANISM ITSELF .E.G. ITS SENSITIVITY TODISTANCE FROM
CLIENTS .AND
• FEATURES OFTHE LOCAL RTD LANDSCAPE WHICH WILL INFLUENCE THE
REGIONS ABILITY TOINSTALL AND EFFECTIVELY OPERATE PARTICULAR
MECHANISMS .E.G. .THE COMPOSITION AND AVAILABILITY OFLOCAL
SKILLS .THE STRUCTURE OF LOCAL INDUSTRY .PARTICULARLY THE
PRESENCE OFSME 'S.
THE PROBLEMS FACING SME’S INTHE TECHNOLOGY ARENA ARE PARTICULARLY
ACUTE .AND VERY IMPORTANT INCONTEXT OFTHIS STUDY .BECAUSE OFTHEIR
ROLE IN THE ECONOMIES OFTHE LFR’S .INTERNALLY .THEY WILL TEND TO
HAVE LOW SKILLS .POOR APPRECIATION OFTECHNOLOGY AND LIMITED CAPACITY
TOACCESS EXTERNAL SOURCES OFTECHNICAL ASSISTANCE .BUILDING IN-HOUSE
RTDCAPACITY INSME'S ISCRUCIAL BUT MUST PROCEED ONACAREFULLY
PLANNED AND STRUCTURED BASIS .
COMMISSION PROGRAMMES ARE EMERGING WHICH CAN COMPLEMENT STRIDE .
PARTICULARLY THESPRINT PROGRAMME ,THEBICPROGRAMME OFDGXVI ITSELF .
AND THE NEW SME ACTION PLAN .ESTABLISHING APPROPRIATE LINKAGES
BETWEEN ALLTHESE INITIATIVES WILL BEIMPORTANT .
INSELECTING RTDMECHANISMS REGIONS AREADVISED TOADOPT APORTFOLIO
APPROACH THERE ISNOSINGLE RTD MECHANISM WHICH WILL MEET ALL
REQUIREMENTS .
418
(27)

PORTFOLIOS OF RTD MECHANISMS APPROPRIATE TO PARTICULAR REGIONAL
SITUATIONS ARE SUGGESTED INTHE REPORT .FOR EXAMPLE .FOR REGIONS :
• WITH ACONCENTRATION OFSMALL CRAFT FIRMS .ORSME’S :
• WITH ACONCENTRATION OFLOW TECHNOLOGY INDUSTRY ;
• WISHING TOSTIMULATE AHIGH RATE OFNEW FIRM FORMATION .
THE DATA PRODUCED INTHE REPORT SHOWS THAT NOT ALL REGIONS HAVE THE
CAPACITY TOMAKE FULL USE OF THE WHOLE RANGE OF AVAILABLE RTD
MECHANISMS .SELECTIVITY WILL BEREQUIRED .
FOR EXAMPLE ,REGIONS WITH AVERY LOW EXISTING RTD CAPACITY WILL BE
LIKELY TOBENEFIT MORE FROM PROGRAMMES BASED LARGELY ONTECHNICAL
EXTENSION AND ADVISORY SERVICES THAN FROM ADVANCED RTD CENTRES .
BUT ,APART FROM AFEW EXCEPTIONAL CASES .IN GENERAL TERMS .THE LESS
FAVOURED REGIONS .WHICH ARE THE KEY TARGET CROUP FOR THE NEW
REGULATION .MUST HAVE ACCESS TOTHE FULL RANGE OFRTD MECHANISMS .
PARTICIPATION BYREGIONS AND MEMBER STATES IN STRIDE SHOULD BEIN
ACCORDANCE WITH AWELL PLANNED AND PROGRAMMED APPROACH .THIS SHOULD
BEGIN WITH THE PREPARATION OF COMPREHENSIVE REGIONAL PLANS FOR THE
DEVELOPMENT OF APPROPRIATE REGIONAL RTD CAPACITY .INTHE REPORT .A
PROCEDURE FOR THE INTEGRATED PROFILING OFREGIONS ISPRESENTED . THE
PROFILES OFMIDI PYRENEES AND PUGLIA WHICH FOLLOW .ARE EXAMPLES .
THIS QUANTITATIVE PROFILING PROCEDURE SHOULD BECOMPLEMENTED WITH AN
INCISIVE QUALITATIVE ACCOUNT OFTHE MOST IMPORTANT RTD STRENGTHS AND
WEAKNESSES OFTHE REGION .IN THIS .THERE ISNOSUBSTITUTE FOR LOCAL
KNOWLEDGE . THE INVOLVEMENT AND COMMITMENT OFLOCAL ACTORS WILL BE
CRUCIAL .THE IMPORTANCE OF THIS LOCAL PLANNING LIES BOTH INTHE
PRODUCT AND THE PROCESS .
THE REPORT EMPHASISES HOWEVER THAT THE ESTABLISHMENT OF SINGLE
ELEMENTS OF RTD INFRASTRUCTURE WILL NOT OF ITSELF BE SUFFICIENT .
INTERACTION AND COMMUNICATION BETWEEN THE VARIOUS ELEMENTS OFTHE
LOCAL RTD INFRASTRUCTURE MUST BEPROMOTED .
419

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REGIONAL C2D70E1

REGIONS MAY EVEN COMPENSATE FORLACK OFPHYSICAL INFRASTRUCTURE BY
INTENSIFICATION OFLOCAL INTERACTION WITHIN THEEXISTING STRUCTURES .
THIS ISWHY ASYSTEMS PERSPECTIVE ISESSENTIAL INPLANNING THE
DEVELOPMENT OFLOCAL RTD STRUCTURES .ANETWORK APPROACH ISCRUCIAL .
LINKING LOCAL ELEMENTS CLOSELY TOGETHER .
SUCH AREGIONAL DYNAMIC ISNOTEASY TOACHIEVE .BUT ITISEVIDENT
THAT ITISNOTSIMPLY THEPRESENCE OFUNITS OFRTDINFRASTRUCTURE .BUT
THE DECREE OFINTERACTION BETWEEN THEM .WHICH ISTHE DETERMINING
FACTOR INLOCAL INNOVATION .AKEYFOCUS FORSTRIDE THEREFORE .MUST BE
TOSTIMULATE LOCAL NETWORKS ANDCOMMUNICATIONS .ASWELL ASINSISTENCE
ONTHE ADOPTION OFASYSTEMS APPROACH TO LOCAL RTDPLANNING BYTHE
REGIONS .
GUIDELINES FORTHIS LOCAL PLANNING PROCESS CAN BESUGGESTED :-
• ASSESS THE RTD RESOURCES AVAILABLE TO THE REGION
REALISTICALLY ;
• HAVE AVISION OF THE REGION’S FUTURE AND IMPLEMENT IT WITH
OPERATIONAL STRATEGIES WHICH BUILD ON EXISTING STRENGTHS -
RATHER THAN ONASPIRATIONS OFWHAT MIGHT BE ;
• ORGANIC GROWTH AND DEVELOPMENT FROM AN EXISTING BASE IS
PREFERABLE TOSTARTING FROM A‘GREEN FIELD’ SITUATION ;
• FIND WAYS OF ACCESSING EXCELLENCE .PARTICULARLY IFITEXISTS
OUTSIDE THE REGION .BUILD SYSTEMATICALLY AND DON’T LEAPFROG .
TECHNOLOGICAL DEVELOPMENT ISINCREMENTAL AND COMPLEX :
• KNOW THE CONTOURS OFTHE REGION 'SRTD LANDSCAPE -IN DETAIL .
UNDERSTAND THE LOCAL NETWORKS AND COMMUNICATION MECHANISMS -
BOTH FORMAL AND INFORMAL ;
• MATCH THESE CONTOURS WITH PORTFOLIOS OF APPROPRIATE RTD
MECHANISMS -SELECTED AND DESIGNED LOCALLY ;
• AVOID A'SINGLE SHOT’ APPROACH -NOONERTDMECHANISM WILL SUIT
ALL SITUATIONS ;
• PAY PARTICULAR ATTENTION TOKEYFACTORS WHICH INFLUENCE THE
PERFORMANCE OFTHEMECHANISMS SELECTED :STUDY THEPERFORMANCE OF
SIMILAR MECHANISMS INOTHER REGIONS ;
422

DON'T INSTALL ADVANCED TECHNOLOGY MECHANISMS INALOW TECHNOLOGY
LOCATION . STRATEGIES WHICH DO THIS CARRY AHIGH RISK OF
FAILURE ;
DEVELOP THE REGIONAL RTD INFRASTRUCTURE ASAN INTERLOCKING AND
INTERACTIVE SYSTEM ;
EMPHASISE AND STIMULATE FUNCTIONAL INTERACTION WITHIN THE
REGIONAL RTD SYSTEM THROUGH LOCAL NETWORKS AND LINKAGES ;
ESTABLISH BRIDGES TORTD INFRASTRUCTURES OUTSIDE THE REGION ;
WORK TOWARDS ESTABLISHING ACRITICAL MASS -A'SEUIL CRITIQUE’
INSELECTED AREAS ;BESELECTIVE .SOASNOT TOSPREAD RESOURCES
TOO THINLY ;
ESTABLISH FLEXIBLE NON-BUREAUCRATIC SYSTEMS ;LOOK FOR RESULTS .
NOT FOR PROCEDURES ;
SECURE INVOLVEMENT OFLOCAL BUSINESS AND COMMERCIAL INTERESTS .
IFPOSSIBLE ,ENCOURAGE PRIVATE SECTOR INTERESTS TODRIVE THE
STRATEGY ;
ENCOURAGE LOCAL INITIATIVE AND LEADERSHIP .ITISTHEIR REGION .
THEIR JOBS ,THEIR CHILDREN .THEIR RESPONSIBILITY AND THEIR
FUTURE -WHO ELSE WOULD BEMORE COMMITTED TOGETTING ITRIGHT ?
STIMULATE ALLIANCES OFKEY PLAYERS .IDENTIFY LOCAL CHAMPIONS ;
ENCOURAGE LOCAL COMPETITION FOR RESOURCES .FRIENDLY COMPETITION
WILL IMPROVE THE QUALITY OFPROPOSALS ;
PURSUE INDIVIDUALISTIC PATHS TO PROGRESS . KNOW YOUR 'VOCATION
REGIONALE' ;
EMPHASISE HOW THINGS ARE DONE -NOT WHAT ISDONE . ULTIMATELY ,
THE FORM ISMORE IMPORTANT THAN THE SUBSTANCE ;
ACT LOCALLY -BUT THINK GLOBALLY ".

ÿ?OBJECTIVES FOR STRIDE
ANYATTEMPT ATAN 'APRIORI' SPECIFICATION OF RTD MECHANISMS FOR
PARTICULAR REGIONAL TYPES ISPROBLEMATIC .
NONETHELESS ,ITCAN BESAID THAT SOME COMMON PRINCIPLES CAN BE
IDENTIFIED FORSTRIDE FORALL REGIONS ,IRRESPECTIVE OFTHEDETAIL OF
THEIR LOCAL SITUATION .THUS ,ITISPOSSIBLE TOARTICULATE THAT THE
BASIC PURPOSE OFTHE NEW REGULATION ISTOMOBILISE REGIONAL RTD
RESOURCES INORDER TOSTIMULATE SELF GENERATING REGIONAL DEVELOPMENT .
STRIDE SHOULD PRIMARILY AIM TO :-
• RETAIN ANDATTRACT SKILLED MANPOWER ;
• PROVIDE A LOCAL CAPACITY FOR TECHNOLOGY TRANSFER AND
APPLICATION ;
• STIMULATE AND ASSIST NEW TECHNOLOGY BASED START-UPS LOCALLY ;
AND
• IMPROVE NATIONAL AND INTERNATIONAL RTD LINKAGES .
THESE ARE THE ESSENTIAL PRINCIPLES OFATECHNOLOGY STRATEGY FOR ALMOST
ANY LFR ;SKILLS RETENTION ,TECHNOLOGY TRANSFER .LOCAL TECHNOLOGY BASED
START-UPS .AND LINKAGES .
BENEFITS OFSTRIDE -
THE BENEFITS TO BEACHIEVED BYTHE NEW PROGRAMME WOULD INCLUDE
PRINCIPALLY :-
• AN IMPROVED CAPACITY INREGIONS TOEXPLOIT .AND TOSHARE INTHE
BENEFITS OFTECHNICAL PROGRESS ;
• ANIMPROVEMENT INCOMMUNITY COHESION AND INTEGRATION ;AND
• AMEASUHEABLE REDUCTION .INTHELONGER TERM .INTHEECONOMIC AND
SOCIAL DISPARITIES BETWEEN REGIONS .
424

XIMPACT .OPSTBIDB -
FOR LATER EVALUATION ,IT IS IMPORTANT TOARTICULATE CLEAR AND
QUANTIFIABLE OBJECTIVES ATTHEOUTSET .THE IMPACT OFTHE NEWPROGRAMME
SHOULD BEASSESSED ONTHE BASIS OF :-
. AMEASURABLE IMPROVEMENT INTHE STOCK OFREGIONAL RTD RESOURCES
OFBOTH INFRASTRUCTURE AND SKILLS ;
• AMEASURABLE NARROWING OFTHE TECHNOLOGY GAPS
• AMEASURABLE INCREASE IN THE PARTICIPATION OFASSISTED REGIONS
INCOMMUNITY RTD PROGRAMMES .
ELIGIBLE REGIONS '
THE EVIDENCE ASSEMBLED INTHIS REPORT PROVIDES CLEAR JUSTIFICATION
FOR ADIFFERENTIATED COMMUNITY RTD INITIATIVE FOR THE LESS FAVOURED
REGIONS .BECAUSE OF THE VARIATION INTECHNOLOGICAL .ECONOMIC AND
SOCIAL CONDITIONS IN THESE REGIONS .THE STRIDE INITIATIVE MUST BE
FLEXIBLE TOACCOMMODATE VARIOUS CATEGORIES OFLESS FAVOURED REGIONS .
TO BE ELIGIBLE FOR ASSISTANCE IT IS PROPOSED THAT AREGION BE
SIGNIFICANTLY DISADVANTAGED BOTH ECONOMICALLY AND TECHNOLOGICALLY .
THISTWO-CRITERIA 'AND-GATEj)PROCEDURE ISILLUSTRATED OVERLEAF .
'SIGNIFICANTLY DISADVANTAGED’ IS DEFINED BYTHE AUTHORS ASBEING MORE
THAN 25X BELOW THE RELEVANT COMMUNITY AVERAGE .
INADDITION .ALTHOUGH CERTAIN REGIONS MAY NOT SATISFY THESE CONDITIONS
PRECISELY .THEY ARE NONETHELESS DISADVANTAGED FOR ACOMPLEX OFOTHER
REASONS . TWO CROUPS INPARTICULAR .ARE CONSIDERED -INDUSTRIALLY
DECLINING REGIONS AND LAGGING REGIONS IN THE MORE ADVANCED MEMBER
STATES .
425

A A
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ON

INSUMMARY THEREFORE ITISPROPOSED TODISTINGUISH THREE CATEGORIES OF
REGIONS FOR ASSISTANCE :-
. CATEGORY 1-LOW INCOME .LOW RTD
ACORE GROUP OFREGIONS WHICH ARE BELOW 75X OFAVERAGE EEC PER
CAPITA INCOME LEVELS ORBELOW 75% ONTHE SYNTHETIC INDEX AND
BELOW 75J OFAVERAGE EEC RTD LEVELS .
• CATEGORY 2-INDUSTRIALLY DECLINING .LOW RTD
REGIONS OFINDUSTRIAL DECLINE WHICH HAVE BELOW 75*OF AVERAGE
EEC RTD LEVELS .THESE ARE THE REGIONS OFMEMBER STATES BASED ON
THE COAL .STEEL .SHIPBUILDING AND OTHER DECLINING INDUSTRIES .
THEIR PRECISE DESIGNATION ISAMATTER FOR DGXVI .
• CATEGORY T-LAGGING .LOW RTD
SELECTED REGIONS OF MORE DEVELOPED MEMBER STATES WHICH ARE
RELATIVELY DISADVANTAGED -SOMETIMES REFERRED TO AS 'LAGGING
REGIONS’ ,WHICH HAVE BELOW 75*OFAVERAGE EEC RTD LEVELS .THEIR
PRECISE DESIGNATION ISAGAIN AMATTER FOR DGXVI INCONSULTATION
WITH THE RELEVANT MEMBER STATES .
THE PRIMARY GROUP OFREGIONS .THOSE OFCATEGORY 1.WHICH COMPRISE THE
TARGET GROUP FOR THE NEW REGULATION WOULD ,ONTHE BASIS OFTHE ABOVE
CRITERIA .ENCOMPASS ALL REGIONS CURRENTLY THE SUBJECT OFTHE COHESION
DEBATE . THEIR PRECISE DESIGNATION IS HOWEVER AMATTER FOR THE
COMMISSION USING THE ABOVE-MENTIONED CRITERIA .
APPROPRIATE
WHILE THE PRECISE IDENTIFICATION OF APPROPRIATE MECHANISMS FOR A
REGION MUST BEBASED ONADETAILED EXAMINATION OFEACH REGION 'S RTD
STRENGTHS AND WEAKNESSES .IT IS NONETHELESS POSSIBLE TOIDENTIFT .A
PRIORI ,BROAD GROUPS OFRTD MECHANISMS .APPROPRIATE TO THE THREE
CATEGORIES OFREGIONS LISTED ABOVE .THIS .THEREFORE .INTRODUCES A
THIRD FORM OFELIGIBILITY CRITERION NAMELY .'APPROPRIATENESS' .

ITISPROPOSED THAT CATEGORY 1REGIONS SHOULD QUALIFY FOR THE FULL
RANGE OFRTD MECHANISMS ASSHOWN INTABLE 1.
WITHIN THE CATEGORY 1CROUP .SOME REGIONS WHICH HAVE ANEXTREMELY LOW
LEVEL OFRTD AND HAVE THEREFORE NOT GOT ATHRESHOLD CAPACITY WILL
REQUIRE AMORE SELECTIVE TREATMENT .THESE WILL REQUIRE SPECIAL
EMPHASIS INITIALLY ON CREATING THE BASIC PRECONDITIONS FOR
PARTICIPATION IN THE FULL SPECTRUM OFSTRIDE MECHANISMS . PRIORITY
ATTENTION MAY HAVE TO BE GIVEN TO HANDS-ON TECHNICAL ASSISTANCE .
EXTENSION AND ADVISORY SERIVCES ,AND TECHNICAL AWARENESS PROGRAMMES
FOR THESE REGIONS .
THE MECHANISMS AVAILABLE TO CATEGORY 2TYPE REGIONS -THE REGIONS OF
INDUSTRIAL DECLINE -ARE SHOWN INTABLE 2.THE MAIN RTD PROBLEM IN
SUCH REGIONS MIGHT BEEXPECTED TOBE THE CONVERSION AND MODERNISATION
OFANOLD ORAGEING RTD INFRASTRUCTURE .STRONG TRADITIONS OFINDUSTRY
AND SKILLS WILL EXIST BUT THESE WILL NEED TOBEUPDATED .APRIMARY
TARGET WOULD BETHE STIMULATION OFINDUSTRIAL AND PRIVATE SECTOR RLD
ASWELL ASSUPPORTING NEW TECHNOLOGY BASED FIRM FORMATION .
FINALLY .CATEGORY 3REGIONS -THE LAGGING REGIONS OFTHEMORE ADVANCED
MEMBER STATES .MAY EITHER HAVE RTD CAPACITY WHICH ISUNDERUTILISED OR
HAVE ACCESS TO RTD INFRASTRUCTURE IN OTHER REGIONS OFTHEIR OWN
COUNTRY .AREDUCED SET OFRTD MECHANISMS ISPROPOSED .CONCENTRATING
MAINLY ON STIMULATION TYPE MEASURES SUCH AS NETWORKS ,LINKAGES .
PARTNERSHIPS ANDCONSULTANCY .TABLE 3PROVIDES DETAILS .
TECHNOLOGY GAPS WILL WIDEN INTHE COMMUNITY UNLESS ACTION IS TAKEN
NOW .WHILE THE STRONG WILL GROW STRONGER .MEMBER STATES AND REGIONS
WHICH ARE ATALOW LEVEL OFTECHNOLOGICAL DEVELOPMENT WILL EXPERIENCE
GREAT DIFFICULTIES INCATCHING UP .
STRESSES BETWEEN THE CENTRE AND PERIPHERY WILL INCREASE IFTHE TWO
SPEED TECHNOLOGICAL EUROPE .WHICH ISNOW RAPIDLY EMERGING .BECOMES
ESTABLISHED .
ASTECHNOLOGY ADVANCES THE AGGLOMERATION OFTECHNOLOGICAL STRENGTH
WILL CONTINUE INTHE CENTRES WHICH AREALREADY STRONG .THE TECHNOLOGY
CLAPS COULD BECOME APERMANENT ANDPERSISTENT FEATURE .SLOWING DOWN THE
OVERALL LEVEL OFADVANCE .

TABUS l APPROPRIATE RODmjumsie FCR CAraxrar lREGI crta
RESEARCH ABO ADV ANCED THtHfOCOGT
Specialist fVffMn'tl Cetttrea
Advanced Technology Centre®
Centre® ofExcellence
Dent arch Equipment
HIGHER ECUCAXICN -DCUSTHT UMCM33
Rreearch Paria
Scieooe and TVschnology Parks
Tterhlng Ctirpenles
Reoearch Equipment Schemes
Cooperative Research Centres
Cooperative Research Ventures and Consortia
Canaaia Ccorxuiles
Industrial Liaison Oilices
Transfer Points
Sponsored Chairs
Cooperative Sorkshcps /Synposia
industrial Fellovehip®
KID MANPOWER AMD SJOLL3 CEVELOmUfT
Skills Placement Progr .mines *
Spécial Biploymeot Incentives *
Training /retrain ingforScientists and Engineers
Contlnuing Education andTralnlng
RIDQirriculm Inproveneot
Dcrftanffe Proçnrrnea
Hoblllty Prosa imeJ
APPLIED RESEARCH AfO TEEHKXDGT TRANSFER
Branch Plant Prograrimes
Linkage and Sub Supply
Deuous uatlon
Netnuiklng
Applied Research and Technology Centres
Technology Applications and Design Centres
Extension and Advisory Services *Technical Information and Assistance Centres *
Technical Consultancy Services *
EUrKEPUiNEURSHIP SUPPORT
Innovation Centres
Incubatloo Centres
Business and Technology Centres
Inventions Services
Patents and Licenslng Services
Product Searching
Technology Acquisition Ser-vtoes
Srsll Business Courses
Bitrepreneurship Tralnlng
Product Development Courses
Enterprise Fbnsrs /Rorkshops
RTD PTtXjnCN AfO GENERAL AWARENESS
RTD Dchibltlorva
Technology ExtraReferrxl Centrea *
One Stop Shoprj *
Information latermedlarlea
Technical Information and Awxreoesa PrcgT'^rmes
TXsk Fbrcea
Scaletterà and Tech /ilcal 9ulletlna
RTD Generxl Farcirò tlon/Arargnc *»
Pesearch Associations
•ortcsrcm
Scientific and Technical Attaches
appropriate for the least favoured subset ofCategory lRegions .

TABLE 2:APPROPRIATE RTD MECHANISMS FORCATEGORY 2REGIONS
• ASSISTANCE FORCONVERSION .ADAPTATION AND MODERNISATION OFTHE
EXISTING RTD INFRASTRUCTURE
• ASSISTANCE FORSTIMULATION OFBERD ,PARTICULARLY
RESEARCH EQUIPMENT FOR INDUSTRY
CONTRACT RESEARCH
TECHNICAL CONSULTANCY
SKILLS PLACEMENT
RESEARCH ASSOCIATIONS
HIGHER EDUCATION-INDUSTRY PARTNERSHIPS
TEACHING COMPANIES
TRANSFER POINTS
• ASSISTANCE FORNEWTECHNOLOGY BASED STARTUPS .PARTICULARLY
INCUBATO RS
INNOV ATION CENTRES
CAMPUS COMPANIES
• ASSISTANCE FOR UPDATING SKILLS .PARTICULARLY
TRAINING AND RETRAINING FOR SCIENTISTS AND ENGINEERS
CONTINUING TECHNICAL EDUCATION AND TRAINING
MOBILITY AND EXCHANGE PROGRAMMES
TABLE 3:APPROPRIATE RTDMECHANISMS FORCATEGORY 3REGIONS_
PRIORITY TO ESTABLISHMENT AND DEVELOPMENT OF NETWORKS AND
COMMUNICATIONS .IMPROVE LINKAGES TONATIONAL AND INTERNATIONAL
RTD ACTIVITY .
EXCLUSIVELY STIMULATION TYPE MEASURES .PARTICULARLY SUPPORT
FCR :-
• RESEARCH NETWORKS
• RESEARCHER MOBILITY SCHEMES
• TRANSFER POINTS
• INDUSTRIAL LIAISON OFFICES
« UNIVERSITY -INDUSTRY COOPERATIVE RESEARCH PROGRAMMES
• TECHNICAL CONSULTANCY SERVICE FOR SME'S
• RESEARCH EQUIPMENT SUPPORT SCHEMES
• INDUSTRIAL FELLOWSHIPS
• TECHNICAL WORKSHOPS AND SYMPOSIA
430

POLICIES WHICH ADDRESS THE BASIC FABRIC .FOUNDATION AND FRAMEWORK FOR
TECHNOLOGICAL DEVELOPMENT INTHE LESS WELL OFF REGIONS NEED TOBEPUT
IN PLACE AS AMATTER OF URGENCY .UNLESS THIS IS DONE .THE
•QUALITATIVE LEAP' TOWARDS THE •TECHNOLOGY COMMUNITY' MAY BEASTEP
FORWARD FOR SOME BUT WILL LEAVE MANY STANDING STILL .INTHE LONG TERM
THE PROGRESS OFALL WILL BERETARDED .
NBST /DUBLIN /AUCUST 1987

ANNEX 14
COMPARATIVE TRENDS _IN_THE_USA .JAPAN AND EUROPE
432

Brussels ,22February 1988
COMPARISON OFCOMMUNITY MEMBER STATES S/TPOLICIES
COPOL 88
THE EUROPEAN S/T"SPACE "INTHE INTERNATIONAL CONTEXT
RESOURCES AND CONDITIONS FOR COMMUNITY COMPETITIVENESS
Extracts from theWorking Paper prepared byP.BARTOLI
Contract n°PSS*0008 /F

S&TPOTENTIAL OFE.E.C. COUNTRIES
OVERALL STATISTICAL COMPARISONS ANDCONSEQUENCES OFPOLITICAL PARCELLING
Comparing S&T potentials ofMember States with those of their major
partners ,especially theUnited States andJapan ,implies primarily to
look atgeneral statistical agregates .Thestudies prepared fortheformer
COPOL meeting ofCREST have extensively touched these aspects ,and so,in
the first section ,weshall merely actualize themain results .
Then ,inorder tomake this first analysis more accurate ,weshall try ,in
the second section ,toimprove theconclusions drawn from quantitative
comparison bytaking into account theconsequences orEuropean political
parcelling onitsS&Tefficiency compared with those oftheUSandJapan .
434

SECTION I :THE R&D POTENTIAL OFTHE ECONOMIC COMMUNITY MEMBERS COMPARE D
TOTHAT OFITS MAJOR PARTNERS ,THE USAND JAPAN
Weshall review ,inthis section ,themain basic data concerning thebulk ,
of R&D expenses ,their rate ofgrowLh within the first half of the
eighties and thepriority given toR&Damong economic activities inthe
different countries .Finally weshall examine theinvolvement ofindustry
innational R&D efforts which ,partly , is acondition for the
effectiveness ofLhese efforts ,asweshall see inthesecond part ofthe
report .
I-VOLUME
-In 1986 the cumulative R&D expenditures of the member countries
approached 70billion Ecus ,twice theamount recorded in1979 ,and the
number ofresearch workers rose from 350 000 to500 000 (EPT )over this
period *.
-With 120billion dollars devoted toR&D**i.e. 119billion Ecus (1Ecu =
1.010 dollar according topurchasing power parities :ppp),theAmerican
expenditure isapproximately 3/4higher .Japan 'sisintheneighbourhood
of9200billion yen ,i.e. 41billion (ppp 1Ecu =223.2 yen )which is
1/3lower .
The repective growth rates ofR&Dactivities inthedifferent countries ,
analysed along with monetary variations ,leads ustobelieve that for 1987
the relative gap should remain with the USanddecrease with Japan .
In the1981-1986 period evolutions have been infavour of our partners :
het gaphaswidened noticeably with the USandhas narrowed with Japan .
This comparison ofoverall R&Dexpenses ofthecountries involved leads us
to afirst evaluation ofthegeneral effort oftheMember States .It is
often necessary tocomplete this byasecond comparison restricted to
civilian R&Dexpenses inorder totake into account thespecial features
ofmilitary R&D and tisvarying importance inthedifferent countries .In
this case theaccuracy ofstatistical material islower ,soweshall use
only ratios andnotabsolute figures (graph II).
In1986 ,thecivilian R&Dexpenses inthe USwas nomore than aquarter
above theone ofEUR 12,and theJapanese expense was athird lower .In
this comparison the gap between partners isnarrower than inthe
comparison ofoverall R&Dexpenses ,especially between the USandEUR 12.
Since 1981 thegapwith the USremained unchanged ,and thegapwith Japan
narrowed .
Both analyses ,whose results must becombined togive arealistic
evaluation ofR&Dpotentials ,show that R&Dexpense inEUR 12isobviously
below the level ofthe US,butexceeds widely that ofJapan .But the
tendencies points out alower dynamism inthe Community .This appears
beLter when considering growth rates .
* Figures estimated from data already available incertain countries .
** OECD figures .
435

GERD for EUR-12,U.S.A. ftJAPAN :1901-86118.81
BioECU120 .00-r
100 .00+
00 .00+
00 .00+
40 .00+
20 .00Convers ionofUS$ftVonh&s booncarried otffc accord lng the P.P.P.■toavo Idthe errat icfluctua -tions ofthese currenclee
67.57
z21impfftfi#aiiiiiiiiB I
gZX ,. |ç'S?l?I|SP?iî'i|ll || I
^â'f '9o"^=<j. ,II?11illlljljI'Slll I^O§SOSJ§O^3^3ï »o££3g=O3JOSJô8-3g--,O^
||^Sÿjgop^6J ||^
5cS©52coSoc2o?9,?5Soô236
x255£l§2cc2§c j852§S2§c^o^oiWoSSoSAOÎ^cîSSfe^2CO2!K2CC2CO9CC2OO.Ç£x200sco2-ocste?ce2o:•4^ogjosWoJgoSAogScgScSi»igi§æsg|i8gigIsSlSifgsgiisçÿJiïlllsillllii ?!igg!Sispæ8p|ig
■fïf :ïtfiipi1l?ill
rss.«.S%s§iw?çilî?i8i9^i$2§ia
-M ÿï%%P51ci:?■agIios
S.'ÿ1VS':11i*-ïS'J iiiiSiiiiiiiiiïiii
3>S,£K-rt32' S <51■££' ■•$£'S;c^».C /fe£2Rÿ>r,CL%£,~+:gAÔgS£S41.28
ïAÀbàfef5co3SSg§8^ceçcl55cSJ?c>
5îo2co2&;5exSoo2552co£00?
<ÇoR<»2çç5 7?;=:ÇÇoS3 =?2o52J
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lift 11
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U.S.A
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V oar88

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1981-1986
C125 )
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8B+
É>B
40
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CIBB )
(56)
L- jr. v.jj
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EUR -12
U.S.A.CIBB )
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2;>î;JJJJÎJÎ;2}Î ;!•!;i;î*!;î;>î;!;2;>;•2»
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(66)
Й-Й -- г;€'Ш
:<• >;*>^ü5?:ïsS:.^î:5
Year

04
CDAVERAGE ANNUAL GROWTH OF GERD
1981-1985 (fixed prices )
9-r
a-h
7+
6+
s+
%per year
■4+
3+
2+
1+
00.0 0.a
! * ‘'f
| |'1;|
li.' ïI'IIMl'lêl| I
|jj|||||||Iffiitfni
Japan0.6
t.oJ
h OO□TOTAL
1 SCivil
j-
i
USA EUH-12Civil
|Я1Ъ1!1 ! jm2pem*?»st£ ««f
fiS-ÉS'S'gi.feï|lilIi|:Ül
Country

II-GROWTH RATES
BeLween 1981 and 1985 R&Dexpenditures increased byanaverage of3.6 %
perannum involume within inEEC ,atarate which was substantially lower
than of the US :6.6 %which iLself iswell below the Japanese
progression :8.8 %,more than twice asfast asinthe EEC .
When applied tocivil research ,thecomparison ofprogression rates gives
results which areconsiderably different ,because theprogression ofcivil
appropriations was almost non-existent inthe US.The result isthat total
civil expenditures (public andindustrial )forR&D increase approximately
atthesame rate asinthe USand inEurope ,butJapanese growth isalways
twice asstrong :
EEC 4Z
USA 4Z
Japan 8,8 %
III -INTENSITY OFTHE R&D EFFORT
Another indicator oftheresearch effort inacountry isgiven by the
ratio of the gross expenditure ofR&D tothe gross domestic product
GERD /GDP ,which evaluate the priority given to the scientific and
technical development among allother economic activities .
In1985 this ratio reached 208 Zinthe USand inJapan *. OftheEuropean
countries ,only the FRGapproached this level with aratio neighbouring
2.7 Zwhile itwas intherange of2.3 ZintheUnited Kingdom and in
France ,at2ZintheNetherlands (neighbouring theEECaverage )and 1.3 %
orless for the other member countries .
Ifonce again werestricL our analysis tocivil research ,the country
classification isconsiderably modified .
The Japanese effort incivil R&Dwith aratio neighbouring 2.7 %appears
to befarsuperior tothose oftheUSand the EECmember countries which
are inthe range of1.8 %and 2Z.And again theFRG istheonly member
nation whose civil effort isequal tothat ofJapan (between 1.5 and
2.6% ).
 Japan :non-adjusted OECD figures .

GERD performed byenterprises In%oftotal
80-r
70+
80
50+
o40 ■+■
0 |||_[_L.jjLyftl^-|-|j1^11«^.|-j|»-|- 1-[
HE P IRL £ DK NL I F UK B D JFN£g}ï-$M
hi‘Si
Country!j
use
O

IV-CONTRIBUTION OFINDUSTRY TOR&DPOTENTIAL
VI-l /Execution ofR&Dwork
In the United States ,more than 70ZofR&D exependitures are made in
industry ,and this level wasmaintained throughout the 1980 's.This strong
contribution onthepart ofprivate enterprises isexplained notably by
the fact that alarge portion ofmilitary research issubcontracted to
them .
InJapan ,thecorresponding ratio (DIRDE /DIRD )isalso high ;itwas inthe
neigborhood of68Zin1985 .Butunlike theUnited States ,here we are
dealing almost exclusively with civil research and the industrial portion
has registered astrong increase since thebeginning ofthe 80 1s(61Zin
1981 )due tothedynamism ofindustrial financing and theweak progression
ofR&D appropriations .
Among the member nations ,two countries alone present similar
characteristics :Belgium (69Zin83)and the FRG (72Zin1985 ).
IV-2 /Financing ofR&Dwork
ItisinJapan that thecontribution bybusinesses tothefinancing ofR&D
is by far from thehighest (more than 70Zin1985 )andmoreover ithas
been growing rapidly since thebeginning ofthe80 1s(62Zin 1981 ). In
fact ,appropriations play avery minor role inbusinesses' financing of
R&Dwork .They therefore enjoy total financial independence intheconduct
oftheir R&D programmes ,which isnot thecase intheUnited States and in
certain member countries .
Among the European countries ,only theFRG approaches Japan with a
financial contribution onthepart ofindustry of61Z.Asfor theother
EEC member states ,the rate which characterizes them falls below or
approaches that oftheUnited States which is48Z.
441

CONCLUSIONS
Inconclusion ,the funds devoted toR&Dactivities for theEECc are still
well below those oftheUnites States ,while theJapan iscatching up.
And what ismore serious isthe fact that R&D investments show even less
dynamism :between 1981 and 1985 ,thegrowLh ofexpenditures was twice as
great inJapan and onehalf higher intheUnited States .Asfor theplace
granted toR&D intheeconomic activity asawhole ,andmeasured by the
ratio ,itisvery much lower than that ofourpartners (2%against 2.7 %
and2.8 %)and thegap isonthe increase .
Lastly ,thedistribution ofLheR&Deffort between industry and thepublic
sector shows that industry 'scontribution islower inEuropean countries ,
which puts them atadisadvantage inrelation tothenewconditions ofS&T
developement and inparticular theimportance of the valorization of
research and thespreading oftechnology .
These quantitative comparisons ,which inthe last analysis are rather
dulling for the EEC ,moreover neglect aserious handicap which affects Lhe
R&Dpotential oftheentire EEC :theEECdoes notconstitute ahomogeneous
whole .It isparcelled out into twelve components some ofwhich are
extremely unlike oneanother andpresent insufficient synergies .Weshall
look attheconsequences ofthat situation inthe next section .
442

SECTION II :CONSEQUENCES OFPOLITICAL PARCELLING
In the preceding section ,which dealt with thecomparison ofthe means
implemented bytheEconomic Community andtheir partners ,weconsidered
the European S&T space asacoherent whole .But this isnoL the case :
political parcelling introduces partitions andoften leads todiverging
choices .And forthis reason ,itispresently anillusion toconsider that
European S&T potential isequal tothesum of the potential of its
members .Toberealistic ,itwould befitting toattribute tothe latter a
reducing coefficient representing the loss ofeffectiveness which affects
theEuropean mosaic compared toahomogeneous national space .
This reference totheparcelling oftheEconomic Community isnotnew .But
ithas taken onparticular acuteness intherealm ofS&T for two reasons .
First ofall ,thedifferences between member nations aremuch more acute
inS&Tmatters than inother domains .Secondly ,because throughout the
world ,recent developments inscientific policy have foscused onthemeans
ofbetter organizing thesynergy ofS&Tefforts and ofbetter valorizing
the results ofthis work onthe economic level .
These different actions necessarily imply cohesion and an increased
fluidity in the S&Tsystem onwhich they areoperating and adapt very
poorly to alack offluidity inexchanges among men due topolitical
parcelling ,which they interpret asobstacles tothecirculating ofmen ,
limitations tocompany action ,and theabsence ofsynergy inpublic
actions .
Obstacles tothecirculating ofmen
This isamajor handicap ,because S&Tprogress isfirst ofall theresult
ofthecirculating ofknowledge ,theconfrontation ofexperiences and ,in
abroader sense ,ofcontacts between men .More generally speaking ,
exchanges within the European scientific fabric are undermined by
political parcelling .
The obstacles ,which concern lengthy travel onthepart ofscientists ,
have been mentioned onmany occasions andarewell known .First of all ,
there are differences oflanguage ,mentality ,culture ,which imply a
psychological effort toadapt which issometimes difficult forsome .Then
there aredifferences between theadministrative and social systems ofthe
member nations ,which arebehind numerous material problems encountered by
research workers andtheir families .Lastly ,there aredifficulties in
seeing toitthat theequipment necessary forcarrying outexperiments can
circulate from onecountry toanother .
Limits onaction bycompanies
Although the free circulation ofgoods isensured by the Rome Treaty ,
political parcelling creates another compartmentalization ofmarkets
through the play ofthestandards oftaxation and public markets .The
unique European market of1992 should remove this obsLacle ,but for the

moment this situation reduces thefreedom ofaction ofbusinesses ,
restricts their capacity toinvesL inS&T .development ,and sometimes
excludes them ,because theminimum effective investment thresholds are
becoming higher and higher incertain realms ofadvanced technology :
semiconductors forexample .
Moreover ,the habit ofacertain protection against foreign competition
within national borders has created introverted behavior inalarge
portion of the industrial fabric ,thereby reducing the tendency to
cooperate ,notably inS&Tmatters ,astestified bytheweak development
oftechnological joint ventures ,compared towhat weobserve intheUnited
States orinJapan .
Only the firms which have learned toactbeyond borders and togoget
technologies wherever they areintheworld ,arecapable ofbypassing
these obstacles .But they then aresometimes more tempted bydirect access
totheworld market than byalimited action within theEuropean space .
The absence ofsynergy inpublic action
It istrue that recently wehave witnessed acertain harmonizing ofS&T
policies .Nonetheless ,thetraditions ofgdvernmental action differ ,just
as dothestructures ofresearch systems .Theresult isastaggering in
the implementation ofincentives and the instruments utilized are offen
different .Sometimes even orientations are divergent .Incentives and
support provided by the public authorities are thus limited to the
national perimeter and donothave therepercussions ofmeasures taken by
theAmerican Administration ortheJapanese Government .
Moreover ,political parcelling often implies the duplication of S&T
activities inrealms where thepublic powers are themain customer .This
isvery often thecase with respecL tomilitary equipment ,afield in
which cooperation isstill anexception .But theabsence ofcooperation is
also noted incertain civil domains ,forexample railway transport ,a
field inwhich upuntil recently ,competition between nations ,tempered by
serveral only toorare exceptions ,was therule .Theamounts atstake in
this respect arehuge ,andtheduplication ofactivities appears asareal
problem .
Thus political parcelling reduces theeffectiveness ofS&Tactivity inthe
European space and lead toashadowing ofthequantitative comparisons of
the preceding section which looks upon Europe asthough itwere a
homegeneous whole .Weshall seeinthesecond portion that another factor
is tobetaken into consideration incomparisons with the USandJapan :
wearespeaking ofthevery rapid progress achieved bythese twocountries
toward greater effectiveness oftheir S&Tapparatus .
444