EN Official Journal of the European Union C 44/22

Opinion of the European Economic and Social Committee on the ‘Proposal for a Council Regulation setting up the ENIAC Joint Undertaking’

COM(2007) 356 final — 2007/0089 (CNS)

(2008/C 44/05)

On 10 September 2007 the Council decided to consult the European Economic and Social Committee, under Article 95 of the Treaty establishing the European Community, on the abovementioned proposal.

On 10 July 2007, the Bureau of the European Economic and Social Committee decided to ask the Section for the Single Market, Production and Consumption to carry out the work on the subject.

In view of the urgency of the matter, at its 439th plenary session held on 24 and 25 October 2007 (meeting of 25 October), the European Economic and Social Committee appointed Mr Dantin as its rapporteur-general and adopted the following opinion by 106 votes in favour, with one abstention.

1. Conclusions and recommendations

1.1 The Committee welcomes the decision on setting up the ENIAC joint undertaking (1).

1.1.1 It considers that this approach to relaunching investment in R&D by means of public/private financing has the potential to give European businesses a stable frame of reference and making it possible to overcome the current fragmentation of Community financing and coordinate research, which is often too widely dispersed, thereby helping to make it more effective.

1.2 It welcomes the choice of this sector. This is a technically innovative branch of industry, with strong potential for the future and as a source of highly skilled jobs, and developing it will directly contribute to achieving the Lisbon objectives on competitiveness and the Barcelona objectives on percentage of GDP allocated to research, and also to other Community policies, for example on the environment, transport, energy and health.

1.3 In welcoming the proposal under discussion, the EESC wishes firstly to underline the importance for the EU of the strategy being proposed for investment and coordination of research. In so doing, the Committee feels that the strategy strongly supports the creation of a European research area and significantly contributes to the competitiveness of European businesses in the sector.

1.4 In the light of this innovative collaborative structure, which may become complicated when it comes to using the products of the research to be carried out by ENIAC and their industrial application phase, the EESC appreciates the attention which has been paid to intellectual property rules.

1.5 The Committee is pleased to note that particular attention has been paid to the risk of nanoelectronic manufacturing relocating to other parts of the world. The EESC supports the idea of a specialised sectoral approach.

1.6 Finally, to maximise the potential that this new instrument offers, the EESC considers the following to be necessary: — a genuine simplification of procedures, not least because of the negative impact that red tape had on previous R&D programmes. As these procedures are currently being worked out, the Committee will pay close attention to the need to enable all parties to participate in the choice of objectives and analysis of final results; — an information campaign to help mobilise the requisite economic resources; — the establishment of appropriate vocational training programmes to ensure that the skills of workers match the jobs created by ENIAC, with the aim of creating the necessary conditions for providing industrial leadership in this strategic sector.

2. Introduction

2.1 The purpose of the proposed Regulation is to launch one of the very first public-private partnerships in the area of R&D. It defines one of the first Joint Technology Initiatives (JTI). This initiative is the field of nanotechnologies and is entitled ENIAC.

2.2 The general aim of JTIs is to allow industry, Member States and the Commission to pool some or all of their resources into selected research programmes.

2.3 Unlike the traditional strategy, which involves providing public funding for projects on a case-by-case basis, JTIs involve large-scale research programmes with shared strategic research goals. This new approach is expected to create a critical mass for European research and innovation, consolidate the scientific community in key strategic areas, and harmonise the funding of projects so that research findings can be put to use more quickly. JTIs are aimed at key areas where the current instruments have neither the scale nor the speed to keep Europe ahead of global competition. These are areas where national, European and private funding of research could bring significant added value, inter alia by stimulating an increase in private R&D expenditure.

2.4 The main purpose of the JTI in the field of nanoelectronics, known as ENIAC, is to contribute to the development of key competences for nanoelectronics in order to strengthen European competitiveness. To this end, the proposal under review lays down the legal framework establishing ENIAC.

3. Context and general considerations

3.1 With constant growth in the numbers of electronic components in innovative hi-tech products, the nanotechnology sector is of strategic importance for European competitiveness and industrial growth.

3.2 This sector produces equipment which is essential for major industries in a wide variety of fields such as telecommunications, consumer products, multimedia services, education, transport, healthcare, security and the environment.

3.3 An average annual growth rate of 15 % is forecast for the market for the industrial nanotechnology sector (which apart from direct manufacturers also comprises suppliers of manufacturing instruments and materials). In order to maintain such a high growth rate, close attention needs to be paid to the sector.

3.4 A Community-wide initiative must therefore seek to preserve and strengthen global leadership in the relevant sectors, by means of R&D programmes that can achieve the necessary objectives for industrial exploitation, at the same time as pursuing more ambitious technological objectives, aiming for increased competitiveness, and creating highly skilled new jobs.

3.5 The choice of a public-private joint undertaking should make it possible to substantially improve the quality of R&D in the sector. This is vital to overcome the current fragmentation of research programmes in the various Member States which are unable to reach critical mass and lack the necessary resources to fund appropriate programmes.

3.6 The choice of a European dimension appears to be essential, given that it is the only option for meeting the major challenges facing the nanotechnology sector.

3.7 In addition, reaffirming the Community dimension should enable simpler administration and less red tape, with a single Community procedure replacing various national procedures and reducing the time needed to obtain a R&D contract compared to the current situation at Community level (see EUREKA); this would also avoid differences between evaluation and monitoring procedures.

3.8 Setting up a public-private undertaking which directly involves Member States and companies from the relevant sectors is an innovative step compared to the current procedures for participating in Community R&D programmes. Besides, the considerable financial resources which the programmes proposes to allocate at Community level will enable critical economic mass to be achieved, which is essential if the ambitious objectives set by the programme are to be achieved.

3.9 The participation of Member States and companies, and their direct involvement by means of contributing at least of 50 % of research-linked expenditure, will have a multiplier effect in the form of an impetus for new financing and a strong contribution to the development of a European research area.

3.10 It is essential for Member States to participate directly, not only in order to mobilise investment but also — and mainly — because decisions will continue to be taken at national level, for example on calls for proposals and ongoing direct monitoring of all phases of the process.

3.11 Direct participation by industry is also essential in that the results of this ambitious R&D programme could help to achieve important and relevant objectives relating to the competitiveness of European industry in the sector, and consequently have a beneficial impact on employment in the sector.

4. Coherence

4.1 The starting point for research programmes is the Seventh Framework Programme (FP7). This programme is based on a strong awareness that relaunching investment in R&D is vital for a competitive and dynamic economy.

4.2 Setting up a ENIAC JTI joint undertaking will directly contribute to achieving the Lisbon objectives on competitiveness and the Barcelona objectives on research expenditure. It will contribute indirectly to other Community policies, e.g. on the environment, transport, energy and health.

4.3 The main frame of reference underpinning the ENIAC JTI is provided by ‘Nanosciences and nanotechnologies: an action plan for Europe 2005-2009’ [COM(2005) 243 final] and the work of the Scientific Committee on Emerging and Newly Identified Health Risks (SCENHIR).

5. The Commission's proposal

5.1 The decision on the establishment of the ENIAC joint undertaking described in COM(2007) 356 final is based on Decision 1982/2006/EEC on the 7th Framework Programme, which provides for a Community contribution towards the establishment of long-term public-private partnerships at European level in the area of scientific research.

5.2 These partnerships take the form of Joint Technology Initiatives (JTI) and arise from the work of the former European Technology Platforms (ETP).

5.3 The Commission, in its Decision No 971/2006/EEC on the Specific Programme ‘Cooperation’ (2), emphasised the need to set up public-private partnerships and identified six areas in which the creation of joint technology initiatives is appropriate with a view to relaunching European research. These are: — Hydrogen cells and fuel cells; — Aeronautics and air transport (3); — Innovative medicines (4); — Embedded computing systems (5); — Nanoelectronics; — GMES (global monitoring for environment and security).

5.4 In the context of this general strategy, the Regulation proposed in COM(2007) 356 final provides for the setting up of an ENIAC joint undertaking in the field of nanoelectronics.

5.5 The ENIAC joint undertaking is to be considered as an international body with a legal personality within the meaning of Article 22 of Directive 2004/17/EC and Article 15 of Directive 2004/18/EC. Its seat will be in Brussels and its activities will cease in December 2017, unless extended by Council decision.

5.6 Legal basis

The proposal consists of a Council Regulation with the statutes of the joint undertaking in an annex. It is based on Article 171 of the Treaty. The joint undertaking is to be a Community body, and although its budget falls under Article 185 of Council Regulation 1605/2002, it will have to take account of the specifics of this initiative in that it involves public-private partnerships with a large private-sector contribution equal to that of the public sector.

5.7 Membership

The founder members of the joint technology initiative (ENIAC JTI) are to be the European Community, represented by the Commission, and AENEAS, an association representing companies and other R&D organisations. The statutes set out a list of bodies that can subsequently become members of the ENIAC joint undertaking, inter alia the countries associated with FP7 that are not EU members, and any other legal entity able to make a contribution to the goals of the ENIAC joint undertaking.

5.8 Funding

5.8.1 The operating costs of the ENIAC joint undertaking set out in Article 4 are to be borne by the following contributions: — a financial contribution from ENIAC of up to EUR 20 million or up to 1 % of the overall costs of projects, but not exceeding EUR 30 million per year; — a financial contribution from the Community of up to EUR 10 million; — in-kind contributions from ENIAC Member States. The R&D activities of the ENIAC joint undertaking for the period ending on 31 December 2017 are to be supported by the following contributions: — a financial contribution from the Community of up to EUR 440 million; — financial contributions from ENIAC Member States amounting in total to at least 1,8 times the Community's financial contribution; — in-kind contributions by R&D organisations participating in projects, the total of which is to be equal to or greater than the contribution of public authorities.

5.8.2 For the period ending on 31 December 2013, the Commission's maximum contribution is to be EUR 450 million. These funds are to be provided from the Specific Programme ‘Cooperation’ implementing the Seventh Framework Programme for research and technological development, according to the provisions of Article 54(2) of Council Regulation No 1605/2002.

5.9 Objectives

According to the Commission, setting up the ENIAC joint undertaking is intended to achieve the following objectives:

— to define and implement a ‘Research Agenda’ for the development of key competences for nanoelectronics in order to strengthen the competitiveness and sustainability of European businesses, and allow the emergence of new markets;

— to support the implementation of R&D activities by awarding funding to participants in selected projects;

— to promote a public-private partnership aimed at mobilising and pooling Community, national and private efforts, and fostering collaboration between the public and private sectors;

— to ensure the efficiency and durability of the joint technology initiative on nanoelectronics;

— to achieve synergy and coordination of European R&D efforts including the progressive integration in the ENIAC joint undertaking of the related activities in this field currently implemented through intergovernmental R&D schemes (Eureka).

6. General and specific comments

6.1 The Committee welcomes the decision on setting up the ENIAC joint undertaking and the accompanying draft regulation. In welcoming the proposal under discussion, the EESC wishes firstly to underline the importance for the EU of the strategy being proposed for investment and coordination of research.

6.2 As the Committee has already stated in its opinions on other regulations arising from Council decision 971/2006/EEC on the Specific Programme ‘Cooperation’, it believes that relaunching investment in R&D is an appropriate way of giving European businesses a stable frame of reference that makes it possible to overcome the current fragmentation of Community financing and avoids a wide range of thinly-spread programmes.

6.3 The initiative is consistent with EU policies and objectives and ties in with the approach set out in the Lisbon strategy with its emphasis on knowledge and innovation in the Community supporting growth and employment. Nanotechnology plays a vital role in that it has become a driver for innovation in numerous sectors of strategic importance for EU development and growth (mobile communications, transport, computing, automating manufacture, healthcare, etc.). The joint undertaking could be a tool enabling Europe to maintain or even enhance its capacity to design and manufacture products complying with its own standards on quality, sustainability and environmental protection. Setting up such an undertaking provides a solid basis for the creation of a European research area and a major contribution to the competitiveness of European businesses.

6.4 The Committee is pleased to note that, in the impact analysis accompanying the draft regulation on this JTI, particular attention has been paid to the risk of nanoelectronic manufacturing relocating to other parts of the world. This is important in that such manufacture offers strong added value in terms of generating growth and employment at the same time as earning a partial return on the funds which the EU proposes to invest in developing this sector. In view of this the EESC supports the idea of a specialised sectoral approach to support this key industry.

6.5 In the light of this innovative collaborative structure, which may become complicated when it comes to using the products of the research to be carried out by ENIAC and their industrial application phase, the EESC appreciates the attention which has been paid to the definition of intellectual property rules set out in Article 23 of the Statute. At the same time, it is pleased that the action plan relating to the regulation pays close attention to health and safety issues.

6.6 To achieve the aims of the joint undertaking and to maximise the potential that this new instrument offers, the Committee considers the following to be necessary: — a genuine simplification of procedures at every stage of the various R&D activities, from the selection of activities to the distribution of results, by giving ENIAC the main responsibility for these tasks. Administrative complexity and the uncertainty over funding and institutional references were some of the causes of the past failures of previous R&D programmes; — a wide-ranging information programme on the opportunities provided by the ENIAC undertaking, inter alia on its ability to mobilise the necessary economic resources in the light of the new forms of financing; — the establishment of appropriate vocational training programmes to create a highly-skilled workforce with the knowledge needed for the R&D supported by ENIAC, which will be highly strategic for the EU's industrial future. These high-level qualifications will provide the technical skills needed for the R&D jobs that will be created, will serve to slow the brain drain, and will provide one of the necessary conditions for ensuring industrial leadership in these strategic sectors for the European Union.

Brussels, 25 October 2007. The President of the European Economic and Social Committee Dimitris DIMITRIADIS

(1) ENIAC = European Nanoelectronic Initiative Advisory Council.

ENIAC was also the first computer manufactured using electronic components (1945-1946).

(2) OJ L 400, 30.12.2006, p. 1.

(3) INT/369.

(4) INT/363.

(5) INT/364.