COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 16.05.1995 
COM(95) 190 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
PROSPECTS FOR COOPERATION 
IN SCIENCE AND TECHNOLOGY 
WITH THE NEW INDEPENDENT STATES (NIS) 
Prospects for Cooperation in Science and Technology 
with the New Independent States (NIS) 
CONTENTS: 
SUMMARY 1 OL 
1. Introduction 1 Sir 
2. Objectives of the Community's cooperation with NIS 1 V 
3. Stimulating nuclei of a new science culture 2 
3.1. Reduced number of projects with better support 2 
3.2. Integrating INTAS • 2 
3.3. Cooperation with TACIS and coordination with Member States 3 
3.4. Flexible project structure for infrastructure-building . 3 
3.5. Regional diversification 3 
3.6. Thematic priorities 4 
4. Improving project quality and application 5 
4.1. Support for project generation 5 
4.2. Application as one of the selection criteria 5 
4.3. Conversion and international technological cooperation 6 
5. Encouraging a more resourceful S&T environment 6 
5.1 Improvement of information 6 
5.2. Partner-finding initiatives 7 
5.3. A Monitoring Network 7 
5.4. Legal conditions 7 
5.5. Payment transfer 8 
6. Conditions for Foreign Direct Investment (FDI) 8 
7. Operational conclusions: steps and instruments 8 
ANNEX I CURRENT COOPERATION AND THE PRESENT SITUATION OF S&T IN NIS 
ANNEX n INTEGRATING INTAS 
PROSPECTS FOR COOPERATION IN SCIENCE AND TECHNOLOGY 
WITH THE NEW INDEPENDENT STATES (NIS) 
SUMMARY 
The EU intends to intensify its efforts on International Cooperation in S&T with the NIS 
for mutual benefit and with objectives generated by the spirit of the Agreements on 
Partnership and Cooperation. 
After six years of economic decline, the RTD sector as a long-term pacemaker for social 
and economic development must be encouraged to re-emerge with a more efficient 
structure and faster than the general transformation process has allowed until now. S&T 
cooperation with the NIS will therefore aim 
- to reorient scientists towards research on private and public needs 
- to replace outdated structures and promote rationalization 
- to cultivate the industrial prospects and assure sustainable development 
- to identify partners for cooperation on the newly emerging markets and 
- to support conversion of science towards civil purposes. 
The immediate action in the first phase aimed at giving support to a wide range of 
researchers in relatively small projects. They remained, in general, academic. The funds 
available for this area under the 4th Framework Programme (FP) have been cut in half 
since 1994. The remaining resources will have to be more and better focused. Priority 
will be given to research. projects which indicate that they will lead to results in 
industry or in the public domain in the near future. In order to enhance the application 
and quality of projects, more active support will be provided but for fewer and more 
relevant projects, with a view to creating nuclei of a renewed RTD culture. Following 
the completion of the pilot phase of INTAS, a new approach will be developed. Despite 
the reduced resources, the EU will spend a limited share on excellent fundamental 
research. 
To improve project quality, a variety of support measures are envisaged, allocating to 
them a higher share of the funds in the future: 
* improvement of the general information and partner finding system, 
* strengthening of the preparatory phase of projects, 
* defining project selection criteria more precisely, and 
* measures contributing to the stabilization of the legal, economic and policy 
conditions for RTD 
Further activities and priority-setting will be based on a dialogue with the NIS, and on 
a Technology Assessment and Monitoring Network. 
Furthermore, coherence and the active cooperation of TACIS and of the Member States 
will be sought. 
d Q-
PROSPECTS FOR COOPERATION IN SCIENCE AND TECHNOLOGY 
WITH THE NEW INDEPENDENT STATES (NIS) 
1. Introduction 
International cooperation in S&T with the NIS of the former Soviet Union (fSU) is 
taking place in a demanding environment as the transformation of the science sector is 
embedded in the overall process of political reform. The process of economic reform and 
democratization has proved quite difficult and the future development remains 
unforeseeable. Massive social problems have emerged and recently military conflict has 
occurred. 
The exposure of the formerly protected economy to global market forces has led to the 
collapse of uncompetitive industries and consequently, to a continuous contraction of 
the GDP, for six years running. With doubts about the present legal situation as well 
as the political future, Western industries remain hesitant to pursue further investment 
(see 6.). At present, there are only a few sectoral signs of recovery while major parts 
of society suffer economic and social decline. Under these conditions, the RTD sector 
must find its function as a new pacemaker for economic and social development. 
After the first experiences of R&D cooperation with the NIS, it seems appropriate to 
rethink the goals and initiatives and strive for better coordination of the available 
means. The objective of the Communication is to launch a debate on these aims, in 
particular with the Council and the EP. 
2. Objectives of the Community's cooperation with NIS 
It is the task of the individual NIS Governments to conduct the complex process of 
transformation. However, through international cooperation, the EU can make a 
significant contribution to this process. Following the Partnership and Cooperation 
Agreements (PCA), see Annex I, 1), cooperation activities undertaken in the region 
should contribute to stability and promote the process of peaceful integration into the 
global economy after the previous isolation. Any activity promoted will have to serve 
the mutual interest of the EU and the NIS. The financial support granted by the 
Community on S&T cooperation projects, may not have an incidence incompatible with 
the applicable rules of competition. 
At present the RTD sector is still severely inhibited by the structures of the past and the 
major cuts in S&T resources (for an analysis of the present situation, see Annex I). The 
precarious economic conditions require much faster reform than the general 
transformation process has allowed until now. RTD must re-emerge with a flexible and 
more efficient structure, which can be sustained out of the NIS's own economic 
resources. EU international cooperation in S&T, should therefore aim: 
- to reorient scientists towards research on subjects corresponding to private and 
public needs 
- to replace outdated structures and promote rationalization 
- to cultivate the industrial prospects and assure a sustainable development 
- to identify partners for cooperation on the newly emerging markets and 
- to support conversion of science towards civil purposes. 
li-
Main instrument of the EU to support and encourage the process of reform is the 
Technical Assistance Programme for the CIS (TACIS) with an annual budget of 
approximately 500 MECU. But also in S&T a wide array of different actions and 
programmes were set up to support the process. In particular the 4th RTD FP includes 
in its international cooperation (INCO) programme provisions dedicated to cooperation 
activities. The areas mentioned in the INCO workprogramme are: environmental 
protection and preservation of natural balances, health, advanced communications and 
telematics, information technologies, materials and production technologies, 
biotechnology, and transport. Furthermore, the possibility of a project by project 
participation in other specific programmes is provided ( for more details on different 
EU actions see Annex 1.1 and 2, and for a more detailed overview on achievements see 
COM (94)420 final). 
The average annually available funds in the 4th RTD FP for "cooperation with the 
Countries of Central and Eastern Europe and the New Independent States of fSU" (a 
total of 248.5 MECU for the period 1995-1998), however, have been reduced and 
amount to half, compared to the 120.1 MECU allocated for one year in 1994. 
3. Stimulating nuclei of a new RTD culture 
The general identification of priorities in the transformation of S&T in the NIS has 
remained controversial despite many individual and spontaneous efforts of different 
national and international bodies1. In the first phase the European Community 
considered important that the international cooperation contributes to keep up 
enthusiasm for science and to mobilize researchers to get acquainted with competitive 
procedures. As a result available resources were split between many small, projects. 
International support often bypassed existing structures. The beneficiaries were 
individual scientists in non-formalized cooperation frameworks. The strategy of the EU 
was not to interfere with research institutions and yet to give a wide chance for 
adaptation of scientists who were eager and competent. A first broad selection process 
of internationally funded projects was initiated. During this phase S&T cooperation 
remained essentially academic and showed little industrial involvement. 
Based on the past experience and given the continuing urgency of the economic 
situation, the next phase should bolster up the process of transformation and contain 
more relevant structure building effects. NIS governments, in principle, are aiming for 
such transitions, even though social hardship often impedes implementation politically. 
International support should therefore use resources to encourage new tendencies and 
set examples of promising scientific performance. The EU as the most important trading 
partner has the a common responsibility to the NIS neighbours. In the following the 
Commission launches some ideas on how to implement a second phase of S&T 
international cooperation with NIS. 
3.1. Reduced number of projects with better support 
The new strategy should promote the creation of nuclei of a revitalised RTD culture. 
Resources should be concentrated on fewer and more relevant projects. Not only the 
selected projects themselves but also their environment should indicate a responsiveness 
OECD estimates that 'no less than 40 000 groups of experts' are supposed to contribute to setting S&T 
priorities and evaluating institutes, see: OECD, Science, Technology and Innovation Policies, Federation of Russia, 
Volume I, Paris 1994, p.36 
to the general process of transformation. To improve project quality in terms of 
achieving better application, active support will be needed. A variety of support 
measures are envisaged: 
* improvement of the general information and partner finding system, 
* strengthening of the preparatory phase of projects, 
* defining project selection criteria more precisely, and 
* measures contributing to the stabilization of the legal, economic and policy 
conditions for RTD 
3.2. Integrating: INTAS (summary of Annex II) 
INTAS was set up for a pilot phase in order to provide urgently a flexible, efficient tool 
capable of attracting resources in addition to those provided by the Community and to 
ensure formal participation of the Member States in an action conducted outside the FP. 
It took the form of a private Association under Belgian law. The pilot phase has been 
extended until 31 December 1995. The current members are the Member States of the 
European Union, Norway, Switzerland and the Community itself. 
INTAS in its current form has failed to attain the objectives set when it was set up. 
Independent audits have shown that it takes particularly long to conclude contracts, 
that the costs of this structure are high and that the procedure for evaluation of projects 
submitted to INTAS is not always transparent. Moreover, the unpredictability of the 
changes in Eastern Europe made it impossible to include this action in the 3rd FP, 
although this problem has been overcome in the 4th FP. 
In the light of the foregoing, the Commission considers that the cooperation with the 
NIS in the field of science and technology must continue but must be targeted more 
closely on the real priorities. The preparatory action outside the FP has shown that 
conditions were not met for the.creation of a separate structure (art,130n of the EC 
Treaty). To make this action more effective, it will therefore be continued but brought 
within the normal regulatory framework for implementation of the research 
programmes, while retaining the specific features of INTAS described in detail in Annex 
II. 
3.3. Cooperation with TACIS and coordination with Member States 
In order to make best use of the seriously reduced funds the R&D activities should seek 
coherence with and the active cooperation of TACIS. General support activities such as 
setting up information systems, giving assistance in the preparatory phase of projects, 
legal and managerial advice within a more systematic structure, should be closely linked 
to activities undertaken by TACIS. S&T cooperation in turn should respond to and 
support TACIS projects. 
There is an information deficit concerning the various activities Member States are 
conducting individually in the area of S&T cooperation with NIS. To improve the 
mutual knowledge in order to increase synergy and coordination, the Commission has 
already started to launch studies on the actions initiated by the individual Member 
States2. These types of studies will be continued and extended, making use of the rich 
material which also exists within other organizations such as the OECD, World Bank, 
UNCTAD and GATT/WTO. 
2 European Commission, Science .Research, Development: Cooperation in Science and Research with Central 
and Eastern Europe, Brussels 1994 
3.4. Flexible project structure for infrastructure building 
No direct institutional support will be provided from S&T cooperation funds. The task 
to overcome the lack of infrastructure and the necessity to build up or renew the long-
term structures is the task of the NIS governments. The international cooperation in 
S&T will support their endeavour by project funding. TACIS, as the technical assistance 
programme could also be able to support these ventures by institutional support. In 
principle, the present political and legal situation gives preference to project funding. 
Work has to be devoted to find better and more sustainable legal solutions for the 
investment in scientific infrastructure. 
3.5. Regional diversification 
Decentralization and regionalizatioh of RTD capacity must be strengthened. In general, 
regions with high S&T density have better chances to renovate their science structure 
through their own potential. Peripheral research centres without further connections are 
more at risk of collapse but they are also crucial for local development. Governed by the 
overall selection criterion of excellence, regional relevance must be given particular 
attention. 
A major problem are the former isolated 'science cities', urban mono-structures 
supported by the central administration, mainly the Ministry of Defence. It must be 
borne in mind that military research will continue in many of these cities and their 
transformation into normal cities is not an explicit objective of the governments 
concerned. The ISTC is active in the field of conversion by supporting civil projects 
within former science cities. The general idea to transform those 'secret cities' which 
have been opened into 'Technopoles' is regarded with some scepticism. Possibly the 
market structures in the NIS are too weak to provide a self-sustained foundation. A 
more appropriate attempt for the transformation into "normal" towns might be through 
the general diversification^of the occupational structure. The response to regional 
market needs may turn out to create better chances than a technology-led top-down 
transformation. 
3.6. Thematic priorities 
General priorities for RTD cooperation have been identified in the past. In particular, 
research projects in the field of the environment are of interest, e.g. for regions such as 
the Black Sea, the Lake Aral, the Baikal etc. Cooperation in Chernobyl and other areas 
on the effects of nuclear contamination and on nuclear safety will continue. The NIS 
may also contribute important results for global change research, because of access to 
the Arctic climate zone, of the availability of space technology and also because of the 
vast territorial extension. 
The section dealing with NIS in the work programme of the Specific Programme on 
'Cooperation with third Countries and international organizations' gives an overview of 
the most important areas for RTD cooperation. The interest in these areas is due to the 
particular attention paid by the EU to cooperation on those subjects where the NIS need 
to build infrastructure, to modernize their industries, to improve the low standard of 
living or to tackle other major problems of NIS societies. Subjects are based on mutual 
interest and they bear a promising potential for development. They partly refer to other 
policies, in particular to the development of the global information society, and to 
transport, industrial technologies and in the sector of energy generation, to processing 
and transportation. 
Nuclear technology and space technology were the most advanced and prestigious 
technology complexes in the past. Both were related to military purposes and both have 
the potential for peaceful applications. Their position in the future society, however, 
and in particular their economic base and environmental sustainability have to be 
carefully considered. The investments in the past were immense but the installations are 
rapidly deteriorating. Without a long-term vision for future use and financial backing 
both complexes will face a problematic future. This may result in a loss for space 
technology and for the world's RTD community in general. For the nuclear sector this 
may lead to an unsafe development. 
Economics, financial studies, social sciences, market-oriented legal research, business 
and administration are subjects which were lacking in former times or which were 
rather weak. Whereas economic and financial studies as well as training are offered by 
TACIS/ACE, the World Bank and many private universities, there is still a lack of social 
sciences. In particular capacity to monitor the development and to give realistic 
feedback on the direction of the development (Technology Assessment) are necessary. 
A Monitoring Network (5.3.) could help to establish these functions. 
4. Improving project quality and application 
Under the present conditions projects of relevance are those which lead either to an 
industrial application or to the creation of realistic problem-solving capacity in the near 
future. 
From the point of view of EU industries, it appeared difficult to identify high tech 
products with a market potential and it was found even more difficult to apply Western 
production systems to them3. Better preparation of industrial RTD projects will 
contribute more for the future than extensive funding of non-targeted projects. It is, 
necessary to better select and prepare projects for future industrial application. 
Application of research results should also be considered when targeting research 
proposals in the public domain. The reduced resources will influence the selection of 
proposals for EU funding on the basis of their usefulness to improve the situation. 
4.1. Support for project generation 
Open calls for proposals as they are used in RTD specific programmes might not always 
be the most appropriate means for generating good proposals. A closer 'dialogue with 
the authorities of the NIS', with experts from NIS and the Member States should be 
developed as a useful tool, in the way that the 'Round Tables on industrial co-operation' 
function. The task of this 'dialogue with NIS authorities' should be to identify and 
negotiate relevant choices for industrial projects or for projects in the public domain. 
The preparatory phase of projects, in general, must be improved. Joint workshops in 
selected areas should be used to create networks whenever the level of the envisaged 
projects still seems too academic. COST projects should be opened to NIS for better 
cooperation in networks. Out of these networks future projects may be generated. A 
share of the budget in the forthcoming initiatives will include funds for workshops and 
networks which serve in particular the preparation of applied projects. 
4.2. Application as one of the selection criteria 
In order to select industrial research projects with a realistic chance of application, more 
targeted selection criteria should be introduced besides the usual criteria of excellence. 
3 IRDAC opinion on Scientific & Technological Cooperation with Central Eastern Europe 
In the present situation those projects which are close to industrial production should 
be favoured. Project partners, therefore, should give evidence that the proposed project 
is relevant and has an industrial partner in the consortium. 
Moreover, proposals for cooperative research projects in general will have to include a 
feasibility assessment. It should be carried out by the proposing partners as a 
precondition for submission of a proposal. It will describe the foreseen application and 
it must include a cooperation partner committed to using the results of the project. The 
partner committed to application of the results of projects in the public domain may be, 
e.g., an agency, such as an environmental organization, or a regional administration. 
For industrial projects this might be newly established SMEs in NIS, or an interested EU 
firm. 
4.3. Conversion and international technology cooperation 
Advanced technologies from the former mdustrial-military complex will have to be 
transferred for new civil production applications. However, the NIS markets seem not 
yet prepared for high standard products made in NIS. The condition that an industrial 
partner committed to application of the results must be found may prove difficult at 
present in the NIS. Conversion under these conditions becomes extremely difficult. 
The ISTC is giving scientists the chance to work on such projects. ISTC projects are 
funded by the United States, the EU (via TACIS)4 and Japan. Scientists and engineers 
are supported to work on nuclear reactor safety, management of radioactive waste, 
aerospace, development of new materials, vaccines and other medical technologies, and 
tools addressing a variety of environmental problems. The projects launched in the first 
year of operation of the ISTC sponsor more than 8200 scientists and engineers who 
previously worked in weapons mass destruction and missile technologies. The question 
is how to make parts of these projects yield results with practical applications in 
industry and in the public domain, while continuing also the support of fundamental 
research 
For the conversion of some of the military high-tech research capacities it may be more 
promising to cooperate with EU firms to develop technical equipment for Western 
production and for the EU markets than to start civil production for the Russian market. 
The general concept of setting up joint RTD ventures on the basis of using NIS research 
facilities to design products for EU markets, has to be carefully investigated. In the 
present situation this type of cooperation may create the most benefits for both sides. 
It can help qualified laboratories and institutes to adapt to R&D under market 
conditions. The cautious attitude of military research centres to enter into such 
cooperation with Western firms for non-military purposes (e.g. laser technology in 
medical equipments) would have to be overcome. Legal implications have to be 
examined and intellectual property rights need to be safeguarded. 
The path to conversion with western firms and their actual industrial application may 
be long. Nevertheless, open cooperation with EU partners would make a major 
contribution to this process. ' The dialogue with the NIS authorities', preparatory 
workshops and networks to develop a common strategy and feasibility assessments 
should prepare the difficult task. 
4 Finland and Sweden contributed individually 
5. Encouraging a more resourceful S&T environment 
Not only the projects themselves need better preparation. Constructive support is 
needed for the entire environment in which useful and stable projects could be created. 
Single elements can be contributed through TACIS or certain accompanying measures 
within INCO. The lack of general infrastructure must be tackled by the national 
authorities. 
5.1 Improvement of information 
A major difficulty is the lack of access to information on science and the state of the art 
in technological development. This involves the information on the overall system of 
monitoring developments as well as the practical partner-finding systems. Apart from 
economic statistics and indicators there is no appropriate system and the information 
available has not yet reached a useful level. The patchy information on the situation 
creates major problems. Information on the central cities such as Moscow and St. 
Petersburg has been built up in the past years of cooperation. Information is also 
available on regions such as Novosibirsk, Jekaterinenburg, Rostov and on model 
developments like Nizhni Novgorod. However, on other regions of Russia and on the 
other NIS, information is rather superficial. 
Many attempts to evaluate and to assess the existing capacities have been undertaken 
by different organizations and consultants. A useful overview on the situation, however, 
a register or data bank of existing institutions and their current capacities and their 
potential is not available at present and should be developed. Also scientific 
communication networks should be encouraged to serve the improvement of 
information systems. 
5.2. Partner-finding initiatives 
Improved information services are vital for research centres whose former links suffer 
from the break-up of the fSU. Finding partners for the joint research proposals is 
already difficult under more transparent conditions. Partner search, however, within an 
underdeveloped information system diminishes even further the general chances of 
success for cooperation. Additional support must be given to help potential partners in 
the NIS, in the EU Member States, associated States and also in CEE countries to find 
suitable collaborators. Not the quantity of research network achieved but the quality 
should count. Model instruments for the improvement of RTD cooperation exist in the 
EU: the (former Value) Relay Centres. Similar instruments built up together with a 
technology assessment and Monitoring Network for the NIS will increase project quality 
and contribute to long-term infrastructure. 
In addition, topic-oriented 'brokerage events' involving interested industries and other 
organizations could be organized in coordination with TACIS and Member States' 
activities. 
5.3. A Monitoring Network 
The further development of priorities for the type of action and orientation will be 
accompanied by a 'dialogue with the NIS authorities'. Locally existing information will 
be made more accessible, coordinated and exploited. Information must be linked to 
evaluation and monitoring studies. In the long run a Monitoring Network on a regional 
basis should be encouraged to communicate across the different NIS. The focal points 
of the network will continuously work on the improvement of information (data bases), 
on the evaluation of the changes and monitoring of the RTD cooperation projects and 
their local effects. At the same time they will serve for better information dissemination 
and coordination between the regions and the NIS. 
5.4. Legal conditions 
Legal conditions are a major constraint. Industrial property rights, physical ownership 
as well as intellectual property rights (patents) are causing problems in cooperation. 
The RF established a new Patent Law modeled on the European Patent Organization 
(APE). However, without an active enforcement and appropriate control mechanisms, 
private-sector involvement in joint research projects will remain limited. Partners in 
international cooperation need general security about commitments, duties and risks. 
Initiatives require a stable legal background to refer to in cases of dispute. Legal 
treatment in the NIS, in many respects, is unpredictable. A joint task force or working 
party could support the advancement on legal conditions. 
5.5. Payment transfer 
Uncertainty relates also to taxation of payment transfers. The ISTC has achieved tax 
exemption. Attempts to achieve the same for INTAS are under way. The taxation 
appears to be higher if institutions are involved. This leads to attempts to bypass official 
institutions and to grant research funds to single scientists. The possibilities of the 
banking system must be included in the reflections. Joint talks and a working group 
together with the representatives of governmental or non-governmental organizations 
should address these financial problems. 
6. Conditions for Foreign Direct Investment (FDI) 
The general legal uncertainty is still the main hindrance to increased industrial 
investment from the West. Research and industrial development are closely linked. The 
structural change needed in the science sector is connected to the interest of private 
investors to cooperate with NIS industries and their research centres and design offices. 
Industry in the NIS must still get closer to the market needs. Cooperation programmes 
in science and technology can only prepare the ground. S&T can give stimulation, but 
without foreign investment to follow no constant innovation process will be initiated 
with long-term prospects and with a sustainable economic impact. 
The real economic changes are expected when more foreign investment enters the 
countries. In principle EU-based enterprises are interested, and more investment could 
be possible. With an unclear legal situation and concerns about the general political 
future the level of investment at present still stays comparatively low, despite the 
attractive conditions of high technological know-how, a huge market and low wages. 
7. Operational conclusion: steps and instruments 
The new orientation of international RTD cooperation with NIS, should concentrate on 
the following elements: 
1. Fewer and more relevant projects closer to application 
2. Integrating INTAS 
8 
3. Preparation of actions, projects and finding possible partners through 'dialogue 
with NIS authorities' and project preparation by funding networks 
4. New requirement for proposal submission: to deliver a feasibility assessment and 
submit together with a partner committed to application of the results 
5. Cooperation and coherence with TACIS and other EU programmes; coordination 
with Member State actions, with EBRD and with Worldbank 
6. In general: higher share of the funds for supporting measures to improve quality 
and application of projects: 
* Databank on relevant research institutions, their scientific profile, 
evaluation results, ongoing projects etc. 
* Encouraging the development of a decentralized NIS Monitoring 
Network 
* Partner-finding events, information days etc. with interested 
industries 
* measures contributing towards the improvement of legal and 
economic conditions for RDT 
ANNEX I 
CURRENT COOPERATION AND PRESENT SITUATION OF S&T IN NIS 
CONTENTS 
1. Framework of EU cooperation with NIS . /JO 
2. Evolution of S&T cooperation with NIS 1 /) 
3. Present conditions in the aftermath of the SU in S&T /) 1 
3.1. Heritage of the Past 4^, 
3.2. Size and Volume of. the Science Sector -13 
3.3. Understanding Brain Drain S[ £ 
3.4. New territorial arrangement of the S&T Sector in the NIS 4 if 
3.5. Emerging diversity of regional cooperation J[i± 
1. Framework of EU cooperation with NIS 
Considering the need for stability and the substantial economic opportunities in the 
future, it is in the EU's interest to develop trade and investment relations throughout 
the region within a legal framework. The Commission recently signed 'Agreements on 
Cooperation and Partnership' (ACP) with the RF, Ukraine, Kazakhstan and Kyrgystan. 
With all other countries except Tajikistan ACPs are being negotiated or exploratory 
discussions are under way. 
The broadly formulated ACPs contains a specific article on RTD cooperation. Stating the 
aim of access to their respective RTD programmes, the three main areas of cooperation 
mentioned are: the exchange of scientific and technical information, joint RTD 
initiatives, training activities and mobility. In mutual interest, the objective is to give 
special attention to redeploying scientists and researchers involved with mass 
destruction weapons. Negotiations are foreseen to establish provisions for intellectual 
property rights. 
lo 
The 4th RTD FP offers cooperation in S&T for NIS in Action 2: 'Cooperation with Third 
Countries and International Organisation', part A2: 'Cooperation with the Countries of 
Central and Eastern Europe and the New Independent States of fSU'. Moreover both the 
4th RTD FP and the EURATOM FP provide for participation of NIS partners on a project 
by project basis in other Specific Programmes. In this respect, a distinction is to be 
drawn between partners from two groups of NIS: 
* from European NIS eligible to participate in all Specific Programmes of the FP 
by virtue of Article 130j of the EC Treaty and 
* from non-European NIS to participate in those Specific Programmes opened by 
virtue of an ad hoc provision of the Specific Programme decision. 
TACIS, the technical assistance programme for NIS launched in 1991 with an annual 
budget of 500 MECU, provides know-how and technical equipment for a wide range of 
public and private organizations. TACIS allocated 20 MECU for the International 
Science and Technology Centre Moscow (ISTC) which was set up as an international 
organization together with Russia, the US and Japan. Its objective is to employ 
researchers from the military sector in civil projects. TACIS also funds ACE, the Action 
for Cooperation in the field of Economics, and supports action concerning the 
application of science and technology to the market economy, as well as the retraining 
of scientists, teaching, education and professional attachment. 
2. Evolution of S&T cooperation with NIS 
In the first phase, following the break-up of the fSU, the EU established a wide array 
of S&T cooperation actions to support the process of transformation5. Cooperation in 
nuclear fission safety (Chernobyl) and ITER, the controlled fusion project, had already 
been previously established. The COPERNICUS action was set up for Central Europe; 
researchers from the NIS were associated in 1994. Support was provided for 
participation in joint projects under five Specific Programmes of the 3rd FP. Founded 
as a private association, INTAS was specifically set up to support the general RTD 
potential in NIS via joint projects. THERMIE established cooperation in the energy 
sector, TEMPUS in higher education. NIS participation in some COST actions extended 
the joint European scientific networks. EUREKA accepted the RF as a member for 
industrial cooperation. European research organizations, such as CERN, ËSO and the 
ESA, reinforced the already existing relations in their specific scientific fields. In 
addition, individual Member States, other nations, international organizations and non­
governmental organizations have contributed in different fields to enhance the scientific 
cooperation without much coordination. 
3. Present conditions in the aftermath of the SU in S&T 
Science was prestigious in the fSU and the belief in the power of'scientific-technological 
progress' belonged to the communist rhetoric. Despite the quantity and the undoubted 
quality of RTD activity, there were at the same time very clear deficiencies. The science 
organization pursued purposes other than scientific concepts which normally apply in 
market economies and democracies. Science in the fSU had been committed to advance 
see in particular COM(94) 420 final: 'Cooperation in Science and Technology between the European Union and 
the countries of Central and Eastern Europe on the one hand and the new independent States of the former Soviet 
Union on the other*, and the brochure European Commission: Scientific and technological cooperation with Eastern 
Europe, Brussels-Luxembourg 1994 
selected technologies mostly geared towards achieving military superiority and to 
demonstrating the supremacy of communism. As such it had been operating in the 
beginning very successfully. It reached the climax with the launching of the sputnik. 
In the eighties the fSU missed out on the dynamic development of the information and 
communication technologies and their wide application in society. In the West 
'information' advanced to become one of the key factors for technological development 
(the 'information society*). Non-democratic societies, though, could not allow 
uncontrolled individual communication. Thus, the structure of society turned out to be 
the main barrier to exploitation of these new technological advances. Progress in 
contemporary societies does not simply depend on the scientific steps forward but it 
must assure aie appropriate implementation and application in society. Neglecting this 
aspect undoubtedly contributed to the final collapse of the economic system. 
3.1. Heritage of the Past 
The conditions of scientific development within the fSU were able to produce some 
quite different and original scientific solutions which were not communicated to the 
international scientific community. However, deficiencies which stem from the past 
Soviet system prevail. They can be summarized as follows: 
* a predominant military orientation of S&T and of the relevant industrial 
production with a bias towards specific subjects such as nuclear physics, space 
and laser technologies, plus mathematics; 
* the isolation of most scientists from the world community, the secrecy of much 
of their work, often carried out in secret cities, has led to limited skills in 
languages used by the international scientific community and to restricted 
participation in international debates and networks; 
* no private ownership, no industrial property rights and no individual patents; 
* a centralistic structure with negative consequences for the regions: regional 
imbalance, no connection with local problems, long distance in the innovation 
processes between industrial production sites and related research centres; 
* absence of effective links between education (universities) and research 
(Academy of Sciences or research centres); 
* a heavy bureaucracy, with hierarchical top-down style of organization which 
contributed to the creeping degradation of the R&D system during the '80s, and 
no cost efficiency or consciousness in the sector; 
* no market and little consumer orientation and no problem-solving capacity, 
extreme supply-side alignment of a centrally planned economy; 
* a lack of information and communication technology development for 
application in industry and consumer goods; 
* no recognition of environmental problems and a lack of energy-saving 
technologies; 
* no independent and critical discipline of economics, financial affairs, business 
studies, management, etc.; 
AZ, 
* no empirical social sciences research to follow and monitor the ongoing processes 
in society, but 'scientific Marxism-Leninism' as the ideological affirmation. 
The science sector, though strong, well developed and dominant in society, is facing important 
changes. Cooperation with the EU can help to bring about important structural changes that 
are called for to adapt to the new situation. 
3.2. Size and Volume of the Science Sector 
The science sector in terms of personnel compared to other industrialized countries was highly 
oversized: after a steep drop the RSE* per thousand labour force ( 12.9 in 1989, 11.4 in 1990) 
was still 10.1 in 1991, compared e.g. with the 1991 EU average of 4.2. 
Governments cut down the expenditure for science sharply, as the inherited science sector 
could not contribute to improve the economic and social situation in the short term. From 
around 3.5% of GDP spent on R&D by the end of the '80s, the share6 still corresponded to 
2.1% of GDP in 1990. Today, in the NIS it possibly counts for less than 0.5%, taken into 
account that the GDP itself has shrunk by approximately 50%. In comparison the average EU 
spending on S&T is 2% of GDP. 
The dramatic reduction of financial resources was introduced without proper planning. 
Meanwhile the Russian Ministry of Science and Technology Policy suggested a priority 
scheme. In view of the severe social consequences, it remains to be seen whether the plan will 
generate reduced and more effective RTD structures. Institutes and organizations with 5000 
and more staff are less creative in terms of working conditions and, like bigger structures in 
general, tend to resist reform. 
Under present conditions the output from the science sector is insufficient. The operating 
budget is spent largely on basic functions such as heating and electricity. In addition, staff 
salaries are very low which affects motivation and often institutes are closed for days and 
weeks to save on energy or premises are rented out to earn additional money. 
3.3. Understanding Brain Drain 
The reduction of personnel in the oversized structures will have to continue. The question is 
how to keep the best scientists on the one hand and how to stimulate chances for leaving 
researchers to make use of their science background for the benefit of modernization of 
industries. In this sense, the brain drain is necessary. The fear of the brain drain appeared as 
the main argument in favour of fellowship programmes. However, fellowships also may 
function as stepping stones to prepare emigration. 
No fellowships were awarded under the EU RDT cooperation scheme with the NIS. Instead, 
the EU considers that cooperative research projects - e.g. for SMEs to start with the 
development of technological products - can better redirect the internal brain drain flow to 
inferior jobs into fields of technical competence and industrial innovation. Nevertheless the 
disapproval of the so-called 'internal brain drain' is only slowly decreasing. The argument is 
driven by the former prestige of scientists: a 'minor 
Research Scientists and Engineers 
6 corrected according to the OECD calculation see: OECD, Science, Technology and Innovation Policies, Federation 
of Russia, Volume I, Paris 1994 
commercial job' for a 'better salary* seemed unacceptable. With the pressure to reduce 
the overall number of researchers, movements into private business can be considered 
as a self-regulating process to redistribute talented people to new and needed 
occupations. 
'External brain drain', despite the original fears, remained moderate. After a first wave 
of massive academic departures in 1990/91 (Jewish and German migration), the drain 
of scientists has become modest. More temporary contracts are being established 
between scientists and foreign institutes or industries. They offer a transitional solution 
for persons who wish to extend their knowledge and mobilize their acquired 
qualifications in new environments. After a first panic reaction today the positive 
elements of brain drain are also appreciated. Departures out of an open political system 
with new exchange channels - different than in the past - leave the scientists the 
possibility to continue communication with their former institutions, mostly to the 
benefit of both sides. An informal twinning of institutes could emerge from these 
relations. 
There is no publicly available information on brain drain from the military-industrial 
complex into particular countries interested in the secrets of weapon technologies. 
Frequent movements of Russian scientists occur, especially out of the Baltic States, but 
also from Kazakhstan or other non-Russian republics. Having worked in military 
research centres outside Russia, now unemployed and with no relation to Russia or 
Russian research institutions nor to their present State of residence, it is this group 
which might feel the temptation to accept offers from third countries. The ISTC, in 
particular, aims to apply knowledge acquired in military research for civil projects. The 
results of this action should help to limit the scientific military brain drain. 
3.4. New territorial arrangement of the S&T sector in the NIS 
As a consequence of the break-up of the fSU, the S&T sector has become dissociated. 
Important institutes and production sites which previously formed a chain are today 
located in different States. Disrupted, incomplete cycles and chains of innovation and 
application are a frequent problem. 
Approximately 70% of the research capacity stayed on the territory of the Russian 
Federation, again with a very uneven regional distribution. Ukraine is the second 
important site for military and civilian S&T after Russia. Some NIS still have a high 
concentration of (military) research centres on their territory with the difficulty of 
relating these centres to their national needs while other countries received no high-
level research institution for their future development. Both situations cause severe 
problems for the new national support structures. 
The attempt to reunite the former links in these chains will not necessarily provide the 
best solutions as production conditions and market prospects have changed. Cooperation 
proposals from former partners will be welcome if they prove the feasibility of industrial 
innovation in the new cooperation. 
3.5. Emerging diversity of regional cooperation 
Strategies for regional RTD cooperation in the NIS are conditional as the political 
relations developing between the individual States are not yet stable. Relations in 
negotiations between NATO, OSCE and individual NIS influence the attachment in the 
region. The RF represents, with its huge economic, social and military potential, the 
greatest challenge for the EU. Concerning other NIS, the westernmost (Ukraine, Belarus, 
Moldova) are in need of cheap energy supplies. The Central Asian Republics hold 
important economic potential, especially in the energy sector, but they demand massive 
investments for adequate exploitation. The Trans-Caucasian republics need even greater 
support, taking into account, in particular, the instability which affects the region. 
Access to European trade, investment and technology, therefore, is a priority for all 
partners. The RF will remain the main shaping factor, its course will have the main 
impact on developing options for all other NIS. 
The original differentiation between the CEEC and NIS could become blurred with 
further development. Regional cooperation treaties between neighbouring countries 
contribute to creating new regional cooperation patterns. Thus CEEC/NIS zones with 
different needs for S&T cooperation are taking shape: the westbound zone, associated 
to the EU, the westerly NIS zone between Russia and the EU, a Trans-Caucasian zone, 
the Central Asian Republics and the Russian Federation itself. Studies and a permanent 
dialogue will have to investigate their changing options and requirements. 
•if 
ABBREVIATIONS 
ACE Action for Cooperation m the Field of Economics 
ACP Agreement on Partnership and Cooperation 
APE European Patent Organization 
CEE Central and Eastern Europe 
CIS Commonwealth of Independent States 
COPERNICUS Action in support of the countries of Central and Eastern Europe and 
since 1994 for the NIS in the field of research, outside the five specific 
programmes open to third countries 
COST European Cooperation in the Field of Science and Technology 
CERN European Centre for Nuclear Research 
CRAFT Cooperative Research Action for Technology 
ESA European Space Agency 
ESO European Southern Observatory 
EU European Union 
EUREKA European Network for Industrial Research Cooperation, 
FDI Foreign Direct Investment 
FP Framework Programme 
fSU former Soviet Union 
IMF International Monetary Fund 
INCO International Cooperation in S&T ( Programme of DG XII) 
INTAS International Association for the Promotion of Cooperation with Scientists 
from the Independent States of the Former Soviet Union 
ISTC International Science and Technology Centre 
IRDAC Industrial R&D Advisory Committee of the European Commission 
NATO North Atlantic Treaty Organization 
NIS New Independent States 
OECD Organization for Economic Cooperation and Development 
OSCE Organization for Security and Cooperation in Europe (former CSCE) 
R&D Research & Development 
RF Russian Federation 
RTD Research and Technological Development 
TACIS Technical Assistance for the Commonwealth of Independent States 
TEMPUS Trans-European MobiUty Programme for University Students 
THERMIE European Technology for the Mastering of Energy 
UNCTAD United Nations Conference on Trade and Development 
WTO World Trade Organization 
yanpcopdoc XB.138J5-* 
ANNEX II 
INTAS : THE INTEGRATION OF INTAS 
1. Background 
After the break-up of the Soviet Union events gained pace and the resultant disorganization 
of the economy seriously called into question the position of science and technology in the 
new independent States which had emerged. 
In response to various resolutions from the European Parliament and to the critical situation 
of science in Eastern Europe, which was still unpredictable at the time of adoption of the third 
Framework Programme, funds were set aside outside the Framework Programme for 
cooperation in science and technology with the countries of Eastern Europe. 
At its April 1992 meeting on research the Council decided to back the Commission's initiative 
to support science and technology in the NIS and asked the Commission to examine the 
possibility of setting up an international foundation. 
The Association for the Promotion of Cooperation with Scientists form the New Independent 
States of the former Soviet Union (INTAS) was set up for limited period of time as a private 
association under the Belgian law. The Statutes of this Association were approved by the 
Commission on 17 December 1992 for a pilot period ending on 31 December 1994. 
The objectives of INTAS were as follows : 
to provide rapid, efficient support by means of flexible, effective action to maintain 
the scientific potential of the NIS; 
to attract resources and partners in addition to those provided by the European Union; 
to ensure formal participation by the Member States in an action outside the 
Framework Programme. 
A separate structure outside the general organization for Community RTD programmes could 
have been foreseen following Article 130 O and 130 Q of the Acte Unique Treaty. However, 
this disposition requires the unaminity of the Council. It was necessary therefore that the 
completion of the INTAS objective was satisfactorily achieved within the pilot phase. 
On 23 November 1994 the Council adopted a specific programme of research and 
technological development; including demonstration, in the field of cooperation with third 
countries and international organizations (1994 to 1998). This confirmed the Community's 
participation in the pilot phase of INTAS which was extended until 31 December 1995. In 
Annex 1 of the Specific Programme, the Council approved the Community participation in 
INTAS as a preparatory activity which will end on 31.12.95.. Any prolongation of that period 
is subject to a Council decision. 
^ 
On 27 December 1994 the member of the Commission responsible for research sent a letter 
to the Union Member States stating that the Commission would be sending the Council a 
communication on the future of INTAS. 
At the Council meeting on 10 March 1995, the Commission informed the Council that it had 
decided to grant INTAS funding totalling ECU 5 million in 1995. The Council asked the 
Commission whether it was possible to revise this amount upwards. The Commission also 
announced that a document on the Community's future participation in INTAS would be 
submitted to the Council on 9 June 1995. 
2. Practical experience with INTAS 
A restricted call for proposals was published before the official inauguration of INTAS. After 
this preliminary round, INTAS decided to proceed with calls for proposals open to all fields 
of natural and human science in an attempt to involve as many scientists as possible from the 
NIS. 
On this basis, a call for proposals closed in October 1993 resulted in the selection of 509 
projects granted ECU 21 million and a second call closed in April 1994 saw the selection of 
459 projects to receive ECU 20 million (8000 proposals were received in response to these 
two calls). 
Coopers & Lybrand conducted an evaluation of INTAS and the Commission asked Ernst & 
Young to carry out a financial audit. 
According to the audit by Ernst & Young, as yet the Association lacks an accounting system 
allowing systematic monitoring of all entitlements and commitments. 
3. Relations between the results of INTAS and the objectives set 
3.1. Speed and efficiency of the action 
Cooperation with the NIS is certainly no easy matter. Nevertheless, the International Science 
and Technology Centre (ISTC), set up by an intergovernmental agreement (between Japan, 
the USA, the Russian Federation and the European Union) in Moscow to help convert military 
scientific activities to peaceful purposes, started operations in April 1994. Over 3000 scientists 
have received funds from this Centre already in the ten months since then. 
Similarly, in 1994 a call for proposals was published under the COPERNICUS programme 
(for the countries of Central and Eastern Europe and the NIS) run by DGs III, XII and XIII. 
220 projects were selected (including 45 participants form NIS) and all the contracts were 
signed within eight months. One year after the 1994 call, none of the INTAS contracts were 
signed. In addition, many of the contracts from the 1993 call have yet to be signed. 
It is therefore clear that establishment of a body outside the Commission has by no means 
speeded up procedures, on the contrary. 
What is more, INTAS's costs per million ECU committed are some five times higher than 
those of the Commission for a comparable scheme such as COPERNICUS : this is attributable 
mainly to the number of staff employed on each scheme. The audit by Ernst & Young 
estimated the administrative costs at around 13.5 % of the 1994 budget of approximately ECU 
22.7 million. This percentage will rise even higher if INTAS were to continue but with lower 
funding than at the moment. 
All INT AS's activities have been based on providing support for as many scientists as 
possible from the NIS in every field of natural and human science. INTAS justified this policy 
by pointing to the urgent situation created by the break-up of the Soviet Union. It has indeed 
been taken as the basis for a series of activities of this type by the International Science 
Foundation set up by Mr Soros. Today the urgent situation has given way to a structural 
phenomenon calling for a different approach. The scale of this phenomenon far surpasses the 
support available under the FP. As demonstrated by an OECD evaluation of the science 
system in Russia, there are too many researchers in this country. Under the guidelines for 
activity 2 of the FP, the action taken by the Community must concentrate solely on the mutual 
interests of the Member States of the Union and of the beneficiaries and on selective support 
for the most competitive teams. The policy pursued by INTAS is out of line with the 
objectives of the 4th FP on international cooperation and with the interests of the NIS, since 
it endeavours, despite the limited resources, to maintain research potential in every field of 
science and technology without any foundation in economic reality. 
Examination of the list of projects selected shows that thëy are scattered widely, often in 
fields far removed from the problems currently facing these countries and from the criteria 
set out in INTAS's statutes of "promotion of "scientific research as a key component in 
economic and social progress and in consolidating democracy'1. 
3.2. Funding in addition to the support from the European Union 
The European Union members of INTAS contributed ECU 0.33 million (0.6 %) to the budget 
in addition to the 95% contribution from the Community. Austria, Finland, Norway, Sweden 
and Switzerland have contributed ECU 2.41 million. INTAS members have also seconded 
eight national experts and the Commission has seconded two officials to INTAS. In the 4th 
Framework Programme, the share from the Community budget will rise to almost 100 % with 
the accession of new Member States to the European Union and the participation of Norway 
and Switzerland in the 4th Framework Programme on the basis of the EEA Agreement and 
a bilateral agreement respectively. 
Under these circumstances, there is no longer any reason for a separate structure. In fact, the 
preparatory activity has shown that there is no need for such a separate structure (Article 
130N). Furthermore, if such a structure were to persist, it would attract criticism from the 
European Parliament and the Court of Auditors. 
Also, the annual funding provided for in the 4th Framework Programme is half the amount 
available in 1994. This signifies that in order to attain the objectives of activity 2 in the 
Framework Programme and to avoid excessive cuts in the support for the countries of Central 
and Eastern Europe, the Commission will be unable to earmark any more than ECU 10 
million to INTAS's tasks in future. As is the case for the rest of international cooperation, 
the financial contributions from beneficiary countries will be added to this amount. Clearly, 
this will not be enough to fund a structure with operating costs as high as INTAS (over ECU 
T^ 
2.5 million per year, including the seconded national experts). 
3.3. Discussion and coordination forum 
INTAS provided a means for the Member States to participate in the implementation of this 
support for the NIS while there was still no committee for this programme. The establishment 
of the committee for the international cooperation side of the 4th Framework Programme 
removed the raison d'être for INTAS. In practice, parallel operation of two similar 
committees, the type III A committee for the international cooperation programme on the one 
hand and the INTAS General Assembly on the other, creates confusion about the division of 
responsibility. 
4. Conclusions 
Cooperation with the NIS comes under the 4th Framework Programme and the committee for 
the international cooperation programme assists the Commission in implementing this action. 
Since the urgent situation in the countries receiving the support has turned into a structural 
problem, the preparatory scheme should be replaced by a regular activity within the 4th 
Framework Programme. The fact that the annual funding available for scientific cooperation 
with Eastern Europe is now half the amount available in 1994 is another factor in favour of 
concentrating activities within the Framework Programme. 
INTAS has received no significant funding apart from the resources from the European Union. 
Practical experience with INTAS has failed to show that it is faster and more efficient than 
the Commission - on the contrary. Nevertheless, the need and interest for Europe to provide 
support for the scientific and technical potential in the NIS remain. The achievements of 
INTAS should be safeguarded and valued and the continuity of the action as such will be 
ensured. Under these circumstances, the Commission has reached the following conclusions 
1. The Commission therefore does not propose a draft decision for the 
continuation of Community participation in INTAS after 31.12.95. 
Furthermore, the Commission as a representative of the Community in the 
INTAS Assembly will not agree to a continuation of the Association after that 
date (in accordance with Article 1, paragraph 4 of the INTAS statutes). 
2. The cooperation to support science and technology in the NIS must continue. 
However, the activities must be targeted more to concentrate resources on the 
real priorities. The scale of the needs in relation to the resources available 
makes it impossible to cover every scientific discipline without spreading the 
resources too thinly. In particular, the support should focus on fields in which: 
the former Soviet Union was particularly skilled (space, mathematics, 
informatics, theoretical physics, etc.); 
vital hardware or data can be harnessed; 
research is essential in order to resolve certain major problems specific 
to these countries. 
zo 
3. The corresponding section of the international scientific cooperation 
programme will be carried out within the normal regulatory framework 
provided for implementation of the research programmes. National experts 
from Member States could be involved in the Community activities as 
required. 
4. The Commission will be assisted by the committee for the international 
cooperation programme in accordance with the rules of comitology. The 
committee will take over the role of the INTAS General Assembly. 
5. The tasks of the INTAS Scientific Council will be carried out by a committee 
created for this purpose. 
6. To build on what has been achieved and uphold the political signal given by 
cooperation with the NIS, the designation INTAS could be maintained and the 
contacts established in the NIS could be kept up. 
7. In the frame of the financial means foreseen for cooperation with the NIS by 
the Specific Programme, an amount of about 10 MECU per year, during the 
period 1996-1998 will be reserved for this activity. As is the case for the rest 
of international cooperation, the financial contributions from beneficiary 
countries will be added to this amount. 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Reincorporation within the Commission of the activities of the International Association 
for the Promotion of Cooperation with Scientists from the New Independent States of the 
former Soviet Union (INTAS) and cooperation with scientists from these States. 
2. BUDGET HEADING INVOLVED 
B6-7211 
International scientific cooperation 
3. LEGAL BASIS 
Council Decision 94/807/EC of 23 November 1994 
4. DESCRIPTION OF OPERATION 
4.1 General objective Y 
To reincorporate the activities of INTAS within the Commission in order to promote 
scientific and technological cooperation with the new independent States of the former 
Soviet Union, with a view, in particular, to stabilizing the RTD potential and providing 
support for scientists in these countries. 
4.2 Fields covered 
Measures necessary on staff and premises in order to conduct scientific and technological 
research activities, with a view, in particular, to stabilizing the RTD potential as provided 
for in the work programme on international cooperation. 
4.3 Period covered 
1996 and thereafter. 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
Non-compulsory expenditure. 
£J 
6. TYPE OF EXPENDITURE OR REVENUE 
This expenditure by the Commission replaces a grant for funding INTAS. The objective 
is to transfer the resources in order to implement scientific and technological cooperation 
schemes between the Member States and the new independent States. 
FINANCIAL IMPACT 
7.1 Amount deemed necessary (1995-1998) 
Allocation for the programme 
Appropriations available in 1995 
Preliminary draft research budget 
EFTA/EEA contribution 
Total appropriations for 1995: 
Appropriations available for aid expenditure in 1995 
Preliminary draft research budget 
EFTA/EEA contribution 
Total appropriations for aid expenditure 1995: 578.000 MECU* 
56.450 MECU 
3.467 MECU 
0.940 MECU 
60.857 MECU 
42.621 MECU 
3.467 MECU 
0.723 MECU 
46.811 MECU 
Cost of the operation to be covered under Art. 53 5.000 MECU 
BALANCE: 41.811 MECU 
PROGRAMME SCHEDULE 
MECU 
Commitments 
Payments 1995 
59.917 
38.636 1996 
145.000 
106.000 1997 
176.000 
86.000 1998 
197.083 
146.000 1999+ 
— 
201.364 TOTAL* 
578.000 
578.000 
* The Commission will submit a proposal for a 7% increase for the fourth (1994-
98) framework programme, to allow for enlargement, to the Council and 
Parliament. 
7.2 Method of calculating total cost of operation 
1992 
1993 
1994 
1995 
1996 4 
22 
20 
5 MECU 
MECU 
MECU 
MECU Grant for INTAS 
10.6 MECU (amount requested) 
^i 
7.3 Itemized breakdown of cost 
The operation covers the operating expenditure for the new calls for proposals. 
Reincorporation of 8 seconded national experts = ECU 300 000 
Internal staff (5 persons) = ECU 250 000 
Rent and leases = ECU 50 000 
New call for proposals = ECU 10 000 000 
7.4 Indicative schedule of appropriations (in ECU million) 
Appropriations 
Commitments 
Payments 1996 
10.6 
0.6 1997 
10.6 
10.6 1998 
10.6 
10.6 
8. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
8.1 Specific objectives: target population 
The objective of the activities reincorporated by the Commission is to contribute to 
promoting cooperation with the new independent States of the former Soviet Union in 
the field of research and technological development, with a view, in particular, to 
stabilizing the RTD potential in these countries. 
8.2 Grounds for the operation 
The pilot phase, limited to 1995, fits into the framework for international cooperation 
in the field of research (Article 130i of the Treaty) with the objective of safeguarding the 
RTD potential, as provided for in the work programme. 
8-3 Monitoring and evaluation of the operation 
The projects will be monitored and evaluated within the general framework of the fourth 
framework programme. 
9. ANTI-FRAUD DISPOSITION 
A number of existing administrative and financial controls are carried out in all areas of 
signing and the execution of research contrats. Among these controls, one can summon 
In the previous stage of the conclusion : 
The initial selection of proposals on the base of the scientific value of the project 
and the costs of the research according to the area, the duration and the potential 
impacts. 
ZM 
The Analysis of the financial data transmitted by the proposers in a négociation 
form. 
After the signature of the contract : 
Examining the expense report before payment, at all levels (the financial 
administrators and the scientific administrators). 
In house control permits, by the examination of justificatory documents, to detect 
the errors or other irregularities. In order to reinforce the effectiveness of these 
controls, the departments of the Commission created an audit committee which 
centralises and carries out the overall controls. These controls are effective 
through the members of the audit committee, or audit firms with whom the 
Commission have concluded framework contracts and are under the supervision 
of the audit committee. 
Zs 
ISSN 0254-1475 
COM(95) 190 final 
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