WRITTEN QUESTION E-0660/01

by Philip Bushill-Matthews (PPE-DE) to the Council

(8 March 2001)

Subject: Lisbon European Council and investment

The 2000 Lisbon European Council called on the Council and the Commission, together with the Member States where appropriate to improve the environment for private research investment, R & D partnerships and high technology start-ups, by using tax policies, venture capital and EIB support. What progress, particularly in terms of concrete examples, has been made since the Lisbon summit in this area?

Reply

(13 July 2001)

As the conclusions of the Lisbon European Council state, the steps to be taken to establish a European Research Area involve efforts to be undertaken by the Commission, the Council and, where appropriate, the Member States themselves. The problems, long identified, relating to lack of investment in R & D, in particular private investment, as well as the need for investment to encourage R & D partnerships and high technology start-ups, have to be tackled in the main at Member State level (e.g. in the area of tax incentives), together with some incitement from the Commission.

The Council itself can only but applaud whatever initiatives are taken to encourage, in particular, private investment in R & D activities.

The Council has noted with interest the Commission initiatives to reinforce the networking of R & D actions and the financing of innovation by risk capital. It has also acknowledged the efforts currently being made by the European Investment Bank in the i2i initiative to support the creation of the European Research Area, using, inter alia, the European Investment Fund and in particular the analyses undertaken by the Bank and the Commission for potential cooperation to support actions under the Fifth and Sixth research framework programmes.

In this context, the recent Council Decision on a multiannual programme for SMEs (2001-2005) should be noted. This amounts to 450 million over five years and is directed largely to innovation and RTD take-up.

Moreover, the Council has noted the Commission's intention, announced in its report to the Stockholm European Council on the progress achieved in setting up ERA, to undertake a comparative study in good practices relating to support for research and innovation by fiscal measures and to establish a specific framework for cooperation with the EIB.

The Council will also examine all relevant measures put forward by the Commission in its recently submitted proposal for the 2002-2006 research framework programme.

The Stockholm European Council has reviewed this strategy and given new orientations.

Several reports of the Council and the Commission submitted to the Stockholm European Council reflect progress in some Member States. In particular there has been progress in the development of venture capital market, taxation encouraging bussiness expenditures on R & D, remedies to the fragmentation of Europe's R & D efforts and in the creation of a business environment more favourable to innovation and technological progress. Nevertheless much remains to be done in the relation between science and industry. Of particular relevance are the Council Report on the Annual Report on Structural Reforms 2001 and the Commission Report on the implementation of the 2000 Broad Economic Policy Guidelines.

The Stockholm European Council has notably endorsed the objective of a well functionning risk capital market by 2003 trough the implementation of the Risk Capital Action Plan.