REINFORCING COOPERATION BETWEEN EUREKA AND THE EUROPEAN COMMUNITY
Date: 1988-06-24
Institutions: European Commission
Subjects: EU research policy, Eureka, industry-research relations, innovation, international cooperation, research and development, research expenditure (EU), research programme, technical cooperation, technological change

ARCHIVES HISTORIQUES 
DE  LA COMMISSION 

COLLECTION RELIEE DES 
DOCUMENTS "COM" 

COM  (88)291 

Vol.  1988/0100 

Disclaimer 

Conformement au  reglement (CEE,  Euratom) n°  354/83 du  Conseil  du  1 er fevrier 1983 concernant 
l'ouverture  au  public  des  archives  historiques  de  la  Communaute  economique  europeenne  et de 
la  Communaute europeenne de l'energie atomique (JO  L 43  du  15.2.1983,  p.  1) modifie en  dernier 
lieu  par le  reglement  (UE) 2015/496 du  Conseil  du  17  mars  2015  (JO  L79  du  25.3.2015,  p.  1),  ce 
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Commission  du  13  mars  2015  concernant  les  regles  de  securite  aux  fins  de  la  protection  des 
informations classifiees de  l'Union europeenne. 

In  accordance with  Council  Regulation  (EEC,  Euratom)  No  354/83  of 1 February  1983 concerning 
the  opening  to  the  public of the  historical  archives  of the  European  Economic Community and  the 
European  Atomic  Energy  Community  (OJ  L  43,  15.2.1983,  p.  1 ),  as  last  amended  by  Council 
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Articles  (26.3)  and  59(2)  of the  Commission  Decision  (EU,  Euratom)  2015/444  of 13  March  2015 
on  the security rules for protecting  EU  classified  information. 

In  Obereinstimmung  mit  der  Verordnung  (EWG,  Euratom)  Nr.  354/83  des  Rates  vom  1.  Februar 
1983  Ober  die  Freigabe  der  historischen  Archive  der  Europaischen  Wirtschaftsgemeinschaft  und 
der Europaischen Atomgemeinschaft  (ABI.  L 43  vom  15.2.1983,  S.  1 ),  zuletzt  geandert  durch  die 
Verordnung  (EU)  Nr.  2015/496  vom  17.  Marz  2015  (ABI.  L 79  vom  25.3.2015,  S.  1 ),  ist dieser Akt 
der  Offentlichkeit  zuganglich.  Soweit  erforderlich,  wurden  die  Verschlusssachen  in  diesem Akt  in 
Obereinstimmung  mit Artikel  5  der  genannten  Verordnung  freigegeben;  beziehungsweise  werden 
sie  auf  Grundlage  von  Artikel  26(3)  und  59(2)  der  Entscheidung  der  Kommission  (EU,  Euratom) 
2015/444  vom  13.  Marz  2015  Ober  die  Sicherheitsvorschriften 
fur  den  Schutz  von  EU 
Verschlusssachen  als herabgestuft angesehen. 

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM  (88)  291 

final 

Brussels,  24  June  1988 

REINFORCING  COOPERATION  BETWEEN  EUREKA  AND  THE 

EUROPEAN  COMMUNITY 

(Communication  from  the  Commission) 

. 

\ 
\ 

REINFORCING  COOPERATION  BETWEEN  EUREKA  AND  THE  EUROPEAN  COMUNITY 

1.  Technological  cooperation  is  a  powerful  factor  in  European  integration. 

The  success  of  our  programmes  such  as  ESPRIT,  BRITE  and  RACE,  the  progress 
within  the  Eureka  framework  and  in  the  European  Space  Agency,  each 
demonstrates  that  the  pooling  of  resources,  efforts  and  talents  as  well  as 
the  sharing  of  risks,  offers  Europe  a  unique  chance  of  making  up  lost 
ground  and  establishing..a-leading  role  in  most  of  the  new  high  technology 
sectors. 

With  that  end  in  view  the  Single  European  Act  provides  for  different  types 
of  European  cooperation  - the  Framework  Programme  itself,  coordination  of 
national  policies,  joint  ventures  and  agencies,  supplementary  programmes 
and  participations. 

THE  ORIGINS  OF  EUREKA 

2.  EUREKA  was  launched  in  1985  as  a  new  framework  for  fostering  transnational 

cooperation  in  Europe  on  high  technology  R&O. 

Its  essential  features  were  a  concentration  on  R&O  closer  to  the 
market-place  than  Community  programmes;·  wider  geographical  coverage  than 
the  Community  Call  the  EFTA  countries  and  Turkey  are  members  in  addition  to 
the  Twelve);  and  a  different  institutional  framework  in  which  the 
initiative  for  projects  came  essentially  from  enterprises  and  research 
institutes. 

Governments  concentrated  on  helping  to  provide  the  right  policy  framework 
in  which  such  projects  could  flourish,  without  seeking  to  define  priorities 
for  research  aimed  at  improving  Europe's  competitive  position. 

THE  COMMISSION'S  ROLE 

3.  From  the  outset  the  Commission  has  regarded  Eureka  as  complementary  to  the 

Community  programmes  in  R&O. 

But  with  the  aim  of  speeding  up  the  improvement  in  Europe's  competitive 
position  - notably  in  the  context  of  competition  between  Europe,  Japan  and 
the  USA  -
henceforth  be  strengthened. 

the  Commission  believes  that  this  complementarity  should 

It  sees  this  as  an  important  means  of  encouraging  research  close  to  the 
market  and  of  associating  non-Community  European  countries  in  Europe's 
cooperative  efforts. 

I 

i 

i 

. ' 

4.  In  its  Communication  to  the  Council  of  November  1986  1 

the  Commission 

outlined  the  first  set  of  measures  which  it  proposed  to  take  in  order  to 
encourage  synergy  between  Community  programmes  and  Eureka  projects,  both  on 
a  case-by-case  basis  (though  its  involvement  in  specific  projects)  and  in 
the  wider  context  of  the  Community's  responsibilities  for  fostering  an 
economic  and  business  environment  favourable  ~o  the  success  of~~~ 
transnational  R&O  ventures  in  Europe. 

' 
S.  The  annex  sets  out  what  has  been  achieved  so  far  on  the  basis  of  the 

··-<· 

. •, 

., 

approach  adopted  in  COMC86)  664  final.  It  demonstrates  that  the  Commission 

c.'  is  already  involved  directly  in  a  number  of  important  Eureka  projects.· 

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THE  STRENGTHENING  OF  COOPERATION  BETWEEN  EUREKA  ANO  THE  COMMUNITY  THAT  IS  ~--
REQUIRED ..... -, 
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Since  the  launch  of  Eureka  and  the  Commission's  first  policy  position  in 
November  1986,  several  factors  have  altered  the  environment  in  which  the 
Commission's  guidelines  were  established: 

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playing  an  important  role. 

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On  the  one  hand,  Eureka  projects  have  been  more  heavily  concentrated  in  the 
pre-competitive  field  that  was  foreseen  fo  1985.  > r::~-ild~,:; :· 

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This  is  particularly  clear.in  the  case  of  the  large  infrastructure  projects 
CEUROTRAC  and  EUROfllAR  in  the  field  of  the  environment,  COSINE  in  that  of i 
information  networks)  which  require  public  participation  and  a  governmental_ 
framework.·,  t,r. :' 

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This  has  also  led  to  a  larger  call  on  public  finance  as  well  as  sever• 10~ 
difficulties  in  attracting  private  finance •.  ,,·?. :,,,1 ~  2 -;:-•~·r 1,·F~  ;·t:,vz  n;.;i-,:,;  nr 
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On  the  other  hand;  some  of  the  larger  Eureka  projects  or  groups  of  projects._ 
- such  as  PROMETHEUS  (transport),  EUROLASER,  FAMOR  (robotics)  - are 
directed  at  research  areas  where  it  is  particularly  important  to  define  the · 1
respective  roles  of  the  different  actors  if  the  risk  of  overlap  is  to  be 
avoided • 

·V 

,_ 

. -,  t  v  . "•  >·. '.-.  ·,  . '  .;. , 

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!'- { :;-t·i ,J  ~YJG E  ~~n  ;;;i.rl  m. ?' :: c; '.. ;r'.~;t:? :;~;-\ ~ ;:;} \\:~:: ~'•.l:i;:~:;1  • f. 

Cb)  The  Community  has  adopted  the  Framework  Programme. 

· 

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.... '.'·t··: ...... \-,,,_:_.·•"  ~·>  1J; 1 ;:· 

:;:lJ  fJ:1/i·v  Ju~\., 

The  Council  has  already  adopted  specific  programmes  of  which  the  estimated 
·  cost  is  equivalent  to  about  45%  of  the  amount  deemed  necessary  for  the  :~,,1. 
application  of  the  Framework  Programme;  and  other  proposals  covering  more 
than  a  further  30%  are  already  before  the  Council.  These  programmes  aim 
principally  to  encourage  cooperation  in  the  pre-competitive  or  basic 3 ~•  1 ' 
research  fields.  1  The  future  orientation  of  certain  Eureka  project,  notably 
those  in  their  definition  phases,  is  less  clearly  def;ned. -:;,'  1'';  ':"'  __  ,,  1 '••_,,...,. 

1  COM(86)  664  Final,  20  Nov.  1986. 

The  strengthening  of  ties  between  Eureka  and  the  Community  would  help  to 
establish  a  strategic  vision  linking  pre-competitive  actions  with  those 
close  to  the  market. 

. -

Cc)  Europe  needs  to  ensure  rapid  progress  in  sectors  of  crucial  importance 

for  the  future,  such  as  m1cro-electron1cs,  aeronaut1cs, 
supraconduct1vity,  biotechnology  and  the  environment. 
areas  Eureka  projects  are  in  preparation.  One  example  of  strategic 
importance  in  the  field  of  micro-electronics  is  JESSI. 

In  some  of  these 

Cd)  EFTA  countries  are  now  more  closely  associated  with  the  Community's  R&0 
efforts  as  a  result  of  bilateral  agreements  giving  them  access  of 
various  kinds  to  Community  programmes,  alongside  their  long-standing 
cooper,ation  with  the  Community  through  the  COST  mechanism. 

The  Commission  considers  that  closer  international  cooperation  in  R&D, 
already  mentioned  in  Article  130  N of  the  Treaty,  is  an  important 
element  in  external  policy. 

7.  All  these  factors  point  to  the  conclusion  that  it  would  now  be  right  to 
clarify  the  Community's  objectives  vis-a-vis  Eureka  and  to  reinforce  the 
instruments  applied  in  pursuit  of  them. 

The  memorandum  from  the  Presidency  of  the  Council  which  was  circulated  to 
Member  States  in  April  1988  sets  out  the  arguments. 

8.  Against  that  background  the  Commission  considers  that  the  Community  should 
contribute  more  to  the  success  of  Eureka  by  measures  in  five  fields: 

- practical  steps  to  improve  the  links  and  to  reduce  the  possible  overlap 

with  Community  programmes; 

- financial  participation  in  Eureka  projects  or  project  phases  that  are 

upstream  of  development  for  the  market; 

-

recourse  to  the  possibilities  offered  by  Articles  130  Land  130  M 
(supplementary  programmes  and  participation); 

- measures  to  attract  private  capital  to  Eureka  projects  or  project  phases 

that  are  close  to  the  market; 

- measures  to  improve  the  economic  and  business  environment. 

<a>  reinforcing  the  links  and  reducing  the  overlaps:  establishing  solid 

complementarity  between  Eureka  and  Community  programmes  in  order  to 
ensure  continuity 

9.  The  Commission  intends  to  ensure  greater  complementarity  and  continuity 

by: 

-

redoubling  its  existing  efforts  to  ensure  that  potential  Eureka· 
participants  are  fully  aware  of  the  opportunities  offered  by  Community 
R&D  programmes  (through  ad  hoe  workshops,  active  involvement  in  Eureka's 
own  information  efforts  etc); 

- working.directly  with  the  national  officials  concerned  to  identify  at  the 
earliest  possible  stages  possible  links  with  the  Community  programmes  and 
ways  in  which  the  most  effective  synergy  can  be  developed; 

• 

- ensuring,  through  its  participation  in  the  steering  committees  of  the 
larger  Eureka  projects  that  work  programmes  and  procedures  can  be 
developed  that·minimise  the  overlap  with  Community  programmes. 

, 

10.All  these  actions  will  only  be  effective  as  long  as  the  Commission  receives 
timely  and  adequate  information  on  projects.  Without  this  it  will  not  be 
.in  a  position  to  make  its  contribution  under  the  most  satisfactory 
conditions. 

(b)  Helping  to  finance  pre-competitive  Eureka  projects 

There  are  several  posibilities  for  the  Commission. 

~1.The  Commission  envisages  direct  participation  by  the  Joint  Research  Centre 
in  consortia  presenting  Eureka  proposals,  in  those  areas  where  it  has  the 
requisite  skills  and  expertise. 

In  line  with  its  new  focus  on  research  that  is  more  oriented  towards  the 
needs  of  industry,  the  JRC  intends  already  to  carry  out  four  research 
projects  in  support  of  the  Eureka  environmental  project  EUROTRAC. 
Negotiations  are  also  at  an  advanced  stage  for  participation  in  a  Eureka 
project  on  industrial  safety.  The  Centre  will  be  looking  for  all  further 
opportunities  to  participate  in  these  fields,  as  well  as  in  the  field  of 
non-nuclear  energy • 

. 

12.The  Community's  research  programmes  in  specific  fields  are  open  to 

submissions  for  financial  support  from  participants  in  Eureka  projects  in 
the  areas  concerned. 

Funding,  normally  on  a  shared  cost  basis,  will  be  available  for  projects  of 
a  pre-competitive,  pre-normative  or  non-competitive  nature  that  are 
successful  through  the  normal  transparent  selection  procedures  applying  to 
the  programmes  concerned. 

Within  the  existing  restricted  financial  ceiling,  however,  the  Commission 
is  unable  to  participate  financially  in  more  then  15-20X  of  the  proposals 
made  to  it.  Moreover,  the  percentage  is  falling,  with  the  Commission 
having  to  reject  an  increasing  number  of  good  proposals. 

·,; 

13.The  scope  for  financing  Eureka  projects  in  this  way  is  therefore  not  large. 
The  real  solution  is  to  increase  the  budget  available  for  the  Community 
programmes. 

y 

, .. :., 
,•: 
• ,A·: 

The  extra  efforts  in  R&0  that  will  be  required  will  be  specified  in  the 
revision  of  the  Framework  Programme,  in  line  moreover  with  the  decision  of 
the  European  Council  of  11  and  12  February  1988  taken  in  the  framework  of 
the  financial  outlook  for  the  period  1988-1992  (Chapter  F,  Page  28). 

This  revisjon  will  be  the  right  occasion  for  considering  the  replies  to 
the  challenges  cited  in  paragraph  6c  above.  The  Commission  is  ready  to 
present  a  first  outline  of  its  ideas  on  this  subject  to  the  Council  in  the 
autumn. 

Cc)  ,recourse  to  the  possibilities  offered  by  Articles  130  Land  130  M 

(supplementary  programmes  and  participations). 

14.Supplementary  programmes  and  participations  were  foreseen  in  the  Single 
European  Act  as  a  means  of  enlarging  the  array  of  types  of  Community 
intervention,  and  of  ensuring  the  necessary  flexibility  according  to  the 
actions  envisaged. 

The  advantages  for  the  Community  are  essentially: 

-

-

the  scope  for  carrying  out  actions  which  do  not  necessarily  interest  all 
Member  States  but  which  nevertherless  are  in  line  with  the  main 
objectives  of  Community  action; 

the  possibility  of  launching  such  actions  going  beyond  those  that  could 
be  financed  form  the  Community's  own  resources  and  of  mobilizing  national 
financial  resources  beyond  those  foreseen  in  the  Framework  Programme. 

These  forms  of  cooperation  are  particularly  interesting  in  the  context  of 

'the  Commission's  efforts  to  encourage  better  coordination  of  national 

policies.  They  could  also  be  used  to  support  national  actions  in  Eureka 
projects,  notably  in  strategic  areas  such  as  micro-electronics,  in 
particular  the  JESSI  project. 

15.Recourse  to  complementary  programmes  for  Eureka  projects  that  are  of 
interest  for  the  Community  and  which  require  a  special  commitment  by 
certain  Member  States,  does  not  inevitably  mean  financial  support. 

The  Community's  contribution  could  take  the  form  of  project  management  or 
technical  assistance. 

Clearly  the  Commission  could  also  intervene  directly  by  means  of  the  budget 
of  the  Framework  Programme,  provided  that  the  projects  concerned  were 
linked  to  the  objectives  of  the  Framework  Programme. 

!Piiit'1Pfffi§?lfWST1Pl57W~PmTrrr:s 

16.In  its  first  outline  of  the  rev1s1on  of  the  Framework  Programme  the 
Commission  intends  also  to  examine  in  detail  the  possible  modes  of 
intervention,  in  particular  the  possibilities  offered  by  Articles 
130  Land  130  M.  It  will  also  examine  the  various  loan  possibilities. 

Cd)  Mobilizing  private  finance 

17.The  Commission  has  transmitted  to  the  Council  and  to  the  Parliament  a 

Communication  outlining  a  series  of  measures  to  facilitate  the  financing  of 

_ transnational  technological  cooperation  in  Europe. 

18.Several  possibilities  are  envisaged: 

-

the  promotion  of  the  investment  fund  EUROTECH  CAPITAL,  which  would  take 
shares  in  high-risk  long-term,  high-technology  projects,  could  be  a  key 
element  for  the  private  sector. 

The  Commission  envisages  an  initial  financial  contribution  from  the 
Community. 

risk  insurance  for  advanced  technology  projects,  developed  in  close 
collaboration  with  Eureka. 

This  would  be  a  mechanism  to  be  put  in  place  by  the  private  insurance 
sector.  But  the  Commission  is  ready  to  make  a  financial  contribution  to  the 
launching  of  a  pilot  project  which  would  allow  the  promoters  of  advanced 
technology  projects  to  benefit  - over  5  years  -
premia  related  to  protection  against  certain  risks. 

from  reduced  insurance 

The  financing  of  the  pilot  project  will  be  accompanied  by  an  information 
campaign  by  the  Commission  directed  at  all  the  interested  parties 
(promoters,  financiers,  insurers,  agents)  and  a  programme  of  cooperation 
between  the  Commission  services  and  the  insurance  companies  to  help  risk 
evaluation. 

as  already  indicated  in  its  Communication,  the  Commission  also  intends  to 
contribute  to  better  information  on  the  financing  needs  of  high 
technology  projects. 

(e)  Improving  the  economic  and  business  environment 

19.Further  progress  towards  completion  of  the  Community's  Internal  Market 

Programme  will  help  to  improve  the  environment  in  which  Eureka  and  other 
advanced  technology  projects  can  thrive.  Moreover,  the  Commission  insists 
on  the  need  to  improve  the  legal,  fiscal  and  regulatory  framework  covering 
transnational  cooperation  between  companies. 

Measures  of  particular  importance  in  this  context  involve  the  prevention  of 
new  technical  obstacles  to  trade;  and  the  opening-up  of  national  public 
procurement  to  general  advertising,  competitive  tendering  and 
non-discriminatory  selection  from  tenders  received. 

The  same  is  true  of  the  Commission's  constructive  approach  in  the 
application  to  high-technology  projects  of  the  Community's  state  aid 
rules;  and  a  number  of  measures  intended  to  develop  a  more  rational  system 
of  intellectual  and  industrial  property  rights  throughout  the  Community. 

The  Commission  will  also  continue  to  work  closely  with  the  EFTA  countries 
in  the  discussions  concerning  joint  measures  on  technical  standards, 
intellectual  and  industrial  property  rights,  state  aids  and  public 
procurement  which  are  already  under  way. 

These  will  be  helpful  in  the  context  of  Eureka  projects  involving 
participants  from  the  Community  and  EFTA  countries. 

CONCLUSIONS 

2O.The  actions  outlined  above  are  important  new  initiatives  in  promoting 

synergy  between  the  Community  and  Eureka,  in  reducing  the  risks  of  overlap, 
and  in  developing  continuity  between  pre-competitive  actions  and  those 
close  to  the  market.  They  bear  witness  to  the  importance  of  the  Community 
role. 

The  further  success  of  the  Eureka  venture  will  not  however  depend  solely  on 
the  role  which  the  Community  can  play.  It  would  be  unreasonable  to  suppose 
that  the  Community  budget  could  shoulder  the  financial  burdens  for  projects 
that  require  major  public  financial  support,  given  the  limited  resources 
available  under  the  Framework  Programme. 

But  the  Commission  is  confident  that  the  measures  proposed  will  make  a 
major  contribution  to  the  pursuit  of  the  goal  of  improving  European 
competitiveness  which  the  Community  shares  with  Eureka. 

The  Council  is  therefore  invited  to  endorse  the  actions  proposed  in  this 
Communication. 

q 

ANNEX 

EUREKA  AND  COMMUNITY  RESEARCH  AND  DEVELOPMENT: 

PROGRESS  TO  DATE 

1. 

Introduction 

1.1  The  Communication  itself  outlines  the  new  actions  proposed' 
by  the  Commission  to  reinforce  cooperation  over  the  coming 
This  more  detailed  annex  reviews  cooperation  to 
years. 
date, 
in  the 
Commission's  earlier  Communication  COM( 86) 664  final  of  20 
November  1986.  It 

the  guidelines  set  out 

light  of 

the 

in 

0 

recalls 
the  essential 
Communication  (paras  2.1  - 2.3  >; 
outlines  how  EUREKA  has  evolved  in  the  meantime 
(paras  3.1  - 3.8);  and 
summarises  the  actions  taken  by  the  Commission  as  a 
f9llow-up  to  COM(86)664  (paras  4.1  - 4.7). 

the  earlier 

features 

of 

1. 2  Appendix  I 

Appendix  II 

provides  summary  information  on  some  of  the 
larger  EUREKA  projects. 
summarises  the  involvement  of  the  Commission 
in  specific  EUREKA  projects. 

Appendix  III  and  IV  show  the  evolution  of  EUREKA  projects 

since  1985. 

2.  The  Current  Guidelines 

2.1  The  Commission's  earlier  Communication  drew  attention  to  the 
own 
EUREKA 
similarities  between 
programmes  as  regards  their  main  areas  of  research  and  their 
(to  help  Europe  master  and  develop 
ultimate  objectives 
advanced 
future 
competitiveness).  It  also  highlighted  the  main  differences 
as  regards: 

the  Community's 

technologies 

essential 

its 

and 

to 

EUREKA  embraces  all  the  EFTA 
geographical  coverage. 
countries  and  Turkey,  as  well  as  all  the  Member  States 
of 
(However,  special  arrangements  have  subsequently  been 
negotiated  with  5  EfTA  countries  which  provide  for 

the  European  Community 

the  Commission 

and 

. ,. 

specific 
programmes) . 

forms  of  cooperation  with 

the  Community 

2 

strategic  whole 

the  institutional  framework.  Community  R&D  programmes 
( the  Framework 
a 
from  part  of 
Programme)  prepared  with  advice 
from 
industry  and  research  institutions  and  agreed  by  the 
Council  of  Ministers. 
the 
Community  budget  is  available  under  specific  Community 
procedures,  mostly  on 
shared-cost  basis,  with 
projects  from  all  the  Community  countries  competing  for 
funding. 

Financial  support 

from  experts 

from 

a 

of 

is 

EUREKA 

status 

the  Governments  of 

The  initiative  for  EUREKA  projects,  on  the  other  hand, 
comes  from  the  industrial  and  other  partners  concerned. 
Granting 
exclusive 
the  countries 
responsibility  of 
the  participants  are  situated,.  once  certain 
where 
common  criteria  have  been  met. 
The  projects  are 
subsequently  announced  officially  at  regular  meetings 
of  the  EUREKA  Ministerial  Conference.  But  there  is, 
and  no 
quite  deliberately,  no  strategic 
central 
finance. 
Participants 
finance,  where 
required,  from  their  own  national  authorities. 

framework, 
project 

for 
public 

compete 

budget 

EUREKA 

the 

for 

, 

the  nature  of  the  R&D  work.  The  Community  programmes 
are  concentrated  essentially  on  R&D 
upstream  of 
industrial  or  commercial_,application  for  the  market 
place.  The  aim  behind  EUREKA,  on  the  other  hand,  was 
to  stimulate  projects  that  would  lead  directly  to  the 
development  of  products,  processes  and  services  with  a 
market  potential. 
It  was  also  accepted,  however,  that 
EUREKA  could  embrace  advanced  technology  projects  aimed 
at  the  creation  of  the  technical  prerequisites  for  a 
modern 
of 
and 
infrastructure 
transboundary  problems. 

solution 

the 

at 

2. 2  The  Communication  went  on  to  outline  ways 

the 
complementary  features  of  the  two  frameworks  for  cooperation 
could  be  developed  to  mutual  advantage  through  actions  by 
the  Commission: 

in  which 

individual 

for 
programmes 

by  establishing  appropriate  case-by-case  cooperation 
arrangements 
to 
technical 
Community 
assistance;  by  facilitating  information  exchanges  and 
contacts  between  project  participants;  and  by  adjusting 
the 
planned 
Community  programmes  so  as  to  take  account  of  the  wider 
needs  of  specific  EUREKA  projects>; 

technical  objectives  or 

content  of 

(notably, 

projects 

through 

linked 

I .. 

(, 

" 

.; 
j ; 
• ; 

; 

by  Commission 
harmonized 
standards  which  would  facilitate 
products  resulting  from  EUREKA  projects; 

support 
implementation 

for 

common 

of 

the  definition 

norms 

the  marketing 

progress 

through 
Community's  Internal  Market  which  would  create 
right  economic  and  business  environment; 

establishment 

the 

in 

of 

3 

and 
and 
of 

the 
the 

by  the  Commission's  examination  of  possible  ways 
facilitating  access  to  ·private  sector  finance,. and 
making  available  Commission  expertise  in  the  field 
information  networks • 

of 
by 
of' 

• 

by  applying  the  Treaty  of  Rome's  rules  on  state  aids  i~ 
a  constructive  manner  to  R&D  projects,  recognising  the 
need  to  encourage  the  growth  of  successful  new  products 
trade 
and  services  as  well  as 
distortion  and  unfair  compe~ition  in  Europe. 

the  need 

to  avoid 

2.3  The  Communication  also  envisaged  the  possibility  in  certain 
particularly  suitable  cases,-·  of  some  financial  participation 
by  the  Community  in  those  EUREKA  projects  Cor  phases  of  .such 
those  of  a  pre-normative  character*, 
projects>,  notably 
the  normal  procedures  for 
which  were  submitted 
Community  finance. 

through 

* 

Pre-normative  research  provides  the  scientific  and  technical 
basis 
technical 
specifications. 

the  preparation  of 

standards  and 

for 

.. 

3.  How  EUREKA  has  evolved 

(i)  the  project  portfolio 

4 

3.1  There  are  now  214*  announced  EUREKA  projects,  with  an 
estimated  cost  of  over  3. 8  milliard  ECU**.  Well  over  800 
organisations  are  involved  in  these  projects,  around  two 
thirds  of  them  industrial  and  with  a  good  representation  in 
(enterprises  with  less  than  500  employees 
terms  of  SMEs 
account  for  50%  of  the  industrial  partners). 

3. 2  The  projects  are  heavily  concentrated  in  the  fields  of 
information  technology,  robotics  and  biotechnology,  although 
the  latest  set  of  projects  announced  in  Copenhagen  show  some 
shift  away  from  information  technology  (see  appendices  III 
and  IV). 

3.3  Few  projects  have  an  expected  duration  of  2  years  or  less, 
and  every  second  project  is  expected  to  last  more  than  4 
years.  Many  of  the  projects,  notably  the  larger  ones,  are 
still  in  definition  phases,  and  it will  be  some  time  before 
results  are  available. 

trend 

towards 

smaller, 

3.4  Half  of  all  projects  are  expected  to  cost  less  than  10  MECU, 
and  in  contrast  to  earlier  tendencies  there  appears  to  be  an 
lower-cost  projects. 
increasing 
There  are,  however,  a  number  of  projects  in  the  fields  of 
communications, 
and 
transport  that  are  expected  to  cost  upwards  of  50  MECU. 
6  years  or  more  to 
Many  of  these  are  expected  to  take  5  -
complete. 
A  number  of  these  projects  are  composed  of  a 
series  of  sub-projects  and  have  become  known  within  EUREKA 
as  "umbrella  projects".  Appendix 
these 
total  costs  and 
larger  projects,  with 
expected  duration. 

their  estimated 

lists  some  of 

environment 

information 

technology, 

I 

* 

** 

Including  54  projects 
definition  phases  of  360  MECU> 
Ministerial  Conference  in  Copenhagen  on  16  June  1988. 
This  figure  may  underestimate  total  costs  over  the  life-time 
of  all  the  projects,  since  the  data  include  only  the  costs 
of  the  definition  phases  for  some  projects. 

(with  an  estimated  cost  for  their 
announced  at  the  EUREKA 

-CS 

5 

3.5  Only 

The 

limited 
the 

financing  of  EUREKA  projects. 

information  is  available  to  the  Commission 
about 
latest 
information  suggests,  however,  that  on  average  some  35%  of 
total  funding  is  expected  to  be  secured  from  public  sector 
sources.  But  ~n  the  case  of  certain  projects,  notably  those 
in  the  environmental  field  which  are  of  a  "non-competitive" 
nature  and  which  do  not  aim  to  produce  commercial  goods  and 
services,  the  share  of  public  funding  can  be  as  high  as 
100%.  Officials  from  the  Member  Countries  of  EUREKA,  with 
the  support  of  the  Commission,  are  actively  examining  how  to 
encourage  the  flow  of  private  capital 
the  banking 
system  and  venture  capital  companies. 
The  results  to  date 
appear  to  have  been  modest,  largely  because  of  the  nature  of 
the  EUREKA  portfolio  as  it  has  developed.  According  to  a 
recent  analysis  by  the  European  Bankers  Round  Table,  only 
13%  of  190  projects  analysed  appear  likely  to  qualify  for 
52%  may 
private 
conceivably  result  in  a  commercially  viable  product;  and  35% 
by  their  nature  could  not  qualify  for  private  finance.  Here 
too,  however, 
the  EUREKA 
portfolio  changes  over 
smaller  and  more 
product-oriented  projects. 

the  situation  may  evolve  as 

forseeable 

financing 

towards 

future: 

time 

from 

the 

in 

(ii>  the  framework  of  cooperation 

a 

the 

network  of 

3. 6  EUREKA  aims  as  far  as  possible  to  create  a  "light"  and 
flexible  mechanism  for  interqovernmental  cooperation,  with  a 
small  Secretariat  and 
"National  Project 
Coordinators"  facilitating  the  exchange  of  information  on 
identification  at  an  early  stage,  of 
projects  and 
supportive  actions  requiring  some  form  of 
involvement  by 
Governments.  Apart  from  their  work  on  project  development, 
officials  responsible  for  EUREKA 
in  the  member  countries 
have  also  been  engaged,  for  example,  in  the  examination  of 
issues  such  as  how 
to  encourage  private  sector  project 
financing;  how  to  promote  the  interests  of  small  and  medium 
sized  enterprises  in  EUREKA;  and  norms  and  standards.  The 
arrangements, 
is  participating 
in  which 
light  of  experience  and 
actively,  are  evolving 
developments  in  other  international  fora. 

the  Commission 
in 

the 

3.7  Particular  efforts  are  under  way  at  present 

to  ensure 
enhanced  coordination  between  the  participating  Governments 
so  as  to  facilitate  the  emergence  of  new  projects. 
One 
important  issue  that  has  been  identified  within  EUREKA  is 
the  need  to  ensure  that  the  existence  of  different  national 
systems  and  procedures  for  public  financial  support  does  not 
inhibit  EUREKA  projects  (at  present  a  project  may  be  delayed 
until  the  public  financing  issues  are  resolved  in  all  the 

· Member  Countries  concerned). 

3.8  The  new  Austrian  Presidency  of  EUREKA  plans 

to 

focus 

framework 

particular  attention  during  the  coming  year  .on  measures  to 
help  project  development  and  monitoring;  on  improving  the 
market-oriented 
general 
international  technological  cooperation 
( including  further 
progress  in  the  field  of  norms  and  standards>;  and  on  better 
the 
coordination  of 
(including  the  links  with  the  Community 
transport  field 
DRIVE  programme). 
In  each  of  these  areas  close  liason  with 
the  Commission  will  be  important. 

EUREKA  projects 

the  various 

conditions 

for 

in 

6 

4.  Actions  by  the  Commission 

programmes,  either  deriving 

4 .1  Around  half  the  announced  EUREKA  projects  have  links  with 
the  Community's  R&D 
from 
Community  projects,  covering  different  stages  of  R&D  on  the 
same  subject,  or  having  some  degree  of  overlap. 
Some 
involve  the  same  industrial  or  other  partners  as  Community 
projects*.  This  degree  of  linkage  is  high.  As  foreshadowed 
in  COM(86)664  final,  the  Commission  has  therefore  taken  a 
wide 
to  specific  EUREKA 
projects  to  reduce  overlap  and  thus  to  contribute  to  the 
best  possible  use  of  scarce  European  research  resources.  A 
summary  of  Commission  actions  and  involvement  in  some  EUREKA 
projects  is  at  Appendix  II. 
These  actions  are  discussed 
below, 
together  with  more  general  actions  to  improve  the 
environment  for  the  success  of  EUREKA  projects. 

range  of  actions 

in  relation 

4. 2  Actions  to  facilitate  the  emergence  of  EUREKA  projects, 
building  on  the  experience  of  Community  programmes. 
The 
Commission  has  made  specific  efforts  to  make  available  to 
potential  and  present  EUREKA  participants  information  about 
the  results  of  Community  programmes  and  their  planned  future 
development. 
joint  workshops  have  been 
organised  with  partners  from  Community  and  EUREKA  projects 
on  BRITE  subjects  (eg  lasers>,  on  HDTV  and  on  COSINE**·  The 
Commission  has  improved  access  to  information  on  Community 
projects  through  the  IES  and  EUROABSTRACT  data  bases. 
It 
has  also  taken  steps  to  ensure  that  participants  in  good 
projects  that  are  submitted  to  Community  programmes  but 
which  cannot  be  adopted  because  they  are  too  close  to  the 
market-place,  are  made  aware  of  the  opportunities  offered  by 
EUREKA. 

For  example, 

* 

** 

- Membranes 

include  EU005 

for  micro-filtration 
Examples 
which  derives  from  BRITE  1566;  EU20  EUREKA  advanced  software 
technology  and  EU43  EUREKA  Software  Factory,  which  derive  in 
part  from  and  build  on  the  results  of  an  ESPRIT  project 
(PCTE>;  EU109-PACA  (absorption  heat  pumps>,  which  continues 
the  Community's  non-nuclear  energy 
work 
programme. 
A  summary  description  of  the  projects  cited,  together  with 
an  explanation  of  the  acronyms  used,  is  given  in  Appendix  II 

initiated  under 

-

4.3  Technica1  contributions  to  the  definition  phases  of  EUREKA 
projects 
that  are  downstream  of  Community  projects.  An 
example  here  is  the  adoption  in  the  EUREKA  Software  Factory 
project  of  software  interface  standards  developed  under  the 
ESPRIT  programme. 

.( 

•[ 

7 

4.4  Help  in  the  definition  and  organisation  of  the  1arger  EUREKA 
projects  whictt·are  linked  to  CoDDDunity  programmes,  such  as 
EUROTRAC,  EUROMAR,  COSINE,  HDTV,  PROMETHEUS.  The  Commission 
is  represented  on  the  Scientific  Steering  Committee  and  on 
the 
it 
International  Executive  Committee  of  EUROTRAC; 
it is  the  leading 
attends  meetings  of  the  Board  of  EUROMAR; 
It  is 
partner  and  provides  the  Secretariat  for  COSINE. 
actively  involved  with  the  Steering  Committee  of  PROMETHEUS 
the 
and  with  participants 
transport 
for 
research  and  an  appropriate  interface  with  the  Comuni ty' s 
DRIVE  programme. 

in  other  EUREKA  projects  in 
the  definition  of  priorities 

field, 

in 

In  the  case  of  HDTV  the  Commission  is  active  on  a  number  of 
fronts  to  ensure  the  right  environment  for  the  success  of 
the  project  by 

0 

0 

encouraging 
in 
standardisation  within  Europe; 

consistency 

the 

ongoing  work 

on 

in 

ensuring, 
the  Member 
States  most  directly  concerned,  the  defence  of  E~ropean 
the 
interests  vis-A-vis  ~third 
international  standards  bodies; 

industry  and 

liaison  with 

countries 

and 

in 

providing 
together  all  the  economic 
<radio,  TV,  cinema  companies  etc). 

framework 

(the  HDTV 

interests 

a 

Forum> 

bringing 
in  the  project 

4 . 5  Direct  or  indirect  f inancia1  participation  in  some  EUREKA 

projects,  viz: 

COSINE. 
MECU>  of  the  cost  of  the  definition  phase; 

The  Commission  is  currently  meeting  20%  (0.3 

EUROTRAC.  The  Commission  has  accepted  two  sub-projects 
(LACTOZ  and  HALIPP)  for  funding  of  2  MECU  over  4  years, 
following 
the 
project  participants  to  the  Community's  environmental 
programme. 
In  addition  the  JRC  intends  to  carry  out  4 
of  its  projects  within  the  EUROTRAC  framework,  at  an 
estimated  cost  of  some  7  MECU. 

the  successful  application  made  by 

8 

FORMENTOR  <expert  system  for  dealing  with  major  plant 
failures  and  security  control).  The  question  of  direct 
JRC  participation  is  currently  under  negotiation  with 
the  project  participants. 

8  R&D  contracts  under 

the  Community's 
EUROCARE. 
programme  on  the  effect  of  air  pollution  on  historic 
buildings  are  linked  closely  to  EUROCARE  and  represent 
a  substantial  indirect  contribution. 

PROMETHEUS. 
The  work  programme  is  being  developed  in 
close  liaison  with  the  Community's  DRIVE  programme, 
which  is  to  have  a  budget  of  60  MECU  for  its  pilot 
phase.  The  Community  is  making  a  substantial  indirect 
financial  contribution  to  PROMETHEUS,  by  financing  the 
research  on 
the 
infrastructure 
operation  of  the  "intelligent  car"; 

required 

the 

for 

Three  RACE  projects*,  costing  together  16  MECU 
HDTV. 
over  3  years,  are  an  important  complement  to  the  work 
on  HDTV. 

The  Community  is  contributing  to  the  achievement  of  the 
(ES2)  through  the  participation  of 
objectives  of  EU16 
Important 
this  EUREKA  venture  in  ESPRIT  activities. 
ESPRIT  activities  notably  in  the  field  of  CAD, 
IC 
manufacturing  equipments  and  automation  are  furthermore 
directly·  relevant  to  the  current  objectives  of  EU127 
(JESSI).  For  this  latter,  moreover,  consultations  are 
in  hand  with  the  companies  and  the  countries  concerned 
to  investigate  ways  of  ensuring  a  fuller  synergy  of 
effort  through  a  direct  participation  of  the  Community 
in  the  JESSI  programme  of  work. 

4.6  "Supportive  Measures•.  Aside  from  involvement  in  specific 
EUREKA  projects  on  a  case-by-case  basis,  the  Commission  is 
playing  a  key  role  in  the  field  of  so-called  "supportive 
measures"(cf  para  2.2  above): 

0 

by  developing  mechanisms  to  encourage  a  flow  of  private 
sector  finance  to  high  technology  projects  (including 
notably  EUROTECH  CAPITAL).  Recent·Commission  work  in 
the  field  of  risk  insurance  is  an  important  complement 
to  initiatives  already  under  discussion  and 
led  by 
France  within  EUREKA. 
The  Commission  now  proposes  to 
finance  the  launching  of  a  pilot  insurance  scheme. 

* 

HIVITS  1+2  - picture  encoding  and  transmission 
- digital  video-images. 
DVT 

9 

on 

and 

transmission  of  mandates 

in  the  field  of  norms  and  standards  the  Commission  has 
offered  its  services  to  EUREKA  participants  in  the 
development 
new 
technical  standards  to  the  European  technical  standards 
It  systematically  analyses 
bodies  (CEN  and  CENELEC). 
EUREKA  projects  in  order  to  identify  when  action  may  be 
required  and  has  taken  appropriate  contacts  with  the 
participants  involved. 
Thus  far  there  are  a  small 
number  of  projects  for  which  a  specific  need  for 
European  standards  has  been  identified  (eg.  EUROTRAC, 
IHS,  PROMETHEUS,  ESF,  HDTV  and  FAMOS)  . 
In  most  of 
the  process  of 
these  cases 
obtaining 
to 
required 
IHS 
in  relation  to  the 
establish  mandates. 
< Integrated  Home  Systems>  project  has  the  Commission 
already  been  able  to  forward  the  necessary  mandate. 
The  Commission  initiated  a  special  workshop  for  EUREKA 
participants  on  standardisation  which  was  held  by 
CEN/CENELEC  (the  technical  standards  bodies)in  Brussels 
in  March  1988. 

the  Commission 

the  detailed 

information 

Only 

is 

in 

for  R&D  projects 

in  the  field  of  competition  policy  the  Commission  has 
demonstrated  its  constructive  attitude  towards  state 
aids 
the 
i.n 
corresponding  Treaty  provisions 
to  specific  cases 
notified  to  it. 
In  a  number  of  cases  it  has  granted 
exemptions  under  Article  92.3c  and  in  one  case  (HDTV) 
an  exemption  under  Article  92. 3b  on  the  basis  of  the 
projects  common  European  interest. 

the  application  of 

4. 7  Financial  and  material  support. 

The  European  Commission 
provides  13.7%  of  the  budget  of  the  EUREKA  Secretariat  and 
has 
the 
Secretariat. 
the  Secretariat's 
equipment  in  the  early  phases  and  set  up  the  EUREKA  project 
data  base,  which  is  now  managed  by  the  Secretariat. 

It  also  contributed  to 

seconded  one  of 

staff  members 

its 

own 

to 

J\PPJ.-:Nl>IX  1. 

LARGE  - SCALE  EUREKA  PROJECTS 

Illustrative  Examples  (not  exhaustive)  are: 

EUREKA  N°  SUBJECT 

EXPECTED  COST 

(MECUs) 

DURATION 

I .·- f ,. 

:; 

EU  7 

EU  16 

EU  37 

EU  43 

EU  58 

EUROTRAC: 
experiment  on  trans 
port  &  transformation  of 
trace  elements  in  the 
troposphere 

Automatic  design  & 
production  of  custom 
chips 

68 

94 

EUROMAR:  modern 
technologies  for 
ecological  exploration  in 
European  seas 

164 

ESF:  EUREKA  Software 
Factory 

EUROPOLIS:  Intelligent 
control  of  urban  &  inter 
urban  traffic 

EU  95 

HDTV:  compatible  high 
definition  TV 

EU  102 

EPROM:  multi-megbit 
non-volatile  memories 

327 

128 

180 

404 

72 

36 

108 

96 

84 

48 

60 

There  are  also  two  "umbrella"  projects,  which  are  composed  of  a 
number  of  related  sub-projects  with  separate  EUREKA  status 
FAMOS  (flexible  automated  assembly)  and  EUROLASER  (application  of 
laser  technology>  - each  of  which  could  cost  in  total  upwards  of 
The  main  stage  of  the  EUREKA 
200  MECUs  over  the  next  5  years. 
project  COSINE,  currently 
is  also 
in 
expected  to  cost  up  to  200  MECU. 

its  definition  phase, 

. 

'( 

APPENDIX  I I  

COMMISSION 

INVOLVEMENT 

IN  MAJOR 

EUREKA 
COMMUNITY  PROGRAMMES. 

Subject 

Current  Status 

l.ENVIRONMENT 

· ·  EUROTRAC : 
European  experi 
ment  on  transport 
and  transformation 
of  environmentally 
relevant  trace 
constituents  in  the 
troposphere  over 
Europe. 

Commission  funding 
2  sub-projects  (2MECU) 
through  Community  en 
vironment  programme. 
Commission  represented 
on  Steering  Committees. 
Coordinated  work  with 
related  actions  such  as 
COST  611. 

EUROMAR: 

development  and 
application  of 
modern  technologies 
for  the  exploration 
of  ecological  r~ 
lations  and  cause 
and  effect  chains 
in  the  seas  of  Europe. 

Commission  is  a  member 
of  the  EUROMAR  Board, 
with  a  view  to  en 
suring  coordination 
with  planned  Community 
programme  on  marine 
science  &  technology. 

PROJECTS  LINKED  TO 

Possible 
development 

future 

JRC  proposes  to 
carry  out  4  projects 
within  EUROTRAC 
.framework  ( 7  MECU 
over  4  years). 

EC  programme 
expected  to  deal 
with  the  more  pre 
competi:ti ve  stages  . .  ·..,.  .: 
of  work. 

EUROCARE: 

European  project 
on  Conservation  & 
Restoration. 

of  work  with  the 

Commission  participates  Further  coordination 
in  EUROCARE  Board 
meetings.  The  Commission  Community  programme 
Newsletter  on  Cultural 
Heritage  is  used  free  of  (effect  of  air 
charge  by  EUROCARE  for 
diffusion  of  information.historic  buildings 
8  R&D  contracts  under 
the  Community  programme 
on  environmental  protection 
are  closely  linked  to 
EUROCARE. 

on  the  environment 

and  monuments). 

pollution  on 

2.TRANSPORT 

.l 

PROMETHEUS: 

programme  for  a  Euro 
pean  Traffic  System 
with  highest  effi 
ciency  and  unpreceden 
ted  safety. 
Together  with  DEMETER: 
digital  electronic  mapping 
of  Europe, 
CARMINAT:driver  information 
system. 

DRIVE  work  programme 
established  as  comple 
mentary  to  PROMETHEUS. 
Commission  takes  part 
in  the  PROMETHEUS 
Steering  Committee. 

Implementation 
of  the  DRIVE 
programme  (60 
MECU  over  30 
months). 

i 

I. t ':.' ,. 

EUROPOLIS:intelligent  control 

system  to  aid  urban  &  inter 
urban  traffic. 

3.INFORMATION  TECHNOLOGY 

COSINE:  cooperation  on 
open  systems  networking 
in  Europe. 

Commission  is  lead 
project  coordinator. 
Assures·Secretariat, 

EAST:..  EUREKA  advanced 

.  software  technology  -

development  of  software 
engineering  facilities. 
ESF:  EUREKA  Software 
Factory. 

provides  20%  of  fun 
ding  of  definition 
phase  (-0.3  MECU). 

Commission  closely 
involved  in  the  work 
to  date  which  relies 
heavily  on  the  result 
of  an  ESPRIT  project. 

JESSI:  joint  European 

Submicron  Silicon 

Commission  has  par 
ticipated  in  mee-
tings  with  the  partners 

Further 
Commission  in 
vo lv em en t  
possible  via 
the  Framework 
Programme. 

(Commission 
examining  a 
joint  proposal 
from  ESF/EAST 
consortia  pre-
sented 
ESPRIT  II). 

to 

Commission 
examining  scope 
for 
improved 
synergy. 

concerned  so  as  to  ensure 
synergy  with  ESPRIT  projects 
on  micro-electronics. 

4.COMMUNICATIONS 

HDTV:  compatible 
high  definition  TV. 

Commission  actively  in 
volved  in  support  of 
this  project  through 
promotion  of  consistent 
work  on  standards  in-

Continuation  of 
existing  initia 
tives.  Partici 
pation  in  the 
production  of 

side  Europe;  diplomatic 
action  vis-a-vis  third 
countries;  contacts 
with  international  stan 
dards  authorities. 
Indirect  financial  con 
tribution  through  3 
RACE  projects  (16  MECU 
over  3  years). 

a  high  defini 
tion  video  clip 

,  ( 0 . 5  MECU > • 

Possible  finan 
cial.participa 
tion  in  SYNTH. 
TV  project. 

Representatives  of 
Commission  (BRITE  & 
ESPRIT) 
have  attended  meetings 
of  the  steering  committee 
of  FAMOS.  FAMOS  partici-
pants  have  taken  part  in 
Commission  workshops  or-
ganised  through  BRITE. 

Further  coordi 
nation  of  work 
with  BRITE  & 
ESPRIT. 

5.FLEXIBLE  MANUFACTURING 

FAMOS:  Development 
of  automated  flexible 
assembly  systems  for 
an  automated  factory 
of·the  future. 

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