Proposal for a COUNCIL DECISION concerning the Rules for the participation of undertakings, research centres and universities in the specific programmes of research, technological development and demonstration of the European Community
Date: 1994-02-18
Institutions: European Commission
Subjects: EU programme, company research, cooperation policy, research and development, technological change, university research

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

COM(94)  12  final 
Brussels,  18.02.1994 

94/0012(SYN) 
94/0025(CNS) 
94/0013(SYN) 

Proposal  for  a 
COUNCIL  DECISION 
concerning  the  Rules  for  the  participation  of  undertakings,  research 
centres  and  universities  in  the  specific  programmes  of  research, 
technological  development  and  demonstration 
of  the  European  Community 

(94/0012(SYN)) 

Proposal  for  a 
COUNCIL  DECISION 
concerning  the  Rules  for  the  participation  of  undertakings,  research 
centres  and  universities  in  the  specific  programmes  of 
research  and  training  of  the  European 
Atomic  Energy  Community 

(94/0025(CNS)) 

Proposal  for  a 
COUNCIL  DECISION 
concerning  the  Rules  for  the  dissemination  of  the  research 

(94/0013(SYN)) 

results  from 

the  specific  programmes  of  research, 

technological  development  and  demonstration 
of  the  European  Community 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

Introduction 

1. 

2. 

3. 

4. 

5. 

6. 

The  proposal  for  the  Fourth  Framework  Programme  for  research  and 
technological development  (1994-1998)  and the Framework  Programme for 
research  and  training  for  the  European  Atomic  Energy  Community  (1994-
1998)  (COM(93)276)  was  submitted  to  the  Council  in June  1993  and  has 
already  been  the  subject  of  substantial  constructive  dialogue  and  scrutiny 
within  the  decision  making  authorities  of  the  Council  and  the  European 
Parliament.  A common position on the proposal was adopted by the Council 
on  22December  1993. 

At the beginning of October  1993,  a working document on the scientific and 
technical content of the specific  programmes  (COM(93)459)  was  published 
to  further  advance  the  discussions  on  the  Framework  Programmes  and  to 
enable the  Commission to seek the  views  of  interested  partners  prior to the 
preparation  and  submission  of  the  formal  proposals. 

However,  a trilogy of Council decisions is required to enable the  Community 
RTD  activities  established  in  the  Fourth  Framework  Programme  and  the 
relevant  specific  programmes  to  be  implemented  effectively.  This  need for 
a  third  level  of  decision  stems  from  Article  130J  of  the  EC  Treaty  which 
requires  the  Council  to  "determine  the  Rules  for  the  participation  of 
undertakings,  research centres and universities" \n the RTD programmes and 
to  "lay down  the  Rules governing  the  dissemination  of  research  results". 

Decisions  on these  three  separate,  but  complementary,  levels of  proposals 
are, therefore, crucial for the effective  continuation and development  of the 
Community's  RTD effort  and policies.  They are like three interlocking jigsaw 
pieces:  the  full  picture  only  emerges  if  all  the  pieces  are  correctly  and 
appropriately  assembled. 

But  this  need  for  a separate  third  level of  decision  also  gives  rise to  added 
constraints  necessitating  effective  planning.  Firstly,  under  the  legislative 
process, the "130J  Rules" are subject to the cooperation procedure with the 
European  Parliament  provided  for  in  Article  189C  of  the  Treaty  (i.e.  two 
readings),  whilst  for  the  specific  programmes  themselves,  a  more  rapid 
adoption is envisaged as consultation alone is required  between the  Council 
and the  EP (i.e. a single reading); secondly,  no similar  requirement to  Article 
130J  of  the  EC  Treaty  exists  in  the  EAEC  Treaty  for  the  programmes 
relating  to  nuclear  activities,  although  Chapter  II  of  Title  II  of  the  Treaty 
includes provisions concerning the dissemination of information and research 
results  from these  programmes. 

Against  this  background,  and  in  particular  to  ensure  the  adoption  of  the 
specific  programmes  and  the  "130J  Rules"  within  a  similar  timescale,  the 
proposals for the  "130J Rules" must, therefore, be developed and submitted 
before the  final adoption of  the  Fourth  Framework  Programme.  They  must 
also  be  brought  forward  before  the  submission  of  the  proposals  for  the 

specific  programmes,  otherwise  there  is  every  risk  that  there  will  be  a 
disruption  in  the  proper  continuity  of  Community  RTD.  The  participation 
arrangements  need to  be in place at the outset  for  the  launch of  the  specific 
programmes,  and  the  principles  for  the  dissemination  of  RTD  results, 
including  intellectual  property  rights,  need to  be decided  before the  start  of 
the  activities  to  be  financed  by  the  Community. 

Separate,  but  broadly  similar,  participation  Rules  are  also  proposed  under 
Article  7  of  the  EAEC Treaty  for  the  nuclear  activities  (the  only  differences 
relate  to  the  Treaty  basis).  Although  Rules  in  this  format  are  not  essential 
for  the  EAEC  Treaty,  this  will  enable  interested  participants  to  see  that  a 
common  approach  is  adopted  for  RTD  activities  irrespective  of  the  legal 
basis  of  the  activity.  . 

Scope  of  Rules 

7. 

8. 

The  scope  and content  of  the  Rules  concern  horizontal  issues  affecting  the 
implementation  of  all  the  RTD  programmes  irrespective  of  their  detailed 
scientific  and  technical  content. 
In  general,  the  Rules  do  not  deal  with 
specific  issues  relevant to  measures envisaged solely  for  a single or  specific 
RTD activity.  These  more  detailed issues  will  be addressed, if  necessary,  in 
the  programme  proposals.  Such  an  approach  is  justified  by  the  need  to 
reflect  the  content  of  both  the  Fourth  Framework  Programme  (not  yet 
adopted)  and  the  specific  programmes  (not  yet  proposed),  as  well  as  the 
breadth  of  Community  RTD activities,  ranging from those  aimed  primarily  at 
industrial  participants  to  those  aimed  at  having  an  impact  on  the  quality  of 
society  generally  and  with  a  greater 
from  public  sector 
organisations  such  as  universities. 

involvement 

features  of  the  Rules  are,  therefore,  the 

Key 
for 
implementing  the  different  RTD  activities  (by  giving  derogation  powers  for 
effecting  those  measures linked to  a specific  programme)  and full respect  of 
the  principles of openness, transparency and equality of  opportunity to  meet 
the  needs  of  interested  participants  from  all  RTD  sectors  and  all  regions  of 
the  European  Union. 

flexibility  essential 

The  exploitation  arrangements  need to  take  account  of  legitimate  industrial 
and  commercial  interests  of  the  participants  carrying  out  the  RTD,  as  well 
as the  interests  of  the  Community,  to ensure that  the  results  are  adequately 
made  available to  assist  in the  pursuit of  strengthening the  competitiveness 
of  Community  industry  and  to  contribute  to  economic  and  social  cohesion. 

New  Features  in  Rules 

The  changing  nature  and  evolution  of  Community  RTD are  reflected  in  new 
features  aimed  primarily  at  the  necessity  to  include  "technology  users"  in 
international 
networks  having  a  European  dimension, 
cooperation,  and  cost  efficient  management,  whilst  building  on  the  sound 
practices  and  procedures  developed  in  the  implementation  of  Community 
R&D.  The  principles  relating  to  the  ownership  of  intellectual  property 
resulting  from  RTD  carried  out  with  Community  financial  support,  and  the 

increasing 

the 

exploitation  of  the  research  results,  stem  from  the  Council  Decision  of  29 
April 1992  extending the VALUE  programme  (Decision 92/272/EEC:  OJ No. 
L141  of  23.05.92,  p.  1)  and  the  subsequent  dialogue  with  MS  on  the 
detailed  measures  to  be  adopted  by  the  Commission  to  implement  the 
Decision. 

Increasing  International  Collaboration 

10.  At the  international level, account  has been taken of the future emphasis on 
RTD  cooperation  and greater  synergy  with  third countries  and  international 
organisations  foreseen  by  Article  130M  of  the  Treaty  and  the  widening  of 
the  scope  for  tangible  RTD  cooperation  emerging  from  recent  changes. 
These  Include  the  European ; Economic  Area  Agreement,  the  political 
developments  arid  moves  to  market  economies  in the  countries  of  Central 
and  Eastern  Europe  (CEEC)  and  the  former  Soviet  Union  (NIS),  the  greater 
focus  on the  role  of  science  and  technology  for  developing  countries  (DC) 
and  increased  cooperation  with  other  European  actions  such  as  COST  and 
EUREKA.  Overall  guidelines  for  such  cooperation  were  set  out  in  the 
working  document  for  the  S +T  content  of  the  specific  programmes 
(COM(93)459). 

1 1. 

the  approach 

the  Rules  concerning 
Consequently, 
participation,  which  sets  out  the  territorial  requirements  for  organisations 
seeking  to  participate  in  the  Community  RTD  activities,  particularly  RTD 
projects, 
is  wider  than  the  arrangements  adopted  for  the  previous 
Framework  Programmes. 

in  Article  2  of 

the  need  for  multipartner, 

However, 
transnational  cooperation  with 
Community  based  organisations  has  been  maintained  (Article  3  of  the 
In  addition,  the  Rules  concerning  participation  preserve  the 
Rules). 
distinction  between  collaboration  with 
the  possibility  of  a  financial 
contribution  from  the  Community,  and  cooperation  without  any  financial 
contribution.  The  former  is limited  to  associated  states  contributing to  the 
Community  budget  on the  basis  of  a  ratio  involving  respective  GDP,  and in 
the  case  of  other  states,  only  in  accordance  with  measures  specifically 
foreseen  in  the  programme  decision  for  international  cooperation  on  RTD 
(Activity  2  of  the  Fourth  Framework  Programme). 

The  new  arrangements  provide  more  flexible  participation  opportunities  for 
organisations  from  states  which  have  concluded  scientific  and  technical 
cooperation  agreements  with  the  Community;  they  are 
intended  to 
enableeffective  tangible  collaboration  between  organisations  based  in  the 
Community  and  the  third  state  organisations  to  develop  and  reflect  the 
evolution of the  scientific  and technical cooperation at the state  level under 
the  bilateral  agreements. 

Cost  Efficiency 

12.  Another novel feature of the Rules concerning participation is linked to the 
cost  efficient  management  of  RTD  activities  and  the  streamlining  and 
simplification of procedures.  The overall aim is to accelerate the negotiation 
process, thus  resulting in a more rapid commencement  of those activities 
selected to receive Community support, and to simplify the bureaucracy and 
management of the activity itself.  At the heart of this issue is the proposal 
in Article  6  of  the  Rules to  enable  a  range of  financial  mechanisms  to be 
used  to  assess  the  amount  and  payment  of  the  Community  financial 
contribution  for  individual  activities.  These  mechanisms,  already  put 
forward in Octobober 1992 in the working document concerning the Fourth 
Framework Programmé (COM(92)40Ç), are based on a three-fold approach: 
the relevant approach for each specific  programme will be made known;to-
potential  participants,  in advance,  on the  effective  launch  of  the  specific 
programme. 

13.  These financial management  mechanisms would enable 

firstly, the  use of fixed composite  rates for some or most resources 
devoted  to  the  RTD  activity.  Their  use  is  aimed  at  eliminating 
contentious and protracted dialogue during the negotiation phase, the 
payment process and audits.  Such rates or unit costs may, however, 
vary  between  programmes, categories of  participants or MS.  More 
effective  use would  be made of  existing  personnel resources of the 
Commission and an increased number of audits and controls could be 
performed directly by the Commission, thus contributing to the overall 
anti-fraud  initiative.  At  the  same  time,  greater  certainty  would  be 
given to participants, particularly SMEs and research centres, for their 
costs;  their  manpower  rates  used  would  no  longer  be  subject  to 
detailed scrutiny, justification and rejection as at present, sometimes 
two  years  after  the  RTD  projects  have  been  completed.  More 
emphasis would  be placed on controlling the scientific and technical 
output of the  RTD activity and the manpower time to achieve it. 

secondly,  in  certain  cases,  the  Community  contribution  would  be 
directly linked to measurable and quantifiable  results obtained.  This 
financial  mechanism 
is  considered  particularly  appropriate  for 
industrial or applied research demonstration projects; 

thirdly, greater use would be made of all-inclusive fixed contributions 
for small-scale projects.  Controls over scientific and technical outputs 
would  be  maintained,  but  the  financial  evaluation  concerning  the 
resources for the activity would essentially be made "a priori" rather 
than  "a posteriori". 

Structure  of  the  Rules 

14. 

The  structure of the  Rules takes account of features commonly found  in the 
implementation arrangements set out in the specific  RTD programmes under 
the Third Framework Programme (1990-1994).  Measures envisaged for the 
implementation  of  the  specific  programme  proposals  under  the  Fourth 
Framework  Programme  were  set  out  in  the  recent  working  document  on 
their  scientific  and  technical  content  (COM(93)459). 

The  specific  RTD  programme  proposals, and their  implementation,  will  take 
account  of  the  arrangements  envisaged  in  COM(93)203  concerning  the 
synergy  between  RTD  policy,  and  economic  and  social cohesion  policy. 

15. 

The Rules concerning the participation of undertakings, research centres and 
universities  consist  of  nine  Articles;  those  for  the  dissemination  of  the 
resarch  results  consist  of  three  Articles. 

16. 

The  structure  of  the  Rules  concerning  participation 
programmes  under  the  EC Treaty  is: 

in  the  specific 

Article  1 states that the  Rules apply to all the indirect action activities 
specified  in  Annex  IV  to  the  Fourth  Framework  Programme  (namely 
shared  cost  RTD  projects,  including  consortia  integrated  projects, 
thematic  networks of excellence, training and mobility of researchers, 
preparatory,  accompanying  and  support  measures,  and  concerted 
actions).  All forms of  legal entities are covered  by the  Rules and  the 
Article  gives  examples  of  some  categories  which  commonly  seek  to 
participate  in Community  programmes. 

The  Rules do not apply to the direct actions implemented  by the Joint 
Research  Centre. 

Article  2  sets  out  the  territorial  requirements  for  eligibility  to 
participate  in  a  Community  RTD  activity.  New  features  linked  to 
increasing  international  cooperation  arrangements  have  been  dealt 
with  earlier  in  paragraphs  10  and  11. 

Whilst the  intention  in Article  2.1  is to  restrict  participation  primarily 
to organisations carrying out RTD themselves so as to ensure that  the 
direct  dialogue and contact  is with  participants  motivated  to  achieve 
a  successful  outcome  to  the  activity,  two  specific  derogations  are 
included in Article 2.3  to take account of past experiences.  These are 
intended to  enable technology  users, as well  as technology  initiators 
or developers, to participate  where appropriate (for example, in those 
activities  where  their  input  and  direction  is  essential  to  ensure  the 
targetting of resources to produce the technology needed, particularly 
by  industry)  and  to  extend  the  current  CRAFT  measures  for  SMEs 
(cooperative  research  carried  out  by  technology  developers  such  as 
research centres to  specifically  address common  technical  problems 
of  SMEs). 

Article  2.2  reinforces  the  principle  that  finance  for  activities  carried 
out  by  non  Community  organisations  will  only  be  provided  in 
accordance  with,  and  through  the  measures  envisaged  for.  Activity 
2  of  the  Fourth  Framework  Programme. 

Article  3  deals with  selection  procedures.  Selection  will  normally  be 
made  on the  basis of  published calls for  proposals.  At  present,  such 
calls  are  normally  published  quarterly  in  the  OJ  on  15  March, 
15  June,  15  September  and  15  December  with  a  closing  date  of  3 
months  after  the  publication.  However,  for  some  programmes,  the 
call  remains  open  throughout  the  year  with,  selections  at  periodic 
intervals  (for  example,  the. Human  Capital and  Mobility  programme). 
The  need for open publication is dispensed with  in those cases where 
the  focusing  and  targeting  of  the  scientific  and  technical  activity 
limits  the  capability  of  potential  participants  to  known  research 
organisations. 

The  broad  criteria  to  be  taken  into  account  in the  selection  process 
are  also  specified. 

As  the  period  expiring  between  the  application  for  Community 
support  and  the  project  commencement  is  crucial  for  the  market 
relevance of a research project and the efficient  research and financial 
planning of applicants, especially SMEs, the Commisson will speed up 
procedures  so  as to  minimise  that  time  interval. 

to  ensure 

transnational  collaboration. 

Article  4  reiterates  the  principle of  the  need for  Community  research 
activities  to  be  performed  by  at  least  two  independent  entities  in 
separate  MS 
The 
establishments  of  the  JRC  may  constitute  a  network  with  one  or 
more  research  institutes  in  MS. 
In  practice,  for  most  Community 
activities,  the  number  of  participants  is  now  upwards  of  5.  The 
outcome  of  the  European  Economic  Area  Agreement  is  reflected  by 
enabling  one  MS  research  entity  and  one  entity  from  an  associated 
state  to  collaborate  (there is no requirement  for  collaboration to  take 
the  form  of  2  MS  +  1  EEA). 

The  specific  programmes  may,  however,  specify  more  detailed 
requirements  concerning 
the  number  and  characteristics  of 
participants  in  RTD  activities  in  order  to  meet  the  objectives  of  the 
relevant  programme. 

Particular  arrangements  are  set  out  to  deal  with  EElGs  and  those 
SMEs  receiving  feasibility  awards  for  the  exploratory  phase  of  an 
activity  prior  to  a  detailed  RTD  project  (these  awards  are  currently 
limited  to  7 5%  of the costs up to 30,000  ECU for a maximum  period 
of  9  months). 

Article  5  indicates  that  the  activities  financially  supported  by  the 
Community  will  be subject  to contracts  with  third  parties  setting  out 
the  specific  conditions  relating  to  the  support.  These  will  reflect 
research, 
measures  aimed  at 
particularly 
the 
coordinator  (the  main  contractor)  and  from  the  latter  to  the  other 
particpants  in Community  projects. 

the  need  to  accelerate 

the  management  of 

financial  transfers 

improving 

to 

the 

reimbursement  and  payment  of 

Article  6  sets  out  the  guidelines  for  the  mechanisms  to  be  used  to 
assess 
the  Community 
contribution  in  accordance  with  Annex  IV  of  the  Fourth  Framework 
Programme  (namely,  up  to.50%  of  the  costs  of  RTD  projects  with 
progressively  lower  participation  the  nearer  the  project  is  to  the 
market  placé;, up to  100%  of the  additional costs  or the  costs  of  the 
measures for the other categories of  indirect action activities).  These 
mechanisms  have  been dealt  with  earlier  in  paragraphs  12  and  13. 

Article  7  modifies  the  Rules  in  their  application  to  preparatory, 
accompanying  and  support  measures.  The  arrangements  relating  to 
calls  for  proposals,  as  well  as  the  criterion 
for  multipartner 
cooperation will not apply to subventions for conferences, workshops 
and  seminars,  or  to  procurements  or  services  already  covered  by 
specific  procedures set  out  in the  general Financial  Regulation  of  the 
EC.  The  distinct  nature  of  bursary  awards  is  also  reflected.  The 
provision of  finance to  international  organisatons  or  non  Community 
entities  for  the  support  measures  is  permitted. 

Article  8  enables  the  specific  RTD  programmes  to  complement  the 
details  of  the  Rules  to  the  extent  that  the  additions  are  essential  for 
the  proper  implementation  of  the  specific  programme  in question. 

This  flexibility  is required for those  measures which  are linked to  one 
or  only  a  few  programmes.  For  example,  the  procedure  for  the 
selection  of  feasibility  awards  will  differ  from  those  for  other 
activities.  For  industrial  programmes,  participation  from  industry  in 
carrying  out  activities  may  be  a  specific  requirement,  whilst  for 
international  cooperation  involving  developing  countries,  corsortia 
may  be  required  to  include  at  least  one  research  entity  from  a 
developing  country. 

Article  9  provides that  the  Rules  shall  apply  to  those  RTD  decisions 
adopted  after  FP4 enters  into force.  The  Rules will continue to  apply 
until they are superceded by another decision having the same  effect. 

17. 

The  Rules under Article 7 of the EAEC Treaty are similar to the  " 130J Rules" 
concerning  the  participation  arrangements. 
The  only  adaptations  or 
modifications  relate  to  the  different  legal  basis.  In  particular,  account  has 
been  taken  in  Article  3.1  of  the  special  arrangements  relating  to  the 
performance of controlled thermonuclear fusion activities through NET, JET, 
ITER,  etc. 

18. 

The  structure  of  the  Rules  concerning  the  dissemination  of  the  resarch 
results  from  the  specific  programmes  under  the  EC Treaty  is: 

Article  1 sets out the main principles for the ownership of  intellectual 
property rights from Community funded RTD activities and framework 
for  the  dissemination  of  the  research  results. 

For cost  shared  RTD  projects, the  contractors  carrying  out  the  work 
remain the owners of the results.  They must exploit or commercialise 
them  in  conformity  with  the  interests  of  the  Community,  grant 
licences and user rights amongst themselves, and grant access rights 
to  other  interested  parties  who  may  need  to  use  the  results.  The 
regime  concerning  licensing  arrangements  protects  the  owners' 
legitimate industrial and commercial interests linked to their intentions 
for the exploitation or commercialisation of the results.  Access  rights 
may  be  granted  against  payment  or other  conditions. 

Steps  must  be taken to ensure that sufficient  information is published 
on  new  developments  to  enable  third  parties  to  become  aware  of 
opportunities  to  license  technology  developed  with  the  Community 
funding. 

Articles  2  and  3  are  identical  to  Articles  8  and  9  of  the  Rules 
concerning  participation. 

No separate Rules are required for the dissemination of research results from 
the  specific  programmes  under  the  EAEC  Treaty,  as  these  matters  are 
already  dealt  with  in Chapter  II of  Title  II of  the  EAEC  Treaty. 

COUNCIL  DECISION 
... 

0f 

(94/0012(SYN)) 

on  the  rules  for  the  participation  of  undertakings,  research  centres 
and  universities  in  the  specific  programmes  of  research 
and  technological  development  and  demonstration  of  the  European  Community 

THE  COUNCIL  OF THE  EUROPEAN  UNION 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  130Or  paragraph  2,  thereof, 

Having  regard  to  the  proposal  from  the  Commission, 

In  cooperation  with  the  European  Parliament, 

Having  regard  to  the  opinion  of  the  Economic  and  Social  Committee, 

Whereas  Title  XV  of  the  Treaty  foresees  a  coherent  framework  of  provisions  for  a 
common  policy  on  research  and  technological  development; 

Whereas  Article  130F  of  the  Treaty  states  that  the  Community  shall  encourage 
undertakings,  including  small  or  medium  size  undertakings,  research  centres  and 
universities  in  research and technological  development  activities  and  shall  support  their 
efforts  to  cooperate  with  one  another; 

Whereas  Article  130I of  the  Treaty  lays  down  that  a multiannual  framework  programme 
shall  set  out  all  the  activities  of  the  Community  in  the  field  of  research,  technological 
development  and  demonstration;  whereas  this  framework  programme  shall  specify  the 
conditions  for  financial  participation  by  the  Community 
in  research, 
technological  development  and  demonstration  (hereinafter 
referred  to  as  "RTD") 
implemented  by  third  parties  and  by  the  Joint  Research  Centre  (hereinafter  referred  to 
as  "the  JRC")  on  the  same  basis  as  third  parties; 

in  activities 

Whereas  Article  130J  of  the  Treaty  states  that  in the  implementation  of  the  multiannual 
framework  programme, the Council shall determine the  rules for  the  participation of  only 
undertakings,  research  centres  and  universities; 

Whereas  Article  1301  of  the  Treaty  states  that  this  framework  programme  shall  be 
implemented  by specific  RTD programmes  adopted  in accordance  with  the  provisions  of 
paragraph  4  of  this  Article; 

Whereas  Article  130M  of  the  Treaty  states  that  in  implementing  this 
framework 
programme  the  Community  may  cooperate  in RTD with  third  countries  and  international 
organisations;  whereas  the  framework  programme  for  1994  to  1998  foresees  such 
cooperation; 

Whereas  such  cooperation  shall  take  account  of  the  third  states  being  parties  to  the 
Agreement on the  European Economic Area, the countries of  Central and Eastern Europe, 
the  States  which  have emerged from the former  Soviet  Union, and developing  countries; 

Whereas such cooperation may include the association of certain States with all or part 
of  RTD programmes through appropriate agreements; 

Whereas it is necessary to enable certain RTD programmes to detail or complement ihe 
arrangements, foreseen by the  present Decision, for the  participation of undertakings, 
research  centres  and  universities  to  the  extent  strictly  essential  for  implementing 
objectives or measures specific to those programmes; 

Whereas RTD activities shall be implemented in accordance with the principles of sound 
financial  management  and  in  particular  those  of  economy  and  cost  effectiveness  as 
provided for in the Financial Regulation applicable to the general budget of the European 
Communities, 

HAS ADOPTED THIS DECISION 

Article  1 

For the implementation of specific RTD programmes adopted in accordance with Article 
1301(4)  of  the  Treaty,  the  rules  set  out  in  the  following  articles  shall  apply  to  the 
participation  in  Community  "indirect  action"  RTD  activities  specified  in  Annex  IV  to 
Decision  ....,1),  by  undertakings,  research  centres  and  universities,  whether  public or 
private, and having a legal personality  irrespective of  its  form  (including, for example, 
natural  persons,  research  organisations,  higher  education  establishments,  European 
Economic Interest Groupings (EEIG), or international organisations) (hereinafter referred 
to as  "legal entities")  and also to the  participation by the JRC. 

Article  2 

2.1  RTD activities for each specific  RTD programme shall be open: 

(a)  to all legal entities established and regularly carrying out RTD: 

in the Community, or 

in a  non-Community  state  if  the  state  is associated, wholly  or  in part, 
with  the  implementation  of  the  relevant  programme  through  an 
agreement  concluded  between  the  Community  and  the  relevant  non 
Community state; 

(b)  to the Joint Research Centre. 

mOJ  No 

of  .... p ... 

10 

2.2 

from  other  states,  including 

Legal  entities 
international  organisations,  may 
participate  in  RTD  activities  of  a  specific  RTD  programme  to  the  extent  of  any 
limitations  or  conditions  set  out  in  the  Council  Decision  adopting  the  relevant 
programme or  measures  adopted  by the  Council for  the  promotion  of  cooperation 
in  RTD  provided  the  participation  is  in  the  interests  of  Community  policies  and: 

(a) 

the  legal  entity  is  established  in  a  European  state,  or 

(b)  an objective  of  the  relevant  programme  is the  promotion  of  international 
cooperation  in RTD with  third  countries, including that  in which  the  legal 
entity  is  established,  or 

(c) 

the  legal entity  is established  in a state  which  has  concluded  a scientific 
and: technical  cooperation  agreement  with  the  Community  rëiating  to 
activities  covered  by  the  relevant  programme,  or  a  more  general 
technical 
cooperation  agreement  which 
cooperation,  provided  the  participation  accords  with  the  terms  of  the 
agreement. 

includes  scientific  and 

The  provisos  specified  in  paragraphs  (a),  (b)  and  (c)  above  do  not  apply  to 
international  organisations. 

No  legal  entity  within  the  scope  of  this  paragraph,  or  from  an  associated  state 
within the  meaning of  paragraph  1,  may  benefit from Community  financing  except 
in  accordance  with  the  conditions  set  out  in  the  Council  Decision  adopting  the 
relevant  programme,  or  with  measures  adopted  by  the  Council  for  the  promotion 
of  international  cooperation  in  RTD. 

2.3 

By  way  of  derogation  from  paragraph  1,  legal  entities: 

having  an  interest  in  applying  the  results  of  Community  RTD  activities 
("technology  users"),  or 

requiring  RTD  to  be  carried  out  on  their  behalf  under  measures  for 
"cooperative  research"  intended  to  enable  groups  of  undertakings  not 
having  adequate  research  facilities  of  their  o w n,  in  particular,  small  and 
medium  size  enterprises,  to  resolve  common  technical  problems 

may  also  participate  in  these  activities  to  the  extent  of  any  limitations  or 
conditions  set  out  in  the  relevant  programme. 

Article  3 

3.1 

As  a  genera!  rule,  proposals  for  RTD  activities  shall  be  selected  on  the  basis  of 
calls  for  proposals  published  in the  Official  Journal of  the  European  Communities. 

By  way  of  derogation  from  this  paragraph,  where  the  scientific  or  technical 
capability to carry out the specific  RTD activity  is limited to  particular  legal entities 
or  the  JRC,  the  selection  may  be  made  on  the  basis  of  restricted  invitations  to 
those  entities  and  the  JRC  to  submit  proposals. 

11 

Any  other  derogation  from  these  rules  may  only  be  made,  where  applicable,  in 
accordance  with  the  conditions  set  out  in  the  relevant  specific  programme. 

The  selection  of  proposals  shall  primarily  take  account  of  the  criteria  specified  in 
the  specific 
the  multiannual 
programme  concerned. 

framework  programme  and  the  objectives  of 

Additional  criteria  for  the  selection  of  proposals  shall  also  include,  having  regard 
to  the  Community  policies  and  without  prejudice  to  other  criteria  relating  to 
specific  objectives  of  the  relevant  programme: 

3.2 

3.3 

- 
- 

innovativeness  of  the  proposal, 
effective 
categories  of  participants, 

transnational  collaboration, 

including  synergy  between 

'•'  T-  management  competence  of  the  participants, 

scientific  and technical  competence  of  the  participants, 
cost  effectiveness  of  the  proposal, 
objective  exploitation  potential  of  the  research  results, 
perspectives  for  participants  exploiting  the  results  within  their  overall 
activities. 

3.4 

Legal entities  shall  possess the  basic  infrastructure,  means  and  human  resources 
to  carry  out  effectively  the  research activities  attributed  to  them  by  the  contract 
referred  to  in  Article  5. 

Article  4 

4.1  Without  prejudice  to  specific  criteria  relating  to  the  objectives  of  the  relevant 

programme,  Community  RTD  activities  shall  normally  be  carried  out: 

by  at  least t wo  legal entities,  independent  of  each other  and  established 
in  different  Member  States  or  states  associated,  within  the  meaning  of 
Article  2 . 1,  with  the implementation  of  the relevant specific  programme, 
provided that,  in the latter  case, normally  at  least one of  the  contractors 
is  established  in  a  Member  State; 

by  a  legal  entity,  as  specified  in  Article  2.1(a),  and  the  JRC. 

4.2 

By  way  of  derogation  from  paragraph  1 : 

an  EEIG  alone  may  carry  out  such  activities  provided  its  members 
include,  at  least,  t wo  legal entities  independent  of  each  other; 

a  single  small  or  medium  size  enterprise  may  carry  out  the  exploratory 
phase  of  RTD  work  intended  to  assess  its  feasibility  and  potential  for  a 
future  collaborative  RTD  project. 

12 

Article  5 

Community  RTD  activities  shall  be  the  subject  of  contracts  concluded  between  the 
Community  and  the  legal  entities  and  including,  in  particular,  the  administrative  and 
financial  arrangements  for  the  action,  as  well  as  provisions  concerning  intellectual 
property  rights. 

With  regard  to  the  participation  of  the  JRC  in  the  actions  foreseen  by  Article  1,  the 
Commission  will  take  all  the  legal,  budgetary,  financial  and  administrative  measures 
necessary. 

Article  6 

6.1 

The  arrangements  for  the  Community  financial  contribution  to  legal  entities 
participating  in  RTD  activities  shall,  in conformity  with  the  relevant  provisions  of 
the  multiannual  framework  programme  and,  where  applicable,  those  of  the 
relevant  specific  programme,  be  specified  in  the  contract. 

This  participation  shall consist  of  the  reimbursement  of  a proportion  of  the  costs 
of the activity.  The reimbursement shall be determined by the Commission  having 
regard 
tariffs 
in  particular,  as  appropriate,  to  negotiated  costs,  scales  or 
established  in  advance, amounts  linked to  measurable  research  results,  or  global 
fixed  amounts  for  small-scale  projects. 

6.2  Where  the  notion  of  "additional  costs"  is  used  in  the  relevant  provisions  of  the 
multiannual  framework  programme  for  the  determination  of  shared  costs  with 
legal  entities,  these  shall  be  limited,  for  the  relevant  RTD  activity,  to  the  costs 
incurred  directly  as  a  result  of,  and  for,  the  activity  and  to  which  the  legal  entity 
is  not  otherwise  committed.  "Additional  costs"  shall  be  used  by  legal entities  for 
RTD  projects  where,  in  the  view  of  the  Commission,  the  analytical  budget 
accountancy  used  by  the  legal  entity  do  not  enable  the  full  costs  of  the  RTD 
activity  to  be  substantiated  with  sufficient  precision. 

6.3 

The  main  principles  envisaged  for 
the 
Community  participation  shall  be  indicated  in  the  call  for  proposals  or  the 
supporting  documentation  issued  with  the  call. 

the  determination  and  payment  of 

Article  7 

The  preceding  rules shall apply  to  preparatory, accompanying  and support  measures  for 
indirect  actions  subject  to  the  following  provisions: 

for  activities  consisting  of  procurement  and services  which  are subject  to  the 
relevant  provisions, in particular Title  IV, of the Financial Regulation  applicable 
to the general budget of the European Communities  and for subventions to  the 
costs  of  conferences,  workshops  and  seminars,  Articles  3  and  4  of  this 
Decision  shall  not  apply; 

for  bursary  awards,  the  last  t wo  indents  of  Article  3.3  shall  not  apply; 

in  all  cases,  the  last  paragraph  of  Article  2.2  shall  not  apply. 

13 

Article  8 

These rules may only be set out in more detail or complemented within the specific RTD 
programmes to the extent  strictly  essential for fulfilling objectives or measures specific 
to the relevant programme and in accordance with the conditions set out  in the decision 
adopting the  programme. 

Article  9 

This Decision is addressed to the Member States.  It shall apply to RTD actions  adopted 
by the Council after the multiannual framework programme 1994-1998 enters into force 
and shall apply  until  it  is replaced by another  Decision of  the  Council  based on  Article 
130J  of  the  Treaty. 

14 

COUNCIL  DECISION 

of 

(94/0025(CNS)) 

on  the  rules  for  the  participation  of  undertakings,  research  centres 
and  universities  in  the  specific  programmes  of  research 
and  training  of  the  European  Atomic  Energy  Community 

THE  COUNCIL  OF  THE  EUROPEAN  UNION 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and 
in  particular  Article  7  thereof, 

Having  regard  to  the  proposal  from  the  Commission, 

Having  regard  to  the  opinion  of  the  European  Parliament, 

Having  regard  to  the  opinion  of  the  Economic  and  Social  Committee, 

Whereas  Article  7  of  the  Treaty  states  that  Community  research and  training actions  in 
the  field  of  nuclear  activities  shall  be  implemented  by  specific  research  and  training 
programmes  with  the  framework  of  multiannual  programmes  for  a  duration  not 
exceeding  five  years; 

Whereas,  in  order  to  form  part  of  a  coherent  framework  for  the  implementation  of  a 
common  policy  on  research and  technological  development,  specific  programmes  shall 
be  adopted  in  conformity  with  a  multiannual  framework  programme;  whereas  this 
framework  shall  specify  the  conditions  for  financial  participation  by  the  Community  in 
activities in research and training implemented  by third parties and by the Joint  Research 
Centre  (hereinafter  referred  to  as  "the  JRC")  on the  same  basis  as  third  parties; 

Whereas  rules  shall  be  determined  for  the  participation  of  third  parties,  namely 
undertakings,  research centres and universities in the  implementation  of this  framework 
programme  and  the  specific  programmes; 

Whereas  by Articles  10 and  101  of the Treaty the Community  may,  in implementing  this 
framework  programme,  cooperate  in  research  and  training  with  third  countries  and 
international  organisations;  whereas  this  framework  programme  for  1994  to  1998 
foresees  such  cooperation; 

Whereas  such  cooperation  shall  take  account  of  the  third  states  being  parties  to  the 
Agreement  on the  European Economic Area, the countries of Central and Eastern Europe 
and  the  States  which  have  emerged  from  the  former  Soviet  Union,  and  developing 
countries; 

Whereas  such cooperation  may  include the  association of  certain States  with  all or  part 
of  research  and  training  programmes  through  appropriate  agreements; 

Whereas  it  is necessary  to  enable  certain  research and training  programmes  to  detail or 
complement  arrangements,  foreseen  by  the  present  decision,  for  the  participation  of 
undertakings,  research centres and universities to the  extent  essential  for  implementing 
objectives  or  measures  specific  to  those  programmes; 

15 

Whereas  by Article  130J of  the Treaty  establishing the European Community  (hereinafter 
referred to  as  "the  EC Treaty")  the  Council  shall  determine  rules  for  the  participation  of 
undertakings,  research  centres  and  universities  in  activities  in  the  field  of  research, 
technological  development  and  demonstration 
"RTD") 
implementing  a  multiannual  framework  programme  adopted  in  accordance  with  the  EC 
Treaty; 

(hereinafter 

referred 

to  as 

Whereas  it  is  expedient  to  maintain  coherence  between  all  Community  RTD  activities, 
and  whereas  this  Decision  and  the  Decision  on  the  rules  for  participation  in  Community 
RTD  activities0*  in  accordance  with  Article  130J  of  the  EC  Treaty  should,  therefore, 
be  adopted  jointly; 

Whereas  RTD  activities  shall  be implemented  in accordance  with  the  principles  of  sound 
financial  management  and  in  particular  those  of  economy  and  cost  effectiveness.as 
provided  for  in the  Financial Regulation applicable to  the  general budget  of  the  European 
Communities, 

HAS  ADOPTED  THIS  DECISION 

Article  1 

For  the  implementation  of  specific  programmes  adopted  in  accordance  with  Article  7  of 
the  Treaty,  the  rules  set  out  in  the  following  articles  shall  apply,  whenever  decided  by 
the  Commission  in  conformity  with  Article  10  of  the  Treaty,  to  the  participation  in 
Community  "indirect  action"  activities  specified  in  Annex  IV  to  Decision 
(2',  by 
undertakings,  research  centres  and  universities,  whether  public  or  private,  and  having 
a  legal  personality  irrespective  of  its  form  (including,  for  example,  natural  persons, 
research  organisations,  higher  education  establishments,  European  Economic  Interest 
Groupings  (EEIG),  or  international  organisations),  (hereinafter  referred  to  as 
"legal 
entities")  and  also  to  the  participation  by  the  JRC. 

Article  2 

2.1 

RTD  activities  for  each  specific  programme  shall  be  open: 

(a) 

to  all  legal  entities  established  and  regularly  carrying  out  RTD: 

in  the  Community,  or 

in  a  non-Community  state  if  the  state  is  associated,  wholly  or  in 
part, with  the  implementation  of the  relevant  programme  through  an 
agreement  concluded  between  the  Community  and the  relevant  non 
Community  state; 

(b) 

to  the  Joint  Research  Centre. 

"'See  p 

of  this  Official  Journal. 

< 2 ,OJ  No 

of 

p 

16 

2.2 

Legal  entities 
from  other  states,  including  international  organisations,  may 
participate  in  RTD  activities  of  a  specific  programme  to  the  extent  of  any 
limitations  or  conditions  set  out  in  the  Council  Decision  adopting  the  relevant 
programme  or  measures  adopted  by the  Council for  the  promotion  of  cooperation 
in  RTD  provided  the  participation  is  in  the  interests  of  the  Community  and: 

(a) 

the  legal  entity  is  established  in  a  European  state,  or 

(b)  an objective  of  the  relevant  programme  is the  promotion  of  international 
cooperation  in RTD with  third countries, including that  in which  the  legal 
entity  is  established,  or 

<c) 

the  legal entity  is established in a state  whicti  has concluded  a  scientific 
and  technical  cooperation  agreement  with  the  Community  relating  to 
activities  covered  by  the  relevant  programme,  or  a  more  general 
cooperation  agreement  which 
technical 
cooperation,  provided  the  participation  accords  with  the  terms  of  the 
agreement. 

includes  scientific  and 

The  provisos  specified  in  paragraphs  (a),  (b)  and  (c)  above  do  not  apply  to 
international  organisations. 

No  legal  entity  within  the  scope  of  this  paragraph,  or  from  an  associated  state 
within the meaning of  paragraph  1,  may  benefit from Community  financing  except 
in  accordance  with  the  conditions  set  out  in  the  Council  Decision  adopting  the 
relevant  programme,  or  with  measures  adopted  by the  Council  for  the  promotion 
of  international  cooperation  in  RTD. 

2.3 

By  way  of  derogation  from  paragraph  1,  legal  entities: 

having  an  interest  in  applying  the  results  of  Community  RTD  activities 
("technology  users"),  or 

requiring  RTD  to  be  carried  out  on  their  behalf  under  measures  for 
"cooperative  research"  intended  to  enable  groups  of  undertakings  not 
having  adequate  research  facilities  of  their  o w n,  in  particular,  small  and 
medium  size  enterprises,  to  resolve  common  technical  problems 

may  also  participate  in  these  activities  to  the  extent  of  any  limitations  or 
conditions  set  out  in  the  relevant  programme. 

Article  3 

3.1 

As  a  general  rule,  proposals  for  RTD  activities  shall  be  selected  on  the  basis  of 
calls for  proposals  published  in the  Official  Journal of  the  European  Communities. 

By  way  of  derogation  from  this  paragraph: 

for  controlled  thermonuclear 

implemented 
the  activities 
primarily  in  the  framework  of  Contracts  of  Association,  the  NET  Agreement, 
the  quadripartite  agreement  between  the  Community,  Japan,  the  Russian 

fusion  shall  be 

17 

Federation and the  United  States of  America  on co-operation in the  engineering 
design  activities  for  the  Internationa!  Thermonuclear  Experiments!  Reactor 
(ITER),  the  JET  Joint  Undertaking,  and  such  other  agreements  concluded  by 
the  Community  following  the  advice  of  the  Consultative  Committee  for  the 
Fusion  Programme  (CCFP),  on the  basis  of  the  procedures  established  in  any 
such  arrangements; 

where  the  scientific  or  technical  capability  to  carry  out  the  specific  RTD 
activity  is  limited  to  particular  legal entities  or  the  JRC,  the  selection  may  be 
made  on  the  basis  of  restricted  invitations  to  those  entities  and  the  JRC  to 
submit  proposals. 

Any  other  derogation  from  these  rules  may  only  be  made,  where  applicable/in 
accordance  with  the  conditions  set  out  in the  relevant  specific  programme. 

3.2 

The  selection  of  proposals shall  primarily take  account  of  the  criteria  specified  in 
the  multiannual  framework  programme  and  the  objectives  of  the  specific 
programme  concerned. 

3.3  Additional  criteria  for  the  selection of  proposals shall  also  include,  having  regard 
to  the  Community  policies  and  without  prejudice  to  other  criteria  relating  to 
specific  objectives  of  the  relevant  programme: 

transnational  collaboration, 

including  synergy  between 

innovativeness  of  the  proposal, 
effective 
categories  of  participants, 
management  competence  of  the  participants, 
scientific  and  technical  competence  of  the  participants, 
cost  effectiveness  of  the  proposal, 
objective  exploitation  potential  of  the  research  results, 
perspectives  for  participants  exploiting  the  results  within  their  overall 
activities. 

3.4 

Legal entities  shall possess the  basic infrastructure,  means and human  resources 
to  carry  out  effectively  the  research activities  attributed  to  them  by the  contract 
referred  to  in Article  5. 

Article  4 

4.1  Without  prejudice to the specific  criteria  relating to the objectives  of the  relevant 

programme,  Community  RTD  activities  shall  normally  be  carried  out: 

by at least two  legal entities,  independent of  each other and  established 
in different  Member  States  or states  associated,  within  the  meaning  of 
Article  2 . 1,  with the  implementation of the relevant specific  programme, 
provided that,  in the latter case, normally at  least one of the  contractors 
is established  in a  Member  State; 

by  a  legal entity,  as  specified  in Article  2.1(a),  and  the  JRC. 

18 

4.2 

By  way  of  derogation  from  paragraph  1 : 

an  EEIG  alone  may  carry  out  such  activities  provided  its  members 
include,  at  least,  t wo  legal  entities  independent  of  each  other; 

a  single  small  or  medium  size  enterprise  may  carry  out  the  exploratory 
phase  of  RTD  work  intended  to  assess  its  feasibility  and  potential  for  a 
future  collaborative  RTD  project. 

Article  5 

Contracts  concluded  between  the  Community  and  the  legal  entities  shall  include,  in 
particular,  the  administrative  and  financial  arrangements  for  the  action,  as  well  as 
provisions  concerning  intellectual  property  rights. 

With  regard  to  the  participation  of  the  JRC  in  the  actions  foreseen  by  Article  1,  the 
Commission  will  take  all  the  legal,  budgetary,  financial  and  administrative  measures 
necessary. 

Article  6 

6.1 

The  arrangements  for  the  Community  financial  contribution  to  legal  entities 
participating  in  RTD  activities  shall, in  conformity  with  the  relevant  provisions  of 
the  multiannual  framework  programme  and,  where  applicable,  those  of  the 
relevant  specific  programme,  be  specified  in  the  contract. 

This  participation  shall  consist  of  the  reimbursement  of  a  proportion  of  the  costs 
of the activity.  The reimbursement  shall be determined  by the Commission  having 
regard 
tariffs 
in  particular,  as  appropriate,  to  negotiated  costs,  scales  or 
established  in advance,  amounts  linked  to  measurable  research  results,  or  global 
fixed  amounts  for  small-scale  projects. 

6.2  Where  the  notion  of  "additional  costs"  is  used  in  the  relevant  provisions  of  the 
multiannual  framework  programme  for  the  determination  of  shared  costs  with 
legal  entities,  these  shall  be  limited,  for  the  relevant  RTD  activity,  to  the  costs 
incurred  directly  as  a result  of,  and  for,  the  activity  and  to  which  the  legal  entity 
is not  otherwise  committed.  "Additional  costs"  shall  be  used  by  legal entities  for 
RTD projects  where,  in the view  of  the  Commission, the  accounting  rules used  by 
the  legal entity  do  not enable the full costs of the  RTD activity  to be  substantiated 
with  sufficient  precision. 

6.3 

the 
The  main  principles  envisaged 
Community  participation  shall  be  indicated  in  the  call  for  proposals  or  the 
supporting  documentation  issued  with  the  call. 

for  the  determination  and  payment  of 

19 

Article  7 

The preceding rules shall apply to preparatory, accompanying and support measures for 
indirect actions subject to the following provisions : 

for activities consisting of procurement and services which are subject to the 
relevant provisions, in particular Title IV, of the Financial Regulation applicable 
to the general budget of the European Communities and for subventions to the 
costs  of  conferences,  workshops  and  seminars,  Articles  3  and  4  of  this 
Decision shall not apply; 

for  bursary awards, the last two  indents of Article 3.3  shall not apply; 

in alt cases, the last paragraph of Article 2.2  shall not apply. 

Article  8 

These  rules  may  be  set  out  in  more  detail  or  complemented  within  the  specific 
programmes to the extent necessary for fulfilling objectives or measures specific to the 
relevant  programme  and  in  accordance  with  the  conditions  set  out  in  the  decision 
adopting the programme. 

Article  9 

This Decision is addressed to the Member States.  It shall apply to research and training 
actions adopted by the Council after the multiannual framework programme 1994-1998 
enters into force and shall apply until it is replaced by another  Decision of the Council 
having the same effect  as the present Decision. 

20 

COUNCIL  DECISION 

Qf 

(94/0013(SYN)) 

on the rules for the dissemination of the research results 
from the specific programmes of research and technological development 
and demonstration  of the European Community 

THE COUNCIL OF THE EUROPEAN UNION 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  1300,  paragraph 2, thereof, 

Having  regard to  the  proposal from the Commission, 

In cooperation with  the  European Parliament, 

Having regard to  the opinion of  the  Economic  and Social  Committee, 

Whereas  Title  XV  of  the  Treaty  foresees  a  coherent  framework  of  provisions  for  a 
common  policy  on research and technological  development; 

Whereas  Article  130F  of  the  Treaty  states  that  the  Community  shall  encourage 
undertakings,  including  small  or  medium  size  undertakings,  research  centres  and 
universities in research and technological development activities and shall support their 
efforts  to  cooperate with  one  another; 

Whereas Article  130I of the Treaty lays down that a multiannual framework  programme 
shall  set  out  all the  activities  of  the  Community  in the  field  of  research, technological 
development  and demonstration  (hereinafter  referred to as  "RTD"); 

Whereas Article  130J of the Treaty states that in the implementation of the  multiannual 
framework programme, the Council shall lay down the rules governing the dissemination 
of  research results; 

Whereas  Article  1301 of  the  Treaty  states  that  this  framework  programme  shall  be 
implemented by specific RTD programmes adopted in accordance with the provisions of 
paragraph 4  of this  Article; 

Whereas  the  activities  for  the  dissemination  of  knowledge  resulting  from the  specific 
programmes, shall  be carried out  in a coherent and coordinated  manner; 

Whereas such coherence must be based on general rules which guarantee the protection 
of  legitimate  interests  of  the  public  and private contracting  parties and of  rights  linked 
to  obtaining and exploiting the  RTD results, as well as their  exploitation  in  conformity 
with  the  interests  of  the  Community,  in  particular,  with  respect  to  its  economic  and 
social cohesion; 

Whereas  Article  130M  of  the  Treaty  states  that  in  implementing  this  framework 
programme the Community  may cooperate in RTD with third countries and international 
organisations;  whereas  the  framework  programme  for  1994  to  1998  foresees  such 
cooperation; 

21 

Whereas  such  cooperation  shall  take  account  of  the  third  states  being  parties  to  the 
Agreement on the European Economic Area, the countries of Central and Eastern Europe, 
the  States  which  have emerged from the former  Soviet  Union, and developing countries; 

Whereas  such cooperation  may  include the  association of  certain  States  with  all or  part 
of  RTD  programmes  through  appropriate  agreements; 

Whereas  it  is  necessary to  enable certain RTD  programmes  to  detail  or complement  the 
arrangements, foreseen  by the  present  Decision, for the dissemination of  RTD results  to 
the  extent  strictly  essential  for  implementing  objectives  or  measures  specific  to  those 
programmes; 

Whereas  RTD activities shall be implemented  in accordance with  the  principles of  sound 
financial  management  and  in  particular  those  of  economy  and  cost  effectiveness  as 
provided  for  in the  Financial Regulation applicable to the general budget of  the  European 
Communities, 

HAS  ADOPTED  THIS  DECISION 

Article  1 

1.1 

For the  implementation  of  specific  RTD  programmes  adopted  in accordance  with 
Article  1301(4)  of  the  Treaty,  the  following  rules,  whilst  respecting  pre-existing 
rights, shall apply to  the dissemination and exploitation of  knowledge  (hereinafter 
referred  to  as  "knowledge")  resulting  from  the  specific  RTD  programmes: 

(a) 

(b) 

(c) 

the  knowledge  resulting  from  work  undertaken  directly  or  the  cost 
of  which  is  wholly  supported  by  the  Community  shall,  in  principle, 
be the  property  of  the  Community. 

The  knowledge  resulting  from  work  under  a  shared  cost  contract 
shall  be  the  property  of  the  contractors  who  carry  out  the  work 
(hereinafter  referred  to  as  "the  contractors").  They  shall  agree 
between themselves on particular  arrangements for  such  ownership; 

knowledge  which  could  be  used  in  an  industrial  or  commercial 
application, shall be protected, if  its  nature justifies  such a  measure, 
in  any  appropriate  form  to  the  extent  required  in  the  light  of  the 
interests  of  the  Community  and  the  contractors  and  in  accordance 
with  any  applicable  legislation  or  convention; 

the  Community  and  the  contractors  shall  be  required  to  exploit  the 
knowledge  in  their  possession,  or  have  it  exploited,  in  conformity 
with  the interests of the Community,  in particular, taking account  of: 

objectives 

the 
international 
competitiveness of Community  industry and the economic and 
social  cohesion  in  the  Community,  and 

strengthening 

the 

of 

22 

the  promotion  of  research  activities  deemed  necessary  for 
other  Community  policies,  and 

technical  cooperation 
the  existence  of  scientific  and 
agreements  between  the  Community  and  non-Community 
states,  or  international  organisations. 

knowledge  belonging to the  Community  should  be made available  to 
the  contractors  and to  interested  third  parties  which  are  established 
in the  Community  or  third  states  associated,  wholly  or  in  part,  with 
the implementation of the relevant programme through an  agreement 
concluded between the Community  and the relevant non  Community 
state,  and  which  undertake  to  exploit  it,  or  have  it  exploited  in 
conformity  with  the  interests  of  the  Community.  Such  provisions 
and knowledge may be subject to appropriate conditions,  particularly 
concerning  the  payment  of  fees. 

The  contractors  shall  make  the  knowledge  in  their  possession, 
together  with  any information  necessary for  its  use, available to  each 
other  and  to  interested  third  parties  under  contractually  defined 
conditions,  provided  that  the  interests  of  the  Community  and  the 
legitimate  interests  of  the  contractors  are  safeguarded; 

that 

the  Commission  shall  ensure 
for 
dissemination  according to  the  contractual  terms  is disseminated  or 
published  either  by  the  Commission  itself,  or  by  the  contractors, 
without  any  restriction  other  than  those  imposed  by  the  need  to 
safeguard 
intellectual  and  industrial  property,  confidentiality  or 
legitimate  commercial  interests. 

knowledge  suitable 

(d) 

(e) 

1.2 

The  Commission  shall  lay  down  the  arrangements  for  implementing  the  rules  laid 
down  in  the  first  paragraph. 

Article  2 

These  rules  may  only  be set out  in more detail or complemented  within  the specific  RTD 
programmes  to  the  extent  strictly  essential  for  fulfilling  objectives  or  measures  specific 
to the  relevant  programme  and in accordance  with  the conditions  set out  in the  decision 
adopting  the  programme. 

Article  3 

This  Decision  is addressed to  the  Member  States.  It shall apply  to  RTD actions  adopted 
by the  Council after the multiannual framework  programme  1994-1998  enters into  force 
and  shall  apply  until  it  is  replaced  by  another  Decision  of  the  Council  based  on  Article 
130J  of  the  Treaty. 

23 

BUSINESS  IMPACT  STATEMENT 

THE  IMPACT  OF THE  PROPOSAL  ON  BUSINESS 
WITH  SPECIAL  REFERENCE TO  SMALL  AND  MEDIUM-SIZED 
ENTERPRISES  (SMEs) 

Title  of  Proposal:  Commission  Proposal concerning the  Rules for  the  participation 
of  undertakings,  research  centres  and  universities  in  the  specific  programmes  of 
Community  activities  in  the  field  of  research,  technological  development  and 
demonstration,  and  for  the  dissemination  of  the  research  results. 

The  proposal 

/. 

Taking  account  of  the principle  of subsidiarityf  wh y is  Community 
necessary  in  this  area  and  what  are  its  main  aims? 

legislation 

The  objectives  of  the  Community's  RTD  activities  are  to  strengthen  the 
scientific  and technological  bases of  Community  industry  and to  encourage 
it  to  become  more  competitive  at  the  international  level.  The  need  for 
Community  action  is  acknowledged  by  Title  15  of  the  EC  Treaty  which 
stipulates  (Article  130J)  that  the  Council  shall  determine  the  Rules  for  the 
participation  of  undertakings,  research  centres  and  universities 
in  the 
specific  RTD  programmes  implementing  the  Framework  Programme.  The 
current  proposal  complements  the  proposal  of  the  Commission  for  the 
Fourth  Framework  Programme  and  the  working  document  on  the  scientific 
and  technical  content  of  the  specific  RTD  programmes. 

The  impact  on  business 

2. 

Who  will  be  affected  by  the  proposal? 
-  Which  sectors  of  business? 

the  Fourth  Framework 
The  Community's  RTD  activities  set  out 
for 
Programme  Proposal  concentrate  more  on  generic 
widespread  use  in  all  sectors  of  economic  activity  in  Europe.  The  joint 
research 
the  Fourth  Framework 
Programme  will  assist  many  sectors. 

the  budget  allocated 

technologies 

funded  by 

to 

in 

-  Which  sizes  of  business  (what  is  the  proportion  of  small  and  medium-

sized 

firms)? 

The  Community  encourages  RTD and  cooperation  by  businesses,  including 
SMEs, research centres and universities.  The complementarity  between  the 
comparative  advantages  of small firms  and big companies  has prompted  the 
Commission successfully to encourage small firms to  become involved in the 
Community's 
the  aid  of  special 
incentives.  SMEs  have  also  benefited  most  from  the  improvements  made 
to  the  management  of  Community  research. 

research  programmes,  notably  with 

24 

-  Are  there  particular  geographical  areas  of  the  Community  where  these 

businesses are  found? 

in 

In  principle,  the  Community's  RTD  activities  serve  no  geographical  or 
regional objective.  Although the  objectives  of  strengthening  economic  and 
the  Community  and  of  promoting  harmonious 
social  cohesion 
development  also apply to  RTD  policy, scientific  and technical excellence is 
the  overriding  selection  criterion  applied  for  this  particular  policy.  This 
criterion  in  itself  is  a  factor  encouraging  cohesion  in  so  far  as  it  enables 
scientists  from  the  least  favoured  regions  to  participate  in  the  most 
advanced  research  activities  in  Europe. 

3. 

What  will  businesses have  to  do  to  comply  with  the  proposal? 

imposes  no  formal  obligations  on  businesses 

The  proposal 
in  the 
Community.  On  the  contrary,  together  with  the  Fourth  Framework 
Programme,  it  provides  them  with  greater  means  to  participate  in  joint 
research.  The  private  sector  will  retain  primarily  responsibility  for  fully 
seizing  the  opportunities  opened  up  and  for  applying  the  results  of  the 
research  projects  for  the  manufacture  and  successful  marketing  of 
innovatory  products. 

4. 

What  economic  effects  is  the proposal  likely  to  have? 
-  on employment,  on investment  and  the  creation  of  new  businesses and 

on  the  competitive  position  of businesses? 

By making  European businesses  more competitive  at the  international level, 
the  Community's  RTD activities  will create jobs and encourage  investment. 
The  Fourth  Framework  Programme  proposal,  which 
this  proposal 
complements,  sets out  the  strategy  for  a greater  selective  allocation  of  the 
funds  for  individual  activities  to  ensure  that  the  activities  have  greater 
relevance  and  impact. 

5. 

Does the proposal contain measures to take account  of the specific  situation 
of  small and medium-sized  firms  (reduced  or different  requirements,  etc.)? 

The  Fourth  Framework  Programme  proposal  sets  out  arrangements 
specifically addressed to small firms and which will continue to be developed 
and,  in  certain  cases,  tested.  The  proposal  contains  specific  measures 
aimed  at  facilitating  the  participation  of  SMEs  in  Community  RTD,  and 
improved  management  and  simplification  initiatives  for  Community  RTD, 
such  as  simplified  forms,  publication  of  management  manual,  increased 
transparency  in  calls  for  proposals  on  fixed  dates,  and  simplified  cost 
arrangements,  should  particularly  assist  SMEs. 

25 

Consultation 

6. 

List the organisations  which have been consulted about the proposal and 
outline their main  views. 

The Fourth Framework Programme proposal and the working document on 
the scientific and technical content of the specific RTD programmes, which 
this  proposal complements,  have  resulted  from  policy  debates  within  the 
Commission  which  keeps  in  constant  contact  with  advisory  bodies 
responsible  for  RTD. 
The  proposal  builds  upon  the  participation 
arrangements implemented in previous framework programmes and dialogue 
with,  amongst  others,  MS,  representative  bodies  and  participants  on the 
management  of Community RTD. 

26 

ISSN 0254-1475 

COM (94) 12 final 

DOCUMENTS 

EN 

16  15 

Catalogue number : CB-CO-94-013-EN-C 

ISBN 92-77-64485-0 

Office for Official  Publications of the European Communities 
L-2985 Luxembourg 

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