COMMISSION WORKING PAPER Towards the Fifth Framework Programme: Additional Material for the Policy Debate
Date: 1996-11-20
Institutions: European Commission
Subjects: EU programme, EU research policy, research and development, research programme, technological change

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  20.11.1996 
COM(96)  595 final 

COMMISSION  WORKING  PAPER 

Towards the Fifth Framewoik 
Programme: 
Additional Material for the Policy Debate 

Introduction 

On  10  July  1996  the  Commission  sel  out,  in  a  communication  entitled 
"Inventing Tomorrow",  its proposed  guidelines for  the  Fifth  Research and 
Technological Development Framework Programme. These guidelines were 
presented  to the 7 October  Research  Council  and are now being  examined 
by  the  European  Parliament. 

To enable the debate launched  in the institutions to proceed and take  firmer 
shape, we now need to go one step further.  This is the purpose of this  first 
working  paper. 

Its  specific  aim  is  to  clarify  the  Commission's  thinking  in  terms  of 
structure,  objectives  and  the means  for  implementation. 

At this stage, pending the conclusions of the five-year  assessment report on 
the Union's research activities and the European Parliament's own-initiative 
report,  the intention  is mainly to clarify  the proposed new guidelines ahead 
of  the 5  December  Research  Council. 

A  description  of  the  detailed  content  proposed  for  the  Fifth  Framework 
Programme  will  be given  in a second  working  paper  that  the  Commission 
will  produce  for  the beginning  of  1997. The second working paper  will be 
followed  by  a  formal  proposal  to  be  tabled  by  the  Commission  in  March 
1997. 

It is generally acknowledged that the preparations for  the Fifth Framework 
Programme should provide an opportunity  to reassess certain aspects of the 
Union's  research policy.  The  general  approach proposed  in  "Inventing 
Tomorrow ", namely  a greater focus  on  societal and economic  needs,  is 
endorsed  on  all sides,  as  is  the  idea that the  Union's  research activities 
should  be  given  the  resources to  respond appropriately and swiftly  to  a 
constantly and rapidly changing situation. 

To  help  explain  how  this  approach  can  be  implemented,  this  paper 
addresses  the  following  aspects  one by  one:  structure:  objectives:  means 
of 
resources  and 
timetable. 

implementation  (including  management);  financial 

I. 

Structure 

The Fifth  Framework  Programme needs to have a simple structure in order 
to  make  it  easier  to  achieve  the  major  societal  and  economic  objectives 
aimed  at,  and  in  order  to guarantee  efficient  operation  and  transparency. 
This  simplicity  should  be  reflected  in  the Commission's  formal  proposals 
for  decisions  (subject  to  the  constraints  imposed  by  the  need  to  use  two 
separate  legal  bases,  namely  the  EC  Treaty  and  the  EAEC  Treaty). 

The  basis  for  this  simple  structure  can  be taken  from  the  outline  given  in 
"Inventing  Tomorrow".  Accordingly,  the  Commission  proposes  that  the 
Fifth  Framework  Programme  should  be  subdivided  into  six  programmes 
reflecting  the  six  priorities  identified  in  "Inventing  Tomorrow". 

These programmes  are designed  to take account  of the public  interest  and 
European  economic  and  societal  needs  in  a  general  perspective; 
the 
incorporation,  to  this  end,  of  new  know-how  and  technologies  under 
the  focusing  of  efforts  on  a  number  of  specific  objectives; 
development; 
and  the harnessing,  to  this  end,  of  a variety  of disciplines  and  expertise. 

The  programmes 

-  Thematic  aspects 

These  programmes  could  address  the  following  topics,  respectively: 

# 
# 
# 

unlocking  the  resources  of  the  living  world  and  the  ecosystem 
creating  a user-friendly  information  society 
promoting  competitive  and  sustainable  growth. 

These topics were  identified  as priorities and described  in general  terms in 
COM(96)332  "Inventing  Tomorrow"  and  are  being  examined  within  the 
Commission  departments  with  a view  to  specifying  their  content. 

Each  of  them  should  comprise: 

The  activities  concerning  the  use  of  nuclear  energy  will  subsequently  be  dealt  with  in  accordance 
with  the  legal  provisions  of  article  7  of  the  IÎAIÎC  Treaty. 

# 

# 

# 

several  targeted  research  activities  with  a  major  coordination  and 
integration  content  and  activities  to  demonstrate  the  technical  and 
economic  viability  of  technologies 
activities  for  the  development  of  generic  technologies  and  more 
fundamental  research,  a category  which  should  be maintained  at an 
adequate  level  in the  Fifth  Framework  Programme 
the  general 
activities  specific 
objectives  of  policy  with  regard  to  international  cooperation, 
innovation and dissemination/utilization of results, support for SMEs, 
training  and  mobility,  analysis  and  monitoring  of  socio-economic 
aspects and  exploitation  of know-how  and technologies  arising  from 
projects  funded. 

to  these  programmes  reflecting 

The  activities  in  support  of  SMEs  in  the  context  of  programmes 
dedicated  to  thematic  aspects 
(aided  by  the  establishment  of  a 
one-stop office  and the rationalization  of information  networks) will 
enable  small  and medium-sized  enterprises  to benefit  from  the links 
established  with  large  firms,  research  centres  and  universities  in 
connection  with  the  projects. 

- Horizontal aspects 

These  programmes  could  address  the following  topics: 

# 
# 
# 

Confirming  the  international  role of  European  research 
Innovation  and  participation  of  SMEs 
Improving  human  potential. 

These  programmes  should  contribute  towards  the  implementation  of 
consistent and structured policies in the sphere of international scientific and 
technological  cooperation, 
innovation  and  the  promotion  of  human 
resources. As with the three abovementioned  topics, discussions are taking 
place  within  the  Commission  departments  to  specify  the  content  of  these 
areas. 

To  this end,  they  would  encourage: 

# 

# 

coordination  and  support  for  activities  conducted  in the  same  areas 
within  the  programmes  dedicated  to thematic aspects. 
more  general  initiatives  relating  to each  of  the three topics. 

This  structure,  which  should  make  it possible  to  increase  significantly  the 
overall  efficiency  of the framework  programme,  reflects  the way  in which 
the  Union's  RTD activities  are  covered  in Title  XV of  the  Treaty. 

Joint Research Centre 

As with  the  previous  Framework  Programmes,  the Joint  Research  Centre 
will  help  implement  the  Fifth  Framework  Programme.  Drawing  on  its 
unique resources in many fields and the expertise developed and maintained 
as  a  result  of  its  exploratory  research  activities,  the  Centre  will  make  its 
impartial know-how available for the implementation of the Union's policies 
while  continuing  to develop  its  links with  industry. 

JRC activities in the context of the Fifth  Framework  Programme should be 
based  on  clearly 
identified  needs,  acknowledged  expertise  and  the 
provision of a European  added  value.  In addition,  part  of its activities will 
continue  to  be  conducted  in  the  context  of  a  competitive  approach  using 
new ways  of operating  on the market,  in particular  new  arrangements  for 
partnership  with  industry. 

H.  Objectives 

The  need  to focus  the  Union's  research  efforts  was  stressed  in  "Inventing 
Tomorrow". 
It  is  also  reflected  in  many  of  the  contributions  to  the 
discussions  on the  Fifth  Framework  Programme provided  by  the  Member 
States,  research  organizations  and  industrial  organizations. 

In  concrete  terms,  this  means  that  it  is  appropriate  to  launch  activities 
focusing  on  a  limited  number  of  topics  reflecting  European  societal  and 
economic  needs.  As we have  seen,  that  is what  is  in fact  proposed. 

However,  focusing  efforts  also  means  making  choices  within  each  major 
topic  and  making  a  selection  from  among  the  possible  scientific  and 
technological  objectives. 

On what basis can such a selection be made?  The Commission is proposing 
a general  approach  and  a set  of  criteria  to be  applied  systematically. 

The  scientific  and  technological  objectives  selected  should  in  all  cases 
correspond  to  activities  with a high European value added on the basis of 
public  interest  and  social  acceptability. 

However,  before  being  examined 
requirement,  the objectives  in question  must  satisfy  two other  criteria: 

in  the  light  of  this  fundamental 

# 

# 

The  major  political  choices  expressed  in  "Inventing  Tomorrow". 
The scientific  and technological objectives in question must, first and 
foremost,  clearly help to achieve the societal and economic objectives 
quality  of  life,  health  and 
set  out  in  "Inventing  Tomorrow": 
environment (objectives  of such societal importance that they should 
be  given  special  attention);  developing  the  information  society; 
competitiveness of industry, sustainable development and job-creating 
growth;  maintenance  and  reinforcement  of  Europe  as  a  centre  of 
scientific  excellence  and  of attraction  for  investment  and  innovation 
(with  the  enhancement  of  human  resources  and  mobility  deserving 
special  attention);  contribution  towards  implementing  the  Union's 
major  policies. 

The level of know-how and technology and Europe's position in the 
fields  concerned.  Only  objectives  relating  to  fields  where  new 
avenues of  research  are opening  up or where there are  serious gaps 
in  our  knowledge  should  be  selected;  however,  fields  in  which 
Europe  has  genuine  strengths  on  which  to  build  or  where  it  has 
weaknesses  which  can be overcome  by measures  at  European  level 
should  also  be considered.  The focal  point of the  Union's  research 
policy,  namely  boosting  Europe's  competitiveness,  should  serve  as 
a guide. 

With  regard  to  objectives  corresponding  to topics already covered by  the 
Fourth  Framework  Programme,  before  proposing that they are  reselected, 
a  careful  examination  will  be  carried  out  of  the  results  of  the  activities 
carried  out  on  these  topics  (on  the  basis,  in particular,  of  the  assessment 
reports  by  independent  experts);  a check  will  also be made to verify  that 
the  reasons  justifying  these  activities  when  they  were  launched  are  still 
valid. 

It  should  be  added  that  the  objectives  must  be  verifiable  and,  where 
possible, quantified  and that a specified  period of time should be earmarked 
for  their  attainment. 

in.  Instruments 

The  success  of  the  Fifth  Framework  Programme  will  depend  to  a  large 
extent  on  its  effective  implementation,  this  being  closely  linked  to  the 
quality  of  instruments  adopted  to this end.  From  the guidelines  set out in 
"Inventing  Tomorrow"  and  the  many  discussions  in  this  connection,  it  is 
clear  that  there  are  four  major  areas  on which  efforts  should  focus: 

# 
# 
# 
# 

Improving  coordination 
Improving  flexibility  and  response  capability 
Improving  the  impact  of  research  on  competitiveness 
Management. 

Improving coordination 

There  are  three aspects  to coordination:  coordination  within  the  research 
programmes and between the different  programmes;  coordination between 
the Union's research programmes and its other activities;  and coordination 
between  national  and  European  initiatives. 

# 

Coordination within  the  research programmes  and  between  the 
different programmes 

the  number  of  programmes  makes 

Limiting 
to  improve 
coordination  within  each  programme  but  also  between  the  different 
programmes  as a  result  of  the smaller  number  of  interfaces. 

it  easier 

Research activities which are closely connected  with different  areas of one 
or more programmes will be coordinated by mechanisms designed to ensure 
complementarity  and  consistency. 

In  both  respects,  the  research/industry  Task  Forces  could  play  a  special 
role. 

The  setting  up  of  the  Task  Forces  represented  a  major  innovation  (the 
importance of which was confirmed  by the consultations on the Innovation 
Green Paper) in the implementation of the Fourth Framework  Programme. 

The Task Forces should be deployed as means of providing the Commission 
with  expertise  and  advice,  ensuring  coordination,  consultation  and 

identifying  avenues of research to be explored at European level to develop 
key  technologies  needed  for  the welfare  of citizens. 

Experience with the use of the Task Forces has proved to be favourable and 
can  be  exploited  in  the  Fifth  Framework  Programme.  The  Task  Forces 
will act as catalysts to ensure the launching of targeted  activities and inter-
programme  and  inter-service  coordination. 

Coordination  between  the programmes  dedicated  to topic-centered  aspects 
and  the  programmes  dedicated  to  horizontal  aspects  should  also  make  it 
possible  to further  enhance coordination  of  the Framework  Programme as 
a  whole. 

# 

Coordination  between  the  Union's  research  programmes  and 
compatibility with its other activities and policies 

Complementarity  and coherence with the objectives of other policies of the 
Union  will  be ensured  in an appropriate  manner. 

The question of coordination between the Union's research activities and its 
other  activities  concerns  in  particular  links  between  the  Framework 
Programme and the Structural  Funds; on the other,  the major  programmes 
and  frameworks  for  economic  and  technical  assistance  for  third  countries 
(PHARE,  TACIS,  MEDA,  EDF and  ALA-DCs  scheme): 

The  inter-relationships  built up in recent years between RTD policy 
and  regional  policy  are developing.  The Structural Funds are used 
fairly  systematically  to  strengthen  research  capabilities  in  recipient 
countries  through  research  facilities  and  human  resources  (training 
schemes).  On the basis of  an  in-depth  analysis  of  the situation,  the 
Commission  intends  to  publish  shortly  a  Communication  on  the 
subject  of  "Research  and Cohesion".  One of the aims of this will be 
to develop  further  synergy  between  the two areas. 

The instruments for technical and financial cooperation and economic 
third  countries  already  make  a  significant 
cooperation  with 
contribution  to  sustainable  development  in  the  countries  concerned 
and  to  their  economic  cooperation  with  the  Union,  including 
cooperation  in  the  field  of  research,  technological  transfer  and 
adjustment.  These  countries  should  be  encouraged,  through  the 
opportunities  opened  up  by  these  instruments,  to  develop  greater 

synergy  with the specific  activities under the framework  programme 
which  address  their  requirements. 

A  clear  distinction  should  be  made  between  political  aid  for  the 
financing of third country participation in the Framework Programme 
which  could  be  ensured,  for  example, 
the  Union's 
international  cooperation  instruments  and  financing  resulting  from 
negotiation  of  international  research  agreements  the  modalities  of 
which  must  be defined  on a case  by case basis. 

through 

Coordination will also be strengthened  between the Framework  Programme 
and other activities and programmes such as those concerning education and 
vocational  training. 

# 

Coordination between national and European initiatives 

The  Framework  Programme  admittedly  represents  only  a  fraction  of  the 
total  European  research  effort.  Consequently,  Europe's  research potential 
can  only  be fully  exploited  if there  is effective  coordination  of the  efforts 
made in the various frameworks.  Progress in this direction should be made 
first and foremost  on the basis of precise objectives, making use of existing 
instruments  and  new  mechanisms: 

Existing instruments.  EUREKA (for  research  close  to  the  market) 
and  COST (for  targeted  basic  research) are particularly  appropriate 
forums  for coordination  between national and  Union initiatives.  The 
exchange  of  information  between  the  different  forums  should  be 
increased,  and 
improve 
coordination at national  level.  Existing  links should be strengthened 
to  make  them  more  operational:  simple  coordination  mechanisms 
should  be  established. 

the  Member  States  encouraged 

to 

New  mechanisms.  The  Treaty  Articles  130 k  (supplementary 
programmes),  130 1  (participation  in  national  initiatives)  and  130 n 
(joint  undertakings)  provide  additional  opportunities  for  measures 
supplementing  the traditional  programmes  which  should  continue to 
form  the backbone  of  Union  activities.  These  opportunities  should 
be used  in special  circumstances where they can provide extra added 
value. 

Articles  130 k and  130 S  provide  for  the  possibility  of  activities  on 
interest 
research 

to  certain  Member  States. 

topics  of  special 

Activities  undertaken  on that basis  should  complement  the activities 
making  up the remainder  of the Framework  Programme  the  overall 
balance  of  which must be maintained.  Such activities  should  focus 
on specific  initiatives  of  obvious  interest  to  the  European  Union as 
a  whole. 

Improving flexibility and the response capability 

The need to make the programmes more flexible  and improve the Union's 
ability to respond  to  unexpected scientific  and technological  developments 
or  unforeseen  problems  is  self-evident  and  has  often  been  stressed. 
It 
would be impossible to predict  at the beginning  of a four  year  Framework 
Programme  all  the  major  needs  that  will  manifest  themselves  or  all  the 
possible  developments  during  the period  covered. 

There  are  two  aspects  to  the  issue  of  constant  adjustment  of  Europe's 
research efforts:  the real-time monitoring of developments and the response 
adjustment  mechanisms: 

# 

Real-time  monitoring  of  scientific  and  technological  developments 
and the development of societal and industrial needs can be achieved 
by  stepping  up  the  "Technology  Watch"  activities  and  establishing 
closer  links  between  those  activities  and  the  activities  under  the 
programmes.  Needs,  particularly  in  terms  of  additional  targeted 
activities,  could be analyzed  continuously  on the basis of evaluation 
and  monitoring  reports  and  regular  consultations  with  industry,  the 
scientific  community  and  users. 

• 

A rapid  and flexible response  can be ensured  by  various  means,  in 
particular: 

regular  adjustment  of  the  programmes,  ideally  on  an  annual 
basis; 

the provision of a  "free  space" of limited  scale, and subject to 
strict  rules,  specifically  to respond  rapidly  to needs that  were 
not  originally  foreseen. 

It  should  be  added  that  the  limited  number  of  programmes  is  in  itself  an 
important  factor  making for  greater  flexibility.  However,  the existence of 
adequate mechanisms is not enough to guarantee effective  flexibility  - there 
must  also  be a political  will  to use the mechanisms. 

10 

Increasing the impact of research on competitiveness 

The Union should encourage the development  of research  activities which 
increase competitiveness, in particular as a result of demonstration activities 
involving  a  bigger  input  of  private  funding  than  with  the  traditional 
shared-cost  projects,  and  appropriate  intellectual  property  provisions,  to 
give  a greater  incentive  to exploit  the results. 

Management 

Sound  and  efficient  management  is  recognized  by  all  commentators  as a 
condition  for  the success  of the Union's  RTD programmes.  In its  efforts 
to  improve  the  management  projects  and  programmes  still  further,  the 
Commission will continue to base itself on the fundamental  principles now 
applied:  effectiveness,  quality,  equality  of  opportunities,  and  sound 
administration  of public  funds. 

On the basis of the progress made with the 4th Framework Programme, the 
Commission  will  endeavour  to  improve  the  consistency  and  quality  of 
programme management.  The main objective  should clearly be to correct 
the current  situation of  "oversubscription"  of programmes, which tends to 
place  a considerable  burden  on their  management. 

Action will be taken to  combat this in three ways: 

# 

# 

# 

Focusing: limiting the work programmes to a small number of clearly 
defined  priority  objectives  should  limit  the  number  of  proposals 
submitted; 

Transparency: the Commission will endeavour to provide  sufficiently 
precise  information  in  order  to  discourage  the  submission  of 
proposals which are inadequately  substantiated  and justified  and are 
not in keeping with the spirit of the programmes. The Member States 
and  those  organisations  established  at  national  level  to  disseminate 
information  on  the  programmes  should  be  able  to  help  the 
Commission  in this  task. 

Pre-inspection of conformity  of proposals: early  information 
for  possible  participants,  in  particular  small  and  medium-sized 
enterprises about the conformity  and direction of their proposals with 
regard to the formal participation conditions and the objectives of the 
programme. 

ll 

The  organization  of  the  Framework  Programme  as  a  limited  number  of 
multidisciplinary  programmes  covering  several  areas  will  also  make  it 
necessary  to  move  from  a  programme-centred  management  method  to an 
approach  based  on more  collégial  management. 

IV.  Budgetary  context and timetable 

The  Fifth  Framework  Programme  will  be  funded  within  the  limits  of  a 
"maximum overall amount" determined  by the legislative authority. During 
the  period  in  which  the  commitments  will  be  made  (1999-2002),  this 
amount  cannot  exceed  the  annual  ceilings  set  in  the  Union's  financial 
perspective. 

Research  expenditure  now  appears  in  heading  3 (internal  policies)  of  the 
financial perspective.  It is by  far  the biggest component,  representing  as it 
does 60% of the funds  available  under that heading  in accordance with the 
spirit  of  the  Edinburgh  agreements  (between  one  half  and  two-thirds  of 
heading 3 of the financial  perspective). This approach could be followed  for 
the  fifth  framework  programme. 

Expected  GDP growth  will  be taken  into consideration  in the  forecasts  of 
what  might  constitute  an appropriate  level  for  research  expenditure  in the 
Union. 

Account  will  also  be  taken  of  the  fact  that  the  outlay  of  the  other  major 
technological  powers,  namely  the  United  States  and  Japan, 
is  not 
diminishing.  While Japan  is devoting  3% of  its GDP  to  research,  and the 
United  States  2.5%,  the  European  Union's  outlay  has  been  only  2%  on 
average  for  several  years. 

The American public  research  budget,  which had been cut in recent years, 
will increase in  1997 by nearly 3 billion dollars (the NIH budget  increasing 
by  6.9%,  to  give  one  example),  and  the  budgets  of  the  Japanese  public 
research  agencies  is continuing  the  marked  upward  trend  in evidence  for 
several  years  ( +  8.3%  for  the Science  and Technology  Agency,  +16.4% 
for  MÏTI).  Given this outlay  by our  competitors/partners,  we must  ensure 
a  substantia!  rate of  investment  in public and  private  research  spending  in 
Europe. 

12 

Conclusions 

All in all, it is urgent and vital that the Fifth  Framework Programme should 
be  implemented  in  the  proposed  time  frame.  If  it  is  to  be  launched,  on 
schedule,  in 1999, a fairly  steady  rate of progress will be needed given the 
probable  duration  of  the decision-making  process. 

As  indicated  at  the  beginning  of  this  communication,  the  Commission  is 
planning  to submit  a detailed  working  paper  at the beginning  of  1997 and 
to  make  its  formal  proposal  in  March  1997  which  cannot,  however, 
the 
prejudge 
Community's  future financial framework  which  will be made  immediately 
following  the  IGC.  The  ultimate  objective  is  formal  adoption  at  the 
beginning  of  1998. 

subsequent  proposals  concerning 

the  Commission's 

For  the  preparation  of  the  Fifth  Framework  Programme,  the  Commission 
had deliberately chosen a step-by-step procedure whereby at any given time 
it  can  be  seen  whether  the  proposed  guidelines  are  sufficiently  well 
understood  and  applied. 

Accordingly,  this paper has been drafted  in order to guide the debate along 
clear  lines. 

On the basis of the conclusions of the debate,  the Commission hopes to be 
able to draft  and  then  submit  as  soon as possible a more detailed  working 
paper  and  make  its  formal  proposal.  These  two  documents  will  make  it 
possible  to  have  an  even  more  precise  idea  about  the  practical  ways  in 
the  societal  and  economic  objectives  set  out  in  "Inventing 
which 
Tomorrow",  on which  there  is broad  agreement,  can be  achieved. 

13 

ISSN 0254-1475 

COM(96) 595  final 

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Catalogue number  :  CB-CO-96-613-EN-C 

ISBN 92-78-11892-3 

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