Communication from the Commission - Building the ERA of knowledge for growth
Date: 2005-04-06
Institutions: European Commission
Subjects: EU programme, education policy, innovation, international cooperation, research and development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.4.2005 
COM(2005) 118 final 

COMMUNICATION FROM THE COMMISSION 

Building the ERA of knowledge for growth 

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1. 

EUROPEAN  RESEARCH  AREA  (ERA)  OF  KNOWLEDGE  FOR  GROWTH: 
THE EU’S ASSET AND CHANCE 

1.1. 

Delivering on the Lisbon objectives 

Investing in 
knowledge is the 
best way for 
Europe to foster 
sustainable 
growth in a 
globalised 
economy… 

The  European  Commission  set  as  priority  goals  for  the  EU  to  foster 
sustainable prosperity and solidarity, to reconnect the EU with the citizens, 
and to make the Union a strong global partner. The EU’s research policy, 
and  the  proposal  for  the  new  Framework  Programme  that  will  help 
implement it, reflect the commitment to deliver on these goals. 

As the driver for the production and exploitation of knowledge, research is 
above all a linchpin in the implementation of the Lisbon strategy to make 
Europe  the  most  dynamic  and  competitive,  knowledge-based  economy  in 
the world, capable of sustaining economic growth, employment and social 
cohesion. 

The Lisbon strategy is, in effect, the EU’s programme to solve the equation 
between  economic  growth,  competitiveness  and  employment  on  the  one 
hand, and social and environmental sustainability on the other hand. Lisbon 
is  about  sustaining  the  European  model  of  society  for  present  and  future 
generations,  in  the  face  of  growing  global  competition  and  ageing 
populations.  

Knowledge  underpins  all  components  of  the  Lisbon  strategy.  Today’s 
economy and the well-being of citizens rely on the progress of knowledge 
and  its  transformation  in  new  products,  processes  and  services.  This  is 
particularly  the  case  for  Europe,  which  cannot  compete  on  the  basis  of 
natural  resources,  and  does  not  intend  to  compete  on  the  basis  of  cheap 
labour or at the expense of the environment. Europe must respond through 
raising productivity and the added value of products and services.  

At the same time, knowledge is a major component of the European way of 
life.  It  supports  sustainable  development:  the  improvement  of  living 
standards, quality of life, health and the environment all depend greatly on 
the  advancement  of  knowledge  and  its  applications  to  address  the 
challenges faced by society.  

Investing in knowledge is certainly the best, and maybe the only, way for 
the EU to foster economic growth and create more and better jobs, while at 
the same time ensuring social progress and environmental sustainability. In 
other words, it is Europe’s chance to strengthen its model of society.  

The central role of knowledge was recognised by the High Level Group on 
Lisbon  chaired  by  Wim  Kok1,  which  recommended  the  realisation  of  the 
knowledge  society  as  the  top  priority  for  the  EU.  In  its  proposals  for  the 
mid-term  review  of  the  Lisbon  strategy,  the  Commission  highlighted 

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“Facing the Challenge: The Lisbon strategy for Growth and Employment”, November 2004.  

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knowledge  and  innovation  as  the  beating  heart  of  European  growth  and 
proposed measures to step up efforts for leveraging knowledge for growth. 
The  European  Parliament  strongly  endorsed  this  same  message  in  its 
resolution  of  March  2005  on  Guidelines  for  Future  EU  Policy  to  Support 
Research on the basis of the report of Mrs. Locatelli2.  

The  EU has  just re-confirmed its Lisbon  objective at the highest level. At 
the  March  2005  European  Council,  European  heads  of  state  and 
government  declared  their  aim  of  increasing  the  potential  for  economic 
growth and of strengthening European competitiveness by investing above 
all in knowledge, innovation and human capital. 

1.2. 

Putting the knowledge triangle of research, education and innovation to work 

…yet, the EU 
invests 
considerably 
less in R&D 
than its trading 
partners 

To  be  a  genuinely  competitive,  knowledge-based  economy,  Europe  must 
become  better  at  producing  knowledge  through  research,  at  diffusing  it 
through education and at applying it through innovation. 

This “knowledge triangle” of research, education and innovation functions 
best when the accompanying framework conditions reward the knowledge 
that is put to work to the benefit of the economy and society.  

Today  the  EU  devotes  only  1.96  %  of  its  GDP  to  research  and 
development, compared to 2.59% for United States, 3.12 % for Japan and 
2.9%  for  Korea.  The  gap  between  US  and  EU  is  currently  about  €  130 
billion a year, 80 % of which can be attributed to the difference in private 
sector spending in research and development.  

In March 2002 the Barcelona European Council set the target of raising the 
European  research  effort  to  3  %  of  EU  GDP,  two  thirds  of  which  should 
come from private investment. The March 2005 European Council has just 
reconfirmed  this  target.  Achieving  it  requires  renewed  efforts  of  the 
Member  States  and  the  EU,  to  strengthen  public  research  funding  and 
improve the “framework conditions” for private investment in R&D and the 
swift exploitation of discoveries and inventions. 

In  the  context  of  its  proposals  for  the  mid-term  review  of  the  Lisbon 
strategy, the European Commission has announced its intentions to present 
proposals  for  such  measures,  such  as  introducing  fiscal  incentives  for 
research  and  innovation,  revisiting  state  aid  rules  to  foster  research  and 
innovation,  improving  and  adapting  intellectual  property  rights  regimes, 
facilitating risk capital operations at European level and strengthening links 
between universities and industry.  

At  the  same  time,  the  European  Commission  is  putting  the  knowledge 

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P6_TA-PROV(2005)0077. 

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economy centre-stage in many EU financial programmes. 

1.3.  Mobilising EU financial instruments at the service of knowledge for growth 

Many EU 
programmes 
will contribute 
to leveraging 
knowledge for 
growth but the 
research 
programme is 
the corner stone 
of its knowledge 
policy.  

Largely  shaped  on  the  basis  of  the  Lisbon  agenda,  the  new  EU  financial 
the  European 
perspectives  for 
Commission  increase  the  role  of  knowledge  and  innovation  in  the  future 
EU  budget.  A  broad  range  of  funding  tools  should  be  mobilised  to  help 
realise, in a coherent way, the knowledge economy.  

the  period  2007-2013  proposed  by 

The most relevant are: 

• 

• 

• 

• 

• 

The  Structural  and  Cohesion  Funds,  to  strengthen  the 
knowledge  capacities  throughout  the  European  Union  by  extending 
research and development capacities in the less advanced regions and by 
ensuring,  through  innovation,  education  and  a  modern  infrastructure, 
that  the  fruits  of  research  spread  to  all  regions.  Research  and 
development,  innovation  and  the  transition  to  a  knowledge  economy 
rank  among  the  top  priorities  within  the  three  new  objectives  of  EU 
(Convergence,  Regional  Competitiveness,  and 
regional  policies 
European Territorial Co-operation); 

The  Competitiveness 

Innovation  Framework 
Programme, to enhance European innovation capacity, through support 
to innovating SME’s, innovation networks, the dissemination of results, 
technology  transfer  and  the  funding  of  technology  innovation  through 
risk capital;  

and 

The  new  generation  of  Education  and  Training 
Programmes,  to  raise  the  capacity  to  produce,  master  and  exploit 
knowledge  in  Europe,  through  an  integrated  action  on  life-long 
education  and  training  covering  in  particular  university  education  and 
the training of researchers. 

Trans European Networks, to deploy on a pan-European scale 
advanced  infrastructures  and  systems  derived  from  and  supporting 
further R&D and innovation (such as Galileo).  

The  new  European  Agricultural  Fund 

for  Rural 
Development, having as priorities the increased competitiveness of the 
agricultural  and  forestry  sector,  sustainable  land  management,  the 
diversification of the rural economy and quality of life in rural areas.  

On  the  research  side  of  the  “knowledge  triangle”,  the  central  action  to 
support  the  development  of  the  knowledge  economy  and  to  make  the  EU 
competitive  at  the  global  level  is  the  new  seventh  Research  Framework 
Programme,  which  will  implement  the  research  and  development  heading 
of the EU’s budget from 2007 to 2013. 

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2. 

THE 
4 OBJECTIVES 

SEVENTH 

RESEARCH 

FRAMEWORK 

PROGRAMME:  

Four main 
objectives for 
EU research 
result from a 
wide public 
consultation: 

The  June  2004  Communication  from  the  Commission  on  the  future  of 
European research policy3 marked a move towards a fully-fledged research 
policy  at  European  level,  covering  a  wide  range  of  research  needs  and 
categories of research.  

The Commission proposed an approach based on a number of orientations: 
consolidation  of  support  to  collaborative  trans-national  projects  on  topics 
linked  with  major  public  policies;  launching  longer  term  public  private 
partnerships 
technological  development; 
reinforcement of EU support to basic research; and undertaking new actions 
in  fields  which  provide  high  EU  added  value,  such  as  the  design  of  new 
research infrastructures that go beyond the reach of single Member States.  

industry-oriented 

to  support 

This approach has been discussed extensively in the Council, the European 
Parliament,  the  Committee  of  Regions  and  the  Economic  and  Social 
Committee. It has also been subject of a broad consultation of the scientific 
community, industry and other stakeholders. On this basis, the Commission 
is proposing a new Research Framework Programme with four objectives, 
each supported by its own programme.  

These four programmes are. 

2.1. 

Cooperation 

gain leadership 
in key scientific 
and technology 
areas by 
working 
together; 

To gain leadership in key scientific and technology areas by supporting 
cooperation between universities, industry, research centres and public 
authorities  across  the  European  Union  as  well  as  with  the  rest  of  the 
world.  

With  more  than  half  of  the  total  7th  Framework  Programme  budget,  this 
programme  will  cover the whole range of research activities performed  in 
trans-national cooperation, from collaborative projects and networks to the 
coordination  of  national  research  programmes.  Within  each  thematic  area, 
flexible use will be made of all actions and funding schemes in a way that 
best  serves  to  achieve  the  theme’s  objectives.  The  organisation  of  all 
themes in one programme will facilitate joint approaches across themes to 
answer  challenges  of  common 
thus  also  encouraging 
multidisciplinarity.  The  catalytic  effect  of  Community  funding  on  other 
public  research  spending  will  be  reinforced  through  scaled  up  ERANET 
actions  that  will  boost  research  in  given  areas  through  joined  up  national 
programmes.  

interest, 

International  cooperation  between  the  EU  and  third  countries  is  an 
important  dimension  of  this  action:  depending  on  the  themes  addressed, 
specific  actions  will  be  undertaken  with  countries  or  groups  of  countries 

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2.2. 

Ideas 

reinforce the 
excellence of 
Europe’s 
knowledge base 
by fostering 
competition 
between 
researchers at 
EU level; 

2.3. 

People 

strengthen the 
career prospects 
and mobility of 
our researchers; 

outside the EU, where there is mutual interest in doing so. 

To  stimulate  the  creativity  and  excellence  of  European  research 
through  the  funding  of  “frontier  research”  carried  out  by  individual 
teams competing at European level.  

In order to introduce a new dynamic in research by putting a premium on 
excellence  through  competition  and  attracting  the  best  brains,  a  European 
Research Council will be created to fund investigator-driven projects in all 
scientific  and  technological  fields,  including  engineering,  socio-economic 
sciences and the humanities. Projects will be selected through peer review 
on the sole basis of scientific excellence. The European Research Council 
will act in full autonomy, under the governance of an assembly of eminent 
scientists  working  across  disciplines  appointed  by  the  Commission  on  the 
advice  of  the  scientific  community.  Setting  up  the  European  Research 
Council  within  the  European  Community  Framework  provides  the  best 
guarantee for its autonomy. 

To develop and strengthen the human potential of European research 
through  support  to  training,  mobility  and  the  development  of 
European research careers.  

This  programme  will  reinforce  the  existing  “Marie  Curie”  actions  of 
support  to  researchers,  better  focusing  on  key  aspects  of  skills  and  career 
development,  increasing  mobility  between  university  and  industry,  and 
strengthening links with national systems. 

2.4. 

Capacities 

and develop and 
fully exploit the 
EU’s research 
capacities 
through large-
scale 
infrastructures, 
regional 
cooperation and 
innovating 
SMEs. 

To enhance research and innovation capacity throughout Europe. 

Ensuring  optimal  use  and  development  of  research 
infrastructures; 
supporting  regional  research-driven  clusters;  unleashing  the  full  research 
potential existing in the EU’s convergence regions and outermost regions; 
supporting  research  for  the  benefit  of  SMEs;  bringing  science  and  society 
closer  together;  and  developing  and  coordinating  an  international  science 
and technology co-operation policy. Through their combined impact, these 
programmes  will  allow  for  the  emergence  and  reinforcement  of  European 
poles of excellence in various fields 

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3. 

CONTINUITY, WITH A NEW IMPETUS FOR LISBON 

The new 
programme will 
build on past 
successes in 
realising a 
European 
Research Area, 

While maintaining the necessary continuity with its predecessor and further 
building  on  best  practice,  the  new  7th  Framework  Programme  will  not  be 
“just  another  Framework  Programme”.  In  its  content,  organisation, 
implementation  modes  and  management  tools,  it  is  designed  as  a  key 
contribution to the re-launched Lisbon strategy 

3.1. 

Placing the emphasis on research themes rather than on “instruments” 

adding space 
and security to 
the current 
research fields.  

The 6th Framework Programme was designed to help realise the European 
Research  Area.  It  placed  strong  emphasis  on  new  instruments  to  structure 
research  efforts  and  overcome  fragmentation.  In  order  to  raise  critical 
masses  of  resources  and  to  avoid  dispersion,  the  6th  Framework 
Programme concentrated firmly on a selected number of themes and topics. 

The 7th Framework Programme will continue to support the realisation of 
the  European  Research  Area,  which  is  at  the  heart  of  the  EU’s  research 
policy.  But  it  resolutely  puts  emphasis  on  research  themes  in  areas  where 
the  EU  should  reinforce  and  better  exploit  its  knowledge  base,  develop 
technology leadership and raise the visibility of its research action. 

The  themes  identified  largely  build  on  those  of  the  6th  Framework 
Programme and correspond to major fields of advancement of knowledge, 
promising scientific and technological avenues which are currently opening 
up, and challenging social, economic and industrial issues faced by the EU. 
The  overarching  aim  is  to  contribute  to  sustainable  development,  both 
within the EU as on the global level.  

To themes which are already addressed in the 6th Framework Programme, 
such  as  health,  biotechnology,  information  technology,  nanotechnology, 
transport, energy and environment, one new one is added: security research 
and space, to reflect the growing importance the EU has attached to these 
areas in the last period4.  

Within  each  theme,  sufficient  flexibility  will  be  left  to  accommodate  for 
new emerging topics of scientific, industrial or policy interest. For priority 
scientific  areas  which  cut  across  themes  the  Commission  will  ensure  a 
coordinated,  horizontal  integration,  including  by  ways  of  appropriate 
internal  coordination  structures.  One  such  priority  area  is  marine  sciences 
and technology. 

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Specific rules for implementation may be needed in these areas. 

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3.2.  Meeting industry’s needs 

And 
strengthening 
the links to 
competitiveness, 

by drawing on 
research 
agendas from 
technology 
platforms,  

and by joining 
forces with a 
new programme 
on 
Competitiveness 
and Innovation. 

Boosting  research  investment  and  increasing  the  technology  content  of 
industry  are  essential 
the  competitiveness  of  European 
enterprises.  At  the  European  level,  the  Research  Framework  Programme 
contributes to these goals by funding R&D projects of industrial relevance 
and by stimulating the best talent from universities and companies to work 
together.  

to  ensure 

The 7th Framework Programme is tailored to better meet industry’s needs. 
Where  industrially  relevant,  the  definition  of  work  programmes  will  draw 
on  the  strategic  research  agendas  developed  by  industry-led  technology 
platforms.  These  strategic  research  agendas,  presenting  the  European 
dimension  of  research  challenges,  also 
influence  national  research 
programmes.  Furthermore,  by  always  looking  at  the  market  potential  of 
new 
in 
commercialising the results of research.  

to  overcome  Europe’s  weakness 

they  help 

inventions, 

Actions  to  support  research  for  SMEs  carried  out  by  universities  and 
research centres will be scaled up significantly.  

The  Research  Framework  Programme  and  the  Competitiveness  and 
Innovation  Framework  Programme  (CIP)  will  operate  side  by  side,  and 
with  considerable  cross-over,  in  support  of  the  Lisbon  goals.  The  CIP 
programme  will,  for  example,  support  networks  that  help  SMEs  to 
participate  in  the  Research  Framework  Programme,  and  fund  a  Business 
Innovation Support Scheme as well as a new High Growth and Innovative 
SME  facility  aiming  at  reducing  the  equity  market  gap  which  prevents 
SMEs from exploiting research results.  

Large initiatives of industrial and technological research at European scale 
will  be  launched  in  a  selected  number  of  areas  of  particular  relevance  for 
the EU (see below). 

In  addition,  industry  participation  in  all  funding  schemes  will  be 
encouraged and special attention will also be made to encourage industry to 
more actively contribute to the Networks of Excellence.  

3.3. 

Reinforcing links with national and private efforts 

It will support 
public-private 
Technology 
Initiatives in 
fields of major 
interest such as 
innovative 
medicines or air 
traffic 
management, 

Strengthening  the  links  and  coherence  between  EU  and  national  policies  and 
activities  is  central  to  the  Lisbon  agenda.  This  will  be  achieved  in  the  7th 
Framework  Programme  in  particular  through  the  introduction  of  types  of  multi-
financed large-scale initiatives:  

•  “Joint  Technology  Initiatives”  in  fields  of  major  European  public 
interest  on  subjects  identified  through  dialogue  with  industry,  in 
particular  in  the  European  Technology  Platforms.  Such  technology 
initiatives  will  be  firmly  anchored  in  the  thematic  areas  of  the 

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and pool 
national efforts 
for instance on 
metrology and 
biotechnology, 

all to be selected 
on the basis of 
clear criteria 
such as added 
value, leverage 
effect and top 
level private 
commitment. 

Cooperation  programme.  At  this  stage,  Joint  Technology  Initiatives, 
which  may  take  the  form  of  joint  undertakings,  are  envisaged  in  the 
fields  of  innovative  medicine,  nanoelectronics,  embedded  systems, 
aeronautics  and  air  traffic  management,  hydrogen  and  fuel  cells,  and 
global  monitoring  for  environment  and  security.  In  the  context  of  the 
Euratom  Programme,  Joint  Undertakings  may  be  considered,  for 
instance  for  nuclear  waste.  Other  possible  themes  will  be  identified 
subsequently through the work of technology platforms, for example in 
the field of energy. 

•  Joint implementation of national research programmes on the basis 
of  Article  169  of  the  Treaty.  This  possibility  has  so  far  been  exploited 
once, through a joint programme on clinical research to develop vaccines 
and therapies for HIV, malaria and tuberculosis. A number of initiatives 
on  themes  such  as,  for  example,  metrology,  biotechnology,  social 
sciences or water research, are currently under examination. Such large 
scale coordination initiatives will also correspond to the strategies of the 
themes under the Cooperation programme.  

•  New  infrastructures  of  European  Interest,  ensuring  a  service  to  the 
scientific  community  and  industry  at  European  level.  A  mechanism 
similar to the one used for the Trans-European Networks will be put in 
place,  drawing  on  the  work  of  the  European  Strategy  Forum  for 
Research  Infrastructures.  Strong  synergy  will  be  sought  with  the 
Structural Funds.  

These initiatives have three common characteristics: 

•  They will be decided directly by Council and Parliament (or the Council 
in  consultation  with  the  Parliament),  based  on  a  proposal  from  the 
European  Commission  in  accordance  with  Articles  166  (3)5,  1696  or 
1717 of the Treaty; 

•  Suitability  in  particular  for  “variable  geometry”  initiatives  associating 

those countries which are most interested; 

•  Implementation through financial plans which will combine, in variable 
proportions,  several  sources  and  kinds  of  funding:  private  funding; 
national 
the  Framework  Programme; 
contributions  from  other  EU  sources,  such  as  the  Structural  Funds  and 
the European Investment Bank (EIB). 

funding; 

support 

from 

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“The  Framework  Programme  shall  be  implemented  through  specific  programmes  developed  within 
each activity. (…)” 
“In implementing the framework programme, the Community may make provision, in agreement with 
the Member States concerned, for participation in research and development programmes undertaken by 
several  Member  States,  including  participation  in  the  structures  created  for  the  execution  of  those 
programmes.” 
“The  Community  may  set  up  joint  undertakings  or  any  other  structure  necessary  for  the  efficient 
execution of Community research, technological development and demonstration programmes.” 

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The fields suitable for these three categories of actions are currently being 
explored  by  the  Commission  in  close  relationship  with  industry,  the 
scientific  community  and  public  authorities.  Precise  subjects  will  be 
identified on the basis of two types of criteria. General criteria will include 
the  added  value  of  carrying  out  an  action  on  the  European  scale  and  the 
impossibility  to  achieve  the  objectives  through  “standard”  7th  Framework 
Programme  funding  schemes.  Specific  criteria  include  the  top-level 
industrial commitment and the capacity for leverage of national and private 
funding in the case of Joint Technology Initiatives. 

The  7th  Framework  Programme  will  also  comprise  a  “Risk-Sharing 
Finance  Facility”  aimed  at  fostering  private  investment  in  research  by 
improving  access  to  European  Investment  Bank  (EIB)  loans  for  large 
European  research  actions.  This  mechanism  will  enable  broader  EIB 
lending  to  RTD  actions  (Joint  technology  initiatives,  large  collaborative 
projects and new research infrastructures). 

3.4. 

Exploiting EU Potential to the full 

In order to use 
the full research 
potential of the 
enlarged Union, 

special support 
will be given to 
regions, to 
SMEs and to 
“science in 
society”.  

The  realisation  of  the  knowledge-based  economy  and  society  relies  on 
strengthening the excellence of European research, but also on better using 
hitherto “untapped” high research potential which exists all over the EU.  

In order to help unlock and develop the potential of research groups in the 
EU’s convergence regions and outermost regions and for them to compete 
at  international  level,  dedicated  actions  will  allow  for  the  recruitment  of 
researchers  from  other  EU  countries,  the  secondment  of  research  and 
management  staff,  the  organisation  of  evaluation  facilities  and  the 
acquisition and development of research equipment. Such actions will help 
identify  needs  and  opportunities  for  reinforcing  the  research  capacities  of 
existing and emerging centres of excellence in these regions, which can be 
met by structural funds.  

To  strengthen  the  research  potential  of  European  regions,  support  will  be 
provided  to  the  development,  across  Europe,  of  regional  “research-driven 
clusters” associating universities, research centres, enterprises and regional 
authorities. 

The  synergies  between  the  7th  Framework  Programme,  especially  its 
“capacities” programme and EU regional policy should be reinforced. The 
Commission  is  to  propose  Community  Strategic  Guidelines  on  cohesion, 
which will set out how EU-level priorities should be taken into account by 
the national and regional authorities responsible for managing the Structural 
Fund  programmes.  Research  and  development  (along  with  innovation  and 
education)  are  priority  themes  under  all  the  objectives  of  the  Structural 
Funds,  and so the  guidelines will be an opportunity to strongly encourage 
managing authorities to pursue investments that are complementary to EU 
research policy. 

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A wide-ranging effort will be undertaken to stimulate the more harmonious 
integration of scientific and technological endeavour in the European social 
fabric  and  to  help  construct  a  democratic  and  thriving  knowledge-based 
society.  Building  a  knowledge  economy  is  a  project  that  requires  broad 
public  support.  EU  action  will,  among  others,  aim  at  developing  coherent 
policies and public governance models  for research and development, and 
improving and widening the dialogue on science and technology. Particular 
energy  will  be  devoted  to  attracting  younger  generations  and  women  to 
science  and  technology  careers  and  integrating  the  gender  dimension  in 
research. By its scope and because of the future-oriented positive project it 
represents, the EU’s research action is a privileged channel for reconnecting 
the citizen with the project of the Union as such. 

3.5. 

Rationalising the funding instruments 

Implementation 
will be: 

- more rational; 

- research- 
rather than 
instrument-
oriented ; 

The  6th  Framework  Programme  introduced  new  funding  “instruments” 
with  a  view  to  increasing  the  impact  of  EU  research  funding  on  research 
activities in Europe, and to help structure the European Research Area. 

The  positive  results  of  this  innovation,  together  with  the  need  to  avoid 
frequent  changes  in  the  way  the  EU  funds  research,  plead  in  favour  of 
maintaining  a  high  level  of  continuity  as  regards  forms  of  funding  and 
consolidating their structuring impact.  

At  the  same  time,  experience  acquired  through  the  6th  Framework 
Programme shows that measures could and should be taken to improve not 
only  the  practical  implementation  of  these  schemes,  but  also  their 
presentation and design.  

Building  on  the  recommendations  of  the  panel  chaired  by  Mr.  Ramon 
Marimon and the Five Year Assessment of the Framework Programme by 
the  panel  chaired by  Mr. Erkki  Ormala, a new approach has been defined 
which  will  allow  the  political  objectives  of  EU  research  policy  to  be 
reached more easily, more efficiently and in a more flexible way.  

A  smaller  set  of  simpler  “funding  schemes”  will  be  used,  alone  or  in 
combination,  with  more  flexibility  and  freedom,  to  support  the  different 
categories of actions.  

Instead  of  being  encapsulated  in  the  “instruments”,  research  goals  and 
research  policy  objectives,  including  those  aiming  at  structuring  research 
efforts, will be clearly and explicitly set in the work programmes. For each 
topic  on  which  proposals  are  invited,  the  scientific  goals,  the  scope  of 
activities and indications on the results expected will be defined. The work 
programmes may also specify the type of funding scheme to be used and an 
indication of the available budget. 

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3.6. 

“Cutting  red  tape”:  simplifying  the  operation  of  programmes  and  providing 
better value for money 

- and drastically 
SIMPLIFIED to 
be at the service 
of researchers 
and innovators. 

The  need  for  simplification  was  the  single  most  recurrent  message  in  the 
consultation  on  the  future  of  EU  research  policy.  The  expansion  of  the 
scope,  span  and  volume  of  EU  action  in  research  requires,  as  a  condition 
sine qua non, a substantial simplification and rationalisation of the way the 
Framework Programme works.  

It will be achieved by: 

•  reducing  the  burden  of  the  administrative  and  financial  rules  and 
procedures,  lowering  the  number  of  requests  to  participants,  and 
decreasing the volume of paperwork and the time needed to launch the 
projects.  The  general  approach  will  be  one  of  trust  towards  the 
researchers. Specific measures will include providing more autonomy to 
the  consortia, simplifying the  Commission’s controls and concentrating 
them  on  verification  of  results  ex  post  rather  than  on  ex  ante  controls, 
reducing requests for information and reporting. They will also include: 
electronic registration in order to prevent participants being requested to 
submit  the  same  information  more  than  once;  the  extended  use  of  the 
two  stage  proposal  submission  procedure:  and  a  rationalisation  and 
shortening of the consultation process through concentrating the work of 
the  committees  of  national  representatives  on  the  examination  and 
approval of all work programmes; 

•  improving the financial scheme and modalities of funding with a simpler 
system  for  calculating  and  paying  the  financial  contribution  and 
controlling  the  use  of  money;  rationalising  and  simplifying  forms  of 
Community financial contributions; simplifying the definition of eligible 
costs  and  the  support  rate  by  activities.  To  this  end  it  is  proposed, 
amongst other measures, to extend where possible the use of lump sum 
financing and to remove cost reporting models; 

•  simplifying  the  presentation  and  the  language  used  in  all  documents 
related  to  the  Framework  Programme  (legal  decisions,  technical 
annexes,  work  programmes,  calls  for  proposals,  contracts,  etc)  and 
improving the communication at each and every level. 

the  desired  effect, 

the  Commission  will  consistently 

In order to ensure that the measures respond to the needs of participants and 
achieve 
test 
simplification measures on a sounding board of small research entities, such 
as  small  companies  and  university  teams.  These  stand  to  gain  most  from 
simplification, as well as those groups that have not been very present up to 
now,  such  as  researchers  from  young  universities,  from  less  advanced 
regions and from new Member States.  

Simplifying  the  implementation  of  the  Framework  Programme  for  the 
benefit of researchers implies the willingness to give them a higher degree 
of  autonomy  and  flexibility  based  on  trust,  assumed  responsibility  and 
accountability.  The  more  this  willingness  is  shared  by  all  EU  institutions, 

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the bigger the steps towards simplification can be. Simplification measures 
will be in line with the provisions of the Financial Regulation applicable to 
the  general  EU  budget.  The  Commission  will  shortly  come  forward  with 
proposals for a revision of the Financial Regulation. 

3.7. 

Optimising the management of the Framework Programme 

A doubled 
budget will be 
managed by the 
same number of 
Commission 
staff 

supported by 
externalised 
management 

ensuring 
efficient 
management 
and maximum 
value of 
research money 
by keeping 
administrative 
expenditure 
below 6% of the 
research budget. 

The start of a new and ambitious Framework Programme, which introduces 
new actions and reinforces existing ones, provides an opportunity to revisit 
the ways in which the Framework Programme is managed.  

The  management  of  the  Framework  Programme  has  to  be  based  on  three 
principles: 

•  Efficiency in operation (value for money); 

•  Concentration of Commission services on core policy tasks;  

•  Clear lines and divisions of responsibility. 

The European Commission services have always been able to execute fully 
and  efficiently  substantial  budget  increases  in  preceding  Framework 
Programmes. There are strong reasons to keep the Commission involved in 
the  management  of  research  programmes,  including  its  unique  experience 
and  overall  knowledge  of  the  European  research  scene,  the  very  useful 
feedback  it  provides  for  EU  research  policy-making  as  well  as  the  trust 
Member  States  have  in  this  formula  which  ensures  absence  of  fair  return 
considerations.  

However,  changes  can  and  should  be  made  within  the  7th  Framework 
Programme.  

The Commission will manage a doubled R&D budget without an increase 
in  its  staff  numbers.  It  proposes  to  have  all  logistical  and  administrative 
tasks,  i.e.  not  related  to  policy,  undertaken  outside  its  services.  As  a 
consequence,  part  of  the  activities  it  currently  carries  out  will  be 
externalised  under  the  Commission’s  responsibility,  in  particular  those 
tasks which generate a large number of small operations, without providing 
significant feedback for the definition of programmes and policies.  

With this approach, an important part of the budget of the 7th Framework 
Programme, representing a high number of administrative transactions, will 
be  managed  by  an  Executive  Agency8,  in  particular  the  Marie  Curie 
Actions,  the  support  to  SMEs,  as  well  as  administrative  tasks  related  to 
other  RTD  projects,  including  collaborative  research  projects.  This 

8 

Executive agencies are management structures to which the Commission, under its own responsibility, 
may  entrust  tasks  relating  to  the  management  of  Community  programmes.  The  statute  of  executive 
agencies is defined by Council Regulation (EC) No 58/2003 of 19 December 2003. 

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approach will also be taken for implementing the activities of the European 
Research Council (ERC), working under the governance of an assembly of 
eminent scientists. In such a way, it will ensure a smooth launch and help 
the ERC establish the degree of autonomy and visibility, accountability and 
transparency  that  will  determine  its  credibility.  As  soon  as  the  ERC  has 
proven  its  worth  and  in  light  of  opportunities  to  strengthen  its  impact,  for 
example  by  mobilising  national  funding,  the  Commission  will  consider 
spinning  off  the  ERC  into  a  legally  independent  structure,  for  example 
based on Article 171 of the Treaty. 

For large scale initiatives (based in particular on Articles 169 and 171 of the 
Treaty),  as  well  as  in  the  case  of  EU  contributions  to  the  coordination  or 
opening  up  of  national  programmes,  participants  and  stakeholders 
themselves will manage the allocated funds. 

These  measures,  taken  together  with  simplification,  will  allow  the 
Commission to keep administrative spending below the rate of 6 % of the 
research budget which was set for the Sixth Framework Programme. They 
also provide the best guarantee for ensuring efficient implementation of the 
Framework  Programme,  with  due 
transparency  and 
accountability. In light of experience acquired during the first years of the 
7th Framework Programme, this approach may be progressively expanded 
or revisited. 

regard 

to 

4. 

A RESEARCH BUDGET THAT MEETS THE EU’S AMBITION 

the 
Doubling 
EU 
research 
budget  is  not  an 
option,  it  is  a 
necessity: 

Deciding  on  the  budget  of  the  7th  Framework  Programme  will  be  a 
credibility test that will show how serious the EU is about delivering on its 
Lisbon ambitions in line with the mid term review.  

Recalling  its  two  Communications  on  the  new  financial  perspectives  of 
February  and  July  20049,  the  Commission  proposes  to  double  the  EU 
research  budget.  It  does  so  on  the  basis  of  the  following  carefully 
considered arguments: 

4.1. 

The  widely  supported  enlarged  scope  of  FP  actions  requires  a  doubling  of 
funding 

-  to  respond  to 
the 
enormous 
science potential 
and  demand  in 
Europe; 

Launching  essential  new  initiatives  while  reinforcing  existing  actions  of 
recognised  impact  and  added  value,  requires  a  significant  increase  in  EU 
research  funding.  This  should  not  be  considered  as  a  cost  but  as  the  best 
possible investment in Europe’s future. 

For some time, Framework Programmes have been oversubscribed, and an 
unnecessarily  large  number  of  projects  of  highest  quality  have  had  to  be 

9 

COM(2004) 101, 26.2.2004 and COM(2004) 487, 14.7. 2004. 

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turned away owing purely to a lack of resources. They require a new scale 
of funding if this important loss of research potential is to be stopped. 

At the same time, there are compelling arguments to widen the scope of the 
Framework  Programme  so  as  to  better  address  areas  of  key  or  emerging 
importance. 

4.2. 

A boost in FP funding will leverage national and private investments 

-  to  help  realise 
the 
3% 
objective; 

In  parallel  with  increased  EU  Member  State  efforts,  doubling  the  funding 
under  FP7  will  play  a  double  role  in  the  achievement  of  the  Barcelona 
objective to spend 3% of GDP on research and development. 

its 
to  use 
- 
strong  leverage 
effect  on  private 
investment; 

It  will  send  a  strong  message  regarding  the  importance  of  seriously 
increasing  public  and  private  R&D  investment  all  over  Europe  in 
accordance  with  the  Lisbon  and  Barcelona  objectives.  Doubling  the 
Framework Programme budget will bring total public R&D spending in the 
EU25 to 0,96% of GDP, close to the 1% target, and will exert a strong push 
on Member States to reinvigorate their efforts. 

It  will  exert  a  powerful  leverage  effect  on  private  investments  in  research 
and development. Each 1€ of public R&D leads to 93 eurocent of business 
R&D  investment.  This  crowding-in  effect  is  typically  bigger  for  EU  than 
for  national  funding  because  of  higher  economic  multiplier  effects 
stemming  from  the  trans-national  collaborative  nature  of  EU  supported 
projects, the reduction of commercial risk through involving key industrial 
players  and  by  helping  to  ensure  that  results  and  solutions  are  applicable 
across  the  EU.  The  doubling  will  boost  business  confidence  that  Europe 
delivers on its commitments and offers an attractive future. 

4.3. 

Doubling the R&D investment will enable the EU to meet new science and 
technology challenges 

-  to  meet  global 
challenges; 

The  costs  of  research  are  rising,  due  in  particular  to  the  increased  use  of 
expensive  instruments  and  infrastructures.  Therefore,  a  higher  level  of 
support is necessary in order to achieve impacts of the same size as under 
previous framework programmes. 

New  fields  of  science  are  emerging,  and  support  should  be  provided  to 
them under the FP. These are fields of science where long-term economic 
benefits  are  large,  where  there  is  a  need  for  high-risk,  high  cost  research 
and where it only makes sense to share such risks, and the rewards, at EU 
level. No Member State alone can realise  the  hydrogen  economy  or  make 
nuclear fusion a reality.  

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4.4. 

EU  intervention  plays  a  vital  role  in  making  the  EU  research  system  more 
efficient and effective 

to 

- 
reduce 
fragmentation  of 
research  efforts 
and investments; 

Due  to  the  fact  that  EU  level  intervention  has  a  strong  added  value  and 
respects subsidiarity, it can often be a more efficient and effective way of 
spending public money on research. European research funding allows for 
building  a  critical  mass  of  resources,  sharing  knowledge  and  facilities 
across  many  countries,  stimulating  the  EU-wide  dissemination  of  results, 
providing a more efficient mechanism for carrying out research relating to 
pan-European  policy  challenges  (such  as  climate  change,  or  food  safety). 
More  EU  research  means  less  fragmentation  of  efforts  through  stronger 
coordination,  more  dissemination  and  more  excellence 
through 
competition. In the EU around 94% of public R&D funding is allocated at 
the national level, whereas in the US the bulk of government R&D support 
is decided upon at Federal level. 

4.5. 

A larger FP7 will reinvigorate the Lisbon strategy 

-  and  to  boost 
growth and jobs. 

The  impact  of  doubling  EU  research  budgets  on  economic  growth  for  the 
EU as a whole is decisively positive. Economic models used for assessing 
the  impact  of  the  proposed  7th  Framework  Programme10  show  that 
doubling  the  budget  will  generate  additional  growth  each  year,  leading  to 
an expected increase in the level of GDP of between 0,5% and 1% in 2030 
(over  and  above  the  business-as-usual  scenario  of  moderate  growth  in  FP 
funding).  According  to  these  models,  almost  1  million  additional  jobs 
would be  created in the same  period and the  EU’s competitiveness  would 
be  raised:  by  the  year  2030,  extra-EU  exports  increase,  by  approximately 
0.6%, while imports decrease, by up to 0.3% over and above a business-as-
usual scenario for the Framework Programme.  

In  terms  of  social  impacts,  a  strengthened  framework  programme  will 
further enhance progress in fields such as health, safety, the valorisation of 
human capital and the creation of a European labour market for knowledge 
workers. In terms of environmental impacts, it will help improving natural 
resources  management,  identifying  win-win  technologies  and  progressing 
in understanding and predicting the environment. 

10 

SEC(2005)  430:  Impact  Assessment  and  ex-ante  evaluation  for  the  proposal  for  the  Council  and 
European Parliament decisions on the 7th Framework Programme. 

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5. 

LINING UP WITH THE “LISBON OBJECTIVES” 

Achieving  the  Lisbon  objective  is  difficult  to  envisage  without  a  drastic 
increase of “investment/growth enhancing” spending at EU level. As such, 
it  requires  the  development,  within  a  fully  deployed  European  Research 
Area, of a good European research, technology and innovation policy.  

The  7th  Framework  Programme  is  conceived  to  become  the  backbone  in 
the construction of a European knowledge economy. It spans, for the first 
time, a period of seven years, which gives a new perspective and strength, 
in  particular  due  to  its  synchronisation  and  close  links  with  all  growth-
supportive actions in the new financial perspectives. Based on an external 
assessment, the Commission may at mid term propose amendments to the 
Framework  Programme  and  review  its  management  arrangements.  The 
combination  of  a  longer  duration  with  the  possibility  of  mid  term  review 
provides for continuity and flexibility at the same time.  

Given  the  appropriate  level  of  resources,  streamlined  and  made  more 
researcher-friendly  in  its  implementation,  the  7th  Framework  Programme 
will be key to help build the ERA of knowledge for growth. 

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7th Framework Programme of the European Community (EC) (Maximum overall amount11 (EUR 
million), respective shares and indicative breakdown, 2007-2013) 
Nano, 
Materials, 
Production 

Biotech, 
Food, 
Agriculture 

Socio-
economic 
Research 

Environment  Transport 

Information 
Society 

Themes 

Energy 

Health 

Security 
and 
Space 

COOPERATION 

• Using all funding 

schemes, including 
international co-
operation 

IDEAS 

PEOPLE 

Research Infrastructures 

Research for the benefit of 
SMEs 

Regions of Knowledge 

CAPACITIES 

Research Potential 

Science in Society 

International Co-operation  

JRC  

TOTAL EC  

EURATOM (2007-
2011)12 

8 317 

2 455 

12 670 

4 832 

2 931 

2 535 

5 940 

792 

3 960 

44 432 

European 

Research 

Council 

Marie 

Curie 

Actions 

Joint 

Research  

Centre 

11 862 

7 129 

3 961 

1 901 

158 

554 

554 

358 

1 817 

Total 

72 726 

3.092 

11 
12 

All amounts at current prices calculated on the basis of fixed 2004 prices. 
The  7th  framework  programme  of  the  European  Atomic  Energy  Community  (Euratom)  for  nuclear  research  and  training  activities  (2007  to  2011)  comprising  fusion  energy 
research, nuclear fission and radiation protection and the Nuclear activities of the JRC. The total budget is EUR 3.092 million for the five years whereof the JRC EUR 539 million. 

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