Report from the Commission - Annual Report on research and technological development activities of the European Union in 2005 [SEC(2006) 1450]
Date: 2006-11-15
Institutions: European Commission
Subjects: EU programme, activity report, research and development, technology

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.11.2006 
COM(2006) 685 final 

REPORT FROM THE COMMISSION 

Annual Report on research and technological development activities of the European 
Union in 2005 

[SEC(2006) 1450] 

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REPORT FROM THE COMMISSION 

Annual Report on research and technological development activities of the European 
Union in 2005 

(Text with EEA relevance) 

1. 

INTRODUCTION 

This  Annual  Report  covers  developments  and  activities  during  2005.  It  has  been  prepared 
pursuant to Article 173 of the Treaty establishing the European Community,1 and Article 4 of 
the decision on the Sixth Framework Programme.2 

The  report  is  accompanied  by  an  annexed  Commission  Staff  Working  Document,  which 
provides  more  detailed  reporting  and  statistics.  The  main  chapters  are  on  the  activities  and 
results  achieved  in  2005  and  on  developments  in  research  and  technological  development 
activities in the Member States of the European Union. The statistical tables are in a separate 
annex. 

2. 

COMMUNITY RESEARCH AND TECHNOLOGICAL DEVELOPMENT ACTIVITIES 

2.1. 

Political achievements 

By  its  nature  and  scale,  EU  research  policy  holds  the  potential  of  improving  the  life  of 
European  citizens  whilst  allowing  the  EU  to  increase  its  global  competitiveness.  It  plays  a 
prominent  role  in  the  development  of  the  knowledge-based  economy  and  thus  in 
accomplishing the Lisbon objectives and contributing to the Commission’s priorities for EU 
prosperity,  employment  and  growth.  In  the  area  of  research,  the  EU  pursues  two  main 
objectives:  creating  a  European  Research  Area  (ERA)  and  increasing  and  improving  public 
and private research efforts in Europe. 

At  the  Spring  European  Council  2005,  the  heads  of  State  and  government  reinforced  the 
Lisbon  Strategy  with  a  new  partnership  for  growth  and  employment,  re-boosting  the 
Barcelona  objective  of  dedicating  3%  of  its  Gross  Domestic  Product  (GDP)  to  research  in 
2010 compared with 1.9% today. In its Communication 'Building the ERA of knowledge for 
growth'  of  6  April  2005  which  sets  out  the  European  Research  policy  objectives  for  2007-
2013, the Commission reiterated how crucial it is to provide new impetus to knowledge for 

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“At the beginning of each year, the Commission shall send a report to the European Parliament and the 
Council. The report shall include information on research and technological development activities and 
the dissemination of results during the previous year, and the work programme for the current year.” 
Decision  No  1513/2002/EC  of  27  June  2002.  Article  4  “In  the  context  of  the  annual  report  to  be 
submitted  by  the  Commission  pursuant  to  Article  173  of  the  Treaty,  the  Commission  shall  report  in 
detail  on  progress  with  implementing  the  sixth  framework  programme  and,  in  particular,  progress 
towards achieving its objectives and meeting its priorities…; information on financial aspects and the 
use of instruments shall also be included. 

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sustainable growth to achieve the Lisbon goals. Building up the European Union’s capacity 
to  produce  knowledge,  disseminate  it  through  education,  and  consolidate  it  through 
innovation is now widely acknowledged as the best means for the EU to stimulate economic 
growth and produce quantitative and qualitative improvements in employment whilst ensuring 
social  progress  and  protecting  the  environment.  In  this  same  spirit,  the  Heads  of  State  and 
government gathered in Hampton Court reconfirmed research as one of five major action lines 
to  be  pursued  following  which  a  high  level  group  in  this  area  chaired  by  ex-prime  minister 
Aho was set up. 

With the publication in October of a common approach for more Research and Innovation, the 
Commission focuses particularly on improving the conditions for private sector investment in 
research  and  innovation.  A  major  aim  is  to  improve  the  framework  conditions  for  research 
and innovation, in particular through European guidelines or guidance on key issues such as 
tax incentives for research, the use of public procurement for innovative products and services 
and cooperation and technology transfer between universities and business. To get industry to 
invest more in R&D in Europe, it is essential to gear internal market policies more towards 
fostering  the  knowledge  economy  and  to  boosting  market  dynamism  for  research-intensive 
and innovative goods and services. 

2.1.1.  Towards the Seventh Framework Programmes  

Major steps towards the Seventh Framework Programmes (FP7) were made in 2005 with 
the presentation by the Commission of its proposals for the entire legal framework, including 
the framework programmes themselves (EC and Euratom) together with an in depth ex ante 
impact  assessment  in  April,  the  specific  programmes  in  September  and  the  rules  for 
participation  and  dissemination  of  results  in  December.  The  Commission  proposed  an 
ambitious  FP7,  both  in  scope  and  scale,  which  is  commensurate  with  the  challenges  in 
Europe. 

The main objectives of FP7 are presented under four main headings: 

–  Cooperation,  to  make  the  EU  the  world  leader  in  the  fields  of  science  and 
technology by promoting wider cooperation between research teams, both within 
the EU and with the rest of the world, including through broadly-based, long-term 
public-private partnerships. 

–  Ideas,  to  allow  a  major  new  initiative,  the  creation  of  a  scientific  autonomous 
European  Research  Council,  to  support  investigator-driven  basic  research  at  the 
frontiers  of  knowledge  thus  promoting  researchers  whose  excellence,  creativity 
and intellectual curiosity will lead to major new discoveries; 

–  People,  to  develop  the  quantity  and  quality  of  human  resources  in  research  and 

development; 

–  Capacities, to develop the means available for research and innovation in order to 
give  science  a  better  place  within  society  and  to  facilitate  the  coherent 
development of international cooperation. 

The overall legal framework proposed for FP7 foresees clear improvement in the regulatory 
and  administrative  environment  of  European  research  through  simplified  access  and 
procedures and the transfer of certain logistical and administrative tasks to outside structures.  

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2.1.2.  Towards the European Research Area (ERA) 

Alongside  the  preparation  of  the  future  research  funding  framework,  the  Commission 
enhanced in 2005 major policy initiatives towards the ERA. 

The Mobility Strategy for the ERA and the researchers' career development policy provide a 
coherent  frame  for  Member  States  and  Commission  to  create  a  single,  open,  attractive  and 
competitive  European  labour  market  for  researchers.  Substantial  progress  has  again  been 
made  to  reduce  mobility  obstacles  and  to  enhance  skills  and  competences  for  career 
development across sectors and disciplines. In addition, the enhancement of the researchers' 
status, profession and career development was boosted in 2005 with the Recommendations to 
Member States on the European Charter for Researchers and on the Code of Conduct for the 
recruitment  of  Researchers,  of  which  the  concrete  uptake  started  immediately  after  its 
adoption, and with the launch of the Researchers in Europe 2005 Initiative. 

Twenty  eight  European  Technology  Platforms  are  now  in  progress.  They  focus  on  strategic 
issues  where  achieving  Europe's  future  growth,  competitiveness  and  sustainability  depends 
upon  major  technological  advances,  ranging  from  steel  to  air,  rail  and  maritime  transport, 
hydrogen  and  photovoltaics,  water  and  chemicals,  and  from  nanoelectronics  to  innovative 
medicines,  plant  genomics  or  sustainable  chemistry  (including  industrial  biotechnology), 
manufacturing,  mutual  learning  and  foresight  knowledge.  The  European  Commission  does 
not  set-up  or  lead  European  Technology  Platforms  but  facilitates  and  provides  guidance  to 
them where appropriate. The platforms involve a "bottom-up" process whereby stakeholders, 
led  by  industry,  come  together  to  define  and  implement  a  medium  to  long  term  strategic 
research  agenda  fostering  the  potential  for  the  development,  the  deployment  and  the  use  of 
key  technologies.  Where  they  fit  with  the  objectives  of  European  research  policy,  the 
Strategic  Research  Agendas  developed  by  European  Technology  Platforms  have  been  taken 
into account in the development of the Co-operation Specific Programme. In a limited number 
of areas a Joint Technology Initiative may be set up to implement all or part of the strategic 
research agenda developed by a European Technology Platform3. 

Furthermore,  68  ERA-NET  projects  were  selected;  these  aim  at  the  coordination  of  national 
and regional research programmes in fields such as bilateral cooperation with third countries, 
metrology,  agriculture  and  fisheries,  plant  and  human  health,  energy,  transport  or 
environment. In four areas joint initiatives under Article 169 of the Treaty are also foreseen in 
the FP7 proposals, thus bringing programme coordination another step further. 

Contribution  to  the  ERA  can  also  be  underlined  in  specific  areas.  On  28  June  2005,  the 
European Union and the other international partners, Japan, Russia, China, the United States 
and Korea, joined later by India, signed a 'Joint Declaration' agreeing on the realisation of the 
International Thermonuclear Experimental Reactor (ITER) at the European site of Cadarache. 
This  agreement,  involving  more  than  half  of  the  world  population,  confirmed,  de  facto, 
Europe  as  the  leader  in  fusion  energy  research  and  marked  a  historic  moment  in  both 
international and European scientific cooperation. ITER represents the next step before fusion 

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Commission  Staff  Working  Document,  “Report  on  European  Technology  Platforms  and  Joint 
Technology  Initiatives:  Fostering  Public-Private  R&D  Partnerships  to  Boost  Europe’s  Industrial 
Competitiveness,”  SEC  (2005)  800,  10  June  2005".  The  role  of  the  European  Strategy  Forum  on 
Research Infrastructures (ESFRI) in supporting a coherent and strategic approach to policy-making has 
been  consolidated,  notably  through  the  preparation  of  a  European  Roadmap  for  new  Research 
Infrastructures of Pan-European interest. 

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energy can become a reality, contributing to solving the world's energy problems. ITER is one 
of the largest international research projects ever, with an estimated budget of €10 billion over 
35 years. 

An  action  plan  for  2005-2009  for  the  implementation  of  a  safe,  integrated  and  responsible 
European strategy for the  development  of Nanosciences and Nanotechnologies was adopted 
in June. The aim is to increase and co-ordinate research in this area in order to contribute to 
the Union's competitiveness and many of its policies, establishing synergy with education and 
innovation. Concerted action by European industry, research bodies, universities and financial 
institutions should make it possible to create products and processes which are commercially 
viable and genuinely safe. 

Research  on  global  change  and  ecosystems,  sustainable  energy  and  transport  systems 
provided  a  significant  contribution  to  the  review  of  the  EU  strategy  on  sustainable 
development.  The  Commission  reported  on 
the 
Environmental Technologies Action Plan as well as the Environment and Health Action Plan, 
which continued in 2005. The 10 Year Implementation Plan for the Global Earth Observation 
initiative has been adopted at the Brussels Summit organised by the Commission in February 
2005. 

implementation  of 

the  successful 

In the context of the Commission’s strategy on life sciences and biotechnology, its importance 
for  promoting  growth  and  strengthening  the  EU’s  position  in  the  global  market  for  high-
technology  was  highlighted  in  the  Commission's  third  progress  report  on  achievements  and 
future  orientations.  In  parallel,  the  first  results  were  presented  from  the  platform  on  clinical 
trials to confront the poverty related diseases HIV/AIDS, malaria and tuberculosis under the 
European & Developing Countries Clinical Trials Partnership Programme (Article 169 of the 
Treaty). 

Transversal issues promoting the ERA such as Science in Society, gender equality in science 
and  international  co-operation  were  addressed  for  example  through  major  public  events,  in 
depth  analysis  and  action  plans,  bi-lateral  and  bi-regional  dialogues,  preparation  of 
international co-operation agreements with Japan, South Korea, Jordan and Egypt, as well as 
concluding an agreement with Switzerland.  

The  Preparatory  Action  for  Security  Research  (PASR),  launched  in  2004,  was  continued  in 
2005.  PASR  is  preparing  the  ground  for  a  fully-fledged  security  research  priority  under  the 
Security  and  Space  theme  within  FP7.  Concerning  Space,  two  communications  on 
"Preliminary Elements of European Space Policy" and on "GMES: from Concept to Reality" 
were adopted in 2005. Space research activities in FP7 will be defined with the objective to 
support the European Space Policy and focus in particular on GMES (Global Monitoring of 
Environment and Security). 

2.2. 

Implementation of sixth Framework Programme 

While FP7 is planned to take off in 2007, the implementation of research activities under 
FP6 continues. For 2002-2006 the EU has available a budget of approximately € 20 billion 
allocated notably to seven thematic priorities: life sciences, genomics and biotechnology for 
health;  information  society  technologies;  nanosciences  and  nanotechnologies,  intelligent 
materials  and  new  production  processes;  aeronautics  and  space;  food  quality  and  safety; 
sustainable development, global change and ecosystems; and social sciences and humanities. 
In  2005,  the  budget  was  fully  committed.  Efforts  were  pursued  for  the  FP6  to  continue  to 

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attract  the  best  research  groups  and  the  most  innovative  companies,  organisations  and 
institutions and significant scientific and technological progress was achieved in all thematic 
priorities.  Most  thematic  areas  pay  special  attention  to  the  opening  of  topics  especially 
conductive  to  industrial  participation,  and  in  particular  SMEs,  and  to  international  co-
operation.  Furthermore,  research  is  being  carried  out  to  support  policies  in  areas  such  as 
agriculture, fishing, health and consumer protection, education, youth, employment and social 
policies,  justice  and  home  affairs,  the  environment,  the  single  market,  energy  and  transport. 
Concerning the regulatory and administrative environment, further improvement and progress 
continued where appropriate, notably concerning simplification. 

To capitalise on previous Framework Programmes, the scientific and technical results and 
the  socio-economic  impact  of  the  research  actions  launched  under  previous  Framework 
Programmes  are  the  subject  of  dissemination,  analysis  and  evaluation  to  optimise  their 
potential  in  the  innovation  and  policy-making  chain.  The  Five  Year  Assessment  report  and 
studies  of  Community  Research  Framework  Programmes  1999-2003  and  the  Commission’s 
response to them have been broadly disseminated and discussed in different policy fora and 
were taken duly into account notably for the preparation of FP7. 

CORDIS  continues  to  be  the  dissemination  service  of  FP6  projects  and  results,  with  all 
indicators  showing  significant  growth  of  usage  of  the  main  services,  project  descriptions, 
news and calls services. 

3. 

DEVELOPMENTS IN MEMBER STATES AND APPLICATION OF THE OPEN METHOD OF 
COORDINATION 

3.1. 

Research and the Renewed Lisbon strategy  

At the Spring European Council in March 2005, EU leaders put growth and jobs at the top of 
Europe's political priorities. The renewed Lisbon Strategy meant a fresh commitment by all to 
mobilise  behind  a  positive  reform  agenda,  given  that  success  depends  on  a  comprehensive 
approach, bringing the maximum leverage to bear and with strong input from every Member 
State in Europe. This commitment was given further weight by agreement on the integrated 
guidelines  for  growth  and  jobs,  which  provide  a  clear  roadmap  for  the  design  of  national 
reforms, and also by the informal meeting in Hampton Court in October. 

The first step to translate this ambition into action has been  to set  up the necessary tools to 
boost job creation. This requires a partnership approach, with the right measures taken at the 
right level. Member States have drawn up country-by-country national reform programmes on 
the  common  basis  of  the  integrated  guidelines.  In  addition,  the  Council,  the  European 
Parliament,  and  the  Commission  are  working  together  on  the  actions  needed  at  Community 
level to complement initiatives taken by Member States. 

The need to build a knowledge economy and to improve Europe’s attractiveness as a location 
to  do  business  and  invest  is  generally  well  reflected  in  the  national  reform  programmes 
submitted by all Member States in autumn 2005. The assessment of the research part of the 25 
Member  States  national  reform  programmes  by  the  Commission  shows  that  R&D  is 
considered as a main priority by all Member States alongside the need to build a knowledge 
economy  and  to  improve  Europe’s  attractiveness  as  a  location  to  do  business  and  invest.  In 
many  countries  R&D  and  innovation  policies  are  increasingly  integrated  and  this  has  led  in 
some  cases  to  the  creation  of  R&D  and  Innovation  councils  including  social  partners  and 

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relevant ministries in order to advice governments on a strategic level. In addition, Member 
States face a number of common challenges such as the need for improving Human resources, 
the  promotion  of  research  intensive  SME’s  and  the  need  to  improve  knowledge  transfer 
between the public and the private sectors. 

A number of measures have been put in place in response to these challenges but the overall 
EU  R&D  intensity  has  stagnated  over  recent  years.  Several  Member  States  have  taken 
concrete  actions  to  increase  public  expenditure  and  improve  effectiveness  and  efficiency, 
including the development of Public Private Partnerships (PPPs) to stimulate business R&D 
and the introduction of monitoring and evaluation systems for public R&D. Modernising the 
management of research institutions and universities to increase the autonomy of management 
is  being  considered  by  all  Member  States.  About  half  of  them  have  some  form  of  fiscal 
measures  as  an  incentive  to  leverage  private  R&D  and  several  others  are  considering 
introducing  them.  Finally  many  Member  States  have  measures  or  intentions  to  ensure  a 
sufficient supply of qualified researchers by attracting more students into scientific, technical 
and engineering disciplines and by enhancing their career development prospects. Overall the 
National Reform Programmes (NRPs) reflect an increased awareness of the need for coherent 
policy mixes to support research and innovation. 

In view of the importance of R&D for future growth and in providing solutions for many of 
the  problems  confronting  our  society  today,  it  is  important  that  investments  in  R&D  are 
intensified.  There  is  considerable  scope  in  the  Member  States  for  improving  the  quality  of 
public  expenditure  by  shifting  resources,  notably  state  aid,  to  more  productive  use  and  by 
closer  co-ordination  between  Member  States  to  avoid  costly  duplication  of  efforts.  The 
effectiveness  of  public  sector  support  for  R&D  can  also  be  improved.  The  European 
Commission's  proposal  to  earmark  Lisbon-related  cohesion  expenditure,  accepted  by  the 
European  Council  in  relation  to  the  EU15  Member  States,  shows  how  priorities  such  as 
research can be mainstreamed across a range of policies. The biggest contribution, however, 
should come from the private sector, and this depends on ensuring favourable prospects for a 
return  on  R&D  investments  in  Europe.  This  in  turn  depends  on  demand  for  innovative 
products  and  services,  the  availability  of  people  with  the  necessary  skills,  and  on  the 
availability of an adequate regulatory framework. 

3.2. 

Progress towards the 3% objective  

In recent years, the EU R&D intensity (share of R&D expenditure in GDP) has shown no sign 
of approaching the targets set by the European Council in Barcelona in 2002 (R&D intensity 
to approach 3% by 2010, 2/3 of which to be funded by the private sector). A period of slow 
but  continued  growth  between  1997  and  2001  has  been  followed  by  a  slight  decrease  since 
2002 (from 1.92% in 2001-2002 to 1.90% in 2004). These variations have been due mainly to 
the  fluctuations  in  private  funding.  Private  funding  has  decreased  recently  due  to  the 
economic  downturn  in  2002-2003  and  the  bursting  of  the  technology  bubble.  In  2004  it 
constituted 55 % of the total expenditure on R&D.  

However, all Member States have now set generally quite ambitious R&D expenditure targets 
either in the context of their NRP or soon after (Figure 1).  

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Figure 1  Gross Domestic Expenditure on R&D (GERD)  as  %  of  GDP

%

4.5

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3.0

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2.0

1.5

1.0

0.5

0.0

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DK

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UK EU-25

2010  (1)

2004  (2)

Assuming that all the R&D expenditure targets were met, R&D expenditure in the EU would 
increase significantly to around 2.6% of GDP in 2010. 

By comparing, both within each Member State and the EU-25 as a whole, the annual rate of 
growth of the R&D intensity required between 2004 and 2010 to meet the target with the rate 
of  growth  experienced  over  recent  years  (1997-2004),  we  can  assess  the  level  of  the  target. 
Countries such as Denmark, Finland, Sweden, Germany and Austria have experienced a rate 
of growth which, if they continue on the same trend, is sufficient to reach their target: while 
these countries have R&D intensities already higher than the EU average, in recent years they 
have managed to pull even further ahead. For countries such as Belgium, France or the UK 
and  for  the  EU-25  as  a  whole,  the  target  will  be  reached  only  if  there  is  a  substantial 
acceleration  of  the  growth  of  R&D  expenditure.  For  countries  such  as  Poland,  Slovakia, 
Malta, Latvia and Greece, the target is extremely ambitious. 

Exploring  the  reasons  of  the  successes  of  the  countries  'pulling  further  ahead'  on  the  road 
towards the Barcelona targets, it is pertinent to look at the contributions of the various sectors 
of  the  economy  to  the  growth  of  the  business  R&D  intensity  of  these  countries.  Indeed, 
behind all these success stories, there are one (in Finland and in Germany), two (in Denmark) 
or  three  (in  Sweden)  R&D  intensive  sectors4  which  played  a  key  role.  This  highlights  the 
importance of some kind of specialisation within the national/regional innovation systems and 
economies, including some R&D intensive companies. However, the role of publicly-funded 
R&D for moving toward the Barcelona target should not be underestimated given that in all 
these Member States, the publicly-funded R&D intensity is also higher than the EU average, 
illustrating its complementary role with the business-funded R&D. 

4 

Finland:  Communication  equipments,  Germany:  Motor  vehicles,  Denmark:  Pharmaceuticals/biotech 
and ICT services, Sweden: Pharmaceuticals, Motor vehicles and Communication equipments. 

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3.3. 

The Open Method of Coordination (OMC) 

Building  on  the  experience  of  the  first  cycle,  CREST  (Scientific  and  Technical  Research 
Committee)  launched  the  second  cycle  in  January  2005.  Five  CREST  Expert  Groups  were 
established on specific topics and an increased level of ownership by Member States has been 
achieved.  Expert  Groups  have  been  led  by  one  or  two  Member  States  and  the  work  of  the 
expert groups has resulted in more practice-oriented recommendations. 

In the area of policy mixes, a specific peer-review process was developed and applied to three 
countries (Sweden, Spain and Romania5) with the aim to encourage the sharing of information 
about policy-related issues and to generate both country-specific and generic lessons for the 
formulation and implementation of effective policy mixes needed to raise R&D intensity. In 
the area of fiscal measures, the work focused on the evaluation and design of tax measures for 
research which led to the development of a practical guide on the evaluation of tax measures. 
Many  Member  States  have  been  introducing,  extending  or  improving  fiscal  schemes  for 
research in recent years. 

In the area of the reform of public research centres the work entailed the mapping of current 
policy developments to support knowledge transfer between public research organisations and 
industry  and  the  development  of  policy  recommendations  and  implementation  guidance  on 
knowledge  exchange,  organisation  of  PROs  (Public  Research  Organisations),  ventures/spin-
offs and incentive schemes for researchers. In the area of SMEs, the focus in this second cycle 
was  on  the  needs  of  research  intensive  SMEs  and  high-tech  start-ups.  The  expert  group 
organised  its  activities  according  to  5  topics  considered  as  key  issues  for  an  integrated 
approach  of  research  and  innovation  policies  in  this  field:  financing  issues;  improving 
management  skills;  collaboration  with  research  institutes;  technology  procurement  and 
opportunities for high growth. The work on IPR focuses on producing a toolkit for setting up 
cross-border  collaborations  involving  public  research  organisations,  and  producing  key 
building  blocks  for  development  of  skills  for  Technology  Transfer  professionals  across 
Europe. 

Regarding  the  OMC’s  application  to  Human  Resources  in  research,  the  Steering  Group  on 
Human Resources and Mobility (SG HRM) has been active since 2002. The Steering Group is 
composed  of  representatives  from  Member  States  and  in  2005  they  focused  on  mutual 
learning exercises concerning the mobility of researchers between academia and industry. 

CREST  will  submit  a  report  on  the  second  cycle  OMC  3%  to  the  Council  and  the 
Commission in September 2006 for it to be considered in the preparation of the Commission's 
Annual Progress  Report and  of the  2007 Spring Council Conclusions on the revised Lisbon 
Strategy.  CREST  will  also  use  the  NRP  and  their  progress  reports  as  a  basis  for  mutual 
learning in order to improve national research policies and will report on the main lessons of 
this exercise in autumn 2006. 

To reinforce and complement the OMC application to the 3% objective, a pilot RTD OMC-
NET  call  (estimated  overall  budget  of  8.7  M€)  was  launched.  The  objective  is  to  support 
mutual learning and co-operation initiatives undertaken by groups of Member States on policy 
issues  of  common  interest.  The  new  scheme  will  be  pursued  under  the  7th  Framework 
Programme. 

5 

Invited to participate in CREST meeting in view of accession. 

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4. 

OUTLOOK FOR THE FUTURE 

All  these  achievements  paved  the  way  for  2006,  a  year  of  challenges  in  terms  of  run  up  of 
negotiations leading to the final adoption of FP7 and boosting investment in research and in 
researchers' careers in Europe. 

Since  an  agreement  on  the  European  budget  2007-2013  has  been  reached  on  4  April  2006 
during a 'trilogue' between the European Parliament, the Commission and the Presidency of 
the EU, it is foreseen to adopt FP7 and the specific programmes by the end of 2006 or in early 
2007. The first calls for proposals should be launched in early 2007. 

In the context of the Lisbon strategy for Growth and Jobs, in autumn 2006 the Member States 
will submit their first Progress Reports. The Commission will assess the research part of the 
Member  States  strategies  as  well  as  progress  towards  the  individual  R&D  objectives 
established in the Spring Council and progress towards the 3% objective. In order to reinforce 
Member  States  research  strategies  the  Commission  will  adopt  before  the  end  of  the  year 
voluntary guidelines to promote knowledge transfer between Universities and public research 
organisations and industry. In addition, the Commission will also adopt a new framework for 
state aid to R&D and innovation as well a detailed guidance for the design and evaluation of 
tax incentives for R&D. The Commission also intends to put forward a proposal to create a 
European Institute of Technology with a view to it becoming operational by 2009. 

5. 

SOURCES OF FURTHER INFORMATION 

More  details  are  included  in  the  Commission  Working  Document  that  accompanies  this 
Report. For further information, the following are publicly available: 

–  Annual  Monitoring  Reports  for  the  Framework  Programme  and  Specific 
Programmes, which provide a concise, independent summary of the progress and 
quality of the measures taken to implement the programmes. 

–  Five-year Assessment Reports which examine implementation and achievements 

of Community research activities over the five previous years.  

–  The  European  Report  on  Science  and  Technology  Indicators,  which  contains 
descriptions,  statistics  and  detailed  analyses  of  European  and  national  RTD 
activities in the world context. 

–  Key  Figures  reports  published  each  year,  providing  a  set  of  indicators  to  take 

stock of Europe’s position in science, technology and innovation. 

–  Statistics  on  Science  and  Technology  in  Europe  (Eurostat):  statistics  on  R&D 
budgets,  R&D  expenditure,  R&D  personnel  and  patents  in  the  Member  States, 
broken down by region. 

–  Studies  and  analyses  published  in  connection  with  the  Community  RTD 
programmes and addressing issues specific to the fields of RTD which they cover. 

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Most of these documents can be obtained or ordered from the Commission’s Internet sites: 

–  The Commission’s general EUROPA site: http://europa.eu/  

–  The CORDIS site containing comprehensive information on the RTD Framework 

Programme: http://cordis.europa.eu/ 

–  The 

site 

of 
http://ec.europa.eu/research/ 

the  Commission’s  Directorate-General 

for  Research: 

–  The  site  of  the  Commission’s  Directorate-General  for  the  Information  Society: 

http://ec.europa.eu/information_society/index_en.htm 

–  The 

site 

of 

the  Commission’s  Directorate-General 

for  Enterprise: 

http://ec.europa.eu/dgs/enterprise/ 

–  The  site  of  the  Commission’s  Directorate-General  for  Energy  and  Transport: 

http://ec.europa.eu/dgs/energy_transport/index.html 

–  The Joint Research Centre (JRC) site: http://www.jrc.ec.europa.eu/  

–  The Eurostat site: http://epp.eurostat.ec.europa.eu/ 

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