Opinion of the European Economic and Social Committee on Investment in Knowledge and Innovation (Lisbon Strategy)
Date: 2007-07-12
Institutions: European Economic and Social Committee
Subjects: competitiveness, entrepreneurship, innovation, investment, knowledge economy, learning, research and development

27.10.2007

EN

Official Journal of the European Union

C 256/17

Opinion of the European Economic and Social Committee on ‘Investment in Knowledge and
Innovation (Lisbon Strategy)’

(2007/C 256/04)

On 14 September 2006, the European Economic and Social Committee, acting under Rule 31 of its Rules
of Procedure, decided to instruct its Section for the Single Market, Production and Consumption to draw up
an information report on Investment in Knowledge and Innovation.

At the plenary session on 14-15 March 2007, it was decided to change the information report into an
own-initiative opinion (Article 29(2) of the Rules of Procedure).

The Section for the Single Market, Production and Consumption, which was responsible for preparing the
Committee's work on the subject, adopted its opinion on 3 May 2007. The rapporteur was Mr Wolf.

At its 437th plenary session, held on 11-12 July 2007 (meeting of 12 July), the European Economic and
Social Committee adopted the following opinion by 120 votes with one abstention.

CONTENTS

1. Introduction

2. Summary and recommendations

3. General observations

4. Education, initial and further training

5. Financial matters and procedures

6. Structural aspects and basic conditions

These information reports will
summary report.

form the key points of

the

1.4
The following text, which was drawn up in cooperation
with representatives of the national economic and social coun-
cils of some Member States, deals solely with the subject of
investment in knowledge and innovation.

2. Summary and recommendations

7. The human factor — Scientists, engineers and entrepreneurs

Europe's strength lies in the capabilities and performance

2.1
of its citizens.

1. Introduction

Under

the heading

1.1
‘THE RELAUNCHED LISBON
STRATEGY FOR JOBS AND GROWTH’, the European Council,
in its Presidency Conclusions of 23-24 March 2006 (point 12),
welcomed the initiative taken up by the European Economic
the Lisbon
and Social Committee to increase ownership of
Strategy at Community level.
It encouraged the European
Economic and Social Committee to continue its work and asked
it
the Partnership for
growth and employment in early 2008.

for a summary report

in support of

1.2
In the meantime, on 15 February 2007, the Committee
adopted a resolution on the implementation of the renewed
Lisbon Strategy, to be presented to the Spring 2007 European
Summit.

1.3
In preparation for the summary report requested by the
European Council, four information reports on the following
topics will be drawn up:

— Investment in Knowledge and Innovation;

— Business potential, especially of SMEs;

— Employment of priority categories;

— An Energy Policy for Europe.

The free interaction of inventive craftsmanship and entre-
2.2
preneurial initiative with scientific methods and systems and the
technologies and industrial processes that developed out of
them was the European recipe for success that brought about
the progress that led to the living standard we enjoy today. This
went hand in hand with historical socio-political developments,
resulting in the free citizen in the modern state with separation
of powers, democracy and fundamental rights.

2.3
The development and intensive use of energy-consuming
industrial processes, machines and transport systems made a
decisive contribution to this. Energy freed people from the
burden of the heaviest physical labour, multiplied their produc-
tivity, provided heating and lighting, and made previously
unimaginable mobility and communication possible. Energy
became the food and fuel of modern economies.

2.3.1
In the light of the finite reserves of fossil fuels, the
rapidly rising worldwide demand for energy, and the expected
impact of energy consumption on climate change, it is unsur-
prising that securing sustainable and climate-friendly energy
supplies is at the top of the political agenda. A key prerequisite
to achieving this very difficult objective is a strong, wide-
ranging and effective research and development programme for
energy.

C 256/18

EN

Official Journal of the European Union

27.10.2007

2.4
However, above and beyond this, there are a great many
more problems and tasks that can only be solved by research,
development and innovation. These include,
for example,
combating physical and mental illness, making life and partici-
pation in society easier for people with disabilities, the effects of
demographic change (including gerontology), protecting the
environment, and, more generally, protecting and developing
our way of
life, our European values system and our social
model. All things considered, however, research and develop-
ment also serve the fundamental aim of bringing about greater
and new knowledge. Increased knowledge not only helps us to
solve problems, but also broadens our world view, objectifies
conflict situations, and enriches our culture.

2.5 Moreover, the European Union faces the challenge of
increasing global competition, the challenge being to maintain
European jobs, prosperity and social and environmental stan-
dards. This is true not just because of the economic power of
the USA and Japan, but above all because of the increasingly
strong industrial and research performance of countries such as
China, India and Brazil, and in view of the significantly lower
wages and social and environmental standards in those coun-
tries.

by all the relevant stakeholders if Europe is not to fall further
behind its global competitors in terms of R&D investment. This
target states that total R&D expenditure in the EU should be
increased such that it reaches around 3 % of GDP by 2010. Two
thirds of the required investment is to come from the private
sector.

2.10
In December 2006, the Council adopted the Seventh
R&D framework programme (FP7) for 2007-2013. The budget
for this programme, at around EUR 50 billion, was significantly
higher than for the previous one. This is another significant
European policy success, which the Committee has substantially
supported. However, the Community will still only be providing
about 2 % (in other words, only one fiftieth) of the total invest-
ment in research and development aimed for by the Barcelona
target. As the Committee has repeatedly stressed, this is insuffi-
cient to maximise the intended multiplier and integrating effects
that EU funding has on Member States' research funding and
the willingness of industry to invest.

2.6
The only way to deal with this is to continue in the
future to stay ahead in research, technological development and
innovation, rooted in a socio-cultural environment of democ-
racy, the rule of law, political stability, free enterprise, planning
security, motivation, the recognition of achievements, and social
security.

2.11
Therefore, the Committee reiterates its recommendation
that this part of EU funding should, as a first step, be increased
by half, i.e. to around 3 % of the total investment aimed for by
the Barcelona target, as part of the revision of the EU budget
planned for 2008. This is especially relevant in the light of the
future European Technology Institute (ETI) and the urgent need
for more R&D into climate-friendly sustainable energy supply.

entrepreneurial

2.7
Top performances in the scientific and technical field,
competitive,
and their
economic force, are essential preconditions to safeguarding our
future (not
least with regard to energy and climate issues),
preserving and improving our current global position, and
developing rather than jeopardising the European social model.

conversion into a

is open to progress and innovation,

The basic prerequisite for achieving this goal is a social
2.8
in which
climate that
society fully understands this and all
its implications, so that
politicians at all levels create the necessary conditions and take
decisions that are conducive to such progress, and so that
enough business confidence and optimism is built up for the
necessary investments to be made in Europe and new jobs to be
created. This also includes raising awareness of the fundamental
significance of basic research, as this lays the necessary founda-
tions for future innovations. An entrepreneurial spirit that is
willing to innovate and take risks is particularly needed, as are
political leadership, dependability and a sense of reality.

2.9
In particular, the Barcelona target set for the purpose of
implementing the Lisbon strategy must be taken very seriously

attractive

to invest

and profitable

through appropriate

Equally, however, the willingness of industry, and in
2.12
particular small and medium-sized enterprises,
in
research and development needs to be promoted and made
more
legal
(including laws on liability), administrative, fiscal and financial
framework conditions. EU law on state aid also has an impor-
tant role to play here; it should enable the Member States to
provide more effective and less bureaucratic support than in the
past for the research and development plans of universities,
research organisations and industry, and help them to establish
networks. Careful consideration should therefore be given to the
question of whether the Community framework for state aid to
research, development and innovation really is conducive to
these goals.

Knowledge is based on two equally important and inter-
2.13
dependent pillars: education and research. New knowledge must
be attained through research and development. The starting
point is existing knowledge. This must be consolidated and
passed on through education, training and lifelong learning.
Both the methods and the content should be assessed as to
whether they are conducive to the specified aims. Both these
pillars also need significantly increased financial investment and
suitable framework conditions.

27.10.2007

EN

Official Journal of the European Union

C 256/19

therefore be a priority. Accordingly,

2.14
Europe's strength lies in the capabilities and perfor-
mance of its citizens. Doing more to promote and develop these
capabilities must
the
Committee calls on the Member States to strengthen and
improve their educational establishments and to put
in the
considerable investment necessary to achieve this. Sound educa-
tion and training for the masses is just as important as the
education of the academic elite. With this in mind, a wide range
and sufficient number of sound and appropriate educational
establishments, from primary schools to universities, are neces-
sary. Only then will European society as a whole be receptive to
education and science.

2.15
In addition, the Committee repeats its recommendation
that a common European knowledge area be developed to
complement the European Research Area, through closer supra-
national cooperation in the areas of learning, innovation and
research. Any incentives and measures in support of lifelong
learning have an important role to play here. Lifelong learning
is the key to the knowledge society. Obstacles to the single
that are obstructing the transition to the European
market
knowledge society must be removed as quickly as possible.

2.16
This includes still greater support from Member States
for personal mobility, and strengthening relevant, effective
EU programmes (Erasmus, Marie Curie). Mobility is conducive
to attaining and transferring skills. Free movement of workers,
researchers and students across Europe must be guaranteed, and
rewarded by means of incentives; it must go hand in hand with
decent income, working conditions and support for families.
Public bodies across Europe also need to improve access to
information in this area.

2.17
As regards the significance and promotion of innova-
tion, the Committee refers not only to its detailed recommenda-
tions set out below, but especially to the excellent Aho Report,
which it endorses. This particularly concerns the legal and social
environment for innovative entrepreneurship and an innova-
tion-friendly market. The Committee also refers to its more
detailed opinion on Unlocking and strengthening Europe's potential
for research, development and innovation.

Progress and innovation take place when new knowl-
2.18
edge is turned into new and better processes and products
(including ongoing improvement of existing ones), new societal
models, and the requisite management methods; thus, the key is
an innovative entrepreneurial spirit and entrepreneurial
initia-
tives. That said, progress and innovation also depend on new
kinds of services, on developing healthcare services, and in
general on better solutions to social problems within the
economic constraints that exist.

Thus,

2.19
innovation means devising and implementing
new technologies, processes, organisational methods, business
models, educational models etc. that previously had not been,
or could not be, considered. It is therefore important that rele-
vant legislation offers sufficient room for manoeuvre to give
new ideas that were not previously thought of the chance to be

put into practice and not to wither away before they even take
root simply because they do not fit into the framework of exces-
sively detailed regulation. Over-restrictive regulation is a brake
on innovation. The Committee therefore supports all efforts to
simplify regulations and to check them for superfluous, exces-
sively detailed and/or unnecessarily restrictive requirements.

2.20
Innovation means accepting a certain level of risk of
failure and indeed of losses; generally speaking, the effectiveness,
or indeed the disadvantages or side-effects, of a new approach
or idea is only recognised when it has proven itself in practice
and in competition with other processes. Even failure provides
lessons. Opportunity and risk are two sides of the same coin.
As a rule,
the expected benefit of an innovation should
outweigh the possible risks associated with it. Potential risks to
society require a special assessment. Consideration could also be
given to whether — at least for small and medium-sized enter-
prises — a risk fund (for example at the EIB) should be set up
to help cover possible losses.

The Committee has repeatedly pointed out that human
2.21
capital
is the most delicate and most valuable resource for
knowledge and innovation. Requisite training bodies that are
sufficient in number, resources and quality are therefore key
prerequisites for meeting the demand for good scientists, engi-
neers and teachers.

By virtue of the investment carried out by society on
2.22
the one hand, and by individual researchers on the other, with a
view to acquiring broadly-based and not
readily accessible
fundamental knowledge and high-level specialised knowledge,
society — as represented by politicians — assumes responsi-
bility for making optimal use of this investment. This responsi-
bility must be reflected in a concern to ensure that trained
research workers and engineers are able to start families and are
provided with appropriate job opportunities and suitable career
into other
paths, with attractive options for branching out
fields, without running the risk of being professionally sidelined
or sent down dead ends. If qualified scientists and engineers are
unemployed, underpaid or underemployed (inter alia through
excessive administration and committee work), this represents a
waste of economic investment and serves as a deterrent for the
next generation of top-level scientists and engineers, with the
result that they opt for non-scientific and non-technological
careers or emigrate from Europe.

2.23
This does not rule out the need to involve experienced
experts and scientific and technical achievers more than hitherto
in relevant decision-making processes
and administrative
dossiers relating to research policy, entrepreneurial and innova-
tion policy matters. The establishment of the European Research
Council (ERC) is a very encouraging first step in this direction.
However, sufficient relevant expertise also needs to be attracted
to and retained in EU (including the Commission) and Member
State bodies that provide funding for research and innovation.
Administration alone is not enough.

C 256/20

EN

Official Journal of the European Union

27.10.2007

Turning

research and

2.24
innovation into industrial
products and processes raises a particular set of issues. The
Lisbon target of two-thirds of R&D investment coming from
industry is not without reason. It is therefore particularly impor-
tant to enhance the professional image of entrepreneurs and to
raise public awareness of their key role in innovation, economic
progress and prosperity in general. For
the
Committee, as the bridge to organised civil society, has put
entrepreneurship with a human face at the centre of its forth-
coming work programme. Only through responsible, energetic
and imaginative entrepreneurship that is able to develop freely
will the Lisbon goals be achieved.

reason,

this

comprehensive

comments below,

2.25 Many further aspects and details are dealt with in the
more
and also in the
Committee opinions on The road to the European knowledge-based
society — the contribution of organised civil society to the Lisbon
Strategy (1) and Unlocking and strengthening Europe's potential for
research, development and innovation (2).

3. General observations

Development of science and technology. Europe is the cradle
3.1
of ever-evolving modern science and research.
If the Greek/
Egyptian cultural area is taken into consideration, along with
the cross-fertilisation with the Indian-Arabic (3) cultural area
that has taken place from time to time, then it can be said to be
the cradle of science generally. Despite various ups and downs
over time and some interruptions caused by war, science and
research were linked right across Europe, irrespective of national
borders. Their methods and way of thinking were decisive in
its
paving the way to our contemporary European society,
values, its way of life and its standard of living; they were a
the European cultural area (4). The
defining characteristic of
recipe for success of the resulting achievements was the free
interaction of inventive craftsmanship and entrepreneurial initia-
tive with scientific methods and systems and the technologies
and industrial processes that developed out of that.

3.2
Development of society. The key social developments that
led to free citizens in the modern state with separation of
powers, democracy, fundamental rights and social welfare legis-
lation went almost hand in hand with scientific and technolo-
gical progress.

Development of

3.3
living conditions. As a consequence of
these parallel processes, the living conditions of people in the
countries and regions involved have changed and improved as

(1) OJ C 65, 17.3.2006.
(2) OJ C 325, 30.12.2006.
(3) Possibly also with the Chinese cultural area.
(4) A very comprehensive and detailed description of these processes can
be found in the Committee's own-initiative opinion on Science, society
and the citizen in Europe (OJ C 221, 7.8.2001).

never before in human history. In the last 135 years, the average
life expectancy of the population (5) has more than doubled (6).
In the last 50 years, agricultural yield in terms of surface area
has almost trebled. In the successful industrialised countries, the
talk is now of obesity rather than malnutrition, of information
overload rather than a lack of information, and of an ageing
population rather than child mortality. The capabilities and
achievements of modern, mobile industrial society that have
come about through research, science and innovation touch
every area of human development and quality of life.

3.4
Use of energy. The development and intensive use of
energy-consuming industrial processes, machines and transport
systems made a significant contribution to the progress that has
been made. Energy freed people from the burden of the heaviest
physical labour, multiplied their productivity, provided heat and
light, and made previously unimaginable mobility, communica-
tion and cultural development possible. Energy became the food
and fuel of modern economies.

3.5
The climate issue and energy supply. However, this signifi-
cant development brings with it new problems and challenges.
Global warming,
its possible consequences, and strategies for
reducing it are the subject of far-reaching political decisions (7)
and a large number of studies (8), some of which have contro-
versial conclusions. The Stern Review (9), entitled The Economics
of Climate Change and published at the end of October 2006,
has established that reducing global warming caused by green-
house gases will cost around 1 % of GDP, which in particular
includes further R&D activities that are necessary for
this
purpose. However, even leaving aside the problem of climate
change, the issue of safe, sustainable energy supply for Europe
(and indeed the world) is one of the central political challenges
which significantly increased research and development will play
a very important role in resolving (10).

Further problems and challenges (11) However,
3.6
climate
change and energy supply are not the only problem. Further
research on which the
examples of
important areas of
in earlier
Committee has made detailed recommendations

(5) In Germany.
(6) Not least thanks to a reduction in child mortality.
(7) European Council, 23-24 March 2007 — Presidency Conclusions

(Sustainable Energy).

(8) For example:

1) WMO/UNEP Intergovernmental Panel on Climate Change —
‘Climate Change 2007: The Physical Science Basis — Summary
for Policy Makers’, or

2) Open letter by 61 Scientists to the Canadian Prime Minister

(http://www.lavoisier.com.au/papers/articles/canadianPMletter06.
html).

(9) http://www.hm-treasury.gov.uk/independent_reviews/stern_review_e-

conomics_climate_change/sternreview_index.cfm.

(10) OJ C 241, 7.10.2002: Research requirements for security and safety of
energy supplies. See also the more recently published: Transition to a
sustainable energy system for Europe — The R&D perspective (ISBN
92-79-02688-7), and Nature, Vol. 444, Issue no. 7119, page 519
(Nov. 2006) ‘Our emperors have no clothes’.

(11) See also OJ C 185, 8.8.2006.

27.10.2007

EN

Official Journal of the European Union

C 256/21

such as

opinions
that on the Seventh R&D framework
programme (12) and that on its Specific Programmes (13) include
combating physical and mental
illness, making life easier for
disabled or otherwise disadvantaged people with the aim of
improving their professional development and participation in
the knowledge society; the effects of demographic change (plus
gerontology); a better understanding of complex economic,
social and cultural issues, how they are related, and their impact
on each other; protecting the environment; and, more generally,
protecting and developing our way of life, our European values
system and our social model.

Top performances in the scientific and technical

field. Top
3.9
performances in the scientific and technical
field, and their
entrepreneurial conversion into innovations and a competitive,
economic force, are essential preconditions to safeguarding our
future, for example with regard to energy and climate issues,
preserving and improving our current global position, and
developing rather than jeopardising the European social model.
All things considered, however, research and development also
serve the fundamental aim of bringing about greater and new
knowledge. However, increased knowledge not only helps us to
solve problems, but also broadens our world view, objectifies
conflict situations, and enriches our culture.

3.7
Global competition. Moreover, the European Union faces
the very serious challenge of increasing global competition. A
particular challenge for the EU is to maintain European jobs,
prosperity and social and environmental standards. This is true
not just because of the economic power of the USA and Japan,
but more particularly because of the significant and increasingly
strong industrial and research performance of countries such as
China (which wants to overtake the United States as the most
technologically advanced country in the world by 2050 (14)),
India and Brazil, and of the significantly lower wages and social
and environmental standards in those countries. It is precisely
against this background of global competition and of the global
race for increased investment
in research and development,
including global competition for the best scientists and engi-
neers, that the European Union needs to optimise its policies in
this area. Thus, we are talking primarily about global competi-
tion, not that within Europe.

3.8
Staying ahead in research, development and innovation.
Europe's competitive position can thus only be maintained if it
continues in the future to maintain its lead in research, techno-
logical development and constant innovation, rooted in a socio-
cultural environment of democracy, the rule of
law, political
stability and dependability,
free enterprise, planning security,
motivation and the recognition of achievements. The European
Research Area must be strengthened and expanded. Whilst this
is now generally recognised in political statements of intent, the
reality in terms of action and specific priority-setting (e.g.
research budgets) and the relevant regulatory frameworks (e.g.
collective
up
and
significant and regrettable deficiencies, both at Community level
and in most of the Member States. Just how dramatic this state
of affairs is should not be underestimated, even if some Member
States show an encouraging trend towards catching up (17).

agreements (15)

laws (16))

shows

tax

(12) OJ C 65, 17.3.2006.
(13) OJ C 185, 8.8.2006.
(14) Bild der Wissenschaft 9/2006, p. 109.
(15) In particular the income and contractual status of young scientists and

engineers.

(16) On this subject, see also the Communication from the Commission
COM(2006) 728 final: Towards a more effective use of tax incentives in
favour of R&D.

(17) Frankfurter Allgemeine Zeitung, number 49, p. 17, 27 February 2007:
Zwischen Fortschritt und Stillstand (between progress and stagnation).

Reviving tradition. Europe must now, therefore, become
3.10
aware that it was once the leading area for research and innova-
tion and aim to revive that tradition. Europe's strength lies in
the capabilities and performance of
its citizens. More must
therefore be done to promote and develop these capabilities than
has hitherto been the case. However, this also means investing
significantly more in research and development, increasing their
efficiency, strengthening the willingness and ability of industry,
commerce and government to innovate, promoting and recog-
nising effort, and reducing any obstacles that stand in the way.

Increasing investment. In particular, this means that the
3.11
EU and the Member States must invest significantly more in
research and development,
in general education that reflects
this, and in educating the required scientists and engineers (of
both sexes). Above all, however, it means that the willingness of
industry, and in particular small and medium-sized enterprises,
to invest in research and development needs to be promoted
and made more attractive and profitable through appropriate
legal,
framework
conditions.

administrative,

fiscal (18)

financial

and

innovation and entrepreneurship,

A social climate that favours progress. The most important
3.12
is a social climate that is
prerequisite for achieving this goal
in which
open to progress,
society fully understands this and all
its implications, so that
politicians at all levels create the necessary conditions and take
decisions that are conducive to such progress, but also so that
jobs are created and enough confidence and optimism is built
up in industry for the necessary investments to be made. This
includes ensuring that the public is made more familiar with the
achievements and significance of science and technology and
the pioneering work of entrepreneurs than is currently the case.
This also means recognising that basic research (19), in particular,
lays the necessary foundations for future knowledge and innova-
tions.

(18) On this subject, see also the Communication from the Commission
COM(2006) 728 final: Towards a more effective use of tax incentives in
favour of R&D. The Committee will draw up a separate opinion on this.
(19) See in particular OJ C 110, 30.4.2004. From a historical perspective, it
was proposals for basic research that benefited from the first scientific
cooperation initiatives in (Western) Europe. They arose out of the need
to build centres for large-scale equipment and to create a critical mass
that would have been too expensive for any individual Member State.

C 256/22

EN

Official Journal of the European Union

27.10.2007

Recognising achievements. The decisive impact of these
3.13
achievements on our current way of
life, the conditions in
which they came about, and the scientific, technological, entre-
preneurial and cultural achievements associated with them, must
be recognised by society, taught in schools and accorded the
significance they deserve.

Further

However,

prerequisites.

3.14
and
continuous innovation do not depend exclusively on science
and technology, but also on the motivation, the skills and the
willingness to work of all those involved, as well as on innova-
tive business models, the right management methods, and on a
legal framework that is conducive to all of the above.

progress

risk.

Acceptance of

If promoting new approaches to
3.15
research,
innovative technologies, business practices and busi-
ness models is to be a success, one must accept that success
involves a certain amount of risk, including the risk of losses.
Generally speaking, the advantages and effectiveness, or indeed
the disadvantages, risks and side-effects of a new approach are
only recognised with it has proven itself in practice and in
competition with other processes. Even failure provides lessons.
Opportunity and risk are two sides of the same coin. As a rule,
the expected benefit of an innovation should outweigh the
possible risks associated with it. Potential risks to society require
a special assessment. Consideration could also be given to
whether — at least for small and medium-sized enterprises — a
risk fund (for example at the EIB) should be set up to help cover
possible losses.

4. Education, training and lifelong learning

4.1
Knowledge base. Knowledge is based on two equally
important pillars: education and research. New knowledge can
only be attained through research and development. For this to
happen, existing knowledge is required as a starting point: this
must be consolidated and passed on through education, training
and lifelong learning. The aims of this are as follows:

4.1.1
Basic knowledge. The first aim is to ensure that
every citizen has a sound basic knowledge of science, tech-
nology and the economy, how they work and their significant
basic principles, as part of his or her education. This is essential
if, for example, citizens are to be able to make judgements
about
the often complicated interrelations that need to be
understood in order to arrive at an informed political opinion.
Accordingly, the curricula and available teaching time at all
levels of education should be oriented towards gradually intro-
ducing children and young people to a scientific, technical and
of
economic

way

thinking and to the store of knowledge (20) that exists, by using
concrete examples and clear and stimulating explanations and
teaching materials. They should also raise awareness of
the
innovative
significance of science, technological development,
socio-economic arrangements and the knowledge society in
general
this is to
happen, significantly more emphasis needs to be placed on this
part of the curriculum. The Committee welcomes and supports
the recommendations of the Rocard report, which addresses this
concern (21).

to their future and life opportunities.

If

4.1.2
Incentives for choosing a profession. At the
same time, those who show talent for science and technology
should be encouraged to pursue a — notoriously tough —
course of study in this area and, with this in mind, be given a
solid basis of knowledge with which to start a career in this
too, means that school curricula, especially in
field. This,
grammar
extensive, high-quality
teaching.

should provide

schools,

4.1.3
Regaining lost ground in ter ms of breadth
and depth. Thus, there is significant ground to be made up in
terms of teaching in science and technology. Of course, this
does not change the fact that all talents across the spectrum
need to be nurtured, including the social sciences, economics,
the humanities and the arts. Sound education and training for
the masses — which also means that pupils need to be willing
to work and self-disciplined — is just as important as the educa-
tion of the academic elite. High-quality educational establish-
ments,
from primary schools to universities, are the funda-
mental prerequisite for society as a whole to be receptive to
education and science.

4.1.4
The European Knowledge Area. The Committee
repeats its recommendation that a common European knowl-
edge area be developed to complement the European Research
Area, through closer supranational cooperation in the areas of
learning,
to the single
market
that are obstructing the transition to the European
knowledge society must therefore be removed as quickly as
possible. On this subject, the Committee refers to its opinion on
The road to the European knowledge-based society — the contribution
of organised civil society to the Lisbon Strategy (22).

innovation and research. Obstacles

Lifelong lear ning and mobility.

4.1.5
Incentives and
measures in support of lifelong learning have an important role
to play here. Lifelong learning is the key to the knowledge
society. This includes still greater support from Member States
for personal mobility, and strengthening the relevant, effective
EU programmes (Erasmus, Marie Curie). Mobility networks

(20) This is not so much a matter of learning and understanding a large
number of formulae, but rather of a basic understanding of technology
and the fundamental laws of nature, and also of the significance of
quantitative connections and the usefulness of mathematics.

(21) A Renewed Pedagogy for the Future of Europe, Directorate-
General for Research 2007 Science, EUR 22845, High Level Group on
Science Education, Michel Rocard (Chair), Peter Csermely, Doris Jorde,
Dieter
Lenzen, Harriet Walberg-Henriksson, Valerie Hemmo
(rapporteur).

(22) OJ C 65, 17.3.2006.

27.10.2007

EN

Official Journal of the European Union

C 256/23

Europe and is conducive to attaining and transferring knowl-
edge. Free movement of workers, researchers and students must
be guaranteed and go hand in hand with decent
income,
for families. Public bodies
working conditions and support
across Europe also need to improve access to information in
this area.

Barcelona target. The Barcelona target set for the purpose
5.2
of
implementing the Lisbon strategy must be taken very
seriously and strenuously pursued by all the relevant stake-
holders if Europe is not to fall further behind its global competi-
tors in terms of R&D investment. This target states that total
R&D expenditure in the EU should be increased such that it
reaches around 3 % of GDP by 2010. Two thirds of the required
investment is to come from the private sector.

4.2
Standard of skills training. This also means that scientific
and technological training in universities and technical colleges
must, at the very least, match the highest international stan-
dards. The most important capital for research and innovation
are highly qualified and motivated scientists and engineers of
both sexes who maintain and develop their skills through life-
long learning throughout their careers and a sufficient number
of whom are capable of taking on leading roles and carrying
out pioneering work in the most difficult areas.

Opportunities for all. In the future, progress and success
4.3
will, more than ever, be the result of structured team work
involving division of labour where all those involved have the
best possible opportunities to develop and take initiatives in
accordance with their talents, skills and creativity. This also
means that there needs to be sufficient interchangeability of
school systems so that people of all abilities,
for
example, late developers, are given the opportunity of the best
possible education.
to have high-quality
is also essential
training institutions for the whole spectrum of specialists that is
and will be needed for the wide range of tasks in technology,
science and business.

including,

It

Networking. Especially for

4.4
the purposes of vocational
training, even closer networking of the training, research and
industrial application pillars is needed. There is a clear link here
to the subject of lifelong learning and mobility (see point 4.1.5).
There is also a need for better cross-border networking of
universities and higher education colleges. With this in mind,
the Committee welcomes the plans for the European Technology
Institute (ETI) (23), which is aimed at further developing the
innovation capacity of
the EU and its Member States by
connecting training, research and innovation activities at the
highest
level. However, above and beyond education and
training, this also applies to all the pre-competitive research and
development (24) of industrial firms, such as the joint develop-
ment of improved engine technology in the car industry.

5. Financial matters and procedures

Investment

is a matter

5.1
the
Member States and the private sector must do their best — i.e.
considerably more than they do now — to provide the neces-
sary investment for education, research and development.

for all stakeholders. The EU,

5.3 Multiplier effect of the Seventh R&D framework programme.
In December 2006,
the Council adopted the Seventh R&D
framework programme (FP7) for 2007-2013. The budget for
this programme, at around EUR 50 billion, was significantly
higher than for the previous one. This is another very significant
European policy success, which the Committee has substantially
supported. However, the total budget for this is about EUR 50
billion, which means that the Community will still only be
providing about 2 % (in other words, only one fiftieth) of the
total investment in research and development aimed for by the
Barcelona target. However, as the Committee has repeatedly
stressed, this is insufficient to maximise the multiplier and inte-
grating effects that EU funding has on Member States' research
funding and much-needed industry investment, and thus bring
about the considerable increase that is needed to reach the
Barcelona target.

5.4
Reiterated recommendation. Therefore, not least in view of
the planned establishment of the European Technology Institute
(ETI) and the urgent need for more R&D work into climate-
friendly, sustainable energy supply, the Committee reiterates its
recommendation (25) that this part of EU funding should, as a
first step, be increased by half, i.e. to around 3 % of the total
investment aimed for by the Barcelona target, as part of the revi-
sion of the EU budget planned for 2008. This would be a parti-
cularly effective step by the EU towards reaching the increasingly
important Lisbon and Barcelona goals more quickly than can be
expected at present, and towards solving the above-mentioned
problems more effectively and more quickly.

5.4.1
Competition with China. The equivalent research
efforts being made by China, for example, are increasing rapidly,
and Europe must make every effort so as not to lose markets in
globally important and essential technologies to international
competitors. However, it is not politically credible to demand
that the private sector provide the necessary investment when
the EU and the Member States have not provided their share of
funding for the Barcelona target which they themselves set.

5.4.2
Core funding by Member States. At the very
least, the Member States should ensure that their universities
and research institutes have sufficient core funding to be able to
receive the expected level of co-financing from the Seventh
R&D framework programme.

(23) OJ C 93, 27.4.2007.
(24) See also chapter 7 of OJ C 204, 18.7.2000.

(25) OJ C 325, 30.12.2006.

C 256/24

EN

Official Journal of the European Union

27.10.2007

5.5
EU framework for state aid. EU law on state aid should
therefore be framed in such a way as to encourage the Member
States and enable them to provide greater, more effective and
less bureaucratic support than in the past, for the research and
development plans of universities, research organisations and
industry, and help them establish networks between them.
Careful consideration should therefore be given to whether the
Community framework for state aid to research and development and
innovation (26) really is conducive to these goals.

Individual Member States'
rules.
5.6 Member States' budget
budget rules should allow for a more flexible drawing/flow of
funds for R&D measures. These should be adapted to the cycle
of each project. For instance, it should be possible to transfer
allocated funds to the following calendar or budgetary year.

5.7
Development of scientific infrastructure. The EESC has also
recommended on several occasions (27) that a much greater part
of the resources of the EU's Structural Funds be used for the
development of scientific infrastructure. The use of
funding
from the European Investment Bank for this purpose could also
be highly beneficial.

It

for

to its

is also important

Potential of SMEs.

innovation and, more generally,

5.8
to further
strengthen the potential of SMEs, and especially of start-up
to provide
companies,
stronger incentives for industry to invest
in this area. The
recommendations (28) on the
Committee also refers
EU multiannual programme for enterprise and entrepreneurship, and
in particular for small and medium-sized enterprises (SMEs) and to
the support for the knowledge-based economy that is especially
important in this context. The fact that 98 % of all firms in the
EU are SMEs makes it particularly clear how important it is to
strengthen the capacity for innovation of this category of enter-
that
prise. The Committee
EUR 1,3 billion are set aside for R&D by and on behalf of SMEs
within FP7. Existing regulations that make life difficult for SMEs
should be reviewed and, where possible, red tape should be cut;
the authorities could also, through business angels, provide help
with access to funding opportunities. Europe can also draw
inspiration from the funding policies of other countries in this
area.

therefore welcomes

fact

the

6. Structural aspects and basic conditions

6.1
Committee refers first of all
Commission

Reference to other and previous reports. On this subject, the
to the two recently-published
and

Communications (29)

innovation

on

(26) OJ C 323/I, 30.12.2006.
(27) For example in OJ C 65, 17.3.2006.
(28) OJ C 234, 22.9.2005.
(29) COM(2006) 502 final, 13.9.2006: Putting knowledge into practice: A
the EU; COM(2006) 589 final,

broad-based innovation strategy for
12.10.2006: An innovation-friendly, modern Europe.

to the excellent Aho report (30).
It also refers to its own
opinion (31) on Unlocking and strengthening Europe's potential for
research, development and innovation, which in many places over-
laps with this document, but also goes into much more detail
on several of the issues dealt with herein.

Innovation is more. Reaffirming and complementary to the
6.2
above-mentioned reports,
the Committee also reiterates that
progress and innovation do not depend exclusively on science
and technology, but also on applying such knowledge through
new and better products and processes,
innovative business
models, and the right management methods; thus, an innovative
entrepreneurial spirit and entrepreneurial initiatives are also key.
Progress and innovation also depend on new kinds of services,
on developing healthcare services, and in general on better solu-
tions to social problems — an example of this is the concept of
‘flexicurity’, which the Committee has discussed (32).

6.3
Innovation — a step into uncharted territory. Thus, innova-
tion means devising and implementing new technologies,
processes, organisational methods, business models, educational
models etc. that had not previously been considered. Therefore,
their effectiveness can usually only be proven once it has stood
the test of real competition.

Flexible regulatory frameworks. At the same time, regula-
6.4
tions are drawn up on the basis of existing knowledge. It is
therefore very important that such regulations offer sufficient
room for manoeuvre — i.e. enough plurality and variability —
to give new ideas that were not previously thought of
the
chance to be put into practice and not to be suffocated at birth
or allowed to wither away slowly simply because they do not fit
into the framework of existing regulation. When drafting legisla-
tion, it is therefore important to ensure that fundamental issues
are dealt with and regulated, but that excessively detailed regula-
tions are avoided. Overregulation and excessively restrictive
rules, however well-intentioned they may be, stifle and hinder
innovation. The Committee therefore supports all efforts to
simplify regulations and to check them for superfluous and/or
the
unnecessarily restrictive requirements. This also serves
purpose of releasing experts (see below) from unnecessary red
tape. Moreover, the mistakes of individuals should not lead to
the overregulation of everyone.

6.5
Freedom of research. Once again: Innovation requires suffi-
cient entrepreneurial freedom. Scientific freedom — inter alia
freedom from restrictive (33) or indeed ideological requirements
— is a fundamental prerequisite for creative research and

(30) EUR 22005 Creating an Innovative Europe ISBN 92-79-00964-8.
(31) OJ C 325, 30.12.2006.
(32) See for example Flexicurity: the case of Denmark (OJ C 195, 18.8.2006).
(33) See also OJ C 65, 17.3.2006, point 4.13.2 on the Charter and foot-

note.

27.10.2007

EN

Official Journal of the European Union

C 256/25

new discoveries and inventions, without prejudice to a) the
limits placed by legislative answers to ethical problems and
b) the proper use of allocated funds.

non-European states. They must consequently also be suffi-
ciently attractive to draw the best students from non-European
countries.

6.6
Reiteration of CESE 1566/2006. Reference is made to
further important observations in the opinion (34) referred to
under point 5.1. The statements contained therein are strongly
supported. Points 4.7 to 4.11 of that opinion make recommen-
dation on the following topics, which are relevant
to this
opinion: Moving from enhancing our knowledge of nature to the crea-
tion of innovatory products, processes and services. Mobility between
academia and industry. Publicly accessible information systems. Clus-
ters. Start-ups. Basic research. The innovative product. Public procure-
ment. Intellectual property and necessary Community patent. Period of
grace prior to publication which does not infringe novelty status. The
language problem. Particular situation of the new Member States.

Protection of

intellectual proper ty — Euro-
6.6.1
pean Community patent. The particular emphasis
is
thereby again placed on securing adequate protection for intel-
lectual property (35):
it must be worthwhile for businesses to
invest in research, development and innovation, and the finan-
cial, legal and administrative outlay required to secure and retain
property rights must not adversely impact Europe's economic
strength vis-à-vis global competitors. This also shows the urgent
need for a Community patent (with a grace period enshrined in
it).

7. The human factor

7.1 Most valuable resource. First of all, the Committee refers to
its specific opinion (36) on this subject and once again reaffirms
and underscores the statements contained therein. As it had
already done on earlier occasions, the EESC pointed out in the
abovementioned opinion that human capital is the most delicate
and most valuable resource for knowledge and innovation. The
most important task is therefore to motivate talented young
people to embark upon a scientific or technical education and
to provide them with the best possible such education.

Quality of

7.2
training bodies (See chapter 4). The number,
resources and quality of the requisite training bodies are there-
fore key prerequisites for meeting the demand for good scien-
tists, engineers and entrepreneurs.
It is therefore essential to
establish and maintain — working in liaison with research and
teaching bodies (37) — an adequate number of properly
equipped, top-quality attractive universities and, above all, insti-
tutes of technology, possessing excellent teaching staff. These
universities and institutes of technology must be able to stand
up to competition with the best universities in the USA or other

(34) OJ C 325, 30.12.2006.
(35) On this
see

subject,

also Commissioner Günter Verheugen,
SPEECH/07/236 on Intellectual property — a driving force for innovation in
Europe, 19 April 2007.

(36) Researchers in the European Research Area: one profession, multiple careers.

(OJ C 110, 30.4.2004).

(37) With this aim in view, the achievement of even better networking
between universities and non-university research bodies could be
helpful, particularly in order to include in such networking the equip-
ment and infrastructure of such research and teaching bodies, but also
to allow the latest knowledge to be taught.

7.3
Society's responsibility. By virtue of the investment carried
out by society on the one hand, and by individual researchers
on the other, with a view to acquiring the desired broadly-based
and not readily accessible fundamental knowledge and high-
level specialised knowledge, society — as represented by politi-
cians — assumes responsibility for making optimal use of this
investment. This responsibility must be reflected in a concern to
ensure that trained research workers are provided with appro-
priate job and professional development opportunities and
suitable career paths, with attractive options for branching out
into other fields, without running the risk of being profession-
ally sidelined or sent down dead ends. If qualified scientists and
engineers are unemployed, underemployed or underpaid, this
represents a waste of economic investment and deters the next
generation of top-level scientists and engineers, with the result
that they decide against scientific or technological careers or
emigrate from Europe. Excessive bureaucracy (see point 7.7) is
also a form of underemployment.

7.4
Developing talent. People, including all employees in firms,
universities and research institutes, must be provided with the
best possible opportunities — in the light of
their talents,
capabilities and levels of creativity — to develop their gifts and
display initiative. We also need to bring about a social climate
that makes it possible to start a family and is conducive to and
promotes their creativity. At the same time, this also means that
the young people who benefit from this training and support,
for their part, are driven by a sense of duty and by commitment
to make every effort to make the best possible use of the talents
and the skills they have learned. These are important issues of
social policy, family policy, the academic discipline of business
management, and management culture in general. This latter
has now recognised the impact of a sensible work-life balance
on creativity and productivity (38).

indicators. As

evaluation criteria, neither

Identifying and assessing high achievers (39). Outstanding
7.5
skills and achievements cannot properly be assessed by quantita-
tive indicators, which are in any case subject to abuse. For
example, a problem is posed by those scientific authors who
like to quote each other in their publications, thus forming
quotation cartels and gaining advantage in assessments based on
quantitative
the
number of publications nor that of quotations, patents or other
key figures are sufficient or stand up to scrutiny; quality, novelty
value and significance are more important. Moreover,
it has
sometimes been the case that the most groundbreaking discov-
eries or inventions were recognised, acknowledged, used or
quoted only after a certain delay. Therefore, in order to assess
personalities and achievements, with all their characteristics and
facets, we need the wealth of experience and personal judge-
ment
(though even then misjudgements cannot be totally
avoided) of the key representatives of the relevant area of exper-
tise in which the achievements have been made or are expected.

(38) See Frankfurter Allgemeine Zeitung, No 257, 4 November 2005, p. C1.
(39) See also OJ C 110, 30.4.2004.

C 256/26

EN

Official Journal of the European Union

27.10.2007

7.6
Involvement in decision-making processes. It is also necessary
to involve experienced experts and scientific and technical achie-
vers more than hitherto in relevant decision-making processes
and administrative dossiers relating to research policy, entrepre-
neurial and innovation policy matters. The establishment of the
is a very encouraging first
European Research Council
(ERC)
step in this direction, which the Committee has
strongly
supported (40). However, sufficient relevant expertise also needs
to be attracted to, and retained for, the administration of EU (i.e.
the Commission in particular) and Member State bodies that
provide funding for research and innovation. In particular, this
should involve successful young engineers and researchers.
Support for research and innovation needs to go beyond mere
administration.

too many non-core

Freedom from the burden of

7.7
tasks.
Research, development and inventing are activities that require a
lot of time in terms of mental effort and laboratory work, as are
consolidating and passing on knowledge. These activities need
time for undisturbed concentration and reflection. Since 2000,
the Committee has repeatedly pointed out (41) that the ever
increasing and excessive amount of committee work, application
and approval procedures, report writing, bureaucracy in general,
etc. now takes up the greater part of many experts' time. It thus
takes them away from what they should really be doing and is
detrimental to the ability to innovate and the effectiveness of
the very people who are outstanding in their field. This undesir-
able state of affairs is now increasingly being criticised in the
too (42). The Committee welcomes the Commission's
media,
stated intention to address this issue and to join with the
Member States in seeking ways to relieve this burden. The call
for experts to be involved in decision-making processes relating
to research policy does not contradict the need to unburden
them from bureaucracy; it may even help achieve this end. A
specific goal should be to harmonise and consolidate the
reporting
application,
numerous

Brussels, 12 July 2007.

the various grant-awarding
and monitoring procedures for
bodies, partner
institutions, networks, and monitoring and
approval bodies. This would also bring benefits in terms of
significantly greater transparency.

7.8
Brain drain and mobility. There are good reasons (see also
point 4.1.5) for engineers and scientists needing professional
mobility and flexibility. However, this should not be at the
expense of personal and family life or of social security (43).
Moreover, it must not lead to net emigration of the best people
from Europe. Therefore, working conditions within Europe
must be sufficiently attractive to prevent this and, at the very
least, to lead to an overall balance in the mobility of highly-
qualified achievers. At the same time, some Member States are
concerned that a one-way brain drain could take place within
the European Union. Therefore, as the Committee has repeatedly
recommended (see also point 5.7), a significantly larger propor-
tion of the EU's Structural Funds should be used for developing
scientific infrastructure so as to create attractive research loca-
tions in all Member States that will then attract people back to
their home countries and, at the same time, be able to partner
within networks.

Professional

7.9
image of entrepreneurs. Turning research and
development into industrial products and processes raises a par-
ticular set of issues. The Lisbon target of two-thirds of research
funding coming from industry is not without reason. It is there-
fore particularly important to enhance the professional image of
entrepreneurs and to raise public awareness of their key role in
innovation, economic progress and prosperity in general. For
this reason, the Committee, as the bridge to organised civil
society, has put entrepreneurship with a human face at the
its forthcoming work programme. Only through
centre of
responsible and energetic entrepreneurship that
is able to
develop freely will the Lisbon goals be achieved.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

(40) See also OJ C 110, 30.4.2004.
(41) In particular, see point 9.8 and sub-points of OJ C 204, 18.7.2000; for
example, this states in point 9.8.2: ‘Consequently any successful scien-
tist has only a limited capacity for interaction — and a limited period
of time — available to use and interpret contacts with other people,
groups, bodies, committees, etc. without reducing his or her scientific
productivity. Too many and too costly application and approval proce-
dures — particularly if they are unsuccessful — deprive research of
input from the people it needs. This is particularly the case given that
there are many funding instruments and evaluation procedures, which
often overlap, for a given project.’

(42) See, for example, Frankfurter Allgemeine Zeitung, No 60, 12 March
2007, Ein Forscher geht; and also No 67, 20 March 2007, Interview
with Harald Uhlig.

(43) See also OJ C 110, 30.4.2004.