Opinion of the European Economic and Social Committee on the Proposal for a Council Regulation on the establishment of the ARTEMIS Joint Undertaking to implement a Joint Technology Initiative in Embedded Computing Systems COM(2007) 243 final — 2007/0088 (CNS)
Date: 2007-10-24
Institutions: European Economic and Social Committee
Subjects: computer system, innovation, intelligent transport system, investment, joint venture, legal status, professional qualifications, research and development

16.2.2008

EN

Official Journal of the European Union

C 44/15

Opinion of the European Economic and Social Committee on the ‘Proposal for a Council Regulation
on the establishment of the “ARTEMIS Joint Undertaking” to implement a Joint Technology
Initiative in Embedded Computing Systems’

COM(2007) 243 final — 2007/0088 (CNS)

(2008/C 44/03)

On 11 June 2007 the Council decided to consult the European Economic and Social Committee, under
Article 95 of the Treaty establishing the European Community, on the abovementioned proposal.

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 4 October 2007. The rapporteur was Mr Dantin.

At its 439th plenary session, held on 24 and 25 October 2007 (meeting of 24 October), the European
Economic and Social Committee adopted the following opinion by 127 votes to two, with three abstentions.

1. Conclusions and recommendations

— an information programme aimed at encouraging the neces-

sary funding to be released;

The EESC broadly supports the Commission's strategy. It
1.1
believes that relaunching investment in R&D is an appropriate
way of giving European businesses a stable frame of reference
by means of a new instrument that makes it possible to over-
come the current fragmentation of Community financing and
avoids a wide range of thinly-spread programmes that made it
almost impossible to evaluate results.

— the

appropriate

establishment of

training
programmes to ensure that the skills of workers match the
jobs created by ARTEMIS, with the aim of creating the
necessary conditions for providing the industrial leadership
in this strategic sector.

vocational

The EESC welcomes the proposal that an annual report
1.2
on ARTEMIS' results be produced. However, the Committee
regrets the absence of a detailed assessment of the operation
and the results achieved by the former European Technology
Platforms.

2. Introduction

1.3
The EESC considers that the ARTEMIS joint undertaking,
which is based on a public-private partnership, represents a
strong basis for the creation of a European research area and a
major contribution to the competitiveness of European busi-
nesses.

1.4
the
In supporting the proposal under consideration,
EESC stresses the importance of the innovative strategy that is
being proposed in terms of investments, pooling the resources
of the EU, businesses, different Member States, and participating
R&D bodies.

In the light of

1.5
this innovative collaborative structure,
which may become complicated when it comes to using the
products of the research to be carried out, the EESC welcomes
the importance and the detail accorded to intellectual property
in Article 24 of the joint undertaking's statutes.

2.1
The purpose of the proposed Council Regulation under
review is to launch the very first public-private partnerships in
the area of R&D. It defines one of the first two Joint Technology
Initiatives (JTI). This involves embedded computing systems (1).

2.2
The general aim of JTIs is to allow industry, research
organisations, Member States and the Commission to pool
some or
into selected research
resources
programmes.

all of

their

2.3
Unlike the traditional strategy, which involves providing
public funding for projects on a case-by-case basis, JTIs involve
large-scale research programmes with shared strategic research
goals. This new approach is expected to create a critical mass
for European research and innovation, consolidate the scientific
community in key strategic areas, and harmonise the funding of
projects so that research findings can be put
to use more
quickly.

Finally,

1.6
necessary:

the Committee considers the following to be

— a genuine simplification of procedures, not least because of
the negative impact that red tape had on previous R&D
programmes;

This proposal provides the legal framework establishing

2.4
ARTEMIS, the JTI on embedded computing systems.

(1) The other JTI involves innovative medicines. This is covered by opinion

INT/363.

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2.5
The ARTEMIS JTI involves invisible computers (integrated
systems) that make numerous machines work, from cars and
planes
to various
domestic appliances such as washing machines, televisions, etc.

to phones, and from energy networks

3.4.2
onment.

The Commission proposal seeks to change this envir-

2.6
Forecasts suggest that there will be more than 16 billion
integrated processors in the world by 2010, and more than
40 billion by 2020. In 2010, this unseen hardware and software
will represent 30 to 40 % of the value of new products:
in
consumer electronics (41 %), telecommunications (37 %), cars
(36 %) and healthcare equipment (33 %).

2.7
The ARTEMIS budget dedicated to research will total
EUR 2,7 billion over seven years. 60 % of this is to come from
and
industry, EUR 410 million from the Commission,
EUR 800 million from Member State programmes.

3. Background

Information and communication technologies (ICT) are
3.1
of fundamental economic and social importance and play a key
role in the implementation of the revised Lisbon strategy, which
emphasises that knowledge and innovation in the EU help to
stimulate growth and jobs.

4. The Commission's proposal

4.1
The decision on the establishment of the ARTEMIS Joint
Undertaking set out in COM(2007) 243 final is based on Deci-
sion 1982/2006/EEC on the 7th Framework Programme, which
provides for a Community contribution towards the establish-
ment of long-term public-private partnerships at European level
in the area of scientific research.

4.2
These partnerships take the form of Joint Technology
Initiatives (JTI) and arise from the work of the former European
Technology Platforms (ETP).

4.3
The Commission, in its Decision No 971/2006/EEC on
the Specific Programme ‘Cooperation’ (4), emphasised the need
to set up public-private partnerships and identified six areas in
which the creation of joint technology initiatives is appropriate
with a view to relaunching European research. These are:

— Hydrogen cells and fuel cells

— Aeronautics and air transport (5)

3.2
At global level, whilst total R&D expenditure is expected
to rise by around 170 % over the next ten years, that on
embedded systems is expected to increase by 225 %, thus rising
from EUR 58 billion in 2002 to EUR 132 billion in 2015 (2).

— Innovative medicines (6)

— Embedded computing systems

In the EU, R&D on ICT represents about 18 % of total
3.3
R&D expenditure, whereas the figure in the United States is
34 % and in Japan, 35 % (3). Expenditure per inhabitant is
around EUR 80, whereas the figure is EUR 350 in the United
States and EUR 400 in Japan. Research into embedded systems
represents
is a major part of
EUR 380 million of public funds and more than 50 % of busi-
nesses' budget for research into information and communication
technologies.

ICT research.

In Europe,

it

3.4
If the EU is to continue to be a player in this sector with
great development potential, the EU must increase its invest-
ment in this strategic area and make better use of it, rather than
relying on a research structure that fragments effort and leads to
duplication. EU businesses do not currently have a framework
to facilitate the development of the necessary technologies and
enabling standards.

In general

3.4.1
terms, progress is held back by a lack
of coordination of businesses' R&D goals, duplication, and
sub-optimal use of limited research funding.

— Nanoelectronics (7)

— GMES (global monitoring for environment and security).

4.4 Within the context of this general strategy, the regulation
contained in proposal COM(2007) 243 under review provides
for the implementation of a Council Regulation on the estab-
lishment of the ARTEMIS Joint Undertaking to implement a
Joint Technology Initiative in embedded computing systems.

The choice of an undertaking addressing the key theme
4.5
of the ‘embedding of intelligence’
is part of a strategic area
including the automotive sector, domestic appliances, communi-
cations equipment, control systems and office equipment.

4.6
In these sectors, it is expected that the already consider-
able importance of embedded systems for controlling appliances
increase significantly over the next five years: embedded
will
systems' share of the value of finished goods is expected to
reach between 35 and 40 %, and their total number is expected
to be 16 billion in 2010 and more than 40 billion in 2020.

(2) Software Intensive Systems in the Future, IDATE/TNO, 2005.
(3) Commission Communication i2010 — An information society for growth

and jobs, European Commission, 2005.

(4) OJ L 400, 30.12.2006, p. 1.
(5) INT/369.
(6) INT/363.
(7) INT/370.

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4.7
The main reason for setting up a JTI is the desire to
create a European research and development programme that
will help the European economy to become a world leader in
embedded computing systems, which are essential innovations
in key sectors for the competitiveness and the development of
European businesses.

4.8
The role of an initiative such as ARTEMIS is, according
to the Commission, essential to avoid a repeat of what has
happened to the European personal computing and internet
sector, where production moved away from Europe (to the
United States, Japan, and elsewhere) precisely because of the
lack of investment in research and innovation.

The establishment of an ARTEMIS JTI follows a wide-
4.9
ranging consultation of the relevant stakeholders and a series of
major initiatives and conferences at Community level. The aims
and objectives of this initiative have been subjected to the prior
scrutiny of academia and business, which have brought their
expertise in the area of embedded systems to bear on the
proposal. The Member States have recognised that the Com-
munity level is the only one capable of meeting the challenges
of the future.

4.10 Legal basis

the joint undertaking in an appendix.

The proposal consists of a Council Regulation with the statutes
of
is based in
Article 171 of the Treaty. The joint undertaking is to be a Com-
munity body, and although its budget falls under Article 185 of
Council Regulation 1605/2002, it will have to take account of
the specifics of this initiative in that it involves public-private
partnerships with a large private-sector contribution at least
equal to that of the public sector.

It

4.11 Composition

The founder-members of the joint technology initiative (JTI) are
to be the European Community, represented by the Commis-
sion, the Member States who have announced their intention to
participate in the JTI, and ARTEMISIA (an association repre-
senting a large number of companies from the relevant sector
and other R&D organisations). The statutes set out a list of
bodies that can subsequently become members of the ARTEMIS
inter alia the countries associated with FP7
Joint Undertaking,
that are not EU members, and any other legal entity able to
make a contribution to the goals of the ARTEMIS joint under-
taking.

4.12 Funding

— a

financial

contribution from ARTEMISIA of up to
EUR 20 million or up to 1 % of the overall costs of projects,
but not exceeding EUR 30 million;

— a financial contribution from the Community of up to

EUR 10 million;

— in-kind contributions from ARTEMIS Member States.

The R&D activities for the period ending on 31 December
2017 shall be supported by the following contributions:

— a financial contribution from the Community of up to

EUR 410 million;

— contributions from ARTEMIS Member States, paid directly
to research and development organisations participating in
R&D projects;

— in-kind contributions from research and development orga-

nisations.

4.12.1
For the period ending on 31 December 2013, the
Commission's maximum contribution is to be EUR 420 million.
These funds are to be provided from the Specific Programme
‘Cooperation’ implementing the Seventh Framework Programme
for
according
to the provisions of Article 54(2) of Council Regulation
No 1605/2002. In 2008, 42,5 million are to be committed.

development,

technological

research

and

4.12.2
This considerable investment is justified by the fact
that the future results of ARTEMIS in the areas concerned will
also be important benchmarks for Community policy across the
board,
inter alia regarding the environment, transport, energy
and the internal market. They will also make a tangible contri-
bution to the achievement of the Lisbon competitiveness goals
and the Barcelona goals as regards research expenditure. The
proposed initiative is part of an ambitious Community strategy
which includes, among other things, the proposal to create a
European Institute of Technology (EIT).

4.13 Intellectual Property

ARTEMIS is to adopt rules governing the dissemination of
research results which ensure that, where appropriate, intellec-
tual property generated in R&D activities is protected, and that
research results are used and disseminated. Article 24 of the
undertaking's statutes sets out this principle in more detail.

4.14
ARTEMIS Joint Undertaking will offer
following objective benefits:

According to the Commission, the establishment of the
the Community the

— Integration of national efforts by pursuing common objec-
tives identified at European level, which will help to build a
European Research Area in embedded computing systems

The operating costs of the ARTEMIS Joint Undertaking set out
in Article 4 are to be borne by the following contributions:

— More flexible use of Member States' resources

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— Leverage effect of the Community's financial contribution

on R&D effort (national and private)

provision of high-level training and qualifications and, by exten-
sion, the creation and development of jobs.

— High programme efficiency and elimination of the weak-

nesses of previous programmes

— Economic efficiency by reducing the time-to-project

— Improvement of the EU's economic competitiveness thanks

to shorter time-to-market for research results.

5. General comments

5.1
The EESC broadly supports the Commission's strategy. It
believes that relaunching investment in R&D is an appropriate
way of giving European businesses a stable frame of reference
by means of a new instrument that makes it possible to over-
come the current fragmentation of Community financing and
avoids a wide range of thinly-spread programmes that made it
almost impossible to evaluate results.

However, as stated under point 4.2, JTIs arise out of the
5.2
work of
the former European Technology Platforms (ETPs).
However, these latter rarely achieved their stated aim of strategi-
cally relaunching research in Europe, not least because the stake-
holders were insufficiently empowered. The creation of JTIs is
based on this acknowledgement of partial failure regarding the
role of the ETPs, which was essentially to make a key contribu-
tion to industry in the area of competitiveness.

5.2.1
In the light of this, the EESC regrets the absence from
the Commission proposal of a more detailed outline of the
work previously carried out by the European Technology Plat-
forms (ETPs):
the results are not
mentioned, and there are no bibliographical references.

there is no assessment,

5.2.2
the EESC
For this reason, with regard to the JTIs,
welcomes the proposal that an annual report, giving an assess-
ment of the results and progress achieved, be submitted.

The EESC considers that the ARTEMIS joint undertaking,
5.3
which is based on a public-private partnership, represents a
strong basis for the creation of a European research area and a
key contribution to the competitiveness of European businesses.

The future availability of increasingly intelligent systems
5.4
could make a significant contribution to the production of ever
more secure products, whilst at the same time stimulating the

Brussels, 24 October 2007.

In giving a favourable opinion on the proposal under
5.5
review, the EESC would first of all like to highlight the impor-
tance of the innovative strategy that is proposed with regard to
investment.

For the first time involving research and development
5.5.1
programmes, resources are to be made available not only by the
Community and businesses — which is unusual — represented
by ARTEMISIA, but also by the various Member States and
participating research organisations.

5.5.2
In the light of this innovative collaborative structure,
which may become complicated when it comes to using the
products of the research to be carried out, the EESC welcomes
the importance and the detail accorded to intellectual property
in Article 24 of the joint undertaking's statutes.

5.6
However, to achieve its aims and to maximise the poten-
tial that this new instrument offers, the EESC considers the
following to be necessary:

— a genuine simplification of procedures at every stage of the
various R&D activities, from the selection of activities to the
distribution of results, by giving ARTEMIS the main respon-
sibility for these tasks. The administrative complexity and
the uncertainty over funding and institutional references
were some of the causes of the past failures of previous
R&D programmes;

— a wide-ranging information programme on the opportu-
nities provided by the ARTEMIS undertaking, inter alia on its
ability to mobilise the necessary economic resources in the
light of the new forms of financing;

— the

vocational

appropriate

establishment of

training
programmes to create a highly-skilled workforce with the
knowledge needed for the R&D supported by ARTEMIS,
which will be highly strategic for the EU's industrial future.
These high-level qualifications will provide the technical
skills needed for the R&D jobs that will be created, will
serve to slow the brain drain, and will provide one of the
necessary conditions for providing the industrial leadership
in these strategic sectors for the European Union.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS