Opinion of the European Economic and Social Committee on the Proposal for a Council Regulation setting up the ENIAC Joint Undertaking COM(2007) 356 final — 2007/0089 (CNS)
Date: 2007-10-25
Institutions: European Economic and Social Committee
Subjects: EU financing, intellectual property, investment, joint venture, nanotechnology, new technology, patent law, professional qualifications, public-private partnership

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Official Journal of the European Union

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5.5
However, in the light of the multiple financing system
that has been set up and of the significant volume of Com-
munity resources involved, the EESC believes that it would be
appropriate to better define the use and allocation of the end
products of the research in question. To this end, the issue of
patents and intellectual property as defined in Article 20 of the
regulation, which limits itself to setting out principles, ought to
be more precise and more explicit,
lest it become a sticking
point in the implementation and running of the Clean Sky JTI.

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 Clean Sky the main respon-
sibility for these tasks. Administrative complexity and the
uncertainty over funding and institutional references were

Brussels, 25 October 2007.

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 Clean Sky 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 Clean Sky,
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 ensuring leadership in these sectors,
which are of strategic importance from both an industrial
and an environmental perspective.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

Opinion of the European Economic and Social Committee on the ‘Proposal for a Council Regulation
setting up the ENIAC Joint Undertaking’

COM(2007) 356 final — 2007/0089 (CNS)

(2008/C 44/05)

On 10 September 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.

On 10 July 2007, the Bureau of the European Economic and Social Committee decided to ask the Section
for the Single Market, Production and Consumption to carry out the work on the subject.

In view of the urgency of the matter, at its 439th plenary session held on 24 and 25 October 2007
(meeting of 25 October), the European Economic and Social Committee appointed Mr Dantin as its rappor-
teur-general and adopted the following opinion by 106 votes in favour, with one abstention.

1. Conclusions and recommendations

and making it possible to overcome the current fragmentation
of Community financing and coordinate research, which is
often too widely dispersed, thereby helping to make it more
effective.

The Committee welcomes the decision on setting up the

1.1
ENIAC joint undertaking (1).

1.1.1
It considers that this approach to relaunching invest-
ment in R&D by means of public/private financing has the
potential to give European businesses a stable frame of reference

(1) ENIAC = European Nanoelectronic Initiative Advisory Council.

ENIAC was also the first computer manufactured using electronic
components (1945-1946).

industry, with strong potential

It welcomes the choice of this sector. This is a technically
1.2
innovative branch of
for the
future and as a source of highly skilled jobs, and developing it
will directly contribute to achieving the Lisbon objectives on
competitiveness and the Barcelona objectives on percentage of
GDP allocated to research, and also to other Community poli-
cies, for example on the environment, transport, energy and
health.

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1.3
In welcoming the proposal under discussion, the EESC
wishes firstly to underline the importance for the EU of the
strategy being proposed for investment and coordination of
In so doing, the Committee feels that the strategy
research.
strongly supports the creation of a European research area and
significantly contributes to the competitiveness of European
businesses in the sector.

In the light of

1.4
this innovative collaborative structure,
which may become complicated when it comes to using the
products of the research to be carried out by ENIAC and their
industrial application phase, the EESC appreciates the attention
which has been paid to intellectual property rules.

The Committee is pleased to note that particular atten-
1.5
tion has been paid to the risk of nanoelectronic manufacturing
relocating to other parts of the world. The EESC supports the
idea of a specialised sectoral approach.

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
to use more
projects so that research findings can be put
quickly. JTIs are aimed at key areas where the current instru-
ments have neither the scale nor the speed to keep Europe
ahead of global competition. These are areas where national,
European and private funding of research could bring significant
added value, inter alia by stimulating an increase in private R&D
expenditure.

2.4
The main purpose of the JTI in the field of nanoelectro-
nics, known as ENIAC, is to contribute to the development of
key competences for nanoelectronics in order to strengthen
European competitiveness. To this end,
the proposal under
review lays down the legal framework establishing ENIAC.

Finally, to maximise the potential that this new instru-

1.6
ment offers, the EESC considers the following to be necessary:

3. Context and general considerations

— a genuine simplification of procedures, not least because of
the negative impact that red tape had on previous R&D
programmes. As
these procedures are currently being
worked out, the Committee will pay close attention to the
need to enable all parties to participate in the choice of
objectives and analysis of final results;

— an information campaign to help mobilise the requisite

economic resources;

— the

appropriate

establishment of

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

vocational

2. Introduction

2.1
The purpose of the proposed Regulation is to launch one
of the very first public-private partnerships in the area of R&D.
It defines one of the first Joint Technology Initiatives (JTI). This
initiative is the field of nanotechnologies and is entitled ENIAC.

The general aim of JTIs is to allow industry, Member
their

2.2
States and the Commission to pool some or all of
resources into selected research programmes.

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

3.1 With constant growth in the numbers of electronic
components in innovative hi-tech products, the nanotechnology
sector is of strategic importance for European competitiveness
and industrial growth.

This sector produces equipment which is essential for
3.2
major industries in a wide variety of fields such as telecommuni-
cations, consumer products, multimedia services, education,
transport, healthcare, security and the environment.

An average annual growth rate of 15 % is forecast for
3.3
the market
for the industrial nanotechnology sector (which
apart from direct manufacturers also comprises suppliers of
manufacturing instruments and materials). In order to maintain
such a high growth rate, close attention needs to be paid to the
sector.

A Community-wide initiative must

3.4
therefore seek to
preserve and strengthen global leadership in the relevant sectors,
by means of R&D programmes that can achieve the necessary
objectives for
the same time as
pursuing more ambitious technological objectives, aiming for
increased competitiveness, and creating highly skilled new jobs.

industrial exploitation, at

3.5
The choice of a public-private joint undertaking should
make it possible to substantially improve the quality of R&D in
the sector. This is vital to overcome the current fragmentation
of research programmes in the various Member States which are
unable to reach critical mass and lack the necessary resources to
fund appropriate programmes.

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3.6
The choice of a European dimension appears to be essen-
tial, given that it is the only option for meeting the major chal-
lenges facing the nanotechnology sector.

and the Barcelona objectives on research expenditure. It will
contribute indirectly to other Community policies, e.g. on the
environment, transport, energy and health.

In addition,

3.7
reaffirming the Community dimension
should enable simpler administration and less red tape, with a
single Community procedure replacing various national proce-
dures and reducing the time needed to obtain a R&D contract
compared to the current situation at Community level
(see
EUREKA); this would also avoid differences between evaluation
and monitoring procedures.

4.3
The main frame of reference underpinning the ENIAC JTI
is provided by ‘Nanosciences and nanotechnologies: an action
plan for Europe 2005-2009’ [COM(2005) 243 final] and the
work of the Scientific Committee on Emerging and Newly Iden-
tified Health Risks (SCENHIR).

3.8
Setting up a public-private undertaking which directly
involves Member States and companies from the relevant
sectors is an innovative step compared to the current procedures
for participating in Community R&D programmes. Besides, the
considerable
programmes
proposes to allocate at Community level will enable critical
economic mass to be achieved, which is essential if the ambi-
tious objectives set by the programme are to be achieved.

resources which

financial

the

3.9
The participation of Member States and companies, and
their direct involvement by means of contributing at least of
50 % of research-linked expenditure, will have a multiplier effect
in the form of an impetus for new financing and a strong
contribution to the development of a European research area.

It is essential for Member States to participate directly,
3.10
not only in order to mobilise investment but also — and
mainly — because decisions will continue to be taken at
national level, for example on calls for proposals and ongoing
direct monitoring of all phases of the process.

3.11
Direct participation by industry is also essential in that
the results of this ambitious R&D programme could help to
achieve important and relevant objectives relating to the compe-
titiveness of European industry in the sector, and consequently
have a beneficial impact on employment in the sector.

4. Coherence

The starting point

4.1
the
Seventh Framework Programme (FP7). This programme is based
on a strong awareness that relaunching investment in R&D is
vital for a competitive and dynamic economy.

research programmes

for

is

5. The Commission's proposal

The decision on the establishment of the ENIAC joint
5.1
undertaking described in COM(2007) 356 final
is based on
Decision 1982/2006/EEC on the 7th Framework Programme,
which provides for a Community contribution towards the
at
establishment of
European level in the area of scientific research.

long-term public-private partnerships

These partnerships take the form of Joint Technology
5.2
Initiatives (JTI) and arise from the work of the former European
Technology Platforms (ETP).

The Commission, in its Decision No 971/2006/EEC on
5.3
the Specific Programme ‘Cooperation’ (2), 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 (3);

— Innovative medicines (4);

— Embedded computing systems (5);

— Nanoelectronics;

— GMES (global monitoring for environment and security).

5.4
In the context of this general strategy, the Regulation
proposed in COM(2007) 356 final provides for the setting up
of an ENIAC joint undertaking in the field of nanoelectronics.

5.5
The ENIAC joint undertaking is to be considered as an
international body with a legal personality within the meaning
of Article 22 of Directive 2004/17/EC and Article 15 of Direc-
tive 2004/18/EC. Its seat will be in Brussels and its activities will
cease in December 2017, unless extended by Council decision.

4.2
Setting up a ENIAC JTI joint undertaking will directly
contribute to achieving the Lisbon objectives on competitiveness

(2) OJ L 400, 30.12.2006, p. 1.
(3) INT/369.
(4) INT/363.
(5) INT/364.

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5.6 Legal basis

5.9 Objectives

The proposal consists of a Council Regulation with the statutes
of the joint undertaking in an annex. It is based on Article 171
of the Treaty. The joint undertaking is to be a Community body,
and although its budget falls under Article 185 of Council Regu-
lation 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 equal to that of the
public sector.

5.7 Membership

The founder members of the joint technology initiative (ENIAC
JTI) are to be the European Community, represented by the
Commission, and AENEAS, an association representing compa-
nies and other R&D organisations. The statutes set out a list of
bodies that can subsequently become members of the ENIAC
joint undertaking, inter alia the countries associated with FP7
that are not EU members, and any other legal entity able to
make a contribution to the goals of the ENIAC joint under-
taking.

5.8 Funding

5.8.1
The operating costs of the ENIAC joint undertaking set
out in Article 4 are to be borne by the following contributions:

— a financial contribution from ENIAC of up to EUR 20 million
the overall costs of projects, but not

or up to 1 % of
exceeding EUR 30 million per year;

— a financial contribution from the Community of up to

EUR 10 million;

— in-kind contributions from ENIAC Member States.

the ENIAC joint undertaking for the
The R&D activities of
period ending on 31 December 2017 are to be supported by
the following contributions:

— a financial contribution from the Community of up to

EUR 440 million;

— financial

contributions

States
amounting in total to at least 1,8 times the Community's
financial contribution;

from ENIAC Member

— in-kind contributions by R&D organisations participating in
projects, the total of which is to be equal to or greater than
the contribution of public authorities.

5.8.2
For the period ending on 31 December 2013, the
Commission's maximum contribution is to be EUR 450 million.
These funds are to be provided from the Specific Programme
‘Cooperation’ implementing the Seventh Framework Programme
for research and technological development, according to the
provisions
Regulation
54(2)
No 1605/2002.

of Article

Council

of

According to the Commission, setting up the ENIAC joint
undertaking is intended to achieve the following objectives:

— to define and implement a ‘Research Agenda’ for the devel-
opment of key competences for nanoelectronics in order to
strengthen the
sustainability of
European businesses, and allow the emergence of new
markets;

competitiveness

and

— to support

the implementation of R&D activities by

awarding funding to participants in selected projects;

— to promote a public-private partnership aimed at mobilising
and pooling Community, national and private efforts, and
fostering collaboration between the public and private
sectors;

— to ensure the efficiency and durability of the joint tech-

nology initiative on nanoelectronics;

— to achieve synergy and coordination of European R&D
efforts including the progressive integration in the ENIAC
joint undertaking of
the related activities in this field
currently implemented through intergovernmental R&D
schemes (Eureka).

6. General and specific comments

The Committee welcomes the decision on setting up the
6.1
ENIAC joint undertaking and the accompanying draft regu-
lation. In welcoming the proposal under discussion, the EESC
wishes firstly to underline the importance for the EU of the
strategy being proposed for investment and coordination of
research.

6.2
As the Committee has already stated in its opinions on
other regulations arising from Council decision 971/2006/EEC
on the Specific Programme ‘Cooperation’,
that
relaunching investment in R&D is an appropriate way of giving
European businesses a stable frame of reference that makes it
possible to overcome the current fragmentation of Community
financing and avoids a wide range of thinly-spread programmes.

it believes

The initiative is consistent with EU policies and objec-
6.3
tives and ties in with the approach set out in the Lisbon strategy
with its emphasis on knowledge and innovation in the Com-
munity supporting growth and employment. Nanotechnology
plays a vital role in that it has become a driver for innovation in
numerous sectors of strategic importance for EU development
and growth (mobile communications,
transport, computing,
automating manufacture, healthcare, etc.). The joint undertaking
could be a tool enabling Europe to maintain or even enhance its

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capacity to design and manufacture products complying with its
own standards on quality, sustainability and environmental
protection. Setting up such an undertaking provides a solid
basis for the creation of a European research area and a major
contribution to the competitiveness of European businesses.

The Committee is pleased to note that,

6.4
in the impact
analysis accompanying the draft regulation on this JTI, particular
attention has been paid to the risk of nanoelectronic manufac-
turing relocating to other parts of the world. This is important
in that such manufacture offers strong added value in terms of
generating growth and employment at the same time as earning
a partial return on the funds which the EU proposes to invest in
developing this sector. In view of this the EESC supports the
idea of a specialised sectoral approach to support
this key
industry.

In the light of

6.5
this innovative collaborative structure,
which may become complicated when it comes to using the
products of the research to be carried out by ENIAC and their
industrial application phase, the EESC appreciates the attention
which has been paid to the definition of intellectual property
rules set out in Article 23 of the Statute. At the same time, it is
pleased that the action plan relating to the regulation pays close
attention to health and safety issues.

Brussels, 25 October 2007.

To achieve the aims of the joint undertaking and to
that this new instrument offers, the

6.6
maximise the potential
Committee 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 ENIAC the main responsi-
bility for these tasks. 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 ENIAC 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 ENIAC, 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
leadership in these stra-
conditions for ensuring industrial
tegic sectors for the European Union.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS