Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - "Preparing for our future: Developing a common strategy for key enabling technologies in the EU"  {SEC(2009) 1257}
Date: 2009-09-23
Institutions: European Commission
Subjects: biotechnology, competitiveness, higher education, investment promotion, microelectronics, nanotechnology, research and development, technology transfer, vocational training

EN 

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.09.2009 
COM(2009) 512 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

"Preparing for our future: Developing a common strategy for key enabling technologies 
in the EU"  

{SEC(2009) 1257} 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, 
THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND 
THE COMMITTEE OF THE REGIONS 

"Preparing for our future: Developing a common strategy for key enabling technologies in 
the EU"  

1. 

THE IMPORTANCE OF KEY ENABLING TECHNOLOGIES FOR SOCIETY AND ECONOMY 

The shape and potential of industries worldwide will be transformed over the next 5 to 10 years. 
New goods and services will be created. A significant part of the goods and services that will be 
available  in  the  market  in  2020  are  as  yet  unknown,  but  the  main  driving  force  behind  their 
development  will  be  the  deployment  of  key  enabling  technologies  (KETs).  Those  nations  and 
regions  mastering  these  technologies  will  be  at  the  forefront  of  managing  the  shift  to  a  low 
carbon, knowledge-based economy, which is a precondition for ensuring welfare, prosperity and 
security  of  its  citizens.  Hence  the  deployment  of  KETs  in  the  EU  is  not  only  of  strategic 
importance but is indispensible.1 

Indeed, the EU needs a strong innovative performance in order to equip itself with all the means 
needed to address major societal challenges ahead, such as fighting climate change, overcoming 
poverty, fostering social cohesion and improving resource and energy efficiency. Following this 
path will enable the EU to grasp global opportunities, while at the same time offering sustainable 
employment opportunities with high quality jobs. KETs are knowledge intensive and associated 
with  high  R&D  intensity,  rapid  innovation  cycles,  high  capital  expenditure  and  highly-skilled 
employment. They enable process, goods and service innovation throughout the economy and are 
of  systemic  relevance.  They  are  multidisciplinary, cutting across many technology areas with a 
trend towards convergence and integration. KETs can assist technology leaders in other fields to 
capitalise on their research efforts.  

The  market  is  highly  competitive  and  technologies  are  typically  created  within  a  business 
environment, where SMEs play an important role, especially by providing inputs and innovative 
solutions  to  global  companies.  Therefore,  building  synergies  and  reaching  critical  mass  is 
important. Moreover, as research in KETs often takes place in close proximity to assembly and 
production  sites,  deployment  in  industries  in  the  EU  should  result  in  a  modernisation  of  the 
industrial base and in the further strengthening of the research base in Europe. While the required 
R&D  and  its  specific  applications  are  primarily  the  responsibility  of  businesses,  policy  makers 
need to put in place the right framework conditions and support instruments for strengthening the 
EU’s industrial capacities for the development of KETs.  

1 

The  Conclusions  of  the  Competitiveness  Council  of  28  May  2009  pointed  out  "that  it  is  of  particular 
importance to maintain strong R&D investments in high-tech industries in Europe. They provide the most 
important manufacturing sectors with indispensable technologies" and looked forward "to the Commission's 
initiative to develop a pro-active policy for enabling high-tech industries". 

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Currently  the  EU  has  very  good  research  and  development  capacities  in  some  key  enabling 
technology  areas;  however  it  is  not  as  successful  in  commercialising  research  results  through 
manufactured goods and services. Improving this situation requires a more strategic approach to 
research,  innovation  and  capitalisation.  Moreover,  until  now,  there  has  been  no  shared 
understanding within the EU on exactly what should be considered to be a KET. The EU already 
presented  a  more  strategic  approach  in  some  areas  such  as  in  life  sciences  and  biotechnology, 
nanosciences and nanotechnologies or energy technologies.2 But there is no coherent strategy on 
a European level on how these technologies can be better brought to industrial deployment. This 
Communication  therefore  tries  to  launch  a  process  of  identifying  the  KETs  that  strengthen  the 
EU’s industrial and innovation capacity to address the societal challenges ahead and it proposes a 
set  of  measures  to  improve  the  related  framework  conditions.  As  such,  it  forms  part  of  the 
development  of  EU  industrial  policy  and  of  the  preparation  for  the  new  European  plan  for 
innovation.3 

2. 

IDENTIFYING KEY ENABLING TECHNOLOGIES 

Several  Member  States  have  started  to  identify  enabling  technologies  that  are  relevant  to  their 
future  competitiveness  and  prosperity  and  to  target  their  R&D  spending  accordingly  (see  SEC 
(2009)  1257).  However,  there  are  differences  between  Member  States  on  what  should  be 
regarded  as  KETs,  which  might  be  explained  by  the  strengths  and  limits  of  their  research  and 
industrial landscapes. Discussions have been also taken place at European level but have so far 
not  led  to  a  shared  understanding  on  which  of  these  technologies  needs  a  more  strategic 
cooperation to improve industrial competitiveness.4 According to the latest Science, Technology 
and Competitiveness report, leading countries such as China, Japan and the US are also focusing 
on  enabling  technologies,  especially  biotechnology,  ICT  and  nanotechnology.5  Within  ICT, 
specific  fields  such  as  micro-  and  nanoelectronics  and  photonics  deserve  immediate  policy 
actions given the situation of the EU industry in global competition and the challenges stemming 
from  the  economic  crisis.6  Carbon  capture  and  storage  systems  (CCS)  is  another  activity  on 
which the EU  has  offered cooperation to international partners, hence it must itself possess the 
necessary, affordable technologies. 

2  

3 

4 

5 
6 

“Life  sciences  and  biotechnology  –  A  Strategy  for  Europe”  COM(2002)27,  “Nanosciences  and 
nanotechnologies: An action plan for Europe 2005-2009” COM(2005) 243 and a European strategic energy 
technology plan (SET Plan) COM(2007) 723 
The Conclusions of the European Council of 12 December 2008 calls for “the launching of a European plan 
for innovation … encompassing all the conditions for sustainable development and the main technologies of 
the future”. 
Synthesis  report  of  the  key  technologies  expert  group  (2005);  Creative  system  disruption:  towards  a 
research strategy beyond Lisbon. 
Science, Technology and Competitiveness key figures report 2008/2009. 
Other important ICT areas, such as software and communication technologies, including the development of 
Future Internet or high-speed broadband are supported by separate EU initiatives and are therefore not in the 
focus of this Communication; see for instance, A Strategy for ICT R&D and Innovation in Europe: Raising 
the Game COM (2009) 116. 

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Based on current global research and market trends the following could be regarded as the most 
strategically  relevant  KETs,  given  their  economic  potential,  contribution  to  solving  societal 
challenges and knowledge intensity :7 

Nanotechnology  holds  the  promise  of  leading  to  the  development  of  smart  nano  and  micro 
devices  and  systems  and  to  radical  breakthroughs  in  vital  fields  such  as  healthcare,  energy, 
environment and manufacturing; 

Micro- and nanoelectronics, including semiconductors, are essential for all goods and services 
which need intelligent control in sectors as diverse as automotive and transportation, aeronautics 
and  space.  Smart  industrial  control  systems  permit  more  efficient  management  of  electricity 
generation, storage, transport and consumption through intelligent electrical grids and devices; 

Photonics  is  a  multidisciplinary  domain  dealing  with  light,  encompassing  its  generation, 
detection  and  management.  Among  other  things  it  provides  the  technological  basis  for  the 
economical  conversion  of  sunlight  to  electricity  which  is  important  for  the  production  of 
renewable  energy,  and  a  variety  of  electronic  components  and  equipment  such  as  photodiodes, 
LEDs and lasers. 

Advanced  materials  offer  major  improvements  in  a  wide  variety  of  different  fields,  e.g.  in 
aerospace,  transport,  building  and  health  care.  They  facilitate  recycling,  lowering  the  carbon 
footprint  and  energy  demand  as  well  as  limiting  the  need  for  raw  materials  that  are  scarce  in 
Europe;  

Biotechnology  brings  cleaner  and  sustainable  process  alternatives  for  industrial  and  agri-food 
operations.  It  will  for  example  allow  the  progressive  replacement  of  non-renewable  materials 
currently used in various industries with renewable resources, however the scope of applications 
is just at the beginning; 

The potential of these technologies is largely untapped. Increasingly systemic solutions will need 
to  evolve  in  order  to  address  major  societal  challenges,  such  as  ensuring  high-speed 
communication, ensuring food supply, the environment, finding  appropriate transport solutions, 
ensuring high levels of health care for an ageing population, unlocking the potential of services, 
ensuring  internal  and  external  security  and  addressing  the  energy  question.  Low  carbon 
technologies  and  applications  will  play  a  vital  role  in  reaching  European  energy  and  climate 
change targets. For instance, CCS and CO2-related transport grids will be needed to reduce CO2 
emission in countries that will continue to rely heavily on fossil energy sources. KETs, such as 
new materials for energy production, transportation and storage play an essential role. They could 
lead to better resource and energy efficiency and their environmental impact needs to be assessed 
in a life-cycle perspective, taking advantage of the related initiatives promoted at EU level in this 
context.8  For  a  rounded  policy  approach  to  KETs,  legitimate  health  and  environmental 
consequences also need to be actively addressed. 

7  

8 

For a more in depth analysis of the various KETs, see the accompanying Staff Working Paper (SEC (2009) 
1257) 
See the Integrated Product Policy Communication COM (2003) 302; The Strategic Energy Technology Plan 
COM (2007) 723 has the main objective to accelerate the development of key technologies such as CCS and 
renewable technologies; The European Energy Research Alliance (EERA) launched within the framework 

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In  the  supply  chain  of  KETs,  advanced  manufacturing  systems  are  important  to  produce  high 
value marketable knowledge-based goods and the related services (e.g. modern robotics). This is 
especially  relevant  in  capital  intensive  industries  with  complex  assembly  methods  such  as  the 
production and assembly of modern aircraft which involves the whole spectrum of manufacturing 
technologies from the simulation and programming of robotic assembly lines to reducing energy 
and  materials  consumption.  Given  the  rapid  development  in  science  and  research  the  above 
technologies  may  rapidly  become  global  in  the  years  to  come  and  other  technologies  may 
emerge.  A  detailed  description  of  these  technologies  including  their  estimated  current  market 
potential is presented in the SEC (2009) 1257. 

3. 

REPORT ON PROGRESS, ACHIEVEMENTS AND CHALLENGES 

Overall, the EU has an R&D intensity of only 25% in high-tech manufacturing compared to 30% 
in  the  US.  Moreover  the  high  tech  share  within  total  manufacturing  industry  in  Japan  is  33% 
larger  and  in  the  US  even  50%  larger  than  in  Europe.  High-tech  industries  are  the  most  R&D 
intensive, where manufacturing and research efforts need to be integrated to safeguard the longer 
term success of both.  Therefore, both the smaller share of high  tech industry in the  EU  and its 
relatively smaller R&D intensity also explain the gap in the deployment of KETs between the EU 
and the US and Japan.9 The EU however has strengths in some enabling high technologies due to 
its  good  research  and  industrial  base.  This  is  particularly  true  for  the  advanced  materials  that 
underpin  the  EU’s  competitiveness  in  the  chemical,  automotive,  mechanical  engineering, 
aeronautics and space industries. The EU also has significant research and industrial strengths in 
nano-  and  microelectronics,  industrial  biotech  and  photonics.  In  nanotechnology,  still  an 
emerging  technology,  the  EU  has  similar  levels  of  R&D  spending  to  the  US  but  with  a  much 
lower private sector share (see SEC (2009) 1257).  

In  fact  the  EU  faces  significant  obstacles  in  achieving  a  wider  deployment  of  these  KETs.  In 
particular,  the  EU  has  been  less  effective  than  the  US  and  some  Asian  countries  in  terms  of 
commercialisation  and  exploitation  of  nanotechnologies,  some  aspects  of  photonics, 
biotechnology  or  semiconductors.  These  are  all  areas  where  substantial  public  R&D  efforts  are 
undertaken, however they do not sufficiently translate into economic and societal gains. There are 
several reasons for this: 
•  The EU does not effectively capitalise on its own R&D results.10 As a consequence very costly 
to 
research,  both  from  public  and  private  sources  undertaken 
commercialisation in other regions. This is not in the European interest and such developments 
endanger the future research capabilities in the EU, because in the long run R&D activities are 
likely  to  follow  production  to  third  countries.  It  may  be  relatively  easy  for  competitors  or 
imitators  to  catch  up  and  take  many  of  the  potential  profits  from  the  original  developer,  if 
intellectual property rights (IPR) are not effectively protected and enforced internationally. 

the  EU 

leads 

in 

•  Public knowledge and understanding of key enabling technologies is often lacking. This can 
contribute  to environmental or health and safety concerns about the development and use of 

of the SET-Plan will set up joint programmes, including basic energy science, enabling and breakthrough 
technologies.  
http:// ec.europa.eu/research/era/pdf/key-figures-report2008-2009_en.pdf. 
See also, Reviewing Community innovation policy in a changing world COM (2009) 442. 

9 
10 

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high  technologies.  This  is  not  only  true  for  applications  particularly  linked  with  public 
consumption or end use such as in healthcare and food, but also for other areas. There is often 
no  proactive  strategy  bringing  together  stakeholders  to  address  public  concerns  or  fears  to 
avoid  delays  in  introduction  of  new  technologies  in  the  EU.  In  order  to  ensure  wide  user 
acceptance  and  the  prompt  deployment  of  high-technologies,  public  understanding  and 
knowledge  of  enabling  technologies  needs  to  be  improved  and  any  ethical,  environmental, 
health and safety concerns anticipated, assessed and addressed at an early stage.  

leading-edge  research  capabilities 

•  There  is  a  shortage  of  skilled  labour  tailored  to  the  multidisciplinary  nature  of  key  enabling 
technologies.  While  Europe  has 
in  key  enabling 
technologies  and  can  draw  on  a  substantial  knowledge  base  in  science  and  engineering11,  it 
needs to continue to expand its science, technology, engineering and maths (STEM) graduate 
base and find ways to maximise their effective deployment across research and business. The 
knowledge  transfer  between  researchers,  entrepreneurs  and  financial  intermediaries  needs  to 
be  reinforced.  Students  and  professors  especially  need  stronger  incentives  to  commercialise 
research results to increase spin-offs from university research.  

•  In  the  EU,  the  levels  of  venture  capital  funding  and  private  investment  available  for  KETs 
remain  comparatively  low.  The  situation  has  become  even  more  problematic  during  the 
current  financial  and  economic  crisis.  For  example,  over  80%  of  worldwide  venture  capital 
funding related to nanotech is raised in the US. High development costs and uncertainty make 
the availability of risk venture capital crucial. The short product life-cycles of many high-tech, 
e.g. semiconductor or photonic-based, products combined with high initial development costs, 
often  make  financing  risky  and  difficult.  In  2005,  US  total  investment  in  venture  capital  in 
high-tech sectors was about three times the level invested in the EU.12 US venture capitalists 
appear  to  be  more  successful  at  concentrating  their  investment  on  more  advanced 
projects/technologies that are generating higher profits, while European research teams need to 
seek venture capital at too early a stage when the uncertainties are often still too high for both 
parties.13  

•  The  fragmentation  of  EU  policy  efforts  is  often  caused  by  a  lack  of  a  long-term  vision  and 
coordination.  Better  division  of  work  is  needed  to  improve  conditions  for  industrial 
exploitation in the EU. Individual Member State technology policies, while similarly focused, 
often  lack  the  synergies  and  benefits  of  economies  of  scale  and  scope  that  arise  from  more 
coordinated  joint  actions.  The  joint  technology  initiatives  instrument  could  be  further 
simplified and strengthened and the role of technology platforms14 could be expanded and co-
ordination  among  platforms  enhanced  to  ensure  the  contribution  of  KETs  to  the  solution  of 
key  societal  challenges.  Depending  on  the  maturity  level  of  KETs,  a  strong  integration 
between experimental research, innovation and industrial exploitation is essential. An example 

11 

12 
13 

14 

EU countries still have a greater share of science and technology graduates (27%) than Japan (24%) or the 
US  (16%),  despite  smaller  share  of  researchers  in  the  workforce:  Source:  Eurostat  (2006):  “Science, 
technology and innovation in Europe”. 
OECD Science, Technology and Industry: Outlook 2008. 
Science, Technology and Innovation key figures report 2005 and “The shifting structure of private equity 
funding in Europe. What role for early stage investment?” ECFIN/L/6(2005)REP/51515. 
Examples of technology platforms related to enabling high technologies include the European Technology 
Platform on Sustainable Chemistry or the Technology Platform on future manufacturing technologies.  

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is  the  need  to  carry  out  very  costly  pre-production  "proof  of  concept"  and  test  fabrication 
projects to ensure the adoption of KETs. These demonstration projects could benefit from joint 
programming and EU-wide participation, to reach the minimum effective size for diffusion of 
these  technologies.  The  fragmentation  of  the  markets  for  innovations  is  a  major  weakness 
caused  e.g.  by  different  regulations,  standardisation,  certification  and  public  procurement 
procedures across the Member States.  

•  In some third countries KETs may benefit from state support, which are often not transparent 
and  therefore  need  to  be  analysed  further.  .  In  the  Community,  Member  States  may  grant 
public support in accordance with existing state aid rules and encourage measures for KETs, 
which do not constitute state aid. It is of utmost importance to ensure that European companies 
can compete on a level playing field with their third country competitors. European state aid 
rules  provide  the  framework  and  conditions  for  allowing  Member  States  to  match  aid 
intensities provided by third countries in the field of state aid for research and development.  

4. 

FOSTERING KEY ENABLING TECHNOLOGIES IN THE EU 

Addressing the need to foster KETs in the EU requires a clear improvement in the EU’s research 
and  innovation  performance  in  order  to  succeed  in  the  EU’s  ambition  to  become  a  world  class 
location for entrepreneurship and innovation, the latter addressed in the Commission’s review of 
the  innovation  policy.15  This  review,  inter  alia,  stressed  the  importance  of  setting  up  a 
Community patent and a unified patent litigation system. For an effective industrial deployment 
of KETs the following policy areas need to be addressed:  

4.1. 

Increased focus on innovation for key enabling technologies  

The  economic  downturn  has  affected  investment  in  general  and  especially  in 
technology-enabled sectors such as chemicals, automotive, construction and electronics. 
Lower  industrial  output  and  slower  technology  adoption  reduces  demand  for  basic 
technology providers. A key objective of public support for R&D and innovation in the 
EU  Framework  and  Member  State  programmes  should  be  to  ensure  that  the  flow  of 
innovation  is  maintained  and  that  technology  adoption  is  facilitated.16  Calls  for 
proposals  in  the  years  ahead  should  be  designed  to  assure  the  link  between  research 
output  and  industrial  impact.  Publicly  supported  programmes  should  be  reinforced  to 
help  key  industries  to  maintain  their  long  term  innovation  plans  for  enabling 
technologies and thus ensure their competitiveness in the subsequent economic upturn.17 

4.2. 

Increased focus on technology transfer and EU-wide supply chains 

The  process  of  technology  transfer  between research  institutions  and  industry  needs  to 
be  strengthened.  The  European  Institute  for  Innovation  and  Technology  (EIT)  and  the 

15 

16 

17 

Reviewing Community innovation policy in a changing world COM (2009) 442. This Communication does 
not  replicate  general  innovation  instruments  that  are  needed  to  foster  KETs,  but  focuses  on  those  actions 
that are specific to deploy KETs.  
The Recovery Plan proposed by the Commission in 2008 includes public private partnerships for research 
and development related to "Factories of the Future", "Energy-efficient Buildings" and "Green Cars". 
Efforts already made such as with the Framework Program and the JTIs on nanoelectronics and Embedded 
Systems should be reinforced.  

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Enterprise Europe Network can play an important role in this regard, but Member States 
may  also  need  to  increase  their  capacity  for  technology  transfer  through  strengthening 
links between research-based contract institutions and SMEs.18 Greater access for SMEs 
to  enabling  high  technologies  manufactured  in  Europe  and  the  promotion  of  regional 
innovation clusters and networks are essential for creating and maintaining world-class 
innovation. They are key elements of a broad based European innovation strategy and of 
the  Small  Business  Act.  The  potential  for  expanding  EU-wide  technology  transfer  and 
supply  chains  may  also  need  to  be  strengthened,  e.g.  through  making  information  on 
research expertise and SME supplier specialisation more widely available across the EU. 
Earlier  involvement  of  potential  customers  in  R&D  activities  could  also  improve 
technology transfer.  

4.3. 

Increased focus on joint strategic programming and demonstration projects 

The Community, but also Member States and regions should pursue a more strategic and 
coordinated  approach  to  avoid  uneconomical  duplications  and  more  effectively 
capitalise on R&D results related to KETs. This approach should encompass increasing 
innovation  efforts  and  putting  greater  emphasis  on  the  transfer  of  research  results  into 
marketable  products.  Joint  calls,  already  carried  out  between  different  themes  could 
focus  more  on  the  KETs  with  the  greatest  potential  for  synergies  and  for  wide 
deployment  in  European  industries.  In  parallel,  the  Commission  and  Member  States 
could  discuss  the  evaluation  of  KETs,  establish  best  practices  and  set  joint  medium  to 
long term priorities 

In  order  to  reach  sufficient  critical  mass  and  overcome  fragmentation,  innovation 
programmes  financed  in  Member  States  should  provide  stronger  incentives  for 
collaborative  joint  programming  actions  between  Member  States.19  This  would  allow 
more  ambitious  technology  policies  to  be  developed,  unlocking  the  benefits  of 
economies  of  scale  and  scope  and  facilitating  strategic  alliances  between  European 
companies. 

As the costs of demonstration projects are sometimes an order of magnitude greater than 
those of upstream R&D, greater collaboration across the EU with stronger industry and 
user  involvement  could  allow  projects  to  be  realised  efficiently  and  affordably.  The 
Commission  will  work  with  Member  States  to  identify  and  initiate  a  range  of  joint  or 
common European research, demonstration or prototyping initiatives and infrastructures, 
such  as  in  the  case  of  the  co-financing  of  CCS  demonstration  projects.  Furthermore  it 
will  undertake  a  study  to  analyse  the  costs  and  benefits  of  establishing  450mm 
semiconductor  wafer  production  in  the  EU  and  the  subsequent  impact  on  the 
competitiveness of the European economy. 

18  

19  

Commission Recommendation on the management of intellectual property in knowledge transfer activities 
and Code of Practice for universities and other public research organisations C(2008)1329.  
For the research area see COM (2008) 468 "Towards Joint Programming in Research: Working together to 
tackle common challenges more effectively." 

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4.4. 

State aid policies  

Well  targeted  state  aid  that  addresses  market  failures  is  an  appropriate  instrument  to 
increase  R&D  and  foster  innovation  in  the  EU.  The  2006  Community  framework  for 
state aid for research, development and innovation increased the allowed aid intensities 
and the number of categories of aid. The Commission intends to carry out a review of 
the framework in 2010 that will assess whether amendments are necessary including if 
the possibilities to spur innovation through State aid are adequate.  

4.5. 

Combining the deployment of KETs and Climate change policy 

While it is obvious that the knowledge-based economy will not be achieved without the 
capacity to develop and use KETs, it is still important to stress, that the leading role of 
the  EU  in  the  fight  against  climate  change  has  to  be  based  on  the  most  modern 
technologies,  in  particular  KETs.  The  combination  of  fostering  KETs  and  fighting 
climate change would offer important economic and social opportunities and would also 
facilitate considerably the financing of the European share of the burden that will be the 
result of the international agreement which is under preparation.  

4.6. 

Lead markets and public procurement  

The EU needs a favourable environment for effective capitalisation of research results in 
products. It also needs to promote demand which requires a more targeted approach such 
as  the  one  followed  in  innovation  policy  with  the  Lead  Market  Initiative.  Public 
procurement  may  also  play  a  role  in  stimulating  enabling  high  technologies  and 
innovative  leading  edge  applications.  Member  States  could  use  pre-commercial 
procurement  and  procurement  for  large-scale,  close-to-market  innovations  to  stimulate 
emerging enabling technology markets. 

4.7. 

International comparison of high-tech policies and enhanced international cooperation 

The exchange of experiences and best practices between Member States and with other 
regions  should  be  intensified.  The  International  space  station  symbolise  not  only  a 
scientific  achievement,  but  also  reflects  the  industrial  gains  by  joining  forces.  The 
Commission  will  therefore  conduct  an  international  comparison  of  high  technology 
policies in other leading and emerging countries, such as the US, Japan, Russia, China 
and India and explore the scope for closer cooperation.  

4.8. 

Trade Policy 

Within the Commission’s ‘Global Europe strategy’ particular attention should be paid to 
ensure  favourable  trade  conditions  for  KETs  through  bilateral  and  multilateral  means, 
i.e.  avoid  international  market  distortions,  facilitate  market  access  and  investment 
opportunities,  improve  IPR  protection,  and  reduce  the  use  of  subsidies  and  tariff  and 
non-tariff barriers at global level.  

Trade  policy  must  ensure  that  potential  trade  distortions  triggered  by  direct  or  indirect 
subsidies  in  third  countries  are  effectively  screened  and  tackled,  for  instance  through 
trade  defence  instruments  or  through  the  WTO  dispute  settlement  procedure  where 
the  WTO  Agreement  on  Subsidies  and 
violations 

to  existing  rules  such  as 

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Countervailing  Measures  occur.  Therefore,  the  Commission  will  actively  monitor 
subsidies and other trade distortions by third countries.  

The Commission will also assess how to best ensure that future bilateral and multilateral 
agreements  effectively  prohibit  such  subsidy  practices  and  that  bilateral  dispute 
settlement  clauses  are  enforced  if  necessary.  Existing  international  fora,  such  as  the 
"Governments/Authorities  Meeting  on  Semiconductors  (GAMS)",  should  be  used  to 
address the problems that have been identified. 

4.9. 

EIB financing instrument and venture capital financing 

The  Commission  will  further  stimulate  increased  financial  investment  in  high 
technology  industries  for  research,  development,  manufacturing  and  infrastructure  and 
encourage the EIB to further develop its loan policy to give priority to high technology 
industry  using  appropriate  instruments  like  risk  sharing  finance  facility  and  the  loan 
guarantee  instrument  or  designing  new  instruments  in  order  to  facilitate  investments, 
taking account of the current financial and economic crisis. 

The  financing  of  the  commercialisation  of  technological  innovation  also  needs  a 
strengthening of venture capital funds specialised in early-stage investment. Such funds 
are  supported  under  the  financial  instruments  of  the  Competitiveness  and  Innovation 
Framework Programme (CIP)20. Sufficient availability of venture capital can be assured 
through  public-private  partnerships  which  play  a  critical  role  in  the  creation  and 
expansion of R&D-intensive companies.21 

4.10. 

Skills, higher education and training 

Attention  must  be  paid  to  the  upgrading  of  skills  and  to  developing  adequate  skills 
strategies  to  provide  appropriate  vocational  training  in  response  to  labour  market 
needs.22 This can ensure that the full potential of new technologies is exploited. Natural 
sciences  and  engineering  must  achieve  their  deserved  place  in  the  education  systems. 
The  percentage  of  graduates  in  this  area  should  be  increased,  also  by  attracting 
international  talents.23  Multidisciplinary  experience  and  skills  need  to  be  improved. 
Additional efforts should also be spent in improving green and environmental skills and 
in introducing environmental studies into engineering and business curricula in line with 
the EU e-skills strategy.24  

20 
21 
22 
23 

24 

Decision 1639/2006/EC of 24 October 2006; OJ L 310/15. 
For alist of current EIB loans to projects with high technology components, see www.eib.org. 
New Skills for New Jobs COM (2008) 868. 
A possible indicator for biotechnology for instance is the number of PhD Graduates in Life Sciences, see for 
instance:  European  Techno-Economic  Policy  Support  Network  (2006):  “Consequences,  opportunities  and 
challenges of Modern Biotechnology for Europe”; Europe’s overall higher education expenditure is 1.3% of 
GDP, which is lower than in the US (2.9%); see Bruegel (2009) memos to the new Commission: Europe’s 
economic priorities 2010-2015. 
“e-Skills for the 21st Century: Fostering Competitiveness, Growth and Jobs" COM (2007) 496.  

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5. 

THE WAY FORWARD 

The design of an industrial policy framework for enabling high technologies needs to be founded 
upon a widely shared and broadly-based EU-wide strategic vision about the technologies that the 
EU  wishes  to  master  in  research  and  production.  This  will  be  one  important  element  for 
developing  the  EU  into  a  breeding  space  of  innovation.  It  will  also  be  required  to  match  the 
European ambition to become a key international player when it comes to facing global societal 
challenges and to translate its engagement in welfare gains at home and abroad. 

To that end a shared long term vision and a strong partnership will be required between the EU, 
its Member States, businesses and key stakeholders. Therefore the Commission invites Member 
States to agree on the importance of deploying KETs in the EU and support the orientations set 
out in the present Communication.  

In the short term the Community will foster the deployment of key enabling technologies within 
its current policy framework: (i) state aid rules (such as the temporary State aid framework) (ii) 
trade  aspects  (iii)  access  to  finance  notably  within  the  forthcoming  innovation  act25  and  (iv) 
reinforcing  existing  initiatives  and/or  proposing  direct  actions  in  the  field  of  specific  enabling 
high technologies.  

Moreover it suggests setting up a high-level expert group tasked with developing a shared longer 
term strategy for key enabling technologies, addressing particularly the areas identified in chapter 
4. This high-level group will be composed of Members States' industrial and academic experts.  
This  high  level  expert  group  should  build  on  the  results  of  the  key  technologies  expert  group 
findings in 2005. To create synergies this expert group should rely on and closely co-operate with 
other  Commission  expert  groups  on  innovation  and  technology,  the  EIT,  the  European 
Technology Platforms and Joint Technology Initiatives and should:  

(1) 

(2) 

(3) 

assess  the  competitive  situation  of  the  relevant  technologies  in  the  EU  with  a 
particular focus on industrial deployment and their contribution to address major 
societal challenges, 

analyse in depth the available public and private R&D capacities for KETs in the 
EU (on all levels) and 

propose  specific  policy  recommendations  for  a  more  effective  industrial 
deployment of KETs in the EU. 

The Commission will report back to the Council and the European Parliament by the end of 2010. 

25  

COM (2009) 442. 

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