COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions A Reinforced European Research Area Partnership for Excellence and Growth (Text with EEA relevance)
Date: 2012-07-17
Institutions: European Commission
Subjects: competitiveness, cross-border cooperation, economic growth, gender equality, harmonisation of standards, innovation, job creation, research and development, research budget, research programme

EUROPEAN COMMISSION 

Brussels, 17.7.2012  
SWD(2012) 211 final 

COMMISSION STAFF WORKING DOCUMENT 

EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT 

Accompanying the document 

Communication from the Commission to the European Parliament, the Council, the 
European Economic and Social Committee and the Committee of the Regions 

A Reinforced European Research Area Partnership for Excellence and Growth 

(Text with EEA relevance) 

{COM(2012) 392 final} 
{SWD(2012) 212 final} 

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COMMISSION STAFF WORKING DOCUMENT 

EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT 

Accompanying the document 

Communication from the Commission to the European Parliament, the Council, the 
European Economic and Social Committee and the Committee of the Regions 

A Reinforced European Research Area Partnership for Excellence and Growth 

(Text with EEA relevance) 

1. 

INTRODUCTION 

The European Research Area (ERA) is a unified research area open to the world based on the 
Internal  Market,  in  which  researchers,  scientific  knowledge  and  technology  circulate  freely 
and  through  which  the  Union  and  its  Member  States  shall  strengthen  their  scientific  and 
technological bases as well as their competitiveness and their capacity to collectively address 
grand challenges. 

Launched in March 2000, ERA has become one of the key objectives of the Union since the 
entry into force of the Lisbon Treaty1. An ERA framework and supporting measures were 
announced  in  the  2010  Innovation  Union  (IU)  flagship2  initiative  of  the  Europe  2020 
Strategy3.  On  2  occasions  (in  February  2011  and  March  2012)  the  European  Council  has 
called for ERA to be completed by 2014. 

In  a  context  of  economic  crisis,  there  is  an  urgent  need  for  research  and  research-based 
solutions  and  the  promotion  of  scientific  excellence  in  regions  and  countries  to  support 
economic  growth.  Completing  ERA  will  help  to overcome the negative effects on Europe’s 
research effectiveness of fragmentation in the design and implementation of research policies 
and activities. 

2. 

PROBLEM DEFINITION 

2.1.  Main barriers hampering research performance in ERA 

The EU is still a key player in the international research and development (R&D) landscape, 
but  it  is  facing  a  series  of  crucial  challenges  which  require  urgent  responses  such  as  the 
financial crisis, low economic growth, and the ageing population.  

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Article 179(1) TFEU states that: ‘The Union shall have the objective of strengthening its scientific and 
technological bases by achieving a European research area in which researchers, scientific knowledge 
and technology circulate freely (…)’.  
COM(2010) 546 final. 
COM(2010) 2020 final . 

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The  EU  flagship  Innovation  Union  initiative,  to  promote  growth  and  jobs  -  sets  out  a 
comprehensive  agenda  to  ensure  that  innovative  ideas  can  be  turned  into  products  and 
services,  with  research  as  a  major  component.  Indeed,  Europe  invests  too  little  in  research 
compared to major competitors (1.9 % of GDP in Europe in 2008 as against 2.5 % of GDP in 
the  US).  Knowledge  production  is  concentrated  in  a  relatively  small  number  of  Member 
States.  European  research  does  not  address  sufficiently  cutting-edge  areas  (e.g.  information 
and  communication 
technologies,  nanotechnology,  biotechnology,  molecular  biology, 
genetics)  which  can  generate  technological  breakthroughs.  This  does  not  foster  innovation, 
which is essential for the European economy's enhanced competitiveness and attractiveness. 

Research  in  Europe  is  structured  in  a  highly  variable  and  fragmented  way.  The  European 
Research Area (ERA) seeks to overcome fragmentation and create the best conditions to carry 
out  research  in  Europe.  Since  2000,  the  European  Union  and  the  Member  States  have 
progressed together to make ERA a reality, but several barriers still remain. 

Insufficient competition in national research systems: Limited competition amongst research 
institutions and universities leads to insufficient specialisation. This does not create the right 
conditions  for  improving  scientific  quality.  The  share  of  public  funding  allocated  through 
open calls for research proposals varies between 20 % and 80 %, with an average of 40 %. The 
evaluation of researchers and research proposals is not based on comparable standards across 
countries.  

Barriers  to  pan-European  cooperation  and  competition  remain:  Barriers  are  formed  by  the 
low compatibility and interoperability of national research programmes. There is not enough 
flexibility  to  enable  national  programmes  to cooperate  across  borders  and  to  provide  access 
large national research infrastructures of European interest as well as pan-European research 
infrastructures. This means that Europe is not taking up opportunities to enhance the quality 
and impact of its research. 

Persistent  distortions  among  national  labour  markets  for  researchers:  Barriers  are  mainly 
caused by different approaches to merit-based recruitment, institutional autonomy, lack of use 
of  best  practices  in  designing  human  resources  strategies  for  researchers  and  in  promoting 
researcher  mobility,  as  well  as  unattractive  working  conditions  for  young  researchers  and 
foreign researchers. Different conditions also apply to the portability of, and access to, grants. 
This leads to reduced researchers mobility and fewer career opportunities. 

Limited  progress  on  gender  equality  and  gender  dimension  in  research  content:  Not  all 
Member States implement policies to benefit from the talent of female scientists and from the 
inclusion  of  a  gender  dimension  in  research  content,  in  the  same  way  not  all  stakeholder 
organisations implement gender action plans to achieve gender equality. This undermines the 
quality  and  relevance  of  European  research  by  not  making  full  use  of  a  diverse  scientific 
human resource potential, leading as a result to adverse social and economic effects. 

Restricted circulation of and uneven access to scientific knowledge: Member States are not all 
equally  advanced  in  supporting  open  access  policies  which  could  help  reduce  information 
asymmetries.  A  number  of  barriers  prevent  researchers  from  having  seamless  access  to 
electronic research services, including different national ‘usage’ policies for publicly funded 
research  e-infrastructure.  Knowledge  transfer  between  public  research  institutions  and  the 
private sector is still insufficient when compared with the US. This affects scientific quality as 
well as R&D-derived economic outcomes in both the public and the private sectors. 

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2.2. 

The EU’s right to act, subsidiarity and EU added value 

The Treaty states that research policy is a shared competence between Member States and the 
Union.  Article  179  of  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU)  lays 
down  the  right  for  the  Union  to  create  the  necessary  conditions  for  realising  the  European 
Research  Area.  Article  182(5)  TFEU  provides  for  the  use  of  the  legislative  procedure  to 
establish the necessary measures for the implementation of the European Research Area. 

The completion of ERA does not call into question the sovereignty of the Member States. In 
ERA,  national  research  systems  do  not  disappear  but  work  together  in  an  open  way.  The 
policy options selected respect the subsidiarity principle to the extent that the Union is  best 
placed  to  identify  areas  of  actions  for  Member  States,  given  the  persistent  barriers  and  the 
limited  progress  observed  12  years  after  the  launch  of  ERA.  European  added-value  is 
demonstrated  by  several  reasons.  First,  optimal  allocation  of  activities  –  where  necessary  - 
will be attained through a coordinated approach, improving effectiveness of research systems 
and reducing unnecessary duplication of efforts. Second, level playing field and critical mass 
are  expected  to  be  achieved  from  the  implementation  of  ERA,  thus  allowing  creating  the 
conditions  for  the  most  productive  research  teams  to  work  together  and  to  be  competitive 
internationally. Third, European impetus maximises the possibility of completing ERA in the 
short term, given the persistence of national barriers mentioned above. Fourth, the European 
Union level is the best one to assess objectively whether progress has been attained, whether 
it is proportionate; and whether there is a need for further action to improve the situation. 

3. 

POLICY OBJECTIVES 

The overarching policy goal of the European Research Area is to increase the performance, 
excellence and impact of Europe’s R&D system. This will help the EU get back onto the path 
of economic growth by fostering scientific excellence and research, underpinning innovation 
and increasing the attractiveness of the EU as a research location. 

The objective of the Communication is to identify and promote actions which ensure that by 
2014  the  adequate  conditions  are  in  place  for  improving  the  effectiveness  of  European 
research systems. 

These  conditions  will  allow:  1.  an  increased  effectiveness  of  national  systems;  2.an  optimal 
level  of  transnational  cooperation  and  competition;  3.  a  more  open  labour  market  for 
researchers;  4.  gender  equality  and  gender  mainstreaming  in  research;  and  5.  an  optimal 
circulation and transfer of scientific knowledge, including via digital ERA. 

4. 

POLICY OPTIONS 

Policy  option  1:  Business  as  usual  (BAU):  This  option  would  entail  the  continuation  of 
current  policies,  with  no  additional  national  and  European  efforts  to  remove  barriers.  The 
major  development  would  be  the  adoption  and  implementation  in  2014  of  Horizon  2020, 
possibly with an increased budget to support cross-border research and innovation activities. 

Policy  option  2:  Reinforced  partnership  for  ERA:  Member  States  would  be  invited  to 
undertake voluntary structural reforms. Research stakeholder organisations would also engage 
to undertake to take measures to implement ERA. The Commission would propose different 
types  of  measures  (such  as  Recommendations)  in  order  to  complete  ERA  and  accompany 

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partners  in  achieving  the  objectives.  The  Commission  would  assess  progress  every  year, 
identifying areas where further changes would be needed. 

Policy  option  3:  Sectoral  legal  measures  for  ERA:  This  policy  option  would  include  a 
number  of  binding  legal  measures  proposed  by  the  Commission  in  several  areas  (i.e.  topic-
specific  sectors)  as  required.  In  addition,  voluntary  action  by  Member  States  would 
complement  the  legal  measures,  addressing  those  sectors  where  Member  States  and 
stakeholders are best placed to address key barriers. 

Policy option 4: ERA Framework Directive: This policy option would consist of an overall 
legal  approach  in  the  form  of  a  comprehensive  package  (Framework  Directive)  containing 
legally-binding measures, with Member States choosing the appropriate means to achieve the 
results required by the Directive. 

5. 

ANALYSING THE IMPACTS AND COMPARING THE POLICY OPTIONS 

The  policy  options  propose  different  mechanisms  to  remove  barriers  and  promote  more 
effective  research  systems.  These  options  are  expected  to  attain  similar  impacts  (e.g. 
economic,  social  and  environmental  impacts,  research  excellence  and  performance)  once 
ERA is completed. Thus, the main differences between the options in terms of impacts lie in 
the timing for delivering the expected results, the related implementation costs and the degree 
of acceptance by Member States and stakeholders. 

Box 1: Overall impacts of removing barriers to complete ERA 

Economic impact: Public and private sectors in all the Member States will benefit from the 
increased  effectiveness  created  by:  more  funding  allocated  to  best  performing  researchers; 
more  cooperation  among  Member  States;  better  solutions  to  societal  challenges;  increased 
quality  and  relevance  of  research  through  a  better  consideration  of  the  gender  dimension 
throughout  the  research  process;  a  better  use  of  available  trained  researchers,  in  particular 
women;  and  improved  access  to  knowledge  for  public  and  private  sectors  everywhere, 
particularly in less advanced regions. If completing ERA means reallocating national funds to 
transnationally coordinated research, this could benefit the EU’s economy (0.25 % additional 
GDP  growth)  and  job  market  (323 000  additional  jobs)  in  2030.  However,  costs  will  be 
incurred by Member States' administrations and businesses, depending on the type of barriers 
to be removed. 

ERA will lead to greater focus on the financial sustainability of scientifically strong fields, as 
well as a coordinated demand for the provision of interoperable and effective digital research 
services, which would boost the ICT sector and ICT innovation in the EU. Open access would 
bring significant benefits to most players and potential savings for many institutions. 

Social  impacts:  positive  impacts,  both  direct  and  indirect,  would  be  expected  from  better 
research staff performing more effectively and from enhanced R&D cooperation. Measures in 
favour  of  a  digital  ERA  would  benefit  researchers  in  smaller  and  less-advanced  Member 
States  and  regions.  ERA  would  also  have  a  positive  impact  on  fundamental  rights,  in 
particular as regards the respect for gender equality, freedom of expression, and freedom of 
arts and sciences. 

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Environmental  impacts:  environmental  issues  would  be  addressed  jointly  and  research 
would  be  better  coordinated.  This  would  avoid  unnecessary  duplication  and  thus  increase 
efficiencies. 

5.1. 

Assessing the options 

Policy  option  1:  Existing  barriers  would  remain,  preventing  greater  efficiency  from  being 
achieved  in  national  systems.  There  would  be  benefits  as  a  result  of  the  implementation  of 
Horizon  2020.  This  option  would  not  respond  to  the  European  Council’s  call,  and 
stakeholders’ expectations, to complete ERA. 

Policy  option  2:  Substantial  but  possibly  uneven  progress  would  be  expected  by  2014. 
Member  States  would  remove  barriers  in  areas  where  action  is  most  needed,  with  low 
administrative burden. They would mobilise stakeholders — research funding and performing 
organisations — to contribute towards completing ERA. At this stage there is a consensus, in 
particular among  the Member  States,  to employ voluntary measures to complete ERA. This 
option would meet Member States expectations. 

Policy  Option  3:  This  option  would  entail  slow  and  uneven  progress  towards  completing 
ERA by 2014, but substantial progress in the long run in areas where (and when) legislative 
measures would be adopted. Implementation would be delayed, at least until 2017, and would 
impose a heavy burden on national administrations and the Commission. Most Member States 
have not shown strong support to legislation in this area, making it very difficult to take this 
option through the Council. 

Policy  Option  4:  This  option  would  deliver  the  best  results  but  only  in  the  long  run  if 
legislation  is  adopted.  It  would  require  time  to  undertake  a  thorough  assessment  of  the 
existing  situation  in  order  to  develop  the  principles  and  mechanisms  to  be  included  in  the 
overall framework,  which would be presented in  2013/14. The  negotiation of the full set of 
measures would be burdensome and lengthy and the operational implementation of measures 
would be delayed until after 2017 at the earliest. It would impose extremely heavy burdens on 
public  administrations  and  the  Commission.  As  in  the  previous  option,  it  would  be  very 
difficult to take this option through the Council. 

5.2. 

Choosing the preferred policy option 

Policy  option  2  ‘Reinforced  partnership  for  ERA’  is  the  only  option  which  allows  for 
substantial progress towards the completion of ERA by 2014, and it would entail the lowest 
cost. Moreover, this option includes the development of an assessment system which will help 
in identifying future action. Therefore, the preferred policy option is ‘Reinforced partnership 
for ERA’. 

6. 

MONITORING AND EVALUATION 

The ERA monitoring mechanism will be established in order to assess progress by Member 
States  and  stakeholder  organisations  with  respect  to  a  number  of  indicators  linked  with  the 
actions  included  in  the  policy  option  selected.  On  the  basis  of  Member  States'  reports  on 
measures  leading  towards  ERA,  in  September  every  year  the  Commission  will  present  an 
ERA Progress Report.  

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The report will assess the steps taken and may include possible recommendations. It is meant 
to  serve  as  a  basis  for  political  steering  to  be  proposed  by  the  Commission  to  the 
Competitiveness Council; and also for the discussions within the ERA stakeholder forum. It 
could also contribute to the Annual Growth Survey which guides national reforms by Member 
States in the context of the European Semester, or to identify legal action. 

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