Source: EURLEX
Language: en
Format: md

**COMMISSION OF THE EUROPEAN COMMUNITIES**

**Brussels,** **20.11.1996**
**COM(96)** **595** **final**

**COMMISSION WORKING PAPER**

## **Towards the Fifth Framewoik**
### **Programme:** **Additional Material for the Policy Debate**

**Introduction**

On 10 July 1996 the Commission sel out, in a communication entitled
"Inventing Tomorrow", its proposed guidelines for the Fifth Research and
Technological Development Framework Programme. These guidelines were
presented to the 7 October Research Council and are now being examined
by the European Parliament.

To enable the debate launched in the institutions to proceed and take firmer
shape, we now need to go one step further. This is the purpose of this first
working paper.

Its specific aim is to clarify the Commission's thinking in terms of
structure, objectives and the means for implementation.

At this stage, pending the conclusions of the five-year assessment report on
the Union's research activities and the European Parliament's own-initiative
report, the intention is mainly to clarify the proposed new guidelines ahead
of the 5 December Research Council.

A description of the detailed content proposed for the Fifth Framework
Programme will be given in a second working paper that the Commission
will produce for the beginning of 1997. The second working paper will be
followed by a formal proposal to be tabled by the Commission in March
1997.

_It_ _is generally acknowledged_ _that the_ _preparations for the Fifth Framework_
_Programme should provide an_ _opportunity_ _to reassess_ _certain_ _aspects of_ _the_
_Union's research policy. The general approach proposed in "Inventing_
_Tomorrow_ _",_ _namely a_ _greater_ _focus on societal and economic needs, is_
_endorsed on all sides, as is the idea that the Union's research activities_
_should be given the resources to respond_ _appropriately_ _and swiftly to a_
_constantly and rapidly_ _changing_ _situation._

To help explain how this approach can be implemented, this paper
addresses the following aspects one by one: structure: objectives: means
of implementation (including management); financial resources and
timetable.

**I.** **Structure**

The Fifth Framework Programme needs to have a simple structure in order
to make it easier to achieve the major societal and economic objectives
aimed at, and in order to guarantee efficient operation and transparency.
This simplicity should be reflected in the Commission's formal proposals
for decisions (subject to the constraints imposed by the need to use two
separate legal bases, namely the EC Treaty and the EAEC Treaty).

The basis for this simple structure can be taken from the outline given in
"Inventing Tomorrow". Accordingly, the Commission proposes that the
Fifth Framework Programme should be subdivided into six programmes
reflecting the six priorities identified in "Inventing Tomorrow".

These programmes are designed to take account of the public interest and
European economic and societal needs in a general perspective; the
incorporation, to this end, of new know-how and technologies under
development; the focusing of efforts on a number of specific objectives;
and the harnessing, to this end, of a variety of disciplines and expertise.

**The programmes**

**- Thematic aspects**

These programmes could address the following topics, respectively:

# unlocking the resources of the living world and the ecosystem
# creating a user-friendly information society
# promoting competitive and sustainable growth.

These topics were identified as priorities and described in general terms in
COM(96)332 "Inventing Tomorrow" and are being examined within the
Commission departments with a view to specifying their content.

Each of them should comprise:

The activities concerning the use of nuclear energy will subsequently be dealt with in accordance
with the legal provisions of article 7 of the IÎAIÎC Treaty.

# several targeted research activities with a major coordination and
integration content and activities to demonstrate the technical and
economic viability of technologies
# activities for the development of generic technologies and more
fundamental research, a category which should be maintained at an
adequate level in the Fifth Framework Programme
# activities specific to these programmes reflecting the general
objectives of policy with regard to international cooperation,
innovation and dissemination/utilization of results, support for SMEs,
training and mobility, analysis and monitoring of socio-economic
aspects and exploitation of know-how and technologies arising from
projects funded.

The activities in support of SMEs in the context of programmes
dedicated to thematic aspects (aided by the establishment of a
one-stop office and the rationalization of information networks) will
enable small and medium-sized enterprises to benefit from the links
established with large firms, research centres and universities in
connection with the projects.

###### **- Horizontal aspects**

These programmes could address the following topics:

# Confirming the international role of European research
# Innovation and participation of SMEs
# Improving human potential.

These programmes should contribute towards the implementation of
consistent and structured policies in the sphere of international scientific and
technological cooperation, innovation and the promotion of human
resources. As with the three abovementioned topics, discussions are taking
place within the Commission departments to specify the content of these

areas.

To this end, they would encourage:

# coordination and support for activities conducted in the same areas
within the programmes dedicated to thematic aspects.
# more general initiatives relating to each of the three topics.

This structure, which should make it possible to increase significantly the
overall efficiency of the framework programme, reflects the way in which
the Union's RTD activities are covered in Title XV of the Treaty.

**Joint Research Centre**

As with the previous Framework Programmes, the Joint Research Centre
will help implement the Fifth Framework Programme. Drawing on its
unique resources in many fields and the expertise developed and maintained
as a result of its exploratory research activities, the Centre will make its
impartial know-how available for the implementation of the Union's policies
while continuing to develop its links with industry.

JRC activities in the context of the Fifth Framework Programme should be
based on clearly identified needs, acknowledged expertise and the
provision of a European added value. In addition, part of its activities will
continue to be conducted in the context of a competitive approach using
new ways of operating on the market, in particular new arrangements for
partnership with industry.

###### **H. Objectives**

The need to focus the Union's research efforts was stressed in "Inventing
Tomorrow". It is also reflected in many of the contributions to the
discussions on the Fifth Framework Programme provided by the Member
States, research organizations and industrial organizations.

In concrete terms, this means that it is appropriate to launch activities
focusing on a limited number of topics reflecting European societal and
economic needs. As we have seen, that is what is in fact proposed.

However, focusing efforts also means making choices within each major
topic and making a selection from among the possible scientific and
technological objectives.

On what basis can such a selection be made? The Commission is proposing
a general approach and a set of criteria to be applied systematically.

The scientific and technological objectives selected should in all cases
correspond to activities **with a high European value added** on the basis of
public interest and social acceptability.

However, before being examined in the light of this fundamental
requirement, the objectives in question must satisfy two other criteria:

# **The major political choices expressed in** **"Inventing** **Tomorrow".**
The scientific and technological objectives in question must, first and
foremost, clearly help to achieve the societal and economic objectives
set out in "Inventing Tomorrow": quality of life, health and
environment (objectives of such societal importance that they should
be given special attention); developing the information society;
competitiveness of industry, sustainable development and job-creating
growth; maintenance and reinforcement of Europe as a centre of
scientific excellence and of attraction for investment and innovation
(with the enhancement of human resources and mobility deserving
special attention); contribution towards implementing the Union's
major policies.

# **The level of know-how and technology and Europe's position in the**
**fields concerned.** Only objectives relating to fields where new
avenues of research are opening up or where there are serious gaps
in our knowledge should be selected; however, fields in which
Europe has genuine strengths on which to build or where it has
weaknesses which can be overcome by measures at European level
should also be considered. The focal point of the Union's research
policy, namely boosting Europe's competitiveness, should serve as
a guide.

With regard to objectives corresponding to **topics already covered** by the
Fourth Framework Programme, before proposing that they are reselected,
a careful examination will be carried out of the **results** of the activities
carried out on these topics (on the basis, in particular, of the assessment
reports by independent experts); a check will also be made to verify that
the **reasons** justifying these activities when they were launched are **still**
**valid.**

It should be added that the objectives must be verifiable and, where
possible, quantified and that a specified period of time should be earmarked
for their attainment.

###### **in. Instruments**

The success of the Fifth Framework Programme will depend to a large
extent on its effective implementation, this being closely linked to the
quality of instruments adopted to this end. From the guidelines set out in
"Inventing Tomorrow" and the many discussions in this connection, it is
clear that there are four major areas on which efforts should focus:

# Improving coordination
# Improving flexibility and response capability
# Improving the impact of research on competitiveness
# Management.

**Improving** **coordination**

There are three aspects to coordination: coordination within the research
programmes and between the different programmes; coordination between
the Union's research programmes and its other activities; and coordination
between national and European initiatives.

**#** _**Coordination within the research programmes and between the**_
_**different programmes**_

Limiting the number of programmes makes it easier to improve
coordination within each programme but also between the different
programmes as a result of the smaller number of interfaces.

Research activities which are closely connected with different areas of one
or more programmes will be coordinated by mechanisms designed to ensure
complementarity and consistency.

In both respects, the research/industry Task Forces could play a special
role.

The setting up of the Task Forces represented a major innovation (the
importance of which was confirmed by the consultations on the Innovation
Green Paper) in the implementation of the Fourth Framework Programme.

The Task Forces should be deployed as means of providing the Commission
with expertise and advice, ensuring coordination, consultation and

identifying avenues of research to be explored at European level to develop
key technologies needed for the welfare of citizens.

Experience with the use of the Task Forces has proved to be favourable and
can be exploited in the Fifth Framework Programme. The Task Forces
will act as catalysts to ensure the launching of targeted activities and interprogramme and inter-service coordination.

Coordination between the programmes dedicated to topic-centered aspects
and the programmes dedicated to horizontal aspects should also make it
possible to further enhance coordination of the Framework Programme as
a whole.

**#** _**Coordination between the Union's research programmes and**_
_**compatibility with its other activities**_ _**and**_ _**policies**_

Complementarity and coherence with the objectives of other policies of the
Union will be ensured in an appropriate manner.

The question of coordination between the Union's research activities and its
other activities concerns in particular links between the Framework
Programme and the Structural Funds; on the other, the major programmes
and frameworks for economic and technical assistance for third countries
(PHARE, TACIS, MEDA, EDF and ALA-DCs scheme):

The inter-relationships built up in recent years between **RTD** policy
and regional policy are developing. The **Structural Funds** are used
fairly systematically to strengthen research capabilities in recipient
countries through research facilities and human resources (training
schemes). On the basis of an in-depth analysis of the situation, the
Commission intends to publish shortly a Communication on the
subject of "Research and Cohesion". One of the aims of this will be
to develop further synergy between the two areas.

The instruments for technical and financial cooperation and economic
cooperation with third countries already make a significant
contribution to sustainable development in the countries concerned
and to their economic cooperation with the Union, including
cooperation in the field of research, technological transfer and
adjustment. These countries should be encouraged, through the
opportunities opened up by these instruments, to develop greater

synergy with the specific activities under the framework programme
which address their requirements.

A clear distinction should be made between political aid for the
financing of third country participation in the Framework Programme
which could be ensured, for example, through the Union's
international cooperation instruments and financing resulting from
negotiation of international research agreements the modalities of
which must be defined on a case by case basis.

Coordination will also be strengthened between the Framework Programme
and other activities and programmes such as those concerning education and
vocational training.

**#** _**Coordination**_ _**between**_ _**national and European**_ _**initiatives**_

The Framework Programme admittedly represents only a fraction of the
total European research effort. Consequently, Europe's research potential
can only be fully exploited if there is effective coordination of the efforts
made in the various frameworks. Progress in this direction should be made
first and foremost on the basis of precise objectives, making use of existing
instruments and new mechanisms:

**Existing instruments. EUREKA** (for research close to the market)
and COST (for targeted basic research) are particularly appropriate
forums for coordination between national and Union initiatives. The
exchange of information between the different forums should be
increased, and the Member States encouraged to improve
coordination at national level. Existing links should be strengthened
to make them more operational: simple coordination mechanisms
should be established.

New **mechanisms.** The Treaty Articles **130** k (supplementary
programmes), **130** 1 (participation in national initiatives) and **130 n**
(joint undertakings) provide additional opportunities for measures
supplementing the traditional programmes which should continue to
form the backbone of Union activities. These opportunities should
be used in special circumstances where they can provide extra added
value.

Articles 130 k and **130** S provide for the possibility of activities on
research topics of special interest to certain Member States.

Activities undertaken on that basis should complement the activities
making up the remainder of the Framework Programme the overall
balance of which must be maintained. Such activities should focus
on specific initiatives of obvious interest to the European Union as
a whole.

**Improving** **flexibility and the response capability**

The need to make the programmes more flexible and improve the Union's
ability to respond to unexpected scientific and technological developments
or unforeseen problems is self-evident and has often been stressed. It
would be impossible to predict at the beginning of a four year Framework
Programme all the major needs that will manifest themselves or all the
possible developments during the period covered.

There are two aspects to the issue of constant adjustment of Europe's
research efforts: the real-time monitoring of developments and the response
adjustment mechanisms:

# Real-time monitoring of scientific and technological developments
and the development of societal and industrial needs can be achieved
by stepping up the "Technology Watch" activities and establishing
closer links between those activities and the activities under the
programmes. Needs, particularly in terms of additional targeted
activities, could be analyzed continuously on the basis of evaluation
and monitoring reports and regular consultations with industry, the
scientific community and users.

A rapid and flexible response can be ensured by various means, in
particular:

regular adjustment of the programmes, ideally on an annual
basis;

the provision of a "free space" of limited scale, and subject to
strict rules, specifically to respond rapidly to needs that were
not originally foreseen.

It should be added that the limited number of programmes is in itself an
important factor making for greater flexibility. However, the existence of
adequate mechanisms is not enough to guarantee effective flexibility - there
must also be a political will to use the mechanisms.

**10**

**Increasing the** **impact** **of** **research** **on competitiveness**

The Union should encourage the development of research activities which
increase competitiveness, in particular as a result of demonstration activities
involving a bigger input of private funding than with the traditional
shared-cost projects, and appropriate intellectual property provisions, to
give a greater incentive to exploit the results.

**Management**

Sound and efficient management is recognized by all commentators as a
condition for the success of the Union's RTD programmes. In its efforts
to improve the management projects and programmes still further, the
Commission will continue to base itself on the fundamental principles now
applied: effectiveness, quality, equality of opportunities, and sound
administration of public funds.

On the basis of the progress made with the 4th Framework Programme, the
Commission will endeavour to improve the consistency and quality of
programme management. The main objective should clearly be to correct
the current situation of "oversubscription" of programmes, which tends to
place a considerable burden on their management.

Action will be taken to combat this in three ways:

# **Focusing:** limiting the work programmes to a small number of clearly
defined priority objectives should limit the number of proposals
submitted;

# **Transparency:** the Commission will endeavour to provide sufficiently
precise information in order to discourage the submission of
proposals which are inadequately substantiated and justified and are
not in keeping with the spirit of the programmes. The Member States
and those organisations established at national level to disseminate
information on the programmes should be able to help the
Commission in this task.

# **Pre-inspection of conformity of proposals:** early information
for possible participants, in particular small and medium-sized
enterprises about the conformity and direction of their proposals with
regard to the formal participation conditions and the objectives of the

programme.

**ll**

The organization of the Framework Programme as a limited number of
multidisciplinary programmes covering several areas will also make it
necessary to move from a programme-centred management method to an
approach based on more collégial management.

**IV. Budgetary context and timetable**

The Fifth Framework Programme will be funded within the limits of a
"maximum overall amount" determined by the legislative authority. During
the period in which the commitments will be made (1999-2002), this
amount cannot exceed the annual ceilings set in the Union's financial
perspective.

Research expenditure now appears in heading 3 (internal policies) of the
financial perspective. It is by far the biggest component, representing as it
does 60% of the funds available under that heading in accordance with the
spirit of the Edinburgh agreements (between one half and two-thirds of
heading 3 of the financial perspective). This approach could be followed for
the fifth framework programme.

Expected GDP growth will be taken into consideration in the forecasts of
what might constitute an appropriate level for research expenditure in the
Union.

Account will also be taken of the fact that the outlay of the other major
technological powers, namely the United States and Japan, is not
diminishing. While Japan is devoting 3% of its GDP to research, and the
United States 2.5%, the European Union's outlay has been only 2% on
average for several years.

The American public research budget, which had been cut in recent years,
will increase in 1997 by nearly 3 billion dollars (the NIH budget increasing
by 6.9%, to give one example), and the budgets of the Japanese public
research agencies is continuing the marked upward trend in evidence for
several years ( + 8.3% for the Science and Technology Agency, +16.4%
for MÏTI). Given this outlay by our competitors/partners, we must ensure
a substantia! rate of investment in public and private research spending in
Europe.

**12**

###### **Conclusions**

All in all, it is urgent and vital that the Fifth Framework Programme should
be implemented in the proposed time frame. If it is to be launched, on
schedule, in 1999, a fairly steady rate of progress will be needed given the
probable duration of the decision-making process.

As indicated at the beginning of this communication, the Commission is
planning to submit a detailed working paper at the beginning of 1997 and
to make its formal proposal in March 1997 which cannot, however,
prejudge the Commission's subsequent proposals concerning the
Community's future financial framework which will be made immediately
following the IGC. The ultimate objective is formal adoption at the
beginning of 1998.

For the preparation of the Fifth Framework Programme, the Commission
had deliberately chosen a step-by-step procedure whereby at any given time
it can be seen whether the proposed guidelines are sufficiently well
understood and applied.

Accordingly, this paper has been drafted in order to guide the debate along
clear lines.

On the basis of the conclusions of the debate, the Commission hopes to be
able to draft and then submit as soon as possible a more detailed working
paper and make its formal proposal. These two documents will make it
possible to have an even more precise idea about the practical ways in
which the societal and economic objectives set out in "Inventing
Tomorrow", on which there is broad agreement, can be achieved.

**13**

ISSN 0254-1475

##### COM(96) 595 final

# **DOCUMENTS**

EN 15

Catalogue number : CB-CO-96-613-EN-C

ISBN 92-78-11892-3

Office for Official Publications of the Buropean Communities

L-2985 Luxembourg

#### **_N_**