Source: EURLEX
Language: en
Format: md

**COMMISSION OF THE EUROPEAN COMMUNITIES**

Brussels, 12.02.1997
COM(97) 47 final

**Commission Working Paper**

**"TOWARDS THE 5TH FRAMEWORK PROGRAMME:**

**SCIENTIFIC AND TECHNOLOGICAL OBJECTIVES"**

**CONTENTS**

INTRODUCTION

THE CRITERIA FOR SELECTING THE OBJECTIVES AND AREAS

THE PROGRAMMES: CONTENT AND OBJECTIVES

1. Organisation and content

2. The scientific and technological objectives

"Unlocking the resources of the living world and the
ecosystem"

"Creating a user-friendly Information Society"

"Promoting competitive and sustainable growth"

"Confirming the international role of European research"

"Innovation and participation of SMEs"

"Improving human potential"

THE PROGRAMMES: IMPLEMENTATION AND LEGAL ASPECTS

1. Implementation

         Two major objectives: coordination and flexibility

         - Instruments

2. Legal aspects

THE PROGRAMMES: MANAGEMENT

CONCLUSIONS

###### **_l<\_**

**INTRODUCTION**

This second Working Paper on the 5th Framework Programme for Research
and Technological Development is intended to pave the way for a new stage
in the preparation of the Framework Programme.

The Communication _"Inventing Tomorrow"_ dated 10 July 1996 set out the
broad guidelines proposed for the 5th Framework Programme. In this
document, the Commission underlined its readiness to mark, with this new
Programme, a distinct break with earlier Framework Programmes, by
focusing efforts to a greater extent, by improving the consistency of the
overall approach and by paying greater attention to the exploitation of results
and the management aspects.

The first Working Paper dated 20 November clarified and gave more detail
about the proposed structure and instruments for implementing the
Programme. The two documents have already been widely discussed, and
the validity of the proposed guidelines have been broadly endorsed.

The purpose of this second Working Paper is to _give_ a more detailed idea of
the possible content of the 5th Framework Programme and the scientific and
technological objectives of the proposed activities within the various

programmes.

These objectives have been formulated on the basis of an analysis of the
socio-economic and technological situation in Europe, and the conclusions of
the evaluation of the activities conducted under earlier Framework

Programmes.

In support of this Communication, the Commission Sendees have prepared
separate documents setting out the main socio-economic and technological
indicators and a summary of the conclusions of the five-year evaluation
reports on European Union activities.

This Working Paper also explains the criteria used to select the objectives
and provides further clarifications about the implementation and legal and
financial aspects.

These aspects and the financial aspects will be explained in full in the formal
proposal concerning the 5th Framework Programme that the Commission
plans to submit at the end of March 1997, and which will contain the
Commission's definitive proposals in the light of reactions to this Working
Paper.

#### **_U_**

**THE CRITERIA FOR SELECTING THE OBJECTIVES**

**AND AREAS**

The basic task of the European Union's research and technological
development policy is to ensure that advances in knowledge and technologies
serve the purposes of die Union and its policies. From this perspective, the
two inseparably linked objectives of this policy are:

to maintain and enhance, in the context of a genuine _"European_
_research_ _area",_ the research **potential** of European laboratories,
universities and companies and their ability to produce knowledge of the
highest level and high-quality technologies;

to help ensure that European research serves the Union's economic and
social objectives, in other words **European research** at the service of
the citizen and **European** competitiveness in a global framework.

Basically, therefore, as provided for in Article 130f of the Treaty on
European Union, the EU's research and technological development policy is
based on the twin principles of scientific and technological excellence and
relevance to the objectives of Union policies.

On account of these specific features, and in pursuit of a cost-benefit
approach dictated by concern for optimum allocation of European public
funding, die choice of objectives and activities under the Framework
Programme must be made on the basis of a set of clear criteria.

This requirement is particularly important in the case of the 5th Framework
Programme where it is expected that its definition should be marked by a
particular effort of selectivity and concentration on a limited number of areas
and objectives. The 5th Framework Programme will therefore use for the
definition of its content, three categories of criteria [1] :

1 For clarity, these criteria arc presented separately: however, several of them are highly interrelated
(eg: _growth,_ _competitiveness,_ _employment)._

_**2**_

_Criteria related to social objectives_

_The scientific and technological objectives selected must help to fiirther major European Union_
_social objectives reflecting the expectations and concerns of EU citizens:_

_improving employment_

_-_ _promoting the quality of life and health;_

_-_ _preserving the environment_

_Criteria_ _related to economic development and_
_scientific and_ _technological_ _prospects_

_The scientific and technological objectives selected must correspond to areas:_

_which are expanding and which create good growth prospects;_

_-_ _in which European firms can and must become more competitive;_

_—_ _in which prospects of significant technological progress are opening up._

_Criteria related to the European_ _"value_ _added"_ _and the_

_subsidiarity principle_

_The scientific and technological objectives selected cannot be achieved through private research_
_alone and are more effectively pursued at the European level and can be achieved more easily_
_with projects at that level:_

_because a "critical mass" in human and financial terms needs to be_ _established,_ _and a_
_mixture of complementary expertise found in the various countries is_ _needed;_

_because a significant contribution can be made in this way to the implementation_ _o-'one_
_or more European Union policies;_

_because these objectives concern European_ _problems,_ _aspects of standardisation and_
_the development of the European area._

Table n° 1: The selection criteria

These criteria have been used for the identification of:

the six major priority areas set out in the Communication _"Inventing_
_Tomorrow_ ";

scientific and technological objectives for the activities which could be
conducted under the programmes corresponding to those priorities.

They will also be used during the subsequent stages of preparing the
Framework Programme and they will continue to guide the concentration and
selectivity effort at the stages of the definition of the detailed content of
specific programmes and of their work programmes, as well as at the
proposal selection stage, where they will help to identify the relevance of
proposals to the objectives. They should also subsequently facilitate
programme evaluation.

**THE PROGRAMMES: CONTENT AND OBJECTIVES**

The Treaty on European Union provides for four types of activities to
implement research and technological development policy.2 The structure of
the 5th Framework Programme takes this into account. This section
describes how the proposed programmes would be organised on the basis of
these four activities and sets out the scientific and technological objectives
identified for the activities under the programmes.

**L** **ORGANISATION AND CONTENT**

In its first Working Paper dated 20 November 1996 the Commission
proposed organising the 5th Framework Programme on the basis of six
programmes corresponding to the six priorities identified in the
Communication _"Inventing Tomorrow"._ The first three programmes
("thematic" programmes) are the research and technological development
programmes corresponding to die first activity referred to in the Treaty. The
last three ("horizontal" programmes) are programmes corresponding to
activities II, III and IV respectively.

**Three** **"thematic"** **programmes:**

_"Unlocking_ _the_ _resources_ _of the living world and the ecosystem_
_"Creating_ _a_ _user-friendly_ _information society"_
_"Promoting competitive_ _and_ _sustainable growth ";_

**Three** **"horizontal"** **programmes:**

_"Confirming_ _the international role of European research"_
_"Innovation_ _and participation_ _ofSMEs"_
_"Improving human_ _potential_ _"._

**Table n° 2: The six programmes proposed for the Framework Programme**

The "thematic" and "horizontal" programmes would be both complementary
and interrelated. With a view to maximum efficiency, and in line with the
recommendations of the Framework Programme evaluation panel, it is
proposed that the greatest possible account should be taken of the objectives
of activities II, III and IV in the "thematic" programmes. One of the main

2 Activity I: _Implementation_ _of_ _research,_ _technological development and demonstration_ _programmes_
_by promoting_ _cooperation_ _with and between_ _enterprises,_ _research_ _centres_ _and_ _universities;_
Activity II: _Promotion of cooperation_ _in_ _the field of research, technological_ _development_ _and_
_demonstration_ _{...J_ _with third countries and international organisations;_ Activity III: _Dissemination_
_and optimisation of the results of_ _research,_ _technological development and demonstration_ _activities_
_I...J;_ Activity IV: _Stimulation of the training and mobility_ _ofresearchers_ /.../.

functions of the "horizontal" programmes would therefore be to ensure
coordinated implementation of all the activities related to these objectives at
the level of the Framework Programme as a whole. While having their own
objectives, the "horizontal" programmes would therefore help in the coherent
implementation of the "thematic" programmes. [3 ]

**1.1** **The content of the "thematic" programmes**

These programmes would be organised in such a way as to reconcile the
desire to focus efforts on a limited number of objectives and the need to
maintain and strengthen the science and technology base. To this end, these
three programmes would comprise, firstly, a series of "key actions",
secondly, general activities for the development of generic technologies and
basic research, and, thirdly, activities in support of research infrastructures.

_ill_ Key **actions**

The aim of these actions would be to stimulate the implementation, on topics
connected with priority social and economic objectives for the European
Union, of comprehensive approaches based on the mobilisation of a wide
spectrum of disciplines, technologies and knowhow, concentrating on the
bottlenecks of all types (scientific, technological and socio-economic) which
are hindering the resolution of the problems involved. The experience built up
during the first phase of implementation of the 4th Framework Programme
shows that organising the 5th Framework Programme in a limited number of
bigger programmes, while creating the conditions for more consistent and
more effective management, would make it much easier to carry out such
actions.

For the implementation of "key actions", lessons would be drawn from the
pilot experience of "Task Forces" set up in the 4th Framework Programme.
In particular, their detailed content would be defined and their
implementation monitored in close conjunction with research players and
users. In this process, the detailed arrangements of which are being
examined, efforts will be made to maintain an appropriate balance between
suppliers and users of knowledge and technology.

One of the aims pursued would be to stimulate the emergence of a genuinely
integrated science and technology area in the fields concerned, by mobilising
public and private European and national resources in a convergent manner.

Some of the programme activities would be implemented by the Joint Research Centre (JRC). As ihc
Commission's scientific and technical arm, the JRC provides, through its impartial and independent
position, the expertise and support needed for the implementation of Union policies.

As and when implemented, the key actions would give rise to the definition
and launching of large targeted projects.

On the basis notably of an analysis of the needs capable of being most
effectively addressed at European Union level, 16 subjects for key actions to
be undertaken are proposed.^

(ii) General activities for the development of generic technologies
and basic research

These activities represent the "traditional" component of EU research
programmes and would comprise a significant volume of activities, but on
very selectively defined topics. These activities would complement the key
actions, covering work either on topics linked to the objectives of the
programme but distinct from those of the key actions, or on the topics of the
key actions but addressing other aspects of those topics than those considered
in those actions, particularly the more fundamental aspects.

Complementing the key actions, the activities for the development of generic
technologies and basic research would therefore also provide support for
such actions. Carrying them out would help to both achieve the objectives of
the programme and implement the research and technological development
policy of the Union as a whole: one of their prime functions would be to help
die Union maintain and develop the flow of ideas and knowledge, as well as
its technological capability.

(iii) Support for research infrastructures

In most of the areas covered by the three programmes it is necessary to use
different types of infrastructure in order to conduct research activities: large
facilities, networks, centres of excellence. With a view to making the most
cost-effective use of them and in order to improve die consistency of the
European research fabric, greater support would be provided than hitherto
towards optimizing the utilization of such infrastructure on a European scale.

Justification based on the identified criteria is provided to support the outlines of key actions in the
next chapter. The synopsis table in Annex I suggests the extent to which each of these actions
satisfies the different criteria.

**L2** The **content of the** **"horizontal"** **programmes**

The "horizontal" programmes are at the crossroads of European Union
research policy and its external policy, innovation policy, and policy on
education and training and die promotion of personal mobility. Each of them
would comprise:

activities directly linked to those conducted in liaison with their
respective objectives in the context of the "thematic" programmes.
They would essentially take the form of coordination, support and
accompanying activities;

- activities linked to the general objectives of European Union policy in
the field of external relations, innovation and human resources which
cannot be carried out under die "thematic" programmes.

The two categories of activities would be carried out in close coordination
between each other and with die corresponding activities under the
"thematic" programmes.

1.3 **Coordination**

By reducing the number of programmes, some contributors to administrative
compartmentalisation are eliminated, and they should not be reintroduced.
The activities under each of the programmes would therefore be conducted,
much more clearly than before, in close consultation with those of other
programmes. In some cases they would be implemented in the context of
actual inter-programme integration.

This formula is essential for the implementation of multi-disciplinary
activities of very general interest, based on work carried out in several
programmes. This would be the case notably in the fields of space
technologies, the key action on 'The City of Tomorrow' and of course, the
key action on 'Products, Processes, Organization' which is equally relevant
to the two programmes 'Creating a User-Friendly Information Society' and
'Promoting Competitive and Sustainable Growth'.

Giving a much larger role to the demonstration dimension, as well as to
pre-normative research aspects, the research activities under the various
programmes would take more account, from the start, of user and consumer
requirements in terms of safety and quality.

## **The 5 th RTD Framework Programme**
### Organization and Content

**"HUMAN POTENTIAL"**

**"COMPETITIVE**
**AND** **SUSTAINABLE**

**GROWTH"**

###### **"Thematic"** **programmes**

###### **"Horizontal"** **programmes**

**fable 3: Proposed** **organization** **of the 5th** **Framework Programme** **("thematic*** **and** "horizontal"
programmes: **key** **acfisRS artô** **general activities for the development of** generie technologies

**and** teasie **research).**

**2.** **THE SCIENTIFIC AND TECHNOLOGICAL OBJECTIVES**

**2.1** **Unlocking** **the** **resources of** **the** **living world and the ecosystem**

_**The progress of knowledge and technology in the fields of the living world and the**_
_**environment is essential for the implementation of the policies of the Union, in particular in**_
_**the fields of**_ _**health,**_ _**agriculture, and the environment, as well as its industrial policy.**_

_**In**_ _**this**_ _**context,**_ _**a broad range of new**_ _**markets,**_ _**bringing growth and employment, should soon**_

_**emerge.**_

_**To ensure the exploitation of these markets and to optimise their impact on the quality of life**_
_**of its citizens, the Union can build on its strong tradition in molecular biology and**_
_**biochemistry, medical and pharmaceutical research, and agronomic and environmental**_
_**sciences, and on**_ _**its**_ _**great potential in the corresponding areas of industry.**_

**(i)** **General objectives of** **the** **programme**

To acquire knowledge and develop the necessary technologies to:

maintain and improve the quality of life of the citizens of Europe and the
quality of the environment in Europe;

increase the competitiveness of European industry, particularly in the
fields of biotechnology, health, agro-industry and the environment;

understand and master the problems and trends affecting the environment
on the European and worldwide scale.

(ii) **Scientific and technological** objectives

Key **actions**

**The living world and ecosystem (I):**
**health and food**

The quality of food is a subject of major concern for the people of Europe, and they expect the
Union to provide a permanent framework for its guarantee. With this in mind, this action would
aim at the development of knowledge, technologies and methods based, for example, on
biotechnology for the production in Europe of a safe, healthy, balanced and varied fooc supply
This requires as a priority the development of tests to detect, and methods to eliminate, infectious
and toxic agents, as well as work in the areas of epidemiology, science and technology of nutrition.
and public health.

**10**

_Aspects of_ _justification:-*_ _The problem of "mad cows" and the controversies surrounding genetically_
_modified soya and maize have indicated clearly that the quality of food is a matter of public concern_
_which must be addressed as a serious social issue on a European scale. The European Union is the_
_world's largest producer of food and_ _drink,_ _which represent_ _16.5%_ _of its industrial production. The_
_impact of food on health can easily and accurately be illustrated by comparing clinical and_
_epidemiological data from different_ _European_ _countries._

The living world and ecosystem (II):

control of viral and infectious diseases

Despite the progress achieved by medicine during the 20th century, microbial, viral, parasitic,
prion', and infectious diseases are still far from being under control. With responsibility for
ensuring a high level of public health in Europe, the Union has to help fight them. Such would be
the aim of this action, which would focus particularly on the fight against AIDS, the control of the
"new plagues" (haemorrhagic fevers, illnesses connected with new or mutant microbial or viral
strains), and the development of vaccines, especially against viral illnesses. Close attention would
be paid to prevention strategies and to aspects connected with public health and care provision

systems.

_Aspects of justification: Infectious diseases kill_ _J 7_ _million people every year throughout the world and_
_30 new epidemics have been observed during the last two decades. The world market for vaccines (3_
_billion ECU per annum) is set to grow by_ _9.7%_ _per annum in the coming years; the world_ _market_ _for_
_vaccines for the_ _treatment_ _and prevention of cancer could_ _reach_ _10 billion ECU in_ _the_ _year_ _2000._ _Multi-_
_centre clinical trials at European level will allow a considerable increase in the speed of development,_
_authorisation_ _and_ _marketing_ _of_ _new_ _medicines and facilitate their use throughout Europe._

The living world and ecosystem (III):
the "cell factory"

Progress in the science and technology of the living world opens up considerable opportunities for
industry. To assist enterprises to exploit these opportunities in the single market in the context of
the Union's policies on, for example, health and the environment, the aim of this action would be
the development of multidisciplinary technologies based on the exploitation of the properties of
living organisms (micro-organisms, plants and animals) at the cellular and sub-cellular levels, in
order to develop, in particular, new antibiotics and anticancer agents, bio-treatment methods for
waste, and new biological processes for the agri-food industry.

_A spects of justification : 280 new therapeutic molecules were developed_ _in 1995_ _through biotechnology._
_The European market for biotechnology-derived products has grown by 30% since 1995 and should_
_reach_ _100_ _billion ECU by_ _the_ _year_ _2000._ _Biotechnology is an activity at the intersection between many_
_disciplines and_ _technologies._ _Progress relies on combining a range of skills and_ _knowhow,_ _and this is_
_much easier to achieve at European level. This sector also plays a very important role with respect to_
_the Union's industrial policy, and must be considered in_ _the framework_ _of_ _an_ _overall approach which_
_covers the_ _industrial,_ _research,_ _environment and ethical aspects together._

_•_ This justification gives examples, for illustrative purposes, based on the three categories of criteria societal demand, economic and technological prospects and European added value.

**11**

The living world and ecosystem (IV):
management and quality of water

Now a rare resource whose quality is under threat, water must be managed in the most rational
way possible. Situated at the intersection of agricultural policy, environmental policy and regional
policy, this action would aim to produce the knowledge and the technologies necessary to achieve
this, to satisfy both domestic needs and those of industry and agriculture. Among the priority fields
concerned are: technologies for treatment and purification; for monitoring the quality of the water
table and of surface waters; systems for surveillance, warning and communication; technologies
for the regulation of stocks and technologies for arid and semi-arid regions.

_Aspects_ _**of justification:**_ _20%_ _of surface water in the_ _Union_ _is threatened by pollution and more than 60%_
_of farmland contains levels of fertilisers and pesticides considered alarming in terms of local water_
_quality. Investments in equipment and services for water in the European Union are likely to be more_
_than 30 billion ECU in the year 2000. Water is in many cases a shared resource across the Union:_
_several member states depend for more than 50% of their water on suppliers from other countries. The_
_problem of water quality also plays a central_ _role_ _in the_ _Union's_ _environmental policy._

The living world **and** ecosystem (V):

environment **and health**

The deterioration of the environment can have a serious adverse effect on health. The aim of this

action would be to help reduce this effect, starting with a better understanding of the mechanisms
involved. It would consist in particular of work on epidemiology and the development of new
methods of diagnosis and prevention, as well as methods to reduce harmful impacts, and be carried
out in close coordination with the aims of the Union's environmental policy objectives and would
concern subjects such as the effects on health of air pollution, heavy metals and toxic substances,
electromagnetic radiation, the effects of pollution at the workplace, and the impact of climatic
changes on public health.

_Aspects of_ _**justification:**_ _13% of cases of asthma and 15% of respiratory infections affecting the_
_European urban population could_ _be_ _related to exposure to urban pollution. Much of the progress made_
_in improving our understanding of the effects of heavy metals (such as lead) on health is due to_
_comparative epidemiology at the European level. Regulations adopted at European level on nuclear and_
_industrial safety and the safety of domestic products depend on the availability of an_ _objective_ _scientific-_
_information base._

The living world and ecosystem (VI)

new rural and coastal areas

Agriculture and fisheries, essential areas of activity' in rural and coastal areas, are facing profound
changes. From this perspective, the aim of this action would be to mobilise knowledge and the
technologies needed to put in place innovative approaches to production and exploitation, adapted
to recent adjustments in the common agricultural and fisheries policies, whilst also providing the
scientific basis for Community regulations. Among the priority areas are: new systems of
production and utilisation in agriculture, forestry and fishing taking into account profitability, the
sustainable management of resources, product quality and employment; non-food uses; control
methods; new models of sustainable development of rural and coastal areas based on optimisation
of the specific potential of each area and the diversification of activities and the use of land, and
involving the people concerned.

**12**

_Aspects of justification: 80% of the_ _Union 's_ _territory can be categorised as_ _rural,_ _and the agricultural_
_sector is made up of nearly 7 million holdings which give work to some 14 million people. In the_
_fisheries sector,_ _70,000_ _enterprises (essentially SMEs) generate a turnover of nearly 20 billion ECU._
_Agriculture and fisheries are fully integrated policies at European level and account for half of the_
_Community_ _budget._ _The European Parliament and the Committee of the Regions recently confirmed their_
_desire to give rural areas the means to play their full part in the territory and economy of the Union._

**•** **General activities for the development of generic technologies and basic**

**research**

Work would concentrate on **the** following priorities:

research in support of the fight against age-related diseases and health problems
(e.g. Alzheimer's disease), degenerative illnesses (e.g. cancer and diabetes),
illnesses of genetic origin and rare diseases; genome research and the
neurosciences;

research in support of the improvement of health systems, the improvement of
safety at work, and the fight against drug-related public health problems;
bioethics;

research to support the fight against major natural and technological risks (in
particular "global change"): forecasting, prevention, evaluation of impacts and
mitigation of consequences, research on the impact of environmental changes on
the economy, society and employment within a perspective of sustainable
development;

work to support the development of generic earth observation technologies,
notably satellite technologies, for environmental monitoring and resources

management.

- Support for research infrastructure

support for optimum use at European level of infrastructure such as databases and
collections of biological material; clinical testing centres; marine research facilities
and computer centres for climate studies.

**(iii)** **Consideration of the recommendations of the evaluation exercise**

Recommendations of the programmes' evaluation panels in the areas concerned include.

a stronger involvement of user sectors and the industrial sphere should be sought
(Biotechnology);

greater account should be taken of "sustainability" aspects and the concerns of consumers
(Agriculture and Fisheries);

actions should be directed more strongly towards the needs of users and should be designed
with more attention to short- and medium-term policy objectives (Environment).

**13**

**2.2 Creating a** **user-friendly** **information society**

_**The creation of the information society can make a significant contribution to renewed growth and**_
_**the development of new forms of**_ _**jobs**_ _**in the Union: the development of information and**_
_**communications technologies and their application will lead to the creation of several**_ _**million**_ _**jobs in**_
_**Europe**_

_**The Union is faced with intense international competition yet concerned to preserve the cultural**_
_**diversity which constitutes its**_ _**wealth.**_ _**It must therefore develop those technologies which will make**_
_**it possible to create an original and user-friendly kind of information society.**_

_**The information society means fundamental industrial and social change: its establishment is**_
_**opening up multiple possibilities for new activities, both for individuals and for companies, in the**_
_**fields of trade,**_ _**work,**_ _**transport, education, health, and culture The technologies associated with the**_
_**information society at the same time penetrate every kind of industrial activity and all areas of**_
_**society. Their economic and social impact by far exceeds that of the industries which directly**_
_**produce information and communications equipment and**_ _**services.**_ _**In**_ _**sum,**_ _**these technologies**_
_**provide a vital contribution to the key actions of the other two thematic**_ _**programmes.**_

**(i)** **General objectives of the programme**

It will not be possible to achieve fully the potential of the information society on
the basis of the systems and technologies of today. Continual progress is being,
made in the essential technologies such as micro-electronics and this determines
all the new applications. A continuous effort of research, technological
development, and technology adoption is therefore necessary, which requires a
single, integrated programme to be put into effect in conjunction with the policies
of the Union. The aim of this programme should be to help the goods, services
and methods made possible by the technologies of the information society to
contribute to die achievement of the political goals of the Union in:

creating new jobs and strengtliening the competitiveness of companies;

stimulating the development of new markets and services of general
interest and strengthening the role of the general public in society;

improving the attractiveness of Europe as a place for investment, research,
and innovation, and strengthening the scientific and technological base of
the Union, with the goal of reinforcing global competitiveness.

To fully achieve its potential, such a programme must take into account, on a
cost/benefit basis, the need for accessibility and interoperability, at all levels,
from technologies and tools to systems and applications.

**14**

**In determining the structure of the programme, account must be taken of:**

**the links between applications and technologies, so as to reflect the**
**complex dynamics of innovation, pulled by demand and driven by**
**technology, as well as the role played by apphcations to guide and**
**validate research and to stimulate the adoption of technologies, through**
**encouraging the user-producer link which is at the heart of innovation.**

**the need for transdisciplinarity.**

**In this** **context,** **the best structure will be obtained by grouping together those**
**apphcations and technologies which are most alike or most interdependent and**
**integrating research with technology take-up in order to maximise effectiveness**
**and minimise the need for coordination.** **These considerations lead to a**

**programme of** **4** **closely coordinated key actions, supported by a group of basic**
**research activities.**

**(ii)** **Scientific and technological** **objectives**

**•** **Key actions**

**Information society (I):**
**services for the citizen**

Information society technologies must meet users' and consumers' expectations and
requirements and the need to provide them with access, at the lowest cost, to quality generalpurpose services. This key action would emphasise interoperability of applications and focus on
the following five priority fields: education and training, health and the elderly, public
authorities, the environment and transport. Particular attention would be given to the integration
of these applications and their validation in digital sites, towns or regions. In education and
training, the emphasis would be on multimedia applications and new teaching methods using
simulation and virtual reality and, lastly, the development of applications using broadband
communications. On the subject of health and the elderly, priority would be on developing
computerised medical systems, secure high capacity health networks, and advanced interfaces
and tele-systems for the integration of the elderly and the disabled into social life. The tasks of
the public authorities could be made easier by giving the public and businesses better access to
public services through applications giving access to "on-line government". As regards
environmental protection, priority would go to the development of telematic systems for
environmental managers and for the public for the purposes of surveillance, analysis and
issuing warnings. Finally, transport would benefit from the development of the advanced
telematic systems needed for management and teleservices.

_Aspects of_ _**justification:**_ _the countries of the European Union are all faced_ _with_ _the challenge of_
_improving the quality of their public_ _sendees_ _while containing costs. Furthermore, the emergence of_
_the information society in these sectors provides major opportunities for industry and employment._
_Indeed,_ _the number of households connected_ _to electronic information networks is set to triple_
_worldwide between_ _1996_ _and the year 2000 to a total of 100 million, including SO million_ _in_ _Europe._
_Within 10 years, the market for applications connected_ _with_ _the Information Society could be worth_
_several billion ECU_ _annually;_ _for example, ECU 15 billion for health applications, ECU 10 billion_
_for education and training, ECU 8 billion for transport-related telematics_ _alone,_ _and ECU 5 billion_
_for the environment. The applications involved in the information_ _society_ _(health,_ _transport,_ _education,_
_and the environment) are transnational by nature and constitute_ _several of_ _ihe_ _European Union 's_

**15**

_policy areas. Performing activities in this area at a European level will help with the required_
_modernisation of_ _the_ _sectors concerned, ensure the interoperability of services and compatibility of_
_equipment, and help_ _to_ _preserve_ _Europe's_ _linguistic and cultural diversity_

**Information society (II): electronic trade and** new

**methods of work**

The completion of the single market and Economic and Monetary Union are two major
priorities of the European Union. This action would aim to help European enterprises operate
efficiently and enable them to become more fully part of the global economy, amongst other
things by means of modern statistical systems. It would focus in particular on improving the
efficiently of trade in goods and services. Among the topics concerned are: management systems
for suppliers and consumers; the security of information and networks; the technical means for
authentication and protection of ownership and the integrity of contents, as well as interoperable
payment systems; flexible, mobile and remote working methods both for individuals, and for
cooperative- and group-working.

_Aspects of justification: by the year 2005, one third of all banking transactions_ _worldwide_ _could be_
_completed electronically; by the year 2000, it is expected that there will be more than 10 million tele-_
_workers in the European_ _Union_ _and nearly 40% of businesses will be trading_ _electronically._ _By_ _2004,_ _the_
_European market for commercial telematic services should_ _amount_ _to some ECU_ _11_ _billion._ _The_ _changes_
_in working methods and trade resulting from information and_ _communication_ _technologies_ _mostly_ _go far_
_beyond the level of the individual_ _firm,_ _the industrial or service sector, or even the national economies._
_They affect the whole world and necessitate action at a European level, if we wish the Union_ _to_ _fulfil its_
_potential as the primary world market._

**Information society** **(III):** **multimedia contents** 1

Developing creativity in, and increased use of, multimedia contents are two major elements in
fully establishing the information society, and helping to promote linguistic and cultural
diversity. The objective of this key action would be the development of innovative forms of
multimedia contents as well as tools for structuring and processing them. The action would be
focused on three main lines: interactive electronic publishing, with new methods for creating
and structuring publications, and for personalised dissemination of information and accessing
cultural items, for example through electronic libraries and virtual museums; new language
technologies which help to make information and communications systems more user-friendly:
advanced technologies for accessing, filtering and analysing information which help to manage
the explosion of information and facilitate the use of multimedia contents, notably will respect
to geographical and statistical information systems.

_Aspects of justification: the turnover of industries in the European_ _Union_ _connected with the content of_
_information and communication systems and networks amounts to ECU 150 billion per annum. They_
_employ 2.1 million people full time, and within the next_ _10_ _years are expected to create one million_
_additional jobs. Even if almost all the information on the Internet_ _is_ _in English, 50% of current Internet_
_users do not have English as their mother_ _tongue._ _Highlighting Europe_ _s_ _cultural and_ _linguistic_ _diversity_
_forms an_ _important_ _part of the European_ _Union 's_ _education,_ _audiovisual and culture policies._

Information society (IV): essential technologies and

infrastructures

To foster the spread of die information society throughout Europe, excellence in the
technologies constituting its key elements should be promoted, their introduction speeded up.
and their field of application broadened. These technologies include: computing, communication

**16**

and network technologies, the latter comprising architectures, protocols and methodologies, as
well as their introduction and use; software and systems technologies and engineering; mobile
and personal communications, in particular satellite-based services; interfaces making use of
multiple human senses; peripherals, e.g. flat screens, microsystems; micro-electronics
(technologies, skills, equipment and hardware necessary for the design of circuits and the
development of applications).

_Aspects_ _of_ _justification:_ _from 1994_ _to_ _1995,_ _the_ _worldwide market_ _in_ _information society technologies_
_grew_ _by_ _11%_ - _more than any other economic_ _sector._ _In_ _1995,_ _this market was worth ECU 304_ _billion._
_Approximately_ _40-50%_ _of_ _the cost_ _of a_ _modern aircraft_ _is for_ _avionics hardware_ _and_ _software More than_
_15%_ _of_ _the cost_ _of_ _a car lies in its_ _electronics._

- **General activities for the development of generic** **technologies** **and** basic
**research**

Work undertaken from a 'Visionary" perspective, connected with all the key actions and intended
to ensure a continuous flow of ideas from laboratories to industry.

This would be focused on the following priorities:

technologies for the representation, creation and handling of knowledge;

simulation and visualisation technologies in real time and on a large scale, and virtual
presence technologies;

quantum, photonic, bio-electronic technologies for very large scale integration; ultra-high
performance computers and super-intelligent networks.

- **Support for research infrastructure**

support for advanced high-flow electronic networks for research. These networks would be
particularly useful for all programmes.

**(iii)** **Consideration of recommendations from evaluation exercises**

Recommendations of the programmes' evaluation panels in the areas concerned include:

the three programmes dealing with telematic applications, advanced communications
technologies and information technologies should be grouped together in a single programme
(common conclusion of the evaluation panels of the three programmes);

work on telematics should be concentrated on emerging sectors and those sectors with a
particular economic and social relevance, such as those linked to the information society
(Telematics Applications);

support for the development of interactive multimedia services should be increased (Advanced
communications technologies).

**17**

**2.3** **Promoting competitive and sustainable growth**

_**Strengthening the competitiveness of firms and moving towards sustainable**_
_**development are two complementary and inseparable objectives for the Union: the**_
_**products and processes which will be competitive on tomorrow's markets will also be**_
_**"clean",**_ _**intelligent**_ _**products and**_ _**processes.**_

_**The development, distribution and application of knowledge and technologies**_
_**necessary to reach these goals are crucial for the implementation of the Union's**_
_**industrial**_ _**policy,**_ _**and its policies in numerous other fields, especially transport and**_

_**energy.**_

_**The objective of**_ _**competitive**_ _**and**_ _**sustainable**_ _**growth should also be extended to urban**_
_**areas, in which most**_ _**European**_ _**citizens live and work.**_

**(i)** **General objectives of the programme**

To produce the knowledge and technologies which may help to increase
growth and create new jobs in Europe, by helping to develop:

"clean" and "intelligent" industrial products and processes to boost
European industrial competitiveness, which will give businesses the
opportunity to make the necessary adjustments to their activities;

economic, safe and environmentally-friendly transport systems;

energy systems and services guaranteeing security of supply and
sustainable exploitation.

**(ii)** **Scientific and technological objectives**

**•** **Key actions**

**Competitive and sustainable growth (I):**
**products, processes, organisation**

To improve their position in the face of increasingly harsh world competition, European
industry and enterprises must be able to put innovative products and services on the market
and develop new production and fabrication methods. The research would cover the
elaboration, development and integration of new technologies for design, manufacturing,
control and production: micro-engineering and micro-systems; information society
technologies for "intelligent" manufacturing, including systems of flexible workshops and
flexible management of supply chains, embedded systems and remote services for operation

**18**

and maintenance and simulation and shared-work technologies; technologies to reduce resource
utilisation and effluents, for waste recycling and for the development of clean products, based
on the concept of "life cycle analysis"; new methods of organisation of work and production,
and for using skills .

_Aspects of justification:_ _The European Union market for_ _industrial_ _goods and associated_ _services_
_amounts to an estimated 4500 billion ECU per annum. 2 million enterprises (99_ % _with fewer than 500_
_employees) are involved, employing some 40 million people. The market for environmental_ _protection_
_products is forecast to grow by_ _50-100_ _% between now and the year 2000. Use of flexible systems of_
_production and clean production processes should bring about, in time, a reduction of 50 % in both_
_industrial energy consumption and time to market of products. In addition to cost-sharing,_ _cooperative_
_research will facilitate the elaboration and adoption of standards which will be essential in the operation_
_of the internal market._

**Competitive and sustainable growth (II):**
**sustainable mobility and intermodalit**

In an integrated Europe, the mobility of people and goods will considerably increase. This
must be able to take place effectively and without damage to the environment, while reducing
the costs in particular of traffic congestion and accidents. This action is intended to assist in
this process, at the point at which transport, environment and regional policies intersect, by
helping to set up a safe, intelligent and interoperable land, air and maritime transport system
for passengers and freight on a broadly intermodal basis at the European level. This requires,
among other things, the development of systems for the rational management of transport,
including second-generation satellite navigation and positioning systems: research on
infrastructures, accessibility and the integration of regional planning and transport policies;
and the development of socio-economic scenarios.

_Aspects of justification: Demand for internal transport of goods within the Union doubled between 1975_
_and 1995 and will probably double again between now and 2025. The costs of road congestion in the_
_Union amount to 120 billion ECU per annum and the total cost of transport_ _"exteriuilities"_ _is estimated_
_at 250 billion ECU per annum. As it is closely related to the Trans-European Networks policy being_
_implemented by the Union, following on to the White Paper on Growth, Competitiveness,_ _Employment,_
_and will involve the very large number of_ _SMEs_ _operating in this sector, the development_ _of an_
_intermodal transport system can by definition only be conceived from a European perspective._

**Competitive and sustainable growth** **(III):** new
**perspectives in aeronautics**

Aeronautics is one of the most successful sectors of European industry and is one of the
Union's main export industries. This action would aim at helping the Union to maintain and
consolidate its position in this field by improving its mastery of advanced technologies. It
would cover, more especially, new integrated design and manufacturing technologies, as well
as the reduction of energy consumption, emissions and noise for various designs of aircraft,
and include demonstration activities on these topics; technological and economic feasibility of
new generation aircraft concepts.

_Aspects of justification:_ _Air traffic is forecast to double in volume between now and 2000 and 15000_
_new aircraft need to be produced before then. The European aeronautics industry exports 2/3 of its_
_production_ _and its performance depends directly on the quality and competitiveness of its products._
_European companies started gaining new markets when they got together to create the Airbus 25 years_
_ago._ _The growing links now visible among US aeronautics_ _companies,_ _to which the US Government pays_
_large amount of state aid, could mean the Union might be facing_ _a_ _de facto monopoly controlling 70 %_
_of the world market and should encourage Europeans to invest further in the_ _field._

**19**

**Competitive and sustainable growth (IV):**
**marine technologies**

The sea, which surrounds Europe on every side and has played such an important part in
European history, is a major economic, social and technological challenge for the Union. The
objective of this action would be to boost the development and integration of specific
knowledge and technologies which would enable the Union to fully utilize the sea's potential,
in support of a true European policy of the sea. The emphasis would be on technologies
needed to boost the competitiveness of Europe in the range of areas concerned: technologies
for the design of advanced ships **which** would be safe, efficient and environmentally-friendly;
for the use of the sea as an economical means of transporting goods and people (advanced port
infrastructure; regional maritime transport systems); and for the rational and sustainable
exploitation of the sea as a source of energy and mineral resources (offshore and subsea
technologies).

_**Aspects of justification: The Union has 90.000 km of coastline and 47 % of its inhabitants**_ _live less than_
_50 km from_ _**the**_ _sea._ _**90**_ _%_ _**of the Union's foreign trade is transported by sea. Between 3 and 5**_ _**%**_ _**of the**_
_**Union's**_ _**GDP relates directly to marine industries and services and marine industries**_ _employ_ _mere_ _**than**_
_**2.5 million**_ _**people**_ _**throughout the Union. The sea is central to the Union's industrial,**_ _**environment,**_
_**fisheries, research**_ _**arui**_ _**energy policies and is the subject of several international agreements to**_ _which_ _**the**_
_**Union is**_ _a_ _**party.**_

**Competitive and** **sustainable'growth** **(V):**
### I advanced energy systems and services

The expected growth in the demand for energy and the need to meet this demand without
endangering the environment are a major challenge for the Union. This action, based on
market needs, would aim to help meet this demand, through the development and improvement
of advanced energy systems that are efficient as regards both production and consumption, so
as to achieve a substantial reduction of CO2 emissions and other greenhouse gases. The work
would cover new and renewable sources of energy and their integration into decentralised
systems; technologies for energy storage and transmission; technologies for clean use of fossil
energies and the rational use of energy; technologies for exploiting controlled thermonuclear
fusion (in the context, notably, of the ITER experimental international reactor project); study
of economy/environment/energy interactions.

_**Aspects of justification: Total energy consumption in Europe is forecast to**_ _grow by 20_ % _between now_
_and 2020, and_ _**the**_ _related production of_ _C0_ _2_ _should rise by 14 % unless specific measures are adopted._
_The world market for energy technologies should grow over the next_ _**few**_ _years to more than 800 billion_
_ECU per_ _**annum.**_ _In its Green Book on Renewable Energies, the Commission proposed as_ _an_ _objective_
_the doubling of the share of these technologies in the Union's total energy supply, to rise to_ _12_ _% by_
_2005._ _Vie_ _Union 's energy policy is based on the diversification of sources of supply and the_ _maintenance_
_of_ _a_ _diversified technological capability which is easier to achieve through_ _European_ _co-operation._

Competitive and sustainable **growth (VI):**
**the** city of tomorrow

Most Europeans live and works in towns and cities. The urban environment is the focus ot
most new developments in the economy and society but it also exacerbates the resulting
problems. Their harmonious development must be approached from a global, innovative
viewpoint based on advanced models of urban organisation blending together the heritage ot"
the past, e.g. the cultural heritage, the restoration of social equilibrium, e.g. making city life
safer, and the development towards a "value-added" economy. The action would focus as a
priority on technologies for the integrated management of transport (see the key action on

**20**

sustainable mobility and intermodality), energy (notably in buildings) (see the key action on
advanced energy systems and services) and technologies for economic and sustainable
construction; and technologies necessary for the development and demonstration in urban
contexts of economic, clean, safe and intelligent motor vehicles, e.g. zero-emission vehicles.

_Aspects of justification: 80 % of Europeans live today in towns and cities, which are the focus of_ _most_
_economic activity in Member States. The costs of the decay of the European cultural heritage are_
_estimated at more than_ _14_ _billion ECU per_ _annum._ _Towns_ _and cities_ _have_ _played a key role in European_
_history and today contribute substantially to European integration through the creation of_ _networks_ _of_
_co-operation_ _and trade_ _between_ _big regional_ _métropoles_ _(Euro-metropoles:_ _Euro-cities_ _etc.)._

- General activities for the development of generic technologies and basic
research

The effort would concentrate in particular on the following priorities :

research to support the development of new materials for industry and the
processes for their manufacture; materials resistant to high temperatures (for
example for energy generation and engines); light materials (for transport and
construction); functional materials (opto-electronics, biomaterials, sensors)
designed and developed with ease of recycling in mind; new materials and

technologies for the production of coal and steel";

precompetitive research in support of standardisation and the fight against
fraud as well as on product and service quality (including the development of
high-precision measuring instruments);

research in support of nuclear safety and security: work on the nuclear fuel
cycle, storage and waste processing; control of fissile material; the effects of
radiation; and to support the development of new designs of inherently safe
systems;

- Support for research infrastructures

support for optimum use, at European level, of computing centres for
industrial research; high power wind tunnels; specialized databases; test
laboratories.

6
Under the framework programme, it is proposed increasingly to expand the activities currently being
carried _ma_ on tfce ba^is of the ECSC Treaty, wbkh expires in 2002.

**21**

**(iii)** **Consideration of recommendations from evaluation exercises**

Recommendations of the programmes' evaluation panels in the areas concerned include:

implement an approach combining a "vertical" concentration on a limited number of
application topics and "horizontal" support for generic technologies (Industrial
Technologies);

guide activities in a more definite way towards users' needs and applications (Nonnuclear energy);

keep an appropriate balance between technological research and policy research in
transport (Transport).

**22**

**2.4** **Confirming the international role of European research**

_In_ _a_ _world characterized by increasing globalization of_ _economies,_ _problems and_ _issues,_
_international cooperation has become an important dimension of the research policy of the_
_European Union._

_It_ _should contribute significantly to the implementation of the_ _Union's_ _external policy,_
_especially the policy towards Central and Eastern European adhesion candidate countries,_
_and promote its role on the international stage_

_Scientific and technological cooperation should also help the Union establish industrial_
_cooperation and conquer new_ _markets._

**(Î1** **General objectives of** **the** **programme**

Operating in the context of the implementation of the Union's foreign policy, and
with the accession of new Member States in mind, the general objectives of the
programme would be:

to promote scientific and technological cooperation between entities and
researchers from third countries and from the Union, likely to produce
significant and balanced benefits for both sides (cooperation for "mutual
benefit");

to facilitate access for European laboratories and firms to scientific skills
and know-how available outside the Union, useful to the interests of the

Union;

to strengthen the competitiveness of European industry and its presence
in new markets and help those involved in European research obtain
information on research capabilities, activities and priorities outside

the Union.

(ii) Specific objectives

The Union pursues its international scientific and technological cooperation
policy with both cooperation and competition in mind. Rooted in the principle of
mutual benefit, cooperation with different groups of countries would also be
geared towards specific objectives:

**23**

_Associated countries of_ _Central_ _and Eastern_ _Europe,_ to prepare their accession to the
Union by helping them to preserve and develop their research capabilities and apply them to
their economic and social needs;

_Mediterranean third_ _countries:_ to assist the development of scientific and technological
cooperation in support of the Euro-Mediterranean Partnership; to help economic take-off,
social development and the development of new markets in these countries;

_Non-associated countries_ _of_ _Central_ _and_ _Eastern_ _Europe:_ to help these countries stabilize
their human resources in research and mobilize their scientific and technological capacity in
support of economic and social development;

_Newly Independent States_ _of the_ _former Soviet_ _Union:_ to stabilize their human resources in
research and to help them apply their research capabilities to the modernization of their
economics and to the resolution of the environmental, health, transport, communications and
nuclear safety problems they must confront;

_Industrialized_ _countries:_ to obtain access for European researchers to the knowledge and
know-how existing in these countries, in order to increase the level of their activities;

_"Emerging_ _economies":_ to develop scientific and technological cooperation so as to
facilitate access for European companies to these fast-growing markets;

_Developing_ _countries:_ to associate researchers in these countries with the production of
specific scientific knowledge and appropriate technologies which can help solve their
development problems.

International scientific and technological cooperation activities would be
implemented in two ways, in line with cooperation agreements where these
exist: on the one hand, participation of third country entities in the other
programmes; on the other, activities specific to the international cooperation
programme. Within each of these big categories, various cooperation
formulas would be used according to the countries involved, the nature of the
activities and the sources of financing.

**Participation of third country entities in programmes:**

Four instances are envisaged:

Full association with the Framework Programme (certain accession candidate countries
choosing this formula, [7] notably Central and Eastern European; third countries of the
European Economic Area; Israel [8] ): participation under similar conditions as for Member
States, detailed arrangements tor Central and Eastern European countries still to be
determined. The technical assistance fund for Central and Eastern European countries,
Phare, could be used to support this participation, in accordance with its own operating
rules;

7 An alternative formula being participation on a programmc-by-programine basis.

x If the association agreement to the 4lh Framework Programme is extended to the 5th. as envisaged.

**24**

Participation in programmes open to third countries on the basis of bilateral or multilateral
cooperation agreements (certain industrialized third countries and "emerging economy"
countries). "Project-hy-project" participation (with no financing from the Framework
Programme for the third country partner). Measures would be taken to enhance access to
the Framework Programme tor "emerging economy" countries;

Participation in programmes open to third countries without specific cooperation
agreements (principally Central and Eastern European countries not associated with the
Framework Programme; European N1S; Mediterranean third countries). Justified by the
intensity of the political dialogue, participation on a "project-by-project" basis would in
principle be financed by the third countries themselves. The use of the technical assistance
funds Phare, Tacis (for **NIS)** and MEDA (for Mediterranean third countries) could also be
studied here.

Participation in projects in which it is in the Union's interest to have third country
participants involved (all third countries). This would be financed by the third country or,
in certain duly justified cases, by the thematic programme concerned.

**•** **Activities specific to the international cooperation programme:**

Three categories of activities would be implemented:

Specific cooperation activities with certain categories of countries (Central and Eastern
European countries not associated with the Framework Programme; NIS; Mediterranean
third countries; developing countries; "emerging economy" countries). These activities,
related to very specific problems faced by these countries (e.g. in health and environment)
and therefore outside the scope of the other programmes, would be financed by the
international cooperation programme;

Training of researchers: a system of grants would be established whereby young
researchers from third countries could be given a chance to spend time in European
laboratories and participate in Framework Programme projects. This would be financed
by the international cooperation programme, just like the grant system for young
European researchers in Japan and South Korea.

Coordination with COST and with the EUREKA initiative, and with other European
science and technology cooperation organizations (e.g. CERN, ESA, EMBL. ESF).

**(iii)** **Consideration of recommendations from the evaluation** exercises

The evaluauon panel's recommendations in this field (international cooperation) included the following:

by the combined use of the international cooperation programme and the PHARE and
TACIS assistance funds, to reinforce measures taken to help the Central and Eastern
European countries and the Newly Independent States restructure their research systems
and apply them to their economic and social needs;

to attach greater priority to technological cooperation with the "emerging economies".

**25**

2.5 Innovation and participation of SMEs

_**Innovation is the key factor in industrial competitiveness To enable European research to**_
_**inyact**_ _**fully on growth and employment, and to help it achieve concrete outcomes and**_
_**economically beneficial and socially desirable results, mechanisms need to be set up to**_
_**promote innovation, exploit the results of scientific work and stimulate the creation of**_
_**innovative**_ _**companies.**_

_**Important vectors and actors in innovation, SMEs, which provide 66% of employment in the**_
_**European Union, should be able to benefit from easy access to the advanced technologies**_
_**which they**_ _**need,**_ _**and to the possibilities offered by the**_ _**Union's**_ _**research**_ _**programmes.**_

**(i)** **General objectives of the** **programme**

The general objectives of the programme would be:

to improve the economic and social impact of the Union's research
projects by reinforcing the mechanisms designed to ensure the best
possible exploitation of their results, as well as the dissemination and
transfer of the technologies produced;

to facilitate the access of participants, particularly SMEs, to die
instruments which finance innovation and support the creation of
innovative enterprises (financial engineering; venture capital);

to stimulate the participation of SMEs in the Union's research
programmes, both SMEs active in research and high technologies and
those widi little or no research capabilities but with substantial
technological needs; to help SMEs, notably in the least favoured regions,
to develop their technological capabilities.

The fact is that the real bottle-neck in the European research-developmentinnovation system is in the transfer of research results to market exploitation.
Venture capital exists in Europe, but, in contrast to what happens in the
United States, for example, there is not enough of it, and, above all, it is
seldom used to finance technological innovation. The problem far exceeds the
scope of the Framework Programme. In the context of its activities to
promote innovation, the Commission will be working to promote the creation
of instruments to remedy this weakness.

**26**

**(ii)** **Specific objectives**

Union action to promote innovation and support the participation of SMEs in the
programmes should be undertaken in the double framework of the tliematic
programmes and the "Innovation and Participation of SMEs" programme. The
objectives and methods of this action would be principally as follows:

_**for innovation**_

in the various programmes:

integration of mechanisms (e.g. value analyses, market research, training) into
the "life-cycle" of projects, so as to facilitate the exploitation, private financing,
and transfer of technologies and results produced, while guaranteeing protection
of the knowledge acquired; creation, to this end, of "innovation units" in the

programmes;

management of structured interfaces with the entities which finance innovation
and help create innovative start-ups, principally via European organisations and
funds (European Investment Fund, European Investment Bank, Eurotech
Capital);

management of innovation support networks specific to the research programmes
concerned and the setting-up of networks of cooperation and exchange between
innovating companies in the fields of the research programmes.

in the programme _"Innovation_ _and_ _Participation_ _of SMEs":_

rationalisation and coordination of networks providing information and
assistance on the research and innovation activities of the Union, particularly in
relation to the identification and dissemination of best practices in the area of
technology transfer (joint action: innovation/SMEs); coordination of studies and
analyses, particularly in the area of innovation policy;

coordination of the operation of the "innovation units" in the programmes, of the
structured interfaces with the entities which finance innovation and help create
innovative start-ups; conception and definition of new methodologies for
technology transfer projects, integrating the technological, economic and social
aspects of innovation;

creation and development of a service giving assistance in the area of Intellectual
Property Rights and access to private finance, notably the Venture Capital
Funds (joint action innovation/SMEs).

_**for SMEs**_

in the various programmes:

'cooperative research'' activities enabling groups of SMEs without suitable
research capabilities to entrust the resolution of their common technological
problem to third parties;

activities to support and encourage the participation of SMEs in collaborative
and cooperative research projects (e.g. "exploratory awards") as well as the

**27**

implementation and coordination of national and European information and
assistance networks.

in the programme _"Innovation_ _and_ _Participation_ _of SMEs_ ":

management of a "one-stop shop" - for all the research programmes - within the
Commission services (for project proposals to be implemented specifically by
SMEs).

**(iii)** **Consideration of the recommendations of the evaluation exercises**

The evaluation panel's recommendations for this area (dissemination and exploitation of results)
included the following:

to reinforce die role of innovation policy in the implementation of the Union's research
activities;

to give greater prominence to innovation even in diematic programmes; die innovation
programme should help optimise the work done by the individual programmes;

to improve coordination with the other policies and services of the Commission where these
concern innovation.

**28**

**2.6** **Improving human potential**

_**In the field of science and technology, as in many others, Europe's prime asset is its human**_
_**resources: the quality of its researchers, engineers and**_ _**technicians.**_

_**In view of foreseeable needs, this human potential must be**_ _**preserved,**_ _**must grow in**_
_**quantitative terms and must be used to**_ _**the**_ _**full At the same time, the Union should help to**_
_**promote European scientific and technological excellence**_

_**To better identify current and future trends in Europe and economic and societal needs, it is**_
_**also necessary to mobilize the strong European research tradition in**_ _**econonùc**_ _**and social**_
_**sciences around a limited number of relevant**_ _**topics.**_

**(i)** **General objectives of the programme**

The general objectives of the programme would be:

to help to maintain and develop human resources of quality in Europe,
particularly by supporting training and by promoting researcher mobility
(including towards industry), as well as innovation (methods and
technologies) in education and training with **a** view to creating new jobs;

to help Europe become a location which can attract researchers and
investment in research, and to promote European research in the
international arena;

to develop the knowledge needed for a better understanding of key
aspects of die development of European society, and the implementation
of science and technology policy and the odier Union policies.

(ii) Specific objectives

The programme would be structured in 5 main lines:

**•** _**Reinforcement**_ _**of the European human research capital**_

The objective would be to establish:

research training networks, created in advanced and emerging fields of research,
on topics freely chosen by the researchers. The accent would be placed on the
training of young researchers at pre and post-doctoral level;

**29**

a European grant system comprising "Marie Curie" grants for young
researchers, awarded for topics chosen by the researchers themselves, in addition
to the grants awarded under the research programmes; industrial grants awarded
to companies to assist young or established researchers; development grants
intended to help develop a high-level research capacity in the less favoured
regions of the Union.

_**Optimized utilization of major research infrastructures**_

The aim is to promote the optimum use of research infrastructures (large facilities,
networks, centres of excellence) in those areas (including economic, legal and social
science) not covered by the thematic programmes, or for categories of installations not
considered by those programmes. To this end, measures are being envisaged to help
researchers with access and to set up networks, as well as to support research projects.

_**Promoting scientific and technological excellence in Europe**_

The aim here would be to stimulate European scientific and technological excellence
through exchange and to make the most of the achievements of European research. This
would be promoted by support for high-level scientific conferences, die networking of
European researchers active outside Europe, distinctions for high-level research work,
and action to raise public awareness and make information available on research activity
at European level via electronic networks.

_Harnessing socio-economic research to_ _**the**_ _needs_ _**of**_ _European society_

This activity would complement and support the attention given in the "thematic"
programmes to socio-economic aspects. It would cover a limited number of topics linked
to the objectives of the Framework Programme. Work would focus primarily on study of
the socio-economic impact, in Europe, of the development of services and of the "nontangible" economy, analysis of the interplay between technological progress, training,
work, the legal environment and economic competitiveness, and the production and
validation of new development models fostering growth, employment and quality of life.

_**Support for**_ _the development_ _**of**_ _scientific_ _**and**_ _technological policies in_ _Europe_

This would be achieved by setting up an exchange forum, the ETAN network
_("European_ _Technology Assessment_ _Network"),_ bringing together political
decision-makers and researchers specialized in the study of science and technology
policies, technology watch activities, forecasting, evaluation of scientific and
technological choices, also the development of a system of statistics and scientific.
technological and innovation indicators.

**30**

**(iii)** **Consideration of the recommendations of the evaluation exercises**

**The evaluation panel's recommendations for these areas included the following:**

**to introduce a special measure to support industrial training of researchers (training**
**and mobility);**

**to encourage the creation of interdisciplinary projects and industrial participation in**
**networks (training and mobility);**

**to orientate socio-economic research work towards the study of a coherent set** **of** **j**
**challenges facing Europe, considered from a political perspective (socio-economic**
**research).**

**31**

**THE PROGRAMMES: IMPLEMENTATION AND LEGAL**

**ASPECTS**

Implementation and legal aspects will be set out in detail in the formal proposal
for the 5th Framework Programme. However, some additional information to
that contained in the first working paper can already be provided.

**L** **IMPLEMENTATION**

**LI.** **Two major objectives: coordination and flexibility**

An essential feature of die 5th Framework Programme should be a substantial
improvement in the coordination of programmes and in the flow of infonnation
and results between their dififerent activities, as well as in the flexibility and
response capacity of Union action.

(i) **Coordination**

At die dififerent levels, coordination would be achieved through mechanisms
incorporated into the programmes:

Coordination between programmes. This would be achieved in particular through the key
actions, as well as through coordination activities carried out in the "horizontal"

programmes;

Coordination between the research programmes and other activities of the Union. As part
of the implementation of the external relations policy, this coordination would be achieved,
as far as international cooperation is concerned, by establishing closer links with the
technical and economic assistance programmes PHARE, TACIS, MEDA, the European
Development Fund and the PVD-ALA activity. As regards coordination with the
Structural Funds, common regional frameworks of reflection and action would be put in
place, as would mechanisms for closer linkage between the two types of activity, in line
with the conclusions of the Communication on "Research and cohesion" which the
Commission will be presenting shortly. Close coordination would also be ensured with the
Union's various programmes and initiatives in related areas, e.g. education and training
through the Socrates and Leonardo programmes.

Coordination between European and national activities. This would be achieved in
particular through the key actions, which should allow the establishment of closer linkages
with initiatives and programmes carried out at Member State level in the areas concerned;
through projects for support to research infrastructure: and through cooperation with other
European scientific and technological cooperation frameworks (e.g. EUREKA. COST)
and organisations (e.g. ESA, CERN, EMBL).

**32**

**(ii)** **Flexibility**

As indicated in die first working paper, and confirmed by the evaluation work,
improvements in die flexibility and response capacity of the Union's action will
be brought about in particular by:

regular adaptation of the work programmes, ideally on an annual basis;

the creation of a "free space" of limited size within each programme. This would be to
guarantee that the scope for flexibility which theoreticalN exists could be efficienth
exploited if needed. The aim would be to be able to meet urgent needs arising within the
area covered by the programme but which were not explicitly foreseen (unexpected
scientific and technological breakthroughs; problems requiring a rapid response) in the
shortest possible time. To this end, programme budgets would be committed in such a
way as to leave open the possibility, until a point around 3/5 of the way through the life of
a programme, of quickly bringing together resources on a pamcular theme.

**1.2.** Means **of implementation**

**(i)** **Indirect action**

"Indirect action" by the Union in the area of research would continue to be
carried out through shared cost actions, concerted actions, support for
collaborative networks and "accompanying measures . stricdy aligned with
programme objectives.

"Shared cost" actions, in which the Community contributes a pan of the costs of
research projects carried out by consortia of enterprises, universities and research
centres, would continue to be an essential instrument of programme
implementation. The possibility of varying the Commission's contribution
according to the nature of the activities and dius the proximity to the market will
be studied, in line with international rules and the provisions of die Community
framework for state aid for research and development. In selecting proposals the
Commission will take account of the partllers [,] efforts in terms of research.
investment and employment, both globally and in the specific area of their
proposal.

(ii) **The Joint** Research Centre **(JRC)**

A second instrument for implementing the 5th Framewc :k Programme would be
the Joint Research Centre. Carrying out die 5di Framework Programme will
require an important and active contribution from die JRC. Tlie activities it
carried out to this end would be the subject of two specific decisions covering
_EC_ and Euratom aspects respectively, and would focu^ essentially _on_ the three
"tliematic" programmes.

A general theme for tiiesc activities would be _"Research at the service of the individual and the_
_citizen"_ (healtii, safety, environment, consumer protection, fraud prevention). Among the areas
covered by these Uicmes, particular emphasis would be put on pre-normativc research as well as
nuclear safety and security (the fuel cycle and control of fissile material).

In view of these priorities, the requirements they reflect and the features and capabilities of the
Centre, the institutional and operational role of the JRC in implementing the 5th Framework
Programme would be at a least on a par with its role in the 4th Framework Programme.

Overall, the scientific and technological objectives of these activities would be located more
particularly in areas requiring neutral and independent expertise at European level, and in areas
corresponding to the objectives of the major Union policies.

In the choice and definition of activities to be carried out, there is a combination of both continuity
and evolution; continuity because of the permanence of certain needs; evolution in order to take
into account the new objectives for the Union's research policy set out in the 5th Framework
Programme.

In addition, the JRC would continue to pursue vigorously the activities it carries out on a
competitive basis, getting as close as possible to the end users of its research, in particular
European industry.

**(iii)** **Other means**

Besides diese two means of action, other mechanisms and instruments would or
could be used in the implementation of the 5di Framework Programme:

_Links with EUREKA and COST_

Tlie COST and EUREKA frameworks for European cooperation in areas that are noncompetitive and closer to die market, respectively, have demonstrated their usefulness,
which springs from their flexibility and the principle of launching activities at the initiative
of those concerned. Closer tics between these two cooperation frameworks and the
Union's research programmes arc both possible and widely supported.

Simple and efficient ways of associating Union projects with EUREKA projects and
COST actions would thus be developed and proposed, drawing on the fact that the
preparation of the 5th Framework Programme, the beginning of the implementation of the

3rd Medium Term Plan of EUREKA and the COST Ministerial Conference in 1997

coincide.

Following the general line set out in the document on "synergy between EUREKA and the
programmes of the European Union" prepared by the EUREKA High Level Group for the
June 1997 Ministerial Conference, and to ensure quick reaction, a permanent consultation
system should in particular be set up, which would allow the identification, as soon as a
project is planned, of those elements which could be covered by the Framework
Programme or by Eureka, and guarantee the flow of information from the former to the
latter as the work progresses, results are produced and market needs are met. This
approach would be applied primarily to large-scale projects developed within the "key

actions''

General coordination of the links with EUREKA and COST and the definition of common

strategic plans would be undertaken within the programme on international cooperation.

**34**

_Articles_ _130k,_ _landn_

The possibility has been raised on a number of occasions of exploiting these articles in
addition to the other activities of the Framework Programme, notably in order to
implement activities which have a particular interest only for a certain number of Member
States. This possibility will not become a reality unless the Member States show a firm
willingness to enter into this type of initiative.

If such willingness were to be demonstrated, one or more activities of this type could be
foreseen, starting, for example, with certain activities identified in this document (eg the
key action in the area of aeronautics and activities in the space sector).

The implementation aspects of the 5th Framework Programme will be set out in
die formal proposal to be presented at the end of March, as well as in a new
proposal on die rules for participation in programmes and the dissemination of
research results (implementing Article 130j).

2. LEGAL ASPECTS

Tlie legal aspects, too, will be set out in die formal proposal on die 5tii
Framework Programme. In defining the legal provisions of the 5tii Framework
Programme, die following points, in particular, will be taken into account:

for the sake of rapid and effective implementation, and as was underlined b> the
Framework Programme evaluation panel, the number of decisions should be kept to a
minimum; each programme should therefore give rise to only one decision, except as noted
below;

current legal provisions require separate decisions for activities carried out under the EC
Treaty and those carried out under die Euratom Treaty. The programme _"J'romoimx_
_competitive_ _and sustainable growth"_ and the programme of JRC activities will include
activities in both of these areas, and each will therefore require two different decisions:

in the event that activities are decided on the basis of Articles 130k, 1 and n (in particular
130k, "supplementary programmes"), tfiey would each give rise to a specific decision

All in all, and not allowing for any supplementary programmes, die adoption and
implementation of the 5tii Framework Programme should require 12 decisions (2
for the EC and Euratom Framework Programmes, 7 for die 6 programmes. _2_ for
the JRC, 1 for tlie implementation of Article 130j), i.e. around half the number
required for the 4th Framework Programme. In setting out the timetable for their
adoption, the need to launch the 5th Framework Programme at the beginning _of_
1999 will be kept in mind, which means launching the first calls for proposals in
autumn 1998.

**THE PROGRAMMES: MANAGEMENT**

One of die most important recommendations coming out of die five-year
evaluation of die Framework and specific programmes is the need to slim down
tlie management procedures. Management issues will thus receive particular
attention in the implementation of die 5th Framework Programme, which will
continue to be carried out on the basis of the fundamental principles of die
running of programmes: equal access, equitable treatment, excellence as a
priority, an appropriate balance between speed and rigour, and transparency of
procedures.

In some areas, die improvements made to programme management over the last
few years need to be supplemented, and measures to increase the consistency
and quality of this management need to be reinforced, particularly with a view to
facilitating access to die Framework Programme (e.g. "one stop-shop" for
SMEs), reducing processing times, and simplifying procedures.

In addition to those mentioned in the first working paper, the following measures are amongst
those currently being studied:

the implementation in appropriate cases of a scheme of permanently open calls for
proposals, a formula which will allow more flexible **and** efficient processing of requests
for participation;

the evolution of the role of programme committees along the lines set out in the interinstitutional agreements, such as to allow faster processing of proposals.

Tlie general organisation of the 5th Framework Programme in a limited number of large,
complementary and connected "thematic" and "horizontal" programmes and the need to take
account of modern research management techniques call for a new approach to the management of
the Framework Programme.

To ensure genuine coordination, the Commission is currently looking into new formulas. One of
these would consist in handling certain aspects of the management of the "thematic" programmes
on a collégial basis, entrusting implementation and follow-up to a group drawn from the various
research services involved. Working in close cooperation with the services responsible for
implementing the Union policies concerned, this group would be responsible for supervising the
overall implementation of the programme, ensuring the internal coordination of the various
activities, as well as relations with the other "thematic" and "horizontal" programmes and with the
other policies of the Union, and organising the coordination of contacts with the other European
institutions, the scientific community, the world of industry and, generally, the world of users. In
the same spirit, recourse would be had. as often as necessary, to the formula of invitations for
multi-programme research proposals

**36**

CONCLUSION

The scientific and technological objectives of die various types of activities
envisaged in die 5th Framework Programme, as presented in this paper, have
been defined with die aim of meeting tlie major economic and social challenges
die Union is facing today and responding to die aspirations and expectations of
its citizens. To achieve these objectives efficiently, a pronounced shift towards a
more precise targeting of activities and a greater flexibility in implementation is
proposed.

In drawing up its formal proposal, due to be adopted towards the end of March,
the Commission still needs, in particular, to take into account the final
conclusions and recommendations of the general 5-year assessment report on die
research activities of the Union. This report, which has been drawn up by the
evaluation panel chaired by Viscount Davignon, should be published in
February. The Commission also intends to integrate the conclusions resulting
from discussions on tiiis second working paper. As witii die two previous
Communications, the ideas presented above are intended to fuel discussions in
the Council and Parliament as well as with all other interested parties. A full and
constructive discussion should result from the fact that diese ideas are presented
in tiiis concrete and open manner.

With this debate the Commission is hoping to reconcile tlie pressing need for
new ideas and metiiods of implementation with tlie need for continuity, not least
chronologically, in die Union's research efforts. In this way, it will be able to
ensure that, in die most propitious circumstances and for the benefit of all, the 5th
Framework Programme contributes to _"Inventing Tomorrow"._

Annex I

KEY ACTIONS

The living world and ecosystem (I): health
and food

The living world and ecosystem (II): control
of viral and infectious diseases

The living world and ecosystem (III): the
"cell factory"

The living world and ecosystem (IV):
management and quality of water

The living world and ecosystem (V):
environment and health

The living world and ecosystem (VI): new
H rural and coastal areas

| Information society (I): services for the
citizen

Information society (II): electronic trade and
new methods of work

Information society (III): multimedia content

Information society (TV): essential
technologies and infrastructures

Competitive and sustainable growth (I):
products, processes, organization

Competitive and sustainable growth (II):
sustainable mobility and intermodality

Competitive and sustainable growth (III):
new perspectives in aeronautics

Competitive and sustainable growth (IV):
marine technologies

Competitive and sustainable growth (V):
advanced energy systems and services

Competitive and sustainable growth (VI):the
city of tomorrow

Space technology

**Social objectives**

CRITERIA

Economie development and scientific and
technological prospects

European "value added"

1 _Employment_

_Y_ _Y_

_Y_

_Y_ _Y_

_Y_ _Y_

_Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_YYY_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_Y Y_

_Y_ _Y_

_Y_

_Quality of life,_
_**health**_

_YYY_

_Y Y Y_

_**Y Y**_

_**Y Y Y**_

_Y Y Y_

_Y_ _Y Y_

_Y_ _Y Y_

_Y_ _Y_

_Y_ _Y Y_

_**Y Y**_

_**Y Y**_

_**Y Y**_

_**Y**_ _**Y**_

_**Y Y**_

_**Y**_ _**YY**_

_YYY_

_YY_

_Competitivenes_

_s_

_Y_ _Y_

_Y_ _Y_

_YYY_

_Y_ _Y_

_Y_

_YYY_

_Y_ _Y_

_Y Y Y_

_Y_ _Y_

_YYY_

_YYY_

_Y_ _Y_

_Y Y Y_

_YYY_

_Y_ _Y_

_Y_

_YYY'_

_Technological_
_advances_

_Y_ _Y_

_YYY_

_YYY_

_Y_ _Y_

_Y Y Y_

_Y_

_YYY_

_Y_ _Y_

_YYY_

_YYY_

_Y_ _Y_

_Y_ _Y_

_YYY_

_Y_ _Y_

_Y Y Y_

_Y_ _Y_

_YYY_

_Support for Union_
_policies_

_Y Y Y_

_Y Y Y_

_Y_ _Y_

_Y Y Y_

_Y Y Y_

_Y Y Y_

_Y Y Y_

_YYY_

_Y Y Y_

_Y_ _Y_

_YYY_

_Y Y Y_

_Y_ _Y_

_Y Y Y_

_Y Y Y_

_Y_ _Y_

_SSS_

_Environment_

_Y_

_Y_

_Y_ _Y_

_YYY_

_Y Y Y_

_YYY_

_Y_ _Y_

_Y_

_**Y**_

_**Y**_

_YYY_

_YYY_

_**Y Y**_

_**Y**_ _**Y**_

_**Y Y Y**_

_**Y Y Y**_

_YYY_

_"Critical_

_mass"_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_YYY_

_YYY_

_Y_

_Y_ _Y_

_Y Y Y_

_Y_ _Y_

_Y_

_Y_

_/Y_

_European scale of_
_problems_

_Y Y Y_

_YYY_

_Y_ _Y_

_Y Y Y_

_Y_ _Y_

_YYY_

_Y_ _Y_

_YYY_

_YYY_ 1

_Y Y_ I

_Y_

_YYY_

_YYY_

_YYY_ 1

_Y Y_ 1

_YYY_ I

_YYY_ I

_Growth_

_Y_

_Y_

_Y Y Y_

_Y_

_Y_

_Y_ _Y_

_Y_ _Y_

_YYY_

_YYY_

_Y Y Y_

_YYY_

_Y_ _Y_

_Y Y Y_

_Y_ _Y_

_Y_ _Y_

_Y_ _Y_

_YY_

Special coordination of these activities under the 3 thematic programmes.

**38.**

ISSN 0254-1475

##### COM(97) 47 final

# **DOCUMENTS**

##### EN 15

Catalogue number : CB-CO-97-052-EN-C

ISBN 92-78-16071-7

Office for Official Publications of the European Communities

L-2985 Luxembourg

**3<?**