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15. 10. 88 Official Journal of the European Communities No C 268/3

## II

_(Preparatory Acts)_

# COMMISSION

Proposal for a Council Decision concerning the implementation at Community level of the main
phase of the strategic programme for innovation and technology transfer (Sprint) (1989 to

1993)

_COM(88) 426 final_

_(Submitted by the Commission on 26 July 1988)_

(88/C 268/04)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Economic Community, and in particular Article 235
thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European
Parliament,

Having regard to the opinion of the Economic and
Social Committee,

Whereas, pursuant to Article 2 of the Treaty, one of the
major responsibilities of the Community is to ensure the
harmonious development of the economy, together with
continued and balanced growth throughout the
Community, and whereas, pursuant to Article 130A of
the Treaty, it is required to achieve such harmonious
development of the entire Community by developing and
pursuing actions leading to the strengthening of the
Community's economic and social cohesion;

Whereas, under the terms of Article 130F of the Treaty,
the Community has as an objective the reinforcement of
the scientific and technological bases of European
industry and the encouragement of the development of
its international competitivity, and whereas the
attainment of this objective involves, in particular, a
determined effort to promote innovation and technology
transfer;

Whereas the strategic Community programme for innovation and technology transfer — Sprint 1983 to 1989
— (') has demonstrated the need for, and added value to
be derived from, an ambitious Community policy for

O OJ No L 353, 15. 12. 1983, p. 12 and OJ No L 153,
13.6. 1987, p. 45.

innovation and technology transfer, particularly with a
view to achieving the internal market by the end of 1992;

Whereas it is essential for the future of the Community
to adopt appropriate measures to stimulate the innovative
capacity of companies and to promote rapid application
of new technologies as soon as they become available;

Whereas many recent technologies have yet to achieve
their full potential diffusion in certain traditional
industrial sectors or in certain regions of lagging development or industrial decline, and whereas their rapid
adoption could permit these sectors and regions to make
up some of the leeway, thus strengthening not only the
competitive position of the Community but also its
economic and social cohesion;

Whereas the Member States have developed specialized
services for the support of innovation, technology
transfer and consultancy in innovation management,
financing and industrial cooperation, and whereas these
infrastructures have a significant multiplier effect in
promoting innovation and technological development in
companies, especially smaller ones, while the institution
of transnational liaison, cooperation, training and
transfer mechanisms optimize these national schemes;

Whereas the Community itself, in complement to the
actions of the Member States, has also undertaken
initiatives to support innovation and technology transfer,
as important elements in the implementation of other
Community policies.

Whereas it is appropriate to maximize these initiatives in
order to reinforce their effectiveness and coherence;

Whereas in view of the importance of technology
transfer and innovation for SMEs it is appropriate to
coordinate the actions in this area with the policy in

No C 268/4 Official Journal of the European Communities 15. 10. 88

favour of SME's developed by the Commission within
the framework of its action programme ( [l] );

Whereas it is essential to have access to instruments

providing a better understanding of the innovation and
technology transfer process, in order to identify more
clearly the obstacles to be encountered and to evaluate
the impact of instruments and policies;

Whereas reciprocal information flows, the exchange of
experience and concertation between the Member States
and the Commission with regard to innovation policies
are essential to enhance their own effectiveness and the

cohesion of the entire Community;

Whereas there is a need to improve access to technologies, capital and markets in order to stimulate innovation;

Whereas Community action appears necessary in these
fields and whereas the Treaty makes no provision for
corresponding powers of action,

HAS DECIDED AS FOLLOWS:

_Article 1_

The main phase of the strategic programme for the
promotion of innovation and technology transfer, hereinafter referred to as the 'Sprint programme' (strategic
programme for innovation and technology transfer), is
hereby adopted for a period of five years from 1 January
1989.

_Article 2_

The aims of the proposed programme are as follows:

1. to strengthen the innovative capacity of European
producers of goods and services, in view of the 1992
single market;

2. to promote rapid penetration of new technologies
throughout the economic fabric of the Community,
particularly in those regions and industrial sectors
where they are as yet not fully integrated, thus strengthening, in close liaison with other policies,
instruments and bodies promoted by the Community,
its economic and social cohesion in the field of inno
vation and technology transfer;

3. to enhance the effectiveness and coherence of existing
instruments and policies, whether regional, national
or Community, in the field of innovation and technology transfer.

(') COM(86) 445 final.

Article 3

With a view to achieving the aims set out in Article 2,
the following actions will be undertaken, taking careful
account of initiatives already underway, as provided for
in Article 5:

— strengthening of the innovation services infrastructure
in Europe by the formation or the consolidation of
transnational networks, particularly building upon
existing organizations in the regions,

— supporting intra-Community pilot projects for information transfer where these are of value to the

Community as a whole,

— improving the innovation environment by a better
understanding of the processes involved and
increased concertation between the Member States

and the Commission.

These actions are described in detail in Annex I.

_Article 4_

The Community's contribution to the activities set out in
Article 3 is estimated at 130 million ECU over the

lifespan of the programme.

A significant part of this amount will be employed, as a
priority, to the benefit of regions of lagging development
or industrial decline.

Annex II provides an indicative breakdown of expenditure for the various actions set out in Article 3.

_Article 5_

1. The Commission is responsible for implementing
the Sprint programme.

2. The Commission is assisted by a committee, known
as the 'Innovation Committee', comprising representatives of the Member States and chaired by the
Commission's representative.

The Commission's representative submits to the
committee a proposal on measures to be taken. The
deadline by which the committee must give its opinion
on this proposal is set by the chairman in the light of the
urgency of the issue. The opinion is adopted by the
majority laid down in Article 148 (2) of the Treaty
concerning the adoption of Decisions by the Council on
a proposal from the Commission. For the purposes of
voting within the committee, the votes of the national
representatives will be weighted in accordance with the
above Article. The chairman has no vote.

15. 10. 88 Official Journal of the European Communities No C 268/5

The Commission adopts measures with immediate effect.
Nevertheless, if these are not in accordance with the
committee's opinion, these measures are immediately
communicated to the Council by the Commission. In this
case, the Commission may defer application of the
measure it has promulgated for a maximum of one
month from the date of this communication.

The Council, acting by a qualified majority, may reach
an alternative decision within the period set out in the
above paragraph.

3. With respect to the implementation of the plan of
action outlined in Article 3, the Commission will consult
the committee in particular with regard to:

— priorities of the above plan of action,

— evaluation of projects,

— evaluation of the programme for the purposes of
preparing the report called for under Article 8.

4. The Commission will ensure close liaison between
the Sprint programme and other related or
complementary Community initiatives, in course or in
preparation.

_Article 6_

1. The financial contribution of the Community will
be adapted to the characteristics of the specific case. It
may take the form of a direct or indirect subsidy, an
advance on own capital, a contribution to a guarantee
arrangement or any other appropriate form. This contribution, as a percentage of total costs, shall be the lower
the greater the proximity of the action or project to the
market.

2. The Commission will, in general, implement the
Sprint programme by way of calls for proposals.

3. In implementing the programme, the Commission
will also make use of the instruments and bodies
promoted within the framework of other Community
policies, in particular regional policy, in order to
reinforce the efficiency of the programme and overall
coherence.

4. The Commission's contractors will, as a general
rule, bear the major share of financing, and at least
50 % of total costs. In exceptional cases, and after an
opinion by the Innovation Committee, a contribution in
excess of this percentage shall not be excluded, in
particular for the purposes of taking account of the
specific difficulties encountered by regions of lagging
development or industrial decline in participating in
transnational activities.

_Article 7_

In accordance with a procedure to be drawn up by the
Commission, and after an opinion by the Innovation
Committee, the Member States and the Commission
shall conduct regular exchanges of all useful information
with a bearing on the aims of the programme referred to
in this Decision.

_Article 8_

During the third year of the programme's operation, the
Commission will draw up a report assessing the results
achieved and, after an opinion by the Innovation
Committee, submit it to the Council, the European
Parliament and the Economic and Social Committee.
This report may be accompanied by proposals for
modifying the programme, should these appear necessary
in the light of the results.

On completion of the programme, and after an opinion
by the Innovation Committee, the Commission will
submit to the Council, the European Parliament and the
Economic and Social Committee a report on the
programme's implementation and results.

_Article 9_

The Commission will exploit the most appropriate means
of disseminating throughout the Community the results
of the action taken in accordance with the present
Decision.

_Article 10_

This Decision is addressed to the Member States.

^ O O ^ B D COffici^ljourn^ofr^Euror^^nClornrnunin^ 1^ ^ ^

^ ^ t A T ^ ^ t C ^ O ^ ^ t A ^ ^ ^ ^ ^ ^ ^ O V ^ T ^ O ^

A ^ ^ A ^ n n ^ t ^ ^ o ^ ^ ^ ^ c ^ o ^

Theaimsof theprogrammeareasfollows^

t. to strengthenthe innovative capacity of European producers of goodsand services w i t h a v i e w t o t h e
t ^ 2 single markets

2. topromoterapidpenetrationof new technologies throughout the economic fabric of theCommunity,
particularly in those regions and industrial sectors where they are as yet not fully integrated, thus
strengthening, in close liaison with other policies, instruments and bodies promoted hy the Community,
its economic and social cohesion in the field of innovation and technology transfers

^. to enhance the effectiveness and coherence of existing instruments and policies, whether regional,
national or Community,in the field of innovation.

The proposed actions, comprising threepriority lines of action, will make the most of the Community
dimension and optimize national efforts in the field of innovation and technology transfer, thus
accelerating the technologicaldevelopment of European industry.

A 5 T ^ ^ C B f r ^ ^ L ^ ^

8 ^ T ^ ^ T A 8 M 5 ^ ^ ^ T C 0 ^ L ^ T ^

^particular, this involves^

t. The strengthening of intra^Community networks for innovations

^ consolidation and development of existing networks, particularly involvings

— technology and innovation management consultants,

— sectoral collective research centres,

— innovation financing institutions^

d^ formation of new networks, particularly between^

— contractresearch organizations,

— engineering consultants,

— duality and valueanalysis specialists,etc.^

^ strengthening intraCommunity communication between^

— researchBindustry and universityBindustry interface,

— technopoles and science parks^

^ implementationof linkage mechanisms betweenthe various innovation andtechnology transfer
networks.

2. network support measures^

^ ^ o ^ ^ ^ ^ ^ r ^ ^ r ^ ^, ^^^r^^^^ ^ r o ^ ^ r ^ ^ ^ ^ rr^^^r ^ ^ ^ ^ ^ ^ in innovation
management and related measures^

— transnational exchanges of experience, in particular through support for studies, specialist
seminars and the formation of networks of experts in relevant management disciplines
duality, value analysis, marketing etc.^,

— diffusion of these management techniques by appropriate promotional activities ^conferences,
exhibitions, European prizesgsuccess stories^, etc.^,

— actions of information,awareness and the transfer of know^how,ofatransnational character
or purpose, for actors involved in the diffusion and transfer of technology and in innovation
management — these actions to be developed in close liaison with the Comett programmed

15. 10. 88 Official Journal of the European Communities No C 268/7

(b) _Specific instruments_ to enhance the effectiveness of networks, involving particularly:

—
_bringing together future network_ _participants_ (for example by means of visits and professional
exchanges, introductory seminars, etc.),

—
_exchanges_ _of_ _technology_ _opportunities,_ especially through measures aimed at:

— enhancing the transnational impact of _technology exhibitions and fairs_ (cooperation
between organizers in different regions, visits by manufacturers from other regions, etc.),

— developing _means of_ _communicating_ these technology opportunities and appropriate use
thereof (catalogues, exhibitions, exchanges, data banks, conferences and seminars, video
conferences, etc.),

— identifying _'bestpractice'_ with respect to technology transfer,

—
_specific measures_ to ensure that those regions of the Community with a less-well-developed
service infrastructure for innovation can participate more fully in the various intraCommunity networks;

(c) _The launching of innovations_ emerging from networks by improving the dialogue between
sources of funding technical experts and innovators identified by the networks (for example,
through a data bank of projects, intra-Community 'investment fora' and 'brokerage meetings').

B. SUPPORTING PILOT PROJECTS FOR INTRA-COMMUNITY INNOVATION TRANSFER,
PARTICULARLY BY MEANS OF:

— support for pilot projects of transnational character, emphasizing industrial cooperation and, in
particular, involving the application of generic technologies to target industrial sectors in regions of
lagging development or industrial decline of the Community,

— accompanying measures to heighten awareness of these technologies and to train companies
adopting them, emphasizing the transnational dimension,

— the provision of technical support for companies potentially able to use these technologies, in
particular by employing specialized technology transfer networks and advanced-technology centres,

— support for the effective execution of projects, particularly by mobilizing available funding from the
public and private sectors.

Twin approaches can be followed:

— one of these identifies available technologies with a cost-benefit ratio suiting them for widespread
adoption by companies in regions of lagging development or industrial decline, and is therefore
designed to promote the use of these technologies in the sectors concerned,

— the other is based on identifying a problem, for which a solution can be found, common to a group
of companies in a given industrial sector or region. It encourages the identification and possible
adaptation of available technologies to deal with the problem.

The planned projects must be on a large enough scale to act as a catalyst in the development of the
industrial sectors and the use of the technologies concerned. They must also meet, wholly or in part, the
following criteria:

— be model projects in as much as they employ a 'systemic' overall approach to the introduction of
technological change, not only in purely technical terms but also with regard to such aspects as
company organization, the training and motivation of personnel and the use of such management
methods as value analysis, industrial design and the assessment of market potential,

— provide an optimum combination of skills through transnational (between several Member States of
the Community) and, wherever possible, transfunctional (between partners of differing specialist
skills) cooperation,

— involve industrial sectors or technologies chosen to guarantee a significant economic impact,

— make an active contribution to reducing regional disparities in the availability of — and access to —
technologies,

No C 268/8 Official Journal of the European Communities 15. 10. 88

— be based as far as possible on existing infrastructures and enhance the use made of these,

— include follow-up and evaluation provisions, based in particular on stated and readily verifiable
quantitative aims,

— ensured feedback of the experience gained, preferably directly by the companies benefiting from the
scheme, in order to maximize the multiplier effect.

C. IMPROVING THE INNOVATION ENVIRONMENT THROUGH A BETTER UNDER
STANDING OF THE PROCESSES INVOLVED AND INCREASED CONCERTATION

BETWEEN THE MEMBER STATES AND THE COMMISSION

1. Monitoring of innovation in Europe (European innovation monitoring system) and evaluation of
support measures;

2. Strengthening concertation and the exchange of experience between the Member States and the
Commission in the field of innovation policy and technology transfer, in particular with the aim of
establishing a regulatory, legal, economic and fiscal environment favourable to innovation and technology transfer.

_ANNEX II_

INDICATIVE INTERNAL BREAKDOWN OF APPROPRIATIONS

A. EUROPEAN INNOVATION SERVICES INFRASTRUCTURE

_(Millions of ECU)_

1. Strengthening networks: 50

(a) networks of innovation and technology transfer consultants 15

(b) networks of sectoral collective research centres 15

(c) new networks (contract-research organizations/research or university-industry
interfaces/engineering consultants/technopoles/financing bodies; etc.) 15

(d) linkage of innovation and technology transfer networks 5

2. Accompanying measures: _20_

(a) transnational training in innovation management, networks of experts (design,
quality, value analysis, marketing of new products, etc.), and associated promotional activities (conferences, European prizes, publications, exhibitions) 12

(b) instruments for the support of networks (technology fairs, instruments for opportunity exchanges, etc.) 5

(c) launching innovations emerging from the networks ('investment fora', 'brokerage
meetings'). 3

B. PILOT PROJECTS FOR INTRA-COMMUNITY INNOVATION TRANSFER 50

C. MONITORING INNOVATION AND CONCERTATION BETWEEN THE

MEMBER STATES AND THE COMMISSION 10

1. 'European innovation monitoring system' 5

2. Concertation and exchanges of experience 5

Total 130

15. 10. 88 Official Journal of the European Communities N o C 268/9

_ANNEX_ _III_

RESULTS OF THE FIRST SPRINT PROGRAMME

Sprint (strategic programme for innovation and technology transfer) — and its predecessor, the plan for
the transnational development of the supporting infrastructure for innovation and technology transfer —
served to pilot various approaches and mechanisms, separate from and complementary to the Community's
RTD efforts, and of varying type and scale, promising to advance innovation and technology transfer
across the Community. The following is a short list of the principal approaches and mechanisms thus
tested.

1. _Transnational networks of specialized intermediaries,_ set up to encourage _technology cooperation between_
_firms,_ in particular SMEs, by helping select, motivate and guide companies seeking partners elsewhere in
Europe.

Over the four years during which Sprint and the transnational plan have been operational, about 250
intermediaries — chambers of commerce, management consultants, university technology transfer
departments, regional development agencies, technology brokers, etc. — have participated in Sprintsupported micro-networks. A network typically involves between three and five partners from as many
different regions of the Community. Each network is required to achieve a set target number of verifiable technology agreements between firms during each period (typically 12 months) of Sprint support.

The set of networks has been systematically developed over time: new networks have been created and
new partners grafted on to existing networks; at the same time, support has been withdrawn from or not
renewed for those intermediaries and networks which have failed to achieve adequate performance. The
net result today is a hard core of around 150 organizations working in some 50 networks currently in
receipt of Sprint support.

At the last count (in January, 1988), the Sprint networks had achieved in less than three years of
operation 120 verifiable transnational technology deals between firms. Comparison with a similar survey
undertaken nine months previously shows a steeply rising trend, because many of the networks are of
still recent creation. Sprint experience is that an effective network begins to generate four to five transnational technology deals per year once it is well run in, roughly towards the end of its second year.

Sprint support is thus phased out in or from the third year, once a network has established itself; most
networks continue to function after this time and to generate further technology agreements between
firms. In other words, Sprint assistance takes the form of seed finance to help intermediaries establish
permanent transnational cooperation in support of firms in different Community countries working
together in innovation and technology transfer.

This continuing cooperation between intermediaries has been reinforced by a variety of measures aimed
at animating the networks, encouraging staff exchanges and regional meetings of intermediaries, and
providing training for those new to the innovation support profession, especially from the Community's
industrializing regions.

2. _Transnational networks of industrial research associations/centres techniques industriels._ The aim of this
pilot action was to jointly pool and exploit the technical expertise of such centres, and their privileged
relations with the firms in their respective sectors, in order to encourage the rapid _dissemination of_
_available new technologies_ to those firms. Particular but not exclusive emphasis has been given to traditional sectors of European industry.

N o C 268/10 Official Journal of the European Communities 15. 10. 88

Roughly 20 projects/networks have received Sprint support, and over a fifth of the Community's
industrial research associations have thus been brought into the programme. They have, for example,
helped diffuse CAD-CAM technologies in the shoe industry, improve training and quality control in
welding techniques, and raise productivity in the wood-processing industries by promoting the use of
kiln-drying technology.

A related set of projects have taken a systematic approach to the innovation requirements in the traditional sectors of shoe manufacture, textiles and white ceramics. Specially constituted European working
groups of experts, in close liaison with industry, have identified key specific technology deficits in each
sector and then piloted various actions (e.g. European diffusion seminars for firms, technology guides in
printed and audio-visual form, registers of European experts) to explore common ways of jointly
tackling those deficits.

3. _Conferences and seminars_ on a European scale, aimed at _disseminating scientific and technical information_
and at providing _training in innovation management and technology transfer techniques._ Over 70 such
events in all parts of the Community have received partial Sprint support.

4. _hone (comparative index of European norms)_ was launched under the Sprint programme to test the effectiveness of a database of equivalences between existing national and international technical norms and
standards as a means of _facilitating access to other Community_ _markets._ The pilot phase of Icone
succeeded in encompassing 35 % of existing national norms and standards, namely those that have a
European or international equivalent. A survey of more than 1 000 firms in the Member States revealed
considerable industrial support for the scheme, which has now entered a definition phase prior to its
expansion to cover the totality of relevant industrial norms and standards in the Community.

5. _Concertation_ between the Member States in selected areas of innovation and technology transfer policy
has allowed a valuable exchange of experience between them and encouraged a convergence of
thinking.

One result has been to launch with the Member States a Sprint pilot scheme to promote the importance
of design as a factor in the industrial innovation process. Another has been to initiate wide-ranging
discussions on issues of intellectual and industrial property rights, including a highly valued set of
empirical studies on the costs of intellectual property protection and litigation in the Member States.
Sprint has similarly launched much needed European study groups and surveys on contract-research
services, training supply and demand in innovation management and technology transfer, and the role
of local/regional governments and science parks/technopoles in the innovation process.

The Sprint programme, in whole or in part, at mid-term and more recently, has been evaluated by several
sets of independent experts. In addition, the Commission has undertaken its own periodic internal evaluations of all or part of the programme. These various assessments have consistently confirmed Sprint's
underlying objectives and operational priorities. They have also allowed the programme's management to
reorientate activities in the light of experience. Thus some actions could be abandoned in good time,
because it became clear that their costs outweighed their benefits. Similarly, others could be discontinued
during the course of the programme, because they had fully achieved their objectives.

For example, monitoring showed that the Netto project linking technology transfer organizations via
telefax had fulfilled its goals within less than two years, so that Sprint support could be terminated relatively quickly and the programme's sparse resources put to other use. Similarly, evaluation showed that
support granted to EVCA — the European Venture Capital Association — had effectively helped structure
and develop the venture capital profession in Europe and that, as the association would become selfsupporting in 1987, again an early Sprint exit could be implemented.

15. 10. 88 Official Journal of the European Communities No C 268/11

A common thread running through the conclusions of all of the Sprint evaluation exercises is the insistence
that the programme's resources were inadequate to meet the needs of a necessary and significant
Community initiative to support innovation and technology transfer on a European level. It is evident that
the overall impact of Sprint has been severely limited by lack of funding; certain of its pilot actions had
difficulty achieving the critical mass necessary for a proper assessment of their effectiveness, and several
well-founded projects could not be selected for lack of resources.

Nonetheless, during this initial trial period of over four years, it has proved possible to:

— determine the need for and establish the operational requirements for ensuring the success of a
Community policy to support innovation and technology transfer,

— pilot and evaluate a variety of approaches and mechanisms suited to such a policy,

— mobilize the various publics and partners implicated in the implementation of such a policy,

— establish the need for coordination of the various Community initiatives related to such a policy and for
further concertation between the Member States and the Commission in this field,

— identify the need for a programme both more focused in its objectives and more substantial in its

resources.