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# 52006SC1450

**Commission staff working document - Accompanying the Report from the Commission - Annual Report on Research and technological development activities of the European Union in 2005 [COM(2006) 685 final] /\* SEC/2006/1450 final \*/**

  

[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 15.11.2006

SEC(2006) 1450

COMMISSION STAFF WORKING DOCUMENT Accompanying the

REPORT FROM THE COMMISSION Annual Report on Research and technological development activities of the European Union in 2005 [COM(2006) 685 final]

TABLE OF CONTENTS

1. European Support to Research: Activities and Results in 2005 4

1.1. Policy Strategy and coordination 4

1.2. Indirect support actions 7

1.2.1. Life sciences, genomics and biotechnology for health 7

1.2.2. Information society technologies 9

1.2.3. Nanosciences, nanotechnologies, intelligent materials, new production processes 10

1.2.4. Aeronautics and space 11

1.2.5. Food quality and safety 13

1.2.6. Sustainable development, global change and ecosystems 14

1.2.7. Citizens and governance in a knowledge-based society 16

1.2.8. Specific measures covering a wider field of research 17

1.2.9. Strengthening the foundations of the European research area 19

1.2.10. Structuring the European research area 21

1.3. Direct actions by the Joint Research Centre (JRC) 25

1.4. Achievements of previous framework programmes and other activities, including the research fund for coal and steel 26

1.4.1. Framework programmes 26

1.4.2. Research fund for coal and steel 30

1.5. Research and training actions under the Euratom Treaty 31

2. Developments in Member States and application of the Open Method Coordination 32

2.1. The Open Method of Coordination in Support of Reaching the Barcelona Objectives 32

2.2. Trends in Research Policies 34

2.2.1. Trends in Policy and Governance 34

2.2.2. Trends in the development of the supply of HR for research. 35

2.2.3. Trends in the research function of Universities 36

2.3. Trends in public and private research investments 38

2.3.1. Progress towards the 3% objective 38

2.3.2. Trends in public funding 41

2.3.3. Trends in private R&D 41

3. International Cooperation Agreements 44

4. Consultation and Monitoring Procedures 44

4.1. Scientific and Technical Research Committee (CREST) 44

4.2. Programme Committees 45

4.3. External Advisory Groups 45

4.4. European Research Advisory Board (EURAB) 46

4.5. Monitoring and evaluation 46

5. Statistical tables on the implementation of the 6th framework programme 47

5.1. Explanatory notes 48

5.2. List of tables in the statistical annex 48

EUROPEAN SUPPORT TO RESEARCH: ACTIVITIES AND RESULTS IN 2005

Policy Strategy and coordination

The year 2005 was marked by major research policy initiatives needed to implement the Lisbon strategy including in particular preparatory measures to orchestrate a timely presentation by the Commission of its Seven Framework Programme (FP7) proposals and an integrated action plan for research and innovation.

Substantial input was provided for raising the profile of research in the Lisbon strategy and in the preparation of the set of documents ahead of the 2006 Spring European Council, namely the Lisbon Annual Progress Report, including the Commission's assessment of National Reform Programmes (NRP) and micro-economic policies, and the Aho report which proposed a four pronged strategy focusing on creating innovation friendly markets, strengthening R&D resources, increasing structural mobility as well as fostering a culture which celebrates innovation. This contribution was instrumental in raising the quality of the analysis of the research aspects of the individual National Reform Programmes and of the global EU position.

With the publication of a Common Approach for More Research and Innovation[1], the Commission focuses on improving the framework conditions for private sector investment in research and innovation, particularly through European guidelines or guidance on key issues such as tax incentives for research, the use of public procurement for innovative products and services and cooperation and technology transfer between universities and business. This Common Approach follows the second year of implementation of the Action Plan 'Investing in Research'[2] which included preparatory work for new policy initiatives in 2006 and beyond, as well as the further application of the two open method of co-ordination processes set up to increase R&D investment and reinforce human resources in science and technology.

Furthermore, work has been initiated on the development of a proposal for the establishment of an European Institute of Technology (EIT).

The proposals for the Seventh Framework Programme (EC and Euratom FP7) were adopted on 6 April 2005, accompanied by an in depth ex ante impact assessment and a Staff Working Paper on simplification. The proposals for the corresponding Specific Programmes (EC and Euratom), on respectively ‘Cooperation’, ‘Ideas’, ‘People’, ‘Capacities’ and the Joint Research Centre, were adopted on 21 September and the proposal for the Rules for Participation and Dissemination of Results (EC) on 23 December 2005, followed by the Euratom Rules in early 2006.

Following their adoption, the proposals were subject to intense inter-institutional negotiations as part of the co-decision process of the European Parliament and the Council, involving on the part of the Commission a continuous input of information and contribution to the discussions in order to enhance the timely adoption of the Framework Programme (FP), including trilogues among the Institutions. As a first step, the Partial General Agreement was achieved in Council[3] on 28 November 2005. Very supportive opinions on the FP7 proposals were adopted in 2005 by the Committee of the Regions and by the European Economic and Social Committee.

The proposed 'Ideas' specific programme allows the creation of a scientific autonomous European Research Council (ERC) to support basic research at the frontier of knowledge thus promoting researchers whose excellence, creativity and intellectual curiosity will lead to major new discoveries. The ERC is supposed to be highly innovative:

- in its concept of European added value: competition between teams across the European continent as a whole;

- in its scope: covering all areas of research in an 'investigator-driven' approach;

- in its governance structure: scientific strategy and implementation methodology determined by an independent Scientific Council; and

- in its autonomous implementation: by a dedicated implementation structure, expected to be an Executive Agency.

Intensive preparatory work included in 2005 the establishment of an Identification Committee of top-level research leaders under the chairmanship of Lord Patten of Barnes, which identified the eventual founding members of the ERC Scientific Council[4]. Development work included a cost-benefit analysis for the establishment of FP7 executive agencies, further assessment of needs and options, including organisational requirements, personnel, infrastructure and IT, as well as detailed analysis of options for the frontier research grant[5]. In addition, a European Basic Research website[6] was launched.

In order to foster Public-Private Partnerships , 28 European Technology Platforms are now in progress. The Technology Platforms aim at bringing together the main stakeholders in order to define a medium to long term strategic research agenda fostering the potential for the development, the deployment and the use of key technologies. Six areas[7] have been identified in which a Joint Technology Initiative – a long-term public-private partnership – could potentially be set up to implement all or part of the strategic research agenda: aeronautics and air transport, hydrogen and fuel cells, innovative medicines, nanoelectronics, embedded computing systems and global monitoring for environment and security.

Several activities have been developed to enhance the participation of SMEs . The sounding board established by Commissioner Potočnik made up of small players (typically SMEs, smaller research centres and institutions) continues to incorporate the views of experienced stakeholders in the development of improved procedures for the implementation of the FP. The High Level Group for SMEs continues to provide input on the implementation of the horizontal research activities involving SMEs and on the preparation of the 'Capacities' Specific Programme for FP7.

Operational directorates in charge of FP6 thematic priorities have updated and implemented action plans to ensure an optimal and effective participation of SMEs. The following actions were in particular achieved:

- Identification in the calls for proposals of topics which are of particular relevance to SMEs;

- Publication of calls for proposals dedicated to SMEs;

- Increase of the share of traditional instruments especially STREPs in certain thematic priorities.

Further progress towards the 15% target[8] for SMEs was achieved as documented by the work of the interservice SME Task Force.To date the SMEs share of the budget is estimated to be in excess of 13% on the basis of main-listed proposals.

In addition, SMEs participating in FP6 have especially taken advantage of the implementation of the action plan on rationalisation and acceleration. The action plan has embraced aspects of the whole project cycle from proposal submission, evaluation and negotiation to contract management.

Concerning the international dimension of ERA , emphasis was given to enhancing the existing instruments and established partnerships, based on equitable access to knowledge and know-how and sharing of the risks and benefits of joint high level research. The main goal is to prepare the ground for the development of an ambitious international scientific cooperation strategy that provides additional impetus for the EU to be a key partner in the global scene of Research cooperation. In the Conference 'The international dimension of the Europe of knowledge – A common interest to Europe and the world'[9] Commissioner Potočnik and international participants discussed the challenges of a Europe of knowledge open to the world and recommended the elaboration of a comprehensive international S&T strategy for Europe. Such a strategy paper should ensure synergies between framework programmes and external policies and Member States’ activities.

The implementation of the 2003 Pilot Action 'Regions of Knowledge' made significant progress in 2005. The projects provided new insights on the questions raised by the pilot action, namely to which extent investment in knowledge and knowledge endowments can become a factor for regional development. Both Pilot Action projects and projects within the FP6 call 'Regions of Knowledge 2', offered ideas on the future activities on 'Regions of Knowledge' inside FP7.

The close collaboration between research and cohesion policies was reflected in the Community Strategic Guidelines on Cohesion which stressed the importance and set out concrete guidelines for increased and better targeted investment in RTD.[10] Further collaboration on developing regional research strategies was fostered by the activities of the Mutual Learning Platform for research and innovation which was launched in 2005 as a joint initiative of the Commission’s Enterprise and Industry, Research, Regional Policy and Information Society Directorates-General, with the active involvement of the Committee of the Regions.

The Science and Society Forum [11] represented a major stock-taking moment for Science and Society in the process towards more ambitious activities in FP7, with the participation of more than 800 policy-makers, members of civil society organisations and scientists.

The European Research Advisory Board[12] (EURAB) delivered recommendations to the Commission on financial instruments, financial perspectives, on the idea of a European Institute for Technology, International Cooperation, regional innovation capabilities, industrial participation, social sciences and humanities, European Research Organisations and science in society.

The implementation of FP6 for 2005 was completed close to 100 % in terms of implementation of the specific programmes' work programmes and budget execution. The planning of calls for proposals and proposals evaluation allowed proposals submission to be achieved without any problems, with a particularly high proportion of electronic submissions. Enhancements to the technical capacities of the evaluation service provider (ESP) hardware allowed large 'remote' evaluations to be carried out without any technical problems, even though the number of evaluators supported on the system was well above the system’s contractual specification. Following the introduction of fully electronic submission for all new calls during the second half of 2004, this proposal submission system has continued to gain the approval of proposers; a majority of calls now have 100% electronic proposal submission.

Indirect support actions

Life sciences, genomics and biotechnology for health

Implement the work programme: A last modification of the work programme in June 2005 enabled the publication of the two last calls for proposals of FP6. One was specially intended to stimulate SMEs participation. In addition, a specific call for proposals on influenza was launched in the light of the spread of avian influenza and the potential emergence of pandemic influenza in humans.

The total number of FP6-funded projects in the area of stem cells is growing compared to FP5. The inventory of FP6 financed projects involving stem cells from all origins (adult, foetal and embryonic) has been updated in the frame of the collection of stem cell information.

European research's reply to world's health challenges: The European and Developing Countries Clinical Trials Partnership (EDCTP)[13] platform on the poverty related diseases progressed with the second call for proposals, covering clinical trials, strengthening of the capacities of the selected sites networking, and training. Furthermore, several participating countries contributed financially as announced and the negotiations with the Gates Foundation in the frame of the 'Global HIV Vaccine Enterprise[14]' progressed well. Collaboration with the pharmaceutical industry continued as well on the development of new medical products, microbicides and vaccines.

Promote and reinforce international cooperation: DG Research participates in the definition of the world's policy orientations through its participation in the Steering Committee of the 'Global HIV Vaccine Enterprise' and through its membership of the 'Human Frontier Science Program'[15]. It participated as well in numerous thematic workshops and technical meetings with the aim to develop opportunities for partnerships with scientific communities around the world and to strengthen participation from third countries in European proposals. EU's participation in the Heads of International Research Organisations[16] represents the acknowledgment of its place among the main R&D financing agencies in the world. Thus, the EU contributes to the international reflections on major public health themes such as avian influenza or HIV/AIDS and contributes this way to strengthening the coherence of the initiatives and methods in these subjects.

Better communicate: The establishment of a structured dialogue between the European Institutions and the main participants in health research continued as shown with the large European representation to the annual major event for the European biotechnology industry 'BIO 2005' convention (June) and with the first Conference on Stem Cells and their Therapeutic Applications, co-organised with the European Federation of Neurological Associations (December).

Adapt themes and means of action : Building the 'Joint Technology Initiative on Innovative Medicines' advanced notably through communication actions and meetings with the main stakeholders: universities, pharmaceutical industry, regulation agencies, patient's associations, Biotech SMEs and Member States. An updated Strategic Research Agenda taking into account the input from the open consultation with the Member and Associated States that took place during the second semester 2005 will be published in 2006. It is foreseen to be implemented under the Health Research Theme as a Joint Undertaking via Article 171 in the frame of FP7. The initiative that aims to increase the competitiveness of the European pharmaceutical sector by increased research efforts by private and public partners addressing the main bottlenecks in the medicines development processes focussing on four key areas: improved prediction of Safety, Efficacy, Knowledge Management, and Education and Training.

FP7 proposal defines in the thematic area 'Health' include activities such as generic tools and human health technologies, research for health, and optimising health care for European citizens.

I nformation society technologies

The 2005 objectives for 'Information and Communication Technologies' (ICT) research actions emphasised three key aspects: mastering complexity by pioneering new approaches to cope with the infinitely small as well as the very larger; exploring multidisciplinary fields combining ICT with other science and technology fields; promoting innovation from ICT use by bringing services and technology developments closer together.

2005 research projects aimed in particular to achieve industrial and societal breakthroughs in research fields such as micro- and nano-electronics, mobile communications, broadband technology for accessing the internet, biomedical informatics and eGovernment and to address technological as well as societal ICT challenges. In addition, under the Research Infrastructure Programme, e Infrastructures (high-capacity and high-performance communication and grid infrastructures and high-end computing capabilities) were consolidated in Europe, including reinforcement of user communities’ engagement, stimulation of e Infrastructure policies for science and engineering, and support to international collaboration in the area of advanced communication technologies.

To build the European Research Area in ICT and to improve the effectiveness of investments in ICT R&D, a series of meetings with key policy makers in the Member States was organised in 2005 to discuss and prepare better coordination and synergy of public R&D funding. This work was complemented by several thematic workshops and consultations that were organised to address key technology areas. The bedrock of ERA was further strengthened by the official launch of the GÉANT2 research network which provides a high-capacity and high-speed communications network interconnecting the European National Research and Education Networks. Actions have also been undertaken to facilitate cooperation and coordination between stakeholders. Five Technology Platforms were launched in 2005: Mobile and Wireless Communications Technology (eMobility), European Robotics Platform (EUROP), Networked and Electronic Media Platform (NEM), Networked European Software and Services Initiative (NESSI) and European Photonics Research Initiative (PHOTONICS21).

To look at the impact of funded projects , studies were launched in 2005 and showed that selected areas of the FP5 'Information Society Technologies' Programme and its predecessors have contributed substantially to the increase of the knowledge base, standardisation, the skills of researchers and the development of research and knowledge networks, leading to enhanced competitiveness for most participant organisations. These benefits are considered by the participants to be of high strategic relevance, and in turn lead to innovation impacts for user communities, both for project participants themselves and for industry and service sectors using ICT.

The FP7 proposal covers strategic research priorities in areas of European industrial and technological leadership such as communication networks, embedded computing, technologies for audiovisual content, car electronics, electronic health records and data networks. It also targets emerging areas such as multi-dimensional visualisation and interfacing, topics emerging from the convergence of ICT and biology such as bio-inspired artificial systems and simulations of living systems, and new forms of non-linear and self-adapting digital content. At almost 30% of the proposed budget for the thematic priorities, ICT is proposed to receive the largest single share of collaborative research funding in FP7. Further support to computing and communication based e Infrastructures is also part of the proposal, enhancing their global relevance and increasing the level of trust and confidence, building on the achievements of GÉANT and Grid infrastructures.

Nanosciences, nanotechnologies, intelligent materials, new production processes

Nanotechnology is anticipated to be one of the key technologies of the twenty first century. Research actions in nanosciences and nanotechnologies are providing a considerable impact in terms of new products which make life easier and can solve the problems of health, security and the environment. In 2005, funding was granted to projects on understanding fundamental mechanisms, engineering of nano-components, instruments and devices, nanobiotechnology and applications particularly in nanomedicine and optics.

Following the endorsement by the Council of its proposed approach, the Commission adopted in June an 'Action Plan for Europe (2005-2009)' defining actions for the implementation of a safe, integrated and responsible European strategy for the development of nanosciences and nanotechnologies. The aim is to increase and co-ordinate research and initiatives in this area in order to contribute to the Union's competitiveness and many of its policies, in particular establishing synergy with education and innovation.

Good progress was made with the ambitious European Technology Platforms on nanoelectronics, nanomedicine and manufacturing ('Manufuture'). They have the overarching objective of proposing a strategy based on research and innovation, capable of speeding up the rate of industrial transformation in Europe. In this context, DG Research has been actively engaged in the development of common vision and Strategic Research Agendas of several European Technology Platforms

Materials, the transition lynchpin towards high value added products : Policy actions during 2005 continue to reinforce Europe’s strong knowledge base in Materials Science. Research actions are aimed at developing new advanced materials with a high knowledge-content and improved performance benefiting sustainable development and competitiveness in sectors such as transport, energy, medicine, electronics, and construction. Research on knowledge-based materials has a generic nature, offering potential for applications in all sectors, and is essential for developing new markets and emerging technologies, as well as for contributing to raise the competitiveness of the European 'traditionally less knowledge intensive' sectors.

Production, the mainstay of the European economy and employment : Policy actions have been aimed at ensuring that industrial capacities, knowledge generation and research skills remain in Europe since these are key determinants of prosperity, quality of life and employment prospects. Research actions within, for example, the continuing framework of the Environment Technology Action Plan (ETAP) have been aimed towards the development of sustainable and intelligent production technologies, products and industrial organisation in all sectors of industrial activity such as advanced engineering and services, construction, textile and clothing, forest-based products, chemistry, biotechnology, safety using the full range of collaborative research instruments.

An integrated approach encouraging breakthroughs : In an integrated approach, research projects, networks of excellence and support measures were financed with the aim of stimulating the new technologies in existing industries and/or making new breakthroughs which may lead to new industries. These research actions which integrate advances in nanotechnology, advanced materials, components, systems, intelligent and sustainable production technologies and high-quality products will have a major impact on industry and society.

An international dialogue on responsible research involving many countries on a voluntary basis has been promoted in view to defining a code of good conduct in carrying out nanotechnology research and promoting cooperation in fields of common interest. Also, the renewal of the Intelligent Manufacturing Systems agreement was high on the agenda. The mandate for negotiating a new agreement was adopted by the Commission in August and the mandate to negotiate this renewal was given by the Council in November 2005.

In FP7 on Industrial Technologies, there is strong continuity with FP6 in the thematic themes proposed: Nanosciences, Nanotechnologies, Materials and New Production Technologies. The main objective is to create conditions and assets for knowledge-intensive production, to validate new paradigms responding to emerging industrial needs and to expand basic knowledge in order to develop innovative instruments and applications for very different industrial sectors. The proposals in the area of industrial technologies to contribute to the preparation of FP7 have been well received.

A eronautics and space

Carrying out FP6 through Aeronautics and Space work programme : The work programme for 2005 has been fully implemented and dedicated to strengthening competitiveness, improving environmental impact with regard to emissions and noise, improving aircraft safety and security and increasing the operational capacity and safety of the air transport system, to hydrogen technology, to strengthening the 'Global Monitoring for Environment and Security' (GMES) and Satcom end-to end service development.

Integrate European research : The integration of research at a European level towards genuine and productive synergies among research policies and projects, and the emergence of new forms of partnerships are progressing. ACARE, the Advisory Council for Aeronautics Research in Europe presented the 2nd edition of its Strategic Research Agenda. Four years after the launch of this technology platform for the aeronautics sector, its scope and ambition has now been refined and expanded to address different future air transport scenarios.

Several workshops have been arranged with the aim of raising awareness on Community research activities, including one with the participation of Member States to discuss, in particular, the involvement of New Member States in the aeronautics research.

Activities in the Space sector have focussed on complementing efforts by Member States and by other key players, including the European Space Agency. In May 2005 the Commission adopted a Communication on 'European Space Policy – Preliminary Elements[17]' which sets out the overall strategy and priorities. Therein, the Global Monitoring for Environment and Security (GMES) initiative is identified as the second EU flagship after Galileo.

Subsequently in November 2005, the Commission adopted a Communication on GMES[18], with the objective to provide, on a sustained basis, reliable and timely services related to environmental and security issues in support of public policy makers’ needs. It sets out a strategy for delivering GMES, beginning with the pilot phase of three first operational GMES services by 2008. Following extensive consultation with GMES Member States stakeholders at the level of ‘Space Council’, as well as the GMES Advisory Council, remaining FP6 resources, yet to be committed, will be focused, as far as possible, on these fast track services.

Contribute to other Community policies: The content of the Aeronautics and Space work programme itself was thought to contributing to other Community policies, particularly those related to competitiveness and innovation, transport, infrastructures, environment, safety and security, employment and education. Also, in connection with the trade dispute between US and EU, statistics and other information on the support for research attributed to major European companies since the 2nd Framework Programme has been produced. The activities in projects on achieving data harmonisation for geo-information are in direct support of the implementation of the INSPIRE Directive currently in preparation.

Promote and reinforce international cooperation : In the area of aeronautics , the promotion and reinforcement of international cooperation to achieve critical mass in domains of common importance has been encouraged. Russia is the first INCO country participating in FP6 projects in the aeronautics sector. It has a great potential in the aeronautical sector due to its long history and capacities in this field. A workshop is being prepared for 2006, which should allow general discussions on possible future collaboration under FP7. China could become a big player. A significant event took place recently: the EU-China Workshop on Aeronautics Research and Technological Development. The aim was to discuss possibilities for cooperation with Chinese aeronautics researchers under European programmes and to identify wider possibilities for collaboration.

In the area of Space, international cooperation has been a specific research action in developing activities to disseminate and implement GMES products and services outside the European Union (and especially in developing countries). Of particular interest were activities linked to on-going initiatives at international levels such as, for example, GEO, GCOS, PUMA/AMESD, UNEP/MAP.

For the preparation of FP7 , intensive work has been carried out and the 'Transport' theme (Aeronautics and Surface Transport) of the specific programme for 'Cooperation' has been drafted. Based on technological advances, the objective is to develop integrated, 'greener, smarter and safer' pan-European transport systems for the benefit of the citizen and society, respecting the environment and natural resources, and securing and further developing the competitiveness and leading role attained by the European industries in the global market.

In the area of Space, supporting a European Space Programme has been the key point during the preparation of FP7. Extensive consultation has led to focusing on applications such as GMES with benefits for citizens and for the competitiveness of the European space industry. This will contribute to the development of a European Space Policy, complementing efforts by Member States and by other key players, including the European Space Agency.

Food quality and safety

Implement FP6 - Contribute to several policy initiatives: The implementation of the European Strategy on Life Sciences and Biotechnology continued, including the stimulation of exchange of information and best practice regarding quality assurance of genetic testing (research, legislation, networking, etc) through the informal network with Member States.

DG Research cooperated in linking the output of research to the European Platform on 'Diet, Physical Activity and Health' and contributed significantly to the EU Environment and Health Strategy (SCALE initiative) and subsequent Action Plan, with food related topics supporting this action included in both the 3rd and 4th call work programmes. DG Research contributed to policy initiatives:

- A dedicated call for research proposals on avian and pandemic influenza, building on the recommendations from EFSA, FAO, WHO and OIE[19];

- On agricultural research, closer cooperation of national agricultural policy research departments has been achieved in the frame of the Standing Committee on Agricultural Research (SCAR), notably by setting the priority topics for a Common Research Agenda, mapping infrastructures/institutions/activities, establishing a permanent SCAR Working Group and developing a prototype SCAR web portal. Initiatives were also taken to set up thematic 'collaborative working groups' among the Member States.

- Projects in support to the Animal Welfare Action Plan, the European Action Plan for Organic Food and Farming and the preparation of guidelines for co-existence between Genetically Modified and non-Genetically Modified crops; the implementation of the zoonoses[20] directive, the implementation of the REACH proposal and Food Contamination Legislation, the development and implementation of DG SANCO's Transmissible Spongiform Encephalopathies Roadmap, the implementation of the Environment and Health Action Plan, the EU directive on the implementation of the Bonn 'Guidelines on access and benefit sharing' and the negotiating positions of the EU within the International Biodiversity Convention (CBD);

- Ongoing reviews of legislation on food contaminants, air pollutants and chemicals as well as risk assessments undertaken by EFSA and DG SANCO committees.

Promote and reinforce international cooperation: The promotion of international cooperation (INCO) was fostered through a considerably improved participation of third countries, and notably of INCO target countries, in view of meeting the goal of allocating to them the 15.9M€ earmarked for the latter countries. A specific call to promote the participation of partners from Targeted Third Countries has been prepared.

A series of workshops on plant-based bioproducts organised under the EC-US Task-Force for Biotechnology Research has identified the potential for several flagship research projects.

In view of the preparation of FP7 , the concept of a European Knowledge-Based Bio-Economy (KBBE) has been launched and actively promoted through the organisation, in collaboration with the UK Presidency, of an international conference on 'New perspectives on the KBBE' and through discussions and presentations at international fora such as OECD, international conferences such as the 'International High Level Forum on Bio- economy ' in Beijing as well as at a large number of bilateral meetings with major international partners such as USA, Russia, Brazil, China, India.

A significant contribution was made to the launch/advancement of a number of European Technology Platforms , ensuring the involvement of the industry in the Strategic Research Agendas of the areas covered. Most remarkable are the technology platforms on 'Plant Genomics and Biotechnology', 'Global Animal Health' and the 'Industrial Biotechnology' pillar of the Sustainable Chemistry platform; the 'Food for Life' technology platform[21] and finally the technology platform on the Forestry-based Sector. Furthermore, first steps have been taken towards the establishment of a new technology platform on Sustainable Farm Animal Breeding and Reproduction.

Sustainable development, global change and ecosystems

Research Strategies for the environment and Sustainable Development : Contribution to the further implementation of the EU Strategy of Sustainable Development was provided through the provision of concepts, scientific references, methods and technologies. Implementation of both the Environmental Technology Action Plan (ETAP) and the Environment and Health Action Plan has been supported by launching more than 20 technological projects namely in the area of water and soil.

In context of research in support to policies, several projects funded have a clear impact on policies such as for example those supporting the elaboration and implementation of the Thematic Strategy on the Urban Environment.

In addition, Technology Platforms on Sustainable Chemistry and on Water Supply and Sanitation were established within the ETAP and have produced vision documents and drafting strategic research agendas. Participation of DG Research in the preparation of the inter-governmental ad hoc Group on Earth Observations (GEO) contributed to the elaboration of the Commission Communication of May 2005 on 'European Space Policy - Preliminary Elements' which includes a description of the GEO initiative and its relationship to the activities of the European initiative on Global Monitoring for Environment and Security (GMES).

FP6 implementation and contribution to policy objectives:

Sustainable surface transport: Research activities in the area of sustainable surface transport continued to support the European transport policy objectives as set out in the White Paper “European transport policy for 2010: time to decide” (such as revitalising rail transport, promoting transport by sea and inland waterways, developing intermodal and interoperable transport systems, improving road safety, encouraging the take up of alternative fuels and cleaner vehicles) by contributing to the development of new European standards, the preparation and implementation of new legal initiatives and other policy measures in the field of surface transport. Moreover, they facilitate the introduction of innovative, efficient and cost-competitive technologies and applications into the market and provide assessment in economic and policy terms.

In the CIVITAS initiative 36 cities all over Europe are developing, testing and demonstrating innovative urban transport policy tools and technological solutions. CIVITAS supports EU policies related to air quality and urban environment by encouraging the take up of alternative fuels and cleaner vehicles, increasing use of alternative modes, developing noise abatement plans and promoting higher quality public transport that is accessible and safe.

The ERRAC technology platform (rail) embarked further on the implementation of its Strategic Research Agenda, among others through some far-reaching research projects with railway undertakings and industries working together. Research results on railway safety can be integrated into new EU directives on 'Technical Specifications for Interoperability.' Economically and environmentally more efficient and innovative construction technologies for road and rail infrastructure can also be incorporated in investments in the Trans European Transport Networks.

The new EU-supported 'Waterborne Technology Platform' (shipping) aims to show the way to more effective waterborne transport research. It intends to publish its vision for 2020 and the supportive Strategic Research Agenda in early 2006.

The participation in the Maritime Policy Task Force deserved particular attention, with the paper 'Towards a European Maritime Policy' outlining the contribution of Research. There has also been active contribution to the preparation of a Green Paper on an all embracing Maritime Policy[22] and the Framework Directive on the EU marine environmental policy, and participation in the European Maritime Policy Conference[23].

Sustainable Energy Systems: Research activities contribute to the European energy policy objectives as set out in the Green Paper “Towards a European strategy for the security of energy supply” by developing and demonstrating innovative technologies and concepts for improving energy efficiency, increasing the use of renewable energy, enhancing the competitiveness of European industry and improving quality of life. The FP6 Energy projects continue to pave the way for the introduction of innovative and cost competitive renewable and energy efficiency technologies into the market and thus support the future development and implementation of EU Directives such as on electricity from renewable energy sources and on the energy performance of buildings, as well as the proposed Directives on cogeneration and the establishment of technical, regulatory and fiscal measures for the promotion of biofuels.

These activities include the CONCERTO initiative which supports integrated strategies for urban energy concepts including renewables and energy efficiency.

Integrate European research: Further integration of research activities at a European level and synergies among research policies and projects was sought, through a variety of means such as:

The launch of a cooperation platform between three large-scale biodiversity Networks of Excellence[24] has been initiated to underpin the preparation of a European biodiversity infrastructure.

The launch of the integrated project DAMOCLES in the field of climate changes in the Arctic brings together efforts of 45 European research institutions and will be part of the European contribution to the International Polar Year 2007.

The Commission has been assisting the various deep-sea research groups in the creation of a joint 'Deep Sea Floor Frontier' research programme to promote the common use of infrastructure in international, national and European initiatives.

The Advisory Group on Energy (AGE) regroups the three fields of energy research (fusion, fission and non-nuclear.

The European Technology Platforms on Hydrogen & Fuel cells and Photovoltaics have been set up and have developed their Strategic Research Agendas. The Hydrogen & Fuel cells Platform is working towards the creation of a Joint Technology Initiative in FP 7.

International cooperation: Further consultation with the international programmes in the field of Earth Sciences and Global Change[25] have been carried out to improve international cooperation in FP6. As a result, the target for third country participation is very satisfactory, around 4.2% of our total budget. In the framework of the EU-South Africa S&T agreement, DG Research encouraged the South African participation in various water related research activities. In the energy research area, international cooperation activities at bilateral level were carried out notably with the United States, Russia, China, Japan and Australia. Joint initiatives were launched to take shape at short, medium and long term in priority areas such as renewable energy, CO2 sequestration, hydrogen, and biomass. A memorandum of understanding with China on clean coal technologies and zero emission power generation has also been adopted and is ready for signature.

Communication: The Commission together with the European Space Agency prepared the 'Earth and Space Week', aimed at showing how Earth Observation (EO) and Space improve quality of life on our planet. The Week included cultural, recreational and educational activities, a major public exhibition, and high-level policy-related events.

Citizens and governance in a knowledge-based society

Implement a new work programme: The implementation of the work programme covering the years 2004 to 2006 advanced in an impressive way through a series of three calls launched in December 2004. Following evaluations and negotiations in 2005, more than 80 new projects were or will be launched. In particular, 20 projects came to light under the 'new instruments', i.e. networks of excellence and integrated projects. Such larger projects, between 3 to 5 Millions Euros, should help structure the European Research Area in the field of Social Sciences and Humanities (SSH) through the 600 research organisations and thousands of researchers they involve.

The new projects will not only strengthen European research activities in fields of continued Community interest (such as governance and social cohesion), but will also cover a number of topics which will be addressed for the first time within the framework of this programme (such as global security and multilingualism). At the same time, the international dimension of this portfolio of projects has been reinforced.

This was also the first time that the programme applied a two-step evaluation system and made use of remote reading by the evaluators in order to improve the selection of projects.

Reinforcing the role and visibility of the social sciences and humanities: The work programme for 2005 included activities aiming at promoting the European Research Area in the SSH, including means to enhance the coherence of policies for SSH, to assist the development of European infrastructures for comparative research, and to improve the communication and dissemination of research results.

In the perspective of furthering communication on the results of the programme, a special effort was made in 2005 to promote the results of the research, in particular by systematic publication of reports on the projects funded and updating of the websites (CORDIS and EUROPA). About 100 final reports were made available to the scientific community. In addition, a quarterly newsletter on European research in the SSH was widely distributed in Europe and beyond to inform readers about the European research results, the available sources of information and the future activities of the programme.

Towards FP7 : In December a major conference on 'Social Sciences and Humanities in Europe: New Challenges, New Opportunities' brought together 440 delegates (researchers, experts and policy-makers) to discuss the state of SSH in Europe, and the strategic challenges and opportunities for FP7. This event thus marked the launch of a broad consultation process on the development of the content of the collaboration programme in the area of SSH in FP7.

Specific measures covering a wider field of research

Demonstrate the Commission’s capacity to efficiently implement frontier research

Increasingly the New and Emerging Science and Technology (NEST) activity has come to be seen as a successful model for 'investigator-driven' frontier research funding, and as a demonstration of the Commission’s capacity to efficiently implement frontier research. A conference under the UK Presidency structured to examine and assess the NEST philosophy and operational experience confirmed this perspective, drawing lessons for the ERC.

The successful operational experience of NEST is being taken up both in the development work for the ERC and in preparing the 'NEST-like' (emerging research) activities embedded in the thematic priorities of FP7.

The NEST activity supports three complementary action lines which operate in parallel. ADVENTURE activities have generated a portfolio of high-quality research projects with excellent participation in key emerging scientific areas, INSIGHT projects cover potentially important risks to society, the PATHFINDER activity is at the forefront of a policy to better exploit European potential and creating communities of knowledge in new multidisciplinary research areas with very high forward strategic interest for competitiveness and social welfare.

Promote synergies with other Community policies

Recognising the power of science to serve the decision-making process, including in case of emergencies, the 'Scientific Support to Policies' initiative has been developed in several fields such as health, agriculture, crime, fisheries, environment, energy, transport etc, through calls for proposals (including a call related to an unforeseen need: avian influenza and human pandemic influenza) and through the promotion of selected projects. An 'SSP awareness raising and exploitation of results' Action plan drawn up in 2004 is being implemented jointly with other Directorates-General. An information folder and some information sheets were prepared with the aim of informing policy-makers and are accessible through the Europa web site[26]. The SINAPSE e-network[27], with a main objective to offer a set of essential tools to promote and encourage the effective exchange of information between all stakeholders, is used also to disseminate scientific results towards policy makers.

Address Small and Medium Enterprises (SMEs)

The updated work programme was fully implemented and takes account of the new SME definition[28]. Widespread interest in the horizontal research activities for SME and SME associations continues. The last call for Economic Technological Intelligence (ETI) focused on encouraging SME participation in FP6 and also on preparing SMEs for FP7.

A large portfolio of selected and ongoing projects in co-operative research addresses technological problems of direct interest to the SMEs involved. To date more than 4500 SMEs across the entire field of science and technology are benefiting directly or indirectly from their involvement with SME specific actions in FP6. Selected and ongoing collective research projects will have a positive and valuable impact on the competitiveness of large communities of SMEs and will also contribute to the dissemination of knowledge.

Other activities in this area included an 'Impact assessment for improving the SME specific research schemes and measures to promote SME participation in FP7' and, SME specific stakeholder consultation.

Consolidate the efforts in international scientific cooperation

The last research calls showed a massive oversubscription compared to resource allocation. An additional 3 million Euros was channelled into the budget for Mediterranean Partner Countries allowing for the funding of high quality projects on the reserve lists in order to further boost the research potential in this region.

The elaboration of the 2006 INCO Work Programme was finalised, the novelty consisting in a specific call for Western Balkan countries, initiated following the conclusions of a Ministerial conference in February 2005 where it was agreed to reinforce the capacity in these countries allowing for a better integration of these countries to the Framework Programme.

Among the greatest challenges to meet was the opening of the thematic priorities to international partners. A working group of the horizontal Programme Committee reviewed the progress in allocating a budget of 285 M€ to the thematic programme priorities to international scientific cooperation with third countries and formulated relevant proposals. Following the suggestions of the working group, a specific horizontal call opening existing FP6 projects to targeted third country participants was defined and will be published in early 2006.

A group of international experts reviewed 67 international S&T projects with a bearing on integrated water resources management, a key concept of the European Water Framework Directive and the EU Water Initiative. The review lead to a technical report, general public brochure and a policy brief to be launched at the 4th World Water Forum in Mexico in 2006.

Specific International Cooperation actions, thematically based, realised by mutual interest in co-operating on particular topics, will be undertaken within the 'Cooperation', 'Capacities' and 'People' Specific Programmes in FP7. These actions would cover 'Opening of calls for participants from third countries', 'Opening of calls dedicated to a particular country/region for participants from third countries'. Such actions include, in particular: actions aiming at reinforcing the research capacities of candidate countries as well as neighbourhood countries; cooperative activities targeted at developing and emerging countries, focusing on their particular needs in fields such as health, food and agriculture, fisheries, management of natural resources and renewable energies, and implemented in financial conditions adapted to their capacities.

Strengthening the foundations of the European research area

Co-ordinate national and regional research programmes

A total of 68 ERA-NET projects were selected, aiming at coordinating national and regional research programmes in fields such as bilateral cooperation with third countries, metrology, agriculture and fisheries, plant and human health, energy, transport or environment. The first results of the current ERA-NET projects in intensifying co-ordination and cooperation include a wealth of information about national research programmes (contents, set-up and management). Several ERA-NETs have published joint calls for proposals and some support other policies such as SEE-ERA-NET, contributing as well to international cooperation research policy. In order to take stock of the ERA-NET scheme, including the more strategic and policy related aspects, an in depth analysis will be undertaken in 2006. The major analysis work will be done by an external expert group. In preparation of this expert group DG RTD has organised a few workshops with participants in ERA-NET projects. These workshops have gathered some input as preparation of the work of the expert panel. It is planned that the report of this group - at least in draft format- shall be ready by the end of 2006.

ERA-NET PLUS, a new module to incite Member States to pool resources for common calls for proposals in well identified cases has also been included in the FP7 specific programmes proposals.

Based on the experience of the pilot initiative to combat poverty related diseases, four joint initiatives under Article 169 of the Treaty have been included as well in the proposals for FP7 Specific Programmes, thus bringing programme co-ordination another step further: Baltic Sea research, ambient assisted living, metrology and research performing SMEs (the latter in cooperation with Eureka).

Enhance the relations with intergovernmental frameworks

In line with the strategic partnership between the Commission and COST[29], specific actions have been launched to enhance the complementarities and synergies with the Framework Programme. The satisfactory implementation and good progress in the reforms of COST were acknowledged in the mid-term review of the contract to support COST. The work programme has subsequently been revised to extend the contract and increase the maximum EU contribution.

There has been an exchange of expertise between the Commission and EUREKA[30] on evaluation practice. Further, enhanced cooperation between the Commission and EUREKA has been pursued in view of a potential initiative under article 169 concerning research performing SMEs. In addition, EUREKA Clusters, notably in the area of ICT, are now directly involved in European Technology Platforms.

The grant contract supporting the EUROCORES[31] scheme has been extended to 3 years: 16 EUROCORES are now at the implementation stage and 4 at the Programme design phase.

Share foresight knowledge

The science and technology foresight activities of the Commission were carried out by several forward looking study activities as well as by the exchange of foresight knowledge between policy-makers and research and innovation policy specialists of the Member States and associated countries. The aim of the foresight activities is to provide interested parties with a service of permanent collection of results and the analyses and syntheses of ongoing science and technology development and its prospective policy impact.

A newsletter 'Foresighting Europe' and a website supported the exchange of information. Several key seminars and conferences took place like 'FOR-LEARN' in Bucharest, Brussels and Seville, as well as the conferences on 'Key Technologies for Europe', 'The Millennium Foresight Conference' and 'The future of key research actors in the European Research Area'.

Stimulate Research and Innovation through public procurement and through foundations

The report of the expert group on Public Procurement to Stimulate Research and Innovation adopted in September explored options and good practices at national level and offered broad recommendations for further policy action. The results were presented at the European conference on procurement for innovation in December.

The report of the expert group on Foundations and Research adopted in December reviewed and assessed the current European landscape of foundations funding research, challenges and trends, proposing a series of measures at national and European level to help promote the role of foundations in funding research.

Monitor the EU research and innovation systems

ERAWATCH, the prototype phase of the integrated information and intelligence service on national and regional research policies, was completed and its production phase launched.

The 2005 edition of the 3% Key Figures on the performance of the EU research system, and the 2005 edition of the European Innovation Scoreboard on the innovation performance of the EU were prepared and published. The second EU industrial R&D investment scoreboard was published in December 2005.

Benchmarking of innovation policies in Europe were pursued, relying on the TrendChart on Innovation in Europe. The TrendChart progressively incorporated information and analysis of the innovation policies in the Associated and new Member States. It also extended its scope to take account of the global context, notably on the policies and performance of the USA, Japan, Asia, NAFTA.

Structuring the European research area

Research and Innovation

Several calls for proposals were launched and implemented in 2005:

- 'Entrepreneurial innovation: Networking the players and users': Its objectives were to identify sector-specific leverages to innovation, to activate cooperation between business clusters in Europe and to tackle sector-specific innovation finance issues. 22 projects have been selected for funding and started their activities in autumn 2005. Together with high level innovation panels looking at sectoral innovation issues and two projects dealing with the identification and analysis of clusters in EU25 and associated and candidate countries, they form the Europe INNOVA initiative (www.europe-innova.org) that brings together more than 300 partners from 23 Member States.

- 'Standards in support of innovative business solution': The call aimed at facilitating the integration of open standards into the design of new products and series, the integration of open standards into business practises and the stimulation of innovation through reference to standards in procurement.

- 'Support to innovation policy learning and development'; Launch of the PRO INNO initiative composed of three strands: the INNO-Nets to mobilise, network and support sub-national or national innovation policy programmes to carry out cooperation activities; the INNO-Actions to promote new forms of actions helping enterprises to innovate; and the INNO-Net Learning Platform to identify examples of good practice in innovation policy-making, to assess the transferability and adaptability of good practise examples and to identify cases for cross border policy co-operation.

- 'Identification of new methods promoting and encouraging Trans-national Technology transfer'.

- 'Economic and Technological Intelligence', this aimed at examining the impact of measures taken to facilitate the participation of SMEs and SME groupings in the Priority Thematic Areas.

Several calls for tenders were launched in 2005:

- On 'Information Service / Innovation Newsletters', which led to contracts for the editorial work of ‘European Innovation’ (formerly ‘Innovation and Technology Transfer’) and ‘Euro abstracts’ reviews. A series of conferences were organised, and a documentary on the IRC network was produced.

- “Analyse and evaluate innovation in Community Research projects (FP5 and FP6 projects)”.

- “Assessment of the impact of off-shoring on the innovation potential of EU companies”

- “Impact of free/open source software on innovation and the competitiveness of the ICT sector in the EU”

- “Entrepreneurial innovation in the future Member States: challenges and issues at stake for the development of clusters of innovative firms”

- “Innovation and public procurement. Review of issues at stake”

- “On-line self assessment tool (SAT) for SMEs and best practices in innovation management

- Europe INNOVA Communication platform

- Patterns of organisational change in European industry (a study on organisational innovation in different manufacturing sectors)

The European 'Innobarometer', an annual survey analysing how managers perceive innovation challenges and barriers across Member States was extended by one year.

Develop a European strategy for Research Infrastructures

The debate in the framework of the Inter-Services Task Force on Research Infrastructures helped in developing a coherent approach for the preparation of FP7. In particular, new operational mechanisms for the development of new research infrastructures have been investigated.

The role of the European Strategy Forum for Research Infrastructures (ESFRI) in supporting a coherent and strategic approach to policy-making has been consolidated:

- A ‘List of opportunities’ presented concrete examples of new research infrastructures the scientific community will need in the coming decade.

- ESFRI started the preparation of a Roadmap for new research infrastructures of pan-European interest with the setting up of 15 expert groups. The first European Roadmap is expected by autumn 2006.

- A third European Conference on Research Infrastructures has been organised under the UK Presidency, in Nottingham, with the aim of clarifying the long-term scientific needs in relation to European research infrastructures. The Conference also addressed the possible international dimension of the new generation of research infrastructures, as well as their regional or trans-regional impact.

Human resources

Marie Curie outputs and outcomes: In 2005, there were 5233 eligible proposals in response to calls for proposals for 13 different Marie Curie actions. Of these, 960 proposals were selected for funding, which represents an average success rate of 18% (compared to 16% in 2004 and 20% in 2003). In 2005, 1425 participant institutions were supported within 960 selected projects, bringing the total to 4500 for the three first years of the FP6 (2003-2006). The Marie Curie activities in 2005 resulted in about 89,000 researchers-months.

Create a single European labour market for researchers: The Mobility Strategy for the ERA and the Researchers' career Development Policy continued to serve as a coherent frame for the Member States and Commission to minimise obstacles to mobility and to ameliorate researchers' career prospects, with the ultimate aim to create a single, open and competitive European labour market for researchers. Work continued along the principles of the Open Method of coordination, with seven meetings of the Steering Group on Human resources in the ERA (SGHRM), in 2005.

Enhance inter-sectoral mobility of researchers: On inter-sectoral mobility, and based on an inventory and evaluation of strengths, weaknesses and impact of national schemes, expert groups identified recommendations for action on four areas: knowledge and skills development; career appraisal; remaining legal and administrative obstacles to mobility; and structuring initiatives. A synthesis report will serve as a practical manual in various initiatives in 2006.

Progress reducing mobility obstacles:

- Proposals for a Directive and two Recommendations to substantially facilitate the admission of third-country nationals to carry out research in the European Community were adopted in autumn 2005. A plan to foster and monitor the uptake has been put into place, in close cooperation with the Steering Group of Human Resources and Mobility (SGHRM).

- In the area of social security and taxation, training and information sessions on rules and procedures, as well as on major problems encountered by researchers were organised by DG Research and several Member States.

- DG Research has been involved, as concerns mobility of researchers, in the preparation of the 'European Year of Mobility for workers (2006)' as well as in legislative proposals on portability of pension rights, issued by the Commission in October 2005.

- As concerns information to mobile researchers, the Researcher’s Mobility Portal 'ERACAREERS' consolidated notably through new dedicated Portal sections on the European Researchers Charter and Code, the newsletter 'Europe4Researchers', the integration of the 'international dimension' and a more user-friendly section on the ERA-MORE network[32].

- Contacts have been established between this network and more general networks on employment and mobility.

- Collaboration has been established with leading European and national research organisations[33] to intensify posting and exchanges of job vacancies.

- After its launch in June 2004, the ERA-MORE network was consolidated in the course of 2005, both at national and at European level. Significant progress can be reported in terms of operability of the 200 Mobility Centres in 32 countries, and of the networking between ERA-MORE members.

- A pilot phase of the instrument ERA-LINK (a network of European researchers abroad aiming at meeting researchers’ needs and expectations) was set up based on a 2004 survey involving EU researchers working in USA.

Improve researchers' status, profession and career development: An upturn in researchers' status, profession and career development was boosted with the Recommendations on the European Charter for Researchers and on the Code of Conduct for the Recruitment of Researchers[34] in March. Its uptake, for which responsibility lies in Member States, employers and funding-providers of research, developed very positively, supported by an action-based strategy. Most Member States have engaged actively in awareness raising activities and/or screening of legislation and regulations. By the end of 2005 a considerable number of national research organisations, including in particular university rectors’ conferences had formally adopted the Charter and Code. The principles of the Charter/Code are addressed as well in the Proposals for the Specific Programmes of FP7 and in its proposal for the Rules of Participation.

Considerable and wide ranging activities were executed under the 'Researchers in Europe 2005 Initiative': with around 100 events organised such as science weeks, festivals and 'Researchers’ nights' through Europe.

Challenge Universities in high-level Research

As a follow-up of the Liège Conference 2004 and the report 'European Universities: Enhancing Europe’s Research Base' presented in May by the Forum on University-based research, preparatory work for a document to be presented to the European Council was undertaken. It addressed in particular the challenges faced by universities in performing more efficiently high-level research and in responding better to social and industrial needs.

Science and Society

In the course of the mid-term assessment of the Science and Society Action Plan, a total of 271 activities were examined, including links between these and EU and national policies. Four case studies[35] provided more qualitative information. Of the 38 actions of the Action Plan, the Commission’s input has been either fully or partly achieved.

In 2005, the implementation of the Science and Society Action Plan progressed concerning 'Science education and careers', 'Monitoring of progress towards gender equality in science' and 'Promoting gender equality in science in the wider Europe', 'Facilitating exchange between Ethics Committees', 'Improving the delivery of scientific support to policy makers': The SINAPSE e-Network (Scientific INformAtion for Policy Support in Europe) has been launched[36], with the aim of offering a web-based communication channel between the scientific/expert community and public authorities (in particular the European institutions) and decision-makers.

Specific events for the European Research Area were launched in 2005: 'Meeting of Minds', it is the first European Convention gathering 126 citizens from 9 European countries; An expert group on science and governance was set up, which is invited to analyse the growing uneasiness of relations between science and society and to explore ways for constructive interactions between techno-scientific expertise and public concerns.

In order to intensify links and mutual respect between science and society, DG Research implements reviews of research proposals with ethically sensitive content. The proposals evaluated through an ethical review continued to increase in 2005 and related mainly to life sciences, genomics and biotechnology for health, IST, nanotechnologies, food quality and health, and mobility.

Following the Commission's document on 'Gender Equality' in Science[37], the Council reflected in its Conclusions most of the issues addressed by the Commission: In addition, a guide for good practices for Gender Action Plans was published in autumn 2005[38].

Communication of Science is developed essentially through the Research web-site on EUROPA[39], the main communication channel for Science, RTD info magazines, media briefings and press releases. AthenaWeb, an innovative professional portal for the localisation, exchange and distribution of scientific audiovisual material in Europe was launched during the First European Research and Innovation Exhibition. Furthermore, to stimulate researchers to communicate better the results of Community funded research, a Science Communication event was organised in November 2005 with practical workshops bringing together Communication professionals, scientists and policy-makers.

Direct actions by the Joint Research Centre (JRC)

The mission of the JRC is to provide customer-driven scientific and technical support for the conception, development, implementation and monitoring of EU policies. As a service of the European Commission, the JRC functions as a reference centre of science and technology for the Union. Close to the policy-making process, it serves the common interest of the Member States, while being independent of special interests, whether private or national.

Throughout 2005, DG JRC affirmed its position as an independent provider of scientific and technical support to EU policies. This is evidenced by increasing requests for support and positive feedback both from customer DGs of the Commission, Member States and European Parliament. For example, DG JRC has received requests from the European Parliament to further strengthen its scientific-technical support role – a request which falls squarely into DG JRC's mission.

In 2005, DG JRC's role as a scientific-technical reference centre expanded with two new Community Reference Laboratories (CRL) established for GMOs in food and feed and for the authorisation of feed additives. Proposals for the seventh Framework Programme (FP7) were prepared with increased impetus on areas such as sustainable agriculture, support to the Lisbon agenda, environment and health and security.

DG JRC's Annual Report[40], published in April 2005, gives examples of support to Community policies, documents highlights from the seven Institutes as well as DG JRC’s contribution to enlargement, the integration of new Member States, technology transfer, press and media actions and the European Research Area (ERA). DG JRC’s role in the development of ERA is exemplified not only through its extensive collaboration networks but also through its recruitment and exchange programmes for Europe’s best scientists, its training programmes and use of DG JRC facilities. In line with this theme, a section of the report has been dedicated to young scientists’ awards and their innovative achievements in 2005.

To quote some examples, last April DG JRC launched the first Soil Atlas of Europe. Tools such as this are an invaluable aid for policy-makers when considering measures to protect our soil. In July, the New Hydrogen and Fuel Cell Test Facilities were opened. These facilities will provide governments and industry with an independent evaluation of hydrogen and fuel cell technologies performance in terms of efficiency, safety, environmental friendliness and reliability. In October, DG JRC opened one of the world’s largest storage buildings for reference materials. Reference materials are the cornerstones for reliable, comparable and traceable measurements and are imperative for sound scientific and technical support to the EU legislative process and the functioning of the Common Market. DG JRC intensified its support to European engagement in Africa by launching the Africa Observatory for Sustainable Development. Using its longstanding experience on remote sensing, the interpretation of satellite imagery, mapping, statistics and computer models, DG JRC provides support to a range of European Commission DGs in their policy-making, operations and identifies priorities for EU intervention in Africa. Turning to natural disasters, DG JRC provided alerts as well as information products for emergency response, humanitarian relief and reconstruction during and after the Indian Ocean Tsunami in December, 2004 and South Asia Earthquake in October, 2005. In nuclear safeguards, a sample of nuclear material seized in Poland was subject to nuclear forensic analysis by DG JRC and Polish experts. At the DG JRC operated European Centre for the Validation of Alternative Methods (ECVAM) and European Chemicals Bureau (ECB), methods that reduce acute fish toxicity testing by 60% have been validated. The lives of many hundreds of thousands of fish will thereby be saved in the implementation of REACH (Registration, Evaluation and Autorisation of Chemicals) . ECVAM is currently in the process of validating some 40 different tests and continues to work closely with the ECB with the goal of reducing the number of animal tests needed in the assessment of chemicals.

In close co-operation with the Research DG, the 2005 EU Industrial R&D Investment Scoreboard was produced. This reports on the worldwide research and development (R&D) of 1 400 companies - the top 700 R&D investors with registered offices in the EU and the top 700 registered elsewhere. This work feeds into the Commission’s industrial R&D and innovation monitoring activities which is implemented in support of the 3% Investment in Research Action Plan, requested by the Barcelona European Council in 2002.

Achievements of previous framework programmes and other activities, including the research fund for coal and steel

Framework programmes

The scientific and administrative management of projects under previous framework programmes continued without hindrance, as well as the assessment of the results and impacts of EU-funded research.

Assessments and impact studies

Impact studies were completed or ongoing during 2005 in several areas:

- In Competitive and sustainable growth on industrial technologies the evaluation of the results and of the anticipated socio-economic impact of completed FP5 Growth projects is on-going. The evaluations for the first batch of projects for the Key Actions Land Transport and Marine Technologies, New Perspectives in Aeronautics, Measurements and Testing, and Support for Research Infrastructures have been finished and reports are prepared. The assessment should give information about success and failure factors and identify success stories which will be published. The evaluation of the second batch of projects has been started by the end of 2005.

- The INCO Impact assessment focussed on FP5 and compared the evolving European context for International cooperation with approaches by other OECD countries and organisations. The desk based analysis was complemented with stakeholder interviews inside and outside DG Research and an open online survey. Recommendations were formulated for consideration in FP7.

- The study on the impact of Marie Curie fellowships of FP4 and FP5 with more than 2900 respondents highlighted that the these European schemes are considered as having prestigious reputation and best practice for the quality of the international peer review evaluation as well as for the level of remuneration.

- In the area of Information Society Technologies, a series of studies was launched in 2005 to look at the impact of funded projects so far. To get consistent information on impact it was paramount to first put in place a systematic methodology as the real impacts of the research projects are backed by evidence only several years after the end of the projects concerned. According to these studies selected areas of the FP5 IST Programme and its predecessors have contributed substantially to the increase of the knowledge base, standardisation, the skills of researchers and the development of research and knowledge networks, leading to enhanced competitiveness for most participant organisations. These benefits are considered by the participants to be of high strategic relevance, and in turn lead to innovation impacts for user communities, both for project participants themselves and for industry and service sectors using ICT.

Publicise major achievements

Of the major achievements which have been publicised, mention should be made of the following points:

- The assessment of the results and anticipated socio-economic impact of projects under the Competitive and sustainable growth programme for industrial technologies in FP5, whose first report has been produced. A major published report summarises the results of the large scale study 'Evaluation and Impact assessment of projects completed between 1996 and 2001' under FP3 and FP4 in the field of industrial and materials technologies and standards, measurements and testing.

- The above-mentioned study on the impact of the Marie Curie fellowships showed that the schemes have contributed to raising quality in Europe; increasing new skills: both scientific and complementary skills especially in the academic environment; combining fruitfully different backgrounds and knowledge exchange not only international but also intergenerational; encouraging mobility, (for instance the majority of the postgraduate fellows would have not moved without this funding); retaining researchers in Europe that otherwise would have been gone to third countries; improving networking both in creating new links and developing existing connexions; providing full time dedication to research and therefore capacity to explore new areas; increasing productivity in number of publications, conference participation, patents, etc; developing research careers in Europe through keeping researchers in research, increasing their professional status and creating a scientific European identity; and is considered as a best practice scheme for offering conditions that allowed equal opportunities for researchers with families. On the other hand in the case of the Industry hosts scheme fellows were exposed to commercial environments.

- 'Information Society Technology (IST) Results', the online editorial service aimed at raising the visibility of IST-funded research results and to encourage the take-up of innovations, continued throughout 2005. The service produced articles and news items on results emerging from the IST programme. Also the 'Information Society (IS) Policy Link', that links Information Society projects with relevant European policies as varied as environmental protection, security and health, continued in 2005. IS Policy Link assists cutting-edge IST projects to connect better to the relevant policies. The initiative helps Europe to implement today’s policies better and ensures that policy development takes into account the possibilities offered by ICTs. Activities carried out so far under the initiative include the publication of thematic brochures covering 14 policy areas with fact sheets about IST (FP5 and FP6), eTen projects (the EU Programme to help the deployment of telecommunication networks-based services with a trans-European dimension) and eContent projects (the EU Programme to make digital content in Europe more accessible, usable and exploitable), and the organisation of two policy workshops.

- CORDIS, the official Community R&D Information System, saw a constant rise in information submitted with some 18 000 additional records added in 2005. The number of registered users rose by 25% to over 120 000 and some 250 000 unique users visited the site monthly, accessing 7 million pages per month. About 400 000 documents were downloaded. CORDIS has become the main source of information for participants of the framework programme and for industrial intelligence gathering searching for relevant outcomes. The demand for information is closely allied to the cycle of calls for proposals. Equally the demand for printed publications has not diminished, with a CORDIS Focus Newsletter circulation to 35 000 addresses in over 90 countries.

Capitalise on research results

The research results of FP5 projects provided a clear support to transport, industry, health and environment policies. Among the many examples, it is worth mentioning:

- Many examples of projects in the field of industrial technologies have been adjudged 'success stories', the expected impact of which cover improvements in quality of life and employment prospects, health, safety and protection of the environment. In particular, research in the field of industrial safety has improved working conditions for workers and the general public, thanks to technological progress and innovation. Moreover, in the field of health the ARPAC project has produced a brochure of recommendations to be implemented in European hospitals and entitled: 'How to make our hospitals a safer place'. In the field of rail transport, the European Rail Traffic Management System, has been validated ensuring interoperable solutions for railway across Europe.

- The EEFAE[41] platform (FP5 Growth) with the EEFAE’s larger engine (ANTLE) and the engine destined for regional jets (CLEAN) sub activities finished during the first half of 2005. Results are very promising as the completed tests indicate that there could be a 60% reduction of nitrogen oxides and 11% on carbon dioxide. Another technology platform, SILENCER (FP5 Growth), which aims at reducing external noise, is not yet finished but results are being tested encouragingly looking ahead to developing next-generation engines. The IMCAD project studied and validated the use of novel technologies that could considerably reduce development costs and time-to-market for cockpit application development programmes. The achieved cockpit application development process improvement in time and effort is between 35 and 40%. Knowledge and experience gained in IMCAD are being used in the development of future cockpit applications.

- Many FP5 projects came to fruition in 2005 with very interesting results in terms of research and policy relevance in the field of Citizens and Governance in a knowledge-based society. Among them, the PILOT[42] research project demonstrated in an impressive way the specific importance of an often neglected sector in our industrial tissue – the low-tech industries and their important role in the innovation process. The DIALOG[43] project presented interesting new insights on the demographic change we are facing in Europe.

- Utilisation of expertise and results from INCO projects intensified in the framework of international fora and related frameworks such as Johannesburg plan of implementation, EU Water Initiative, poverty related infectious diseases, the European and Developing Countries Clinical Trials Partnership and the ministerial summit in Mexico on the policies and systems for health.

- Structuring training across Europe: the project European Network for Training in Economic Research (ENTER), a multi-partner Training site whose aim is to provide research and training through research in microeconomics and micro econometrics and applications, with special emphasis on network effects and market design, and the interaction of the public and private sectors. The ENTER network encourages mobility of economics PhD researchers, allowing them to specialise in their field of interest. The network diploma is a signal of quality, adding value in the professional market.

- Interactive directory of projects, an interactive table presenting the 'City of Tomorrow' projects grouped by clusters and providing access to project information and main deliverables.

- In the framework of the collaboration established with United Nations Human Settlements Programme, the development of a common database of tools and good practices emerging from research funded by both organisations is implemented.

- Successful mobilisation of several FP5 projects to organise exhibitions, round-tables and mini-workshops at the Communicating European Research 2005 event in November 2005

- Preparation of a 'projects success stories' brochure for a wide, non-specialist audience.

- A Workshop on Water Reuse was organised in collaboration with the AQUAREC partners '(Integrated concepts for upgraded waste water reuse)' as well as regional and national water companies with the aim to present and discuss preliminary results of the project.

- Projects concerning the Climate Change modelisation (PRUDENCE) and its impacts, and better knowledge of the Carbon Cycle (CARBOEUROPE1) were finalised and contributed to community policies.

- In 2005, there were several important and impressive breakthroughs announced by EU-funded projects under the Information Society Technologies (IST) Programme, for example:

- Advanced ICT-based anti-collision radars and automatic braking systems were shown to have the potential to reduce rear-end collisions by up to 75%.

- Prototypes were developed for clothing that can monitor vital signs, communicate with remote health centres and present data in a variety of formats for further analysis by doctors and researchers.

- New architectures for highly reliable electronic systems were deployed in airplanes’ cabin pressure system, in engine controls in cars, and in control systems of electrical power plants.

- The roll-out of broadband data networks in Europe has been largely enhanced through the introduction of new optical wavelength division technology that increases bandwidth over existing fibre optic backbones.

- Miniaturisation technologies needed for the next generation of ICT products, such as memory cells and light sources for future lithography, were demonstrated.

- New developments in organic electronics has enabled opto-electronic devices such as flexible solar cells, flat display screens and low-cost ‘intelligent’ identification tags to take a step-change towards market introduction.

- CORDIS Technology Market Place receives over 100 results per week from research and technological development and innovation projects. Many of these are edited professionally, and the most relevant are highlighted in a printed publication with a circulation of approximately 35 000.

- Research on Galileo, under the 5th Framework Programme, allowed the definition, the development of the infrastructure and application of a European Satellite Navigation Programme. This Programme is creating an important market share for European industry and is expected to result in at least 100,000 new highly skilled jobs. Galileo will introduce the use of satellite navigation into several key sectors of modern economies and will ensure political and financial benefits for Europe.

Research fund for coal and steel

The Research Fund for Coal and Steel (RFCS) has an annual budget of 60 million Euros and aims to support research and pilot projects relating to the production and use of coal and steel in order to increase the competitiveness of the industry and contribute to sustainable development.

The work programme planned for 2005 was carried out successfully: operational and financial management of current 118 contracts, negotiation of 59 new contracts, evaluation of almost 200 proposals and management of the ESCS in liquidation. Enlargement has also had a major impact on the Fund, including efforts on communication and information in the new Member States. As result of a joint call with the third thematic priority of FP6, the ambitious strategic integrated project on ultra low CO2 steelmaking is progressing well. Involving 47 European partners, its objective is to explore how best to produce steel while reducing CO2 emissions.

The objectives set out for the Research Fund for Coal and Steel were achieved in 2005. A great deal of attention was paid to both improved competitiveness and sustainable development.

The launch of the Programme monitoring exercise in December 2005 is a crucial element which will pave the way for the revision of the RFCS Technical Guidelines to be launched in 2007.

The European Steel Technology Platform was set up to define a long-term vision with the view to ensuring global and sustainable leadership of the European steel Industry for the next 30 years. The strategic research agenda of this platform published in April 2005 bears witness to the fact that the sector is highly involved in this initiative, since it is the fruit of an intensive collaboration work carried out by the support group and its seven working groups involving more than 100 experts from the industry.

Research and training actions under the Euratom Treaty

Fusion

The action plan and the work programmes 'Fusion Technology' and 'Joint European Torus' (JET)[44] of the European Fusion Development Agreement (EFDA)[45] were approved in 2005. The functioning and successful exploitation of the JET installations progressed particularly well. A major meeting was organised (as a follow up to a similar meeting in 2004), to promote the integration of partners from the new Member States Association Contracts were signed for the participation of Poland and Slovenia in this programme and the duration of all 23 contracts was extended until the end of 2006.

Based upon the outcome of an extensive consultation with stakeholders, work started in October on the preparation of the proposals to establish a Joint Undertaking as the 'Domestic Agency' that will manage the European contribution to ITER[46] and the 'Broader Approach' activities and to be established end 2006 or early 2007.

At their Ministerial Meeting held in Moscow on 28 June, the international Parties to the ITER Negotiations eventually agreed in choosing Cadarache (France) as site for realising the international ITER project. Numerous multilateral meetings followed - which resulted also in India acceding to the negotiations - completing the negotiations in view of the signing of the ITER Agreement in early 2007. Developments in parallel to ITER will be needed to accelerate the development of fusion as a commercially viable energy source for the future. The 'Broader Approach' will therefore ensure that other supporting research is carried out. In this context, the conditions for joint activities were negotiated with Japan.

Public information activities were conducted with the aim of communicating progress in fusion research to the general public, in particular by showing the Fusion Expo in a number of the new Member States and by exploiting the interest generated by the decision to build ITER in Europe.

A pilot training scheme was launched, aiming principally at bringing young engineers into the Euratom programme and giving them the skills which will be needed for ITER. If successful, it will continue and will be reinforced in FP7.

The objective of the European Fusion Programme, to co-ordinate fusion technology and physics research and development activities, was achieved.

Fission and radioprotection

Activities in management of radioactive waste, radiation protection and other activities in the field of nuclear technologies and safety: Community-funded research is marked by strong continuity with past actions and an important political dimension. During 2005 a number of major FP6 projects in all fields were subjected to their first annual reviews aided by external experts. This produced useful feedback to researchers and resulted in marked improvements in project follow-up. Following the 2nd fixed deadline call, further key projects were launched on radioactive waste management and innovative reactor concepts (Generation IV systems). Of particular note in the latter case is a major IP on the Very High Temperature Reactor (VHTR). In June, the final FP6 fixed deadline call was published, with a budget of €52M. Evaluations took place in November and December.

The beneficial integrative effect of the work programme is now becoming apparent. The FP acts as a catalyst encouraging enhanced cooperation within the R&D community. The emphasis towards the end of FP6 and start of FP7 will be on the creation of Technology Platforms in geological disposal and 'sustainable nuclear fission', requiring the active engagement of all key R&D stakeholders, including industry. On the international scene, a number of larger FP6 projects already involve partners from 3rd countries, either as a result of umbrella Euratom agreements with the countries concerned (e.g. Euratom – US DOE) or ad hoc bilateral contacts. Routine collaboration is continuing with the NEA and IAEA through participation in standing committees or technical meetings. A number of jointly sponsored and/or organised events either have been undertaken or are planned. Important cooperation within the Generation IV International Forum is assured following agreement in Council at the end of 2005 on Euratom’s accession.

Developments in Member States and application of the Open Method COORDINATION

The Open Method of Coordination in Support of Reaching the Barcelona Objectives

Member States have pursued common objectives in the formulation of their National Reform Programmes (NRPs) thanks to an agreed set of 24 guidelines that cover, in an integrated manner, the macroeconomic, microeconomic and employment dimension. One of these guidelines is specifically devoted to R&D[47] and others also have elements relating to R&D[48]. By reporting on broad R&D policy developments, the part of the NRP’s related to R&D complements the work of CREST on the application of the open method of coordination (OMC) to the 3% objective which focuses on specific policy issues of common interest. The main objectives of OMC 3 % are to (i) contribute to more effective national policies through enhanced mutual learning, peer review and identification of good practice;(ii) identify issues with a strong trans-national dimension, which would benefit from concerted or joint action between MS or mutually reinforcing action at national and EU levels, and; (iii) prepare the ground for concerted action by interested MS and for the Community legislation or guidelines wherever appropriate.

CREST launched the second cycle in January 2005. This second cycle will be completed by summer 2006. Five CREST Expert Groups were established in the areas of policy mix, public research base and links with industry, SMEs, Fiscal Measures and Intellectual Property, with the aim to assist CREST in preparing its recommendations on specific topics.

In the area of policy mixes , a specific peer-review process was developed and applied to three countries (Sweden, Spain and Romania) with the aim to encourage the sharing of information about policy-related issues and to generate both country-specific and generic lessons for the formulation and implementation of effective policy mixes needed to raise R&D intensity. Work was based on a simple analytical framework which described policy mixes as the combination and interaction of the range of policies affecting resources in S&T. Generic lessons for formulating and implementing effective policy mixes included the need:

- To adopt holistic approaches to policy development, using analyses of strengths, weaknesses, opportunities and threats (SWOT) and building on strategic intelligence furnished by comprehensive evaluations and vision-generating initiatives such as foresight exercises.

- To ensure that the high-level commitment to the importance of R&D is effectively communicated to all relevant ministries and agencies, clearly delineating their respective tasks and responsibilities and ensuring adequate coordination.

- To strike the right balance between competitive and non-competitive R&D funding in the science base in order to promote both excellence and stability, between concentrating funds on areas of strategic importance and satisfying the funding needs of a broad spread of researchers, between the respective roles of universities and research institutes within innovation systems, and to ensure that R&D regional policies fully concur to national priorities.

In the area of the reform of public research centres the work entailed the mapping of current policy developments to support knowledge transfer between public research organisations and industry and the development of policy recommendations and implementation guidance on knowledge exchange, organisation of public research organisations (PROs), ventures/spin-offs and incentive schemes for researchers. Peer reviews in Italy, Lithuania, Spain and Sweden as well as 12 country reports led to policy learning and specific recommendations. The main findings are:

- When restructuring of public research centres, demand driven approaches need to be integrated into the planning of research activities as well as into the redefinition of the operational management of the organisations.

- In order to achieve successful knowledge transfer from Universities a change in the organisation cultural attitude and awareness, professional management of knowledge transfer activities, a proper knowledge transfer infrastructure and a system of performance assessment are necessary.

- The additional burden and non self-sustaining character of knowledge transfer activities requires dedicated public funding. This calls for the creation of incentive schemes for researchers to conduct knowledge transfer activities.

In the area of SMEs , the focus was on the needs of research intensive SMEs and high-tech start-ups. The most important issues and recommendations are as follows:

- Market failures in the provision of early stage venture capital makes public measures imperative, but it is proposed to condition financial support to young research intensive SMEs to the acceptance of adequate coaching and learning on a diversity of management skills necessary to implement a successful business model.

- Better linking SMEs to the research infrastructure implies a better segmentation of knowledge transfer strategies and policies according different types of SMEs.

- Technology procurement is considered as an instrument for demand creation that is particularly important for young research-intensive SMEs.

- Further policy learning is necessary to better understand the conditions to promote more innovative high-growth SMEs.

In the area of fiscal measures , the work focused on the evaluation of tax measures for Research and their design which led to the development of a practical guide on evaluation of tax measures. As many Member States have been introducing, extending or improving tax incentives for Research during the last year's mutual learning is a very useful tool. This report will also be an important input to the forthcoming Commission Communication on tax incentives for R&D and on the Community Framework for State aid for Research and Development and Innovation.

In the area of IPR the following two work-streams aiming to promote exploitation of publicly-funded research results were tackled and the work will be concluded in mid-2006:

- Improving the coherence and effectiveness of IPR ownership regimes applicable to publicly funded research, as well as providing common general principles for contractual arrangements governing university-industry R&D collaborations and technology transfer activities.

- Professionalization of technology transfer officers at universities and other PROs.

In the area of Human Resources in research, under the coordination of the Steering Group on Human Resources and Mobility (SG HRM), Member States engaged in a mutual learning exercise concerning mobility of researchers between academia and industry. In January 2005, the SG HRM together with 21 experts looked into 'good practices' for enhancing inter-sector mobility, with a particular focus on strengths/weaknesses and impact of national initiatives. In order to progress further and propose practical recommendations, expert groups were set up in four areas: 1) knowledge and skills development; 2) career appraisal; 3) remaining legal and administrative obstacles to mobility; and 4) structuring initiatives. Each expert group held meetings between June and October, resulting in an inventory of best practices examples and recommendations for possible actions, which was presented to the Steering Group HRM in December 2005.

Trends in Research Policies

Trends in Policy and Governance

A first common policy trend across the Member States concerns the important place of R&D policy in the overall policy agendas. Under the influence of the Lisbon strategy and the Barcelona objective, R&D is considered as key source for sustaining economic growth and welfare. Another important trend is the development of commonly shared R&D Policy objectives, which is consistent with the Integrated Guidelines used by Member States for building their respective National Reform Programs.

A basic structural trend is also the integration of R&D policy with innovation policy , a development that is consistent with the systems-oriented policy approaches applied in many Member States. The situation in the UK where science and technology policy has evolved into an innovation policy wherein S&T concerns are fully integrated into the broader national system of innovation is illustrative of developments in other Member States. Another example is Denmark where a Ministry of Science, Technology and Innovation has been created, which seeks to integrate research and business innovation policies.

The evolution of the research systems is particularly rapid and profound in the new Member States. In most of these countries new legislation is being past, new institutions are being created and new strategic documents are being published. In 2005 alone Hungary, Latvia, Poland and Slovakia passed new legislation on research. Hungary and Poland also passed legislation on higher education and innovation and, in previous years, new legislation on research was also introduced in Lithuania and Slovenia. Comprehensive strategic policy documents such as the Estonian ‘Research and Development Strategy Knowledge-based Estonia 2002-2006’, the Polish ‘The strategy to increase the expenditures on R&D to reach the objectives of the Lisbon Strategy, 2004’ and the National Innovation Policy 2005-2010 in the Czech Republic were also adopted.

In order to improve development and management of research and innovation policies governance structures have been strengthened or introduced in a number of Member States (e.g. Austria, Germany), inspired by the successful example of the Finnish Science and Technology Policy Council. R&D and Innovation Councils, often attached to Prime Ministers' offices, involving social partners and relevant ministries advise the government on a strategic level on a wide spectrum of policy fields. This trend is particularly strong in the new Member States. In Lithuania a single governmental commission for Science, Technology and Innovation has been created. Poland introduced a Council for Science and Technology Development by law in January 2005 in order to develop national innovation and science related policies in a coherent manner.

As these newly developed structures do not limit themselves to R&D policy in narrow sense, the design of the ‘right’ policy mixes and the setting of the ‘right’ priorities becomes the central element. Beyond integration and coordination of R&D and innovation policies, there is an increasing recognition - increased by multilateral policy learning in the context of the Open Method of Coordination - that such areas as competition policy, public procurement or regulatory policies with respect to the environment or health and safety, ought to take R&D issues into account.

Trends in the development of the supply of HR for research.

Overall positive trends characterise the supply of researchers' population in Europe. Between 1994 and 2003, the total number of researchers has increased on average by 3.5% per year[49]. The analysis of available evidence provides a broad picture of the stocks for the EU25 and, in particular, it shows that:

- There is a regular growth in the number of researchers in the EU;

- The growth in the number of researchers is more robust in the private sector than in the public sector;

- For the latter, growth in universities is higher than in government research centres;

- Growth in the number of researchers in industry is driven by the service sectors; and

- Growth in the number of researchers in the EU is driven by 'small' countries (not the big four).

With regards to the supply of new researchers, reference can also be made to the number of doctoral candidates in the EU, which grew steadily in recent years and represent a substantial part of the researchers in academic laboratories. The number of doctoral candidates is estimated at 540,000 in 2003, up from 470,000 in 1998. The number of doctorates awarded also increased from a total number of degrees of 75,000 in 1998 to 86,000 awarded in 2003. The growth varies across countries with in particular flat numbers in Germany and Finland and a decline in France. For Science and Engineering, the number of new doctorate graduates was 36,000 in 2003, up from 33,000 in 1998. The number of science and of engineering graduates has also increased in recent years.

Yet, this rather good picture of the global supply of potential researchers does not imply that no further political action is required. First there is the issue of adequate distribution within countries and across scientific sub-fields. Second, and more importantly, there are increasing job opportunities and demands for highly skilled people outside the research system. Therefore, there is a requirement to make scientific careers attractive enough for young people with high potential. A scanning of policy measures reveals a clustering of initiatives around four broad topics:

- Specific policies in favour of young researchers;

- Attracting foreign and expatriate researchers;

- Improvement of the qualification of researchers through training; and

- Overall excellence of human resources for research.

A common objective of these policies is to improve the attractiveness of research careers in the public and private sectors through more competitive salaries, dynamic promotion strategies, flexible work conditions, etc. The more research intensive Member States like the Nordic countries, DE, AT and FR focus increasingly on improving the excellence of their human resources, whereas the ‘catching-up’ Member States like ES, GR and PT focus more on policies in support of young researchers. Many of these measures are recent and there is limited evidence about their impact.

Trends in the research function of Universities

Universities and their role in the creation of the knowledge society gained recently political importance in Member States. Evidence is mounting that European universities are lagging behind their counterparts in other regions of the world in the most strategic areas: training the next generation of young researchers, reaching excellence in research activities or sharing efficiently new knowledge with society, and industry in particular. One of the main reasons for this is that they are under funded and that the resources at their disposal are not growing on a par with what is expected from them. In addition, the European landscape for higher education and research (HE&R) is still too fragmented. Recent analysis revealed that three concrete elements are at the core of the discussion, namely the quality more than the volume of the university-based research, a new role for higher-education institutions in the sharing of new knowledge and the compromises they have to make between their different missions (research, education and contribution to economic development).

A comparison of the available information from shows a rather balanced picture between the EU and the US as regards the total expenditure of the higher education sector for research (HERD), which is roughly the same in these two parts of the world. Nevertheless, not only HERD represents a higher share of total research expenditure in the EU than in the USA, but the number of university researchers and the volume of scientific publications (as research output measure) are higher in the EU. There are also more institutions of higher education awarding doctorate degrees (the best available proxy of research activities) in the EU.

In recent years, a number of Member States have enacted new policies aiming to strengthen the performances of universities, in particular for what concerns research activities. Yet, although the objective is the same, several approaches are used that pertain to the specificity of the national HE&R systems. The mapping of recent initiatives reveals a clustering around the following main objectives:

- Reinforcement of academic research;

- Autonomy, funding and reform of the HE&R system;

- Excellence in collaboration networking and creation of elite universities; and

- Strengthening of the third mission, i.e. the role of universities in innovation (technology transfer and in as promoters of the knowledge in society).

These new policies can be interpreted more generally as a shift towards a quest for more specialised and excellent universities with an increased competition-based funding but their impact remain to be seen. Indeed, recent surveys of more than one hundred doctorate awarding institutions in ten Member States (the CHINC project supported by JRC-IPTS and the AQUAMETH project supported by the PRIME network of Excellence of FP6) revealed that many of those with a low focus on research a decade ago (as shown by the small ratio between the number of doctorate awarded in a given year and the total number of students enrolled) have increased their relative performance in doctorate production. This could mean that recently there has been a tendency towards a more distributed, rather than concentrated, picture for university-based research.

The proposal to create a European Institute of Technology (EIT) was put forward by the Commission in its 2005 Spring Report as an important initiative in the direction of strengthening the links between education, research and innovation. The European Council took note of this proposal at the 2005 Spring Summit. The Commission organised a comprehensive consultation process about a future EIT, including a public consultation, brainstorming meetings and position papers from university, research and innovation organisations. Consultation results have been analysed and actively used to prepare the COM(2006)77, 'Implementing the renewed partnership for growth and jobs. Developing a knowledge flagship: The European Institute of Technology' and the subsequent COM(2006)276, 'The European Institute of Technology: further steps towards its creation'.

More broadly, the Commission had also been promoting a reflection on what is needed to ensure that universities can maximise their contribution to Europe’s Lisbon objectives as key players in the fields of education, research and innovation. The Commission outlined its reflections in a Communication of April 2005 “Mobilising the brainpower of Europe: enabling universities to make their full contribution to the Lisbon Strategy”, COM(2005) 152. The reflection was given added impetus at the Informal summit of heads and State at Hampton Court and Government in October 2005. Following an extensive dialogue with Member States and stakeholders, the Commission outlined its ideas to address deficits in the governance, funding as well as fragmentation of higher education in COM(2006) 208, “Delivering on the modernisation agenda for universities: education, research and innovation” of May 2006.

Trends in public and private research investments

Progress towards the 3% objective

After a period of slow but continued growth between 1997 and 2001, the EU-25 R&D intensity has been stagnating in 2001-2002 at 1.92% of GDP and slightly decreasing after that (in 2004, the EU-25 R&D intensity amounted to 1.90%) (Figure1). This is mainly due to the trends in the four biggest R&D spenders Germany, France, the UK and Italy, which represent more than two-thirds of the total EU-25 R&D expenditure. As in the US the downward trend of the 2000-2002 periods seems to have come to an end, but the deficit in R&D intensity of the EU versus the US is increasing again since 2002. R&D intensity in Japan grows faster than in both the EU and the US, although this seemingly good performance can be partially explained by the low growth rate of Japan’s GDP (denominator) over recent years. According to the current trends, China will have caught up with the EU-25 by 2009 in terms of share of GDP devoted to R&D.

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An examination of the individual Member States’ pace of progress after 2002 reveals a distinction between four groups of EU countries. A first group including Finland, Denmark, Austria and Germany are pulling further ahead of the EU average. Especially Austria has been able to progress very substantially over the recent years. France, Belgium and Sweden, which were part of this first group until 2002, experienced a weakening of their growth performance and are now losing momentum. The trend reversal is particularly significant in the case of Sweden, where the annual R&D intensity growth dropped from + 4.9% (1997-2001) to - 4.5% (2001-2004), with - 6,4% in the period 2003-2004 (Figure 1).Italy, Portugal, and Greece, Hungary and Slovakia, and to a lesser extent the Portugal, Italy, Slovenia and the UK, are falling further behind since 2002. Conversely, most of the other new Member States, in particular Cyprus, Estonia and Lithuania, as well as Ireland, Spain, and to a lesser extent The Netherlands and Luxembourg, have been catching up with the EU average over the recent years.

As a consequence of increased commitments to the renewed Lisbon strategy and the 3% goal, all 25 Member States have set their own targets for their R&D intensity for 2010 or other years. If the Member States reach their objectives, the overall EU-25 R&D intensity will have progressed substantially up to about 2.6% in 2010. By comparing for each Member States and for the EU-25 as a whole the annual rate of growth required meeting the target with the rate of growth experienced over the recent years (1997-2004) allows for assessing the ambition of the targets. The countries close to or below the bisector (such as Denmark, Finland, Sweden, Germany, Austria) have experienced a rate of growth which, if it is maintained, would be sufficient to reach their targets. For countries such as Belgium or France, and for the EU-25 as a whole, the targets will be reached only if there is a substantial acceleration of the growth of R&D expenditure. For countries such as Poland, Slovakia, Malta, Latvia or Greece, the targets are very ambitious.

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Trends in public funding

Although domestic R&D efforts are largely financed by the business enterprise sector in Europe, the US and Japan, the role of government in the financing of R&D should not be under-estimated. The level of government-funded R&D intensity is substantial in many high R&D intensive countries (e.g. Nordic countries, Germany, France, Austria and the US), showing that private investment can be stimulated by well-designed public programmes. Moreover, in low R&D intensive countries, government-funded R&D is higher than business-funded R&D. Government funding of R&D is critical for creating and developing S&T capabilities, a prerequisite for catching-up with countries at the technology frontier, or for supporting research projects with high expected social benefits.

Government funding of R&D has been very stable in the EU-25 since the end of the 1990s at around 0.65% of GDP (last year available: 2003). It is important to note that indirect measures such as fiscal incentives to R&D, which are increasingly used by governments to stimulate R&D, are not included in these figures. As regards possible future trends, budget forecasts seem to indicate that all Member States plan to at least maintain a similar growth of their public R&D budgets in 2004-2008 as before 2004[50]. Some countries (such as CZ, LT, PL and SK) even intend to substantially increase them. If these forecasted figures are confirmed, they may result in an increased intensity of public R&D investment (government-funded R&D as % of GDP).

Trends in private R&D

- Trends at EU-25 level

In recent years, business-funded R&D as % of GPD has been stable at around 1% in the EU. Behind this apparent stagnation, however, sharp fluctuations in volumes of private investment were observed. Until 2000, the business funding of R&D grew at a very high rate which even outpaced the GDP growth. This trend continued in 2001, even though growth weakened on both fronts. After 2001, the economic slowdown translated into a sharp reduction of the growth of business funded R&D: in 2002-2003, this growth was close to zero and well below the rate of GDP growth.

A similar pattern was observed in the US, albeit with two noticeable differences. Firstly, growth of privately financed R&D was much more pro-cyclical in the US: its growth rates were twice to three times higher than overall GDP growth until 2000, dropped more sharply than in the EU in 2001-2002 - leading to an absolute decrease in private investment- and experienced subsequently in the US a stronger recovery from 2003 on. Secondly, there seems to be one year time-lag between the EU and the US. The big fall of private investment growth occurred in 2001-2002 in the US whilst it took place mainly in 2002-2003 in the EU. Conversely, the recovery of both the economic growth and the business-funded R&D has already begun in 2003 in the US, but not yet in the EU.

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Whether the private investment in R&D in the EU has followed the economic recovery like in the US cannot yet be said because of data unavailability. The latest (2005) edition of the annual ‘EU Industrial R&D Investment Scoreboard’[51] and its ‘Industrial R&D Survey’[52], however, provides insights on more recent and prospective trends. The Scoreboard analyses the R&D investment of the top 700 R&D-investing EU companies (i.e. whose ultimate parent is located in the EU) and the top 700 R&D-investing non-EU companies for financial year 2004, while the Survey gets some measure of future trends as expected by 95 out of these big European R&D players. Although the figures are not comparable with the official statistics on private funding of R&D (Scoreboard and Survey reflect the ‘global’ R&D effort by the company without geographic allocation while official statistics monitor territorial R&D activity), they complement and prolong the analysis.

For instance, a positive signal from the ‘2005 Scoreboard’ is the turnaround in the R&D investment growth rate by EU companies from an annual decline of 2% in 2002-2003 to an increase of 0.7% in 2003-2004. Moreover, the Survey respondents expect a recovery for R&D investment growth in 2004-2006 compared to previous years, citing average growth rates of about 6% p.a. Companies in high R&D intensive sectors expect bigger growth rates for R&D investment than those in the other sectors. The expectation is positive for 16 of the 22 sectors covered, and the strongest factor affecting companies’ intention to increase R&D investment is the expected increase in market demand for new products and services.

However, most of the 2004 Scoreboard’s worrying findings are confirmed. Firstly, the growth of R&D investment by EU companies, albeit increasing, remains well below that of the non-EU companies, which results in a widening gap in aggregate R&D investment. Moreover, the slight positive upturn of R&D investment by EU companies may not translate into an increase in business-funded R&D within the EU, since part of the investment is allocated abroad. Secondly, EU companies still demonstrate a weaker presence in sectors of high R&D intensity. Finally, EU companies account for a relatively lower proportion of R&D investment and lower R&D growth rates in sectors with the highest annual R&D growth rates world-wide (mostly in services such as software and computer services, but also pharmaceuticals and biotechnology).

- Trends at Member States level

The aggregate situation at EU-25 level hides very different individual Members States situations. Over the period 1997-2003 some Members States did experience significant growth of their business-funded R&D intensity. Obviously, the very high growth rates of Cyprus, Estonia, Latvia, Portugal and Greece have to put into perspective with their extremely low starting points as these are countries in the 'catching-up' phase. But there are some countries which have a business-funded R&D intensity above EU-average and yet achieve to 'pull further ahead': these are Denmark, Finland and to a lesser degree Germany. Exploring the reasons of these successes on the road towards the Barcelona targets, it is pertinent to look to the contributions of the various sectors of the economy to the growth of the business R&D intensity of these countries.

For Finland and Germany, there has been in each case one manufacturing sector which since the beginning of the nineties has been responsible for the quasi totality of the manufacturing contribution to the growth of the business R&D intensity: in Finland, this is the communication equipments sector and in Germany, the motor vehicles sector. In Finland, there has been also a significant contribution from the services sector (mainly ICT services). For Denmark, the bulk of the manufacturing contribution to the growth of the business R&D intensity has been provided by the pharmaceutical sector. As for Finland, the contribution from the services sector has also been also very important which reflects principally the development of the ICT services sector, but also the one of biotech companies working mainly for the pharmaceutical sector. Sweden is the EU Member State with the highest business R&D intensity and it experienced, before the more recent slowing down, a very strong increase of this intensity in the nineties. As shown also, its success was due to increases of the contributions from three manufacturing sectors: communication equipments, pharmaceuticals and motor vehicles.

These examples highlight the importance of some kind of specialisation of the national/regional innovation systems and economies around R&D intensive sectors and companies.

INTERNATIONAL COOPERATION AGREEMENTS

The international dimension of the Union’s research has grown significantly under the Sixth Framework Programme, in the frame of the European Research Area. In the report period the emphasis laid on enhancing the existing instruments and established partnerships, based on equitable access to knowledge and know-how and sharing of the risks and benefits of joint high level research. The preparation and conclusion of S&T association and bilateral co-operation agreements with third countries continued:

In the area of Association S&T agreements the Commission signed in November 2005 a Memorandum of Understanding with Croatia based on the General Agreement on 'Association of candidate countries to Community programmes' which fully associates Croatia to FP6. Furthermore, in July 2005 the Commission adopted a proposal on the conclusion of an S&T association agreement with Switzerland for FP6 which the European Parliament endorsed in a report of November of that year. Furthermore the Commission had first talks with Israel and Switzerland to prepare the negotiations for the conclusion of S&T association agreements for FP7 between the EC and these countries.

The Community concluded bilateral S&T co-operation agreements with Brazil and Mexico in 2004. Similar agreements were concluded with Argentina in 2004 Chile en 2002. Specific Support Actions are under way with these four Latin American countries (Chile, Argentina, Mexico, and Brazil) aiming at reinforcing the scientific dialogue and cooperation the Community has with them, e.g. through enhanced participation in the EC's Research Framework Programme.

In June 2005 the EC also signed an S&T agreement with Egypt. Another agreement is under negotiation with Korea, along the lines of the mandate given on 7 March 2006 by the European Council to the Commission. A draft was initialled on 21 December 2005 and subsequent procedures to lead to the signature are on-going.

In the Conference 'The international dimension of the Europe of knowledge – A common interest to Europe and the world' in October 2005 Commissioner Potočnik and international participants discussed the challenges of a Europe of knowledge open to the world and recommended the elaboration of a comprehensive international S&T strategy for Europe providing additional impetus for the EU to be a key partner in the global arena of research cooperation.

CONSULTATION AND MONITORING PROCEDURES

Scientific and Technical Research Committee (CREST)

Within the framework of CREST’s mandate to promote the co-ordination of Member States RTD activities in order to ensure mutual consistency between national policies and Community policy and, in particular, the invitation by the Competitiveness Council (Council Resolution of 22 September 2003. 'Investing in Research in Europe') to CREST to act as the operational interface between Member States when applying the open method of co-ordination (OMC) to policies supporting the Barcelona 3% objective, the work of the Committee during 2005 concentrated mainly on: (i) the second cycle of the OMC, i.e. the opening and co-ordination of national programmes and the implementation of the OMC within the context of the Barcelona objective; and (ii) national basic research schemes.

Within the context of the second cycle of OMC, in 2005 CREST, supported by five expert groups, gathered information and held discussions on various policy areas where the competence lies primarily at the Member State level (for further details, see the part of the Annual report dealing on OMC).

Regarding national basic research schemes, delegations continued the exercise of presenting their national policies to each other. On the basis of the 17 presentations made (i.e. NL and ES on 16/7; UK, NO, DK and DE on 1/10; AT, FIN and LV on 22/10; EE an IL on 10/12; PL, PT and CH on 20/01; SE and RO on 18/03 and LI on 23/05), complemented with data from all the other CREST members who did not make presentations, a report entitled 'The funding of basic research through dedicated funding agencies in the European Research Area - a comparative analysis for CREST' was prepared.

Finally, CREST was regularly kept informed by the Commission at every meeting on all its initiatives

The national RTD policies of LUX and UK were also presented on the occasion of the Committee’s meetings held respectively, in Mondorff-les-Bains and Manchester.

Programme Committees

The three programme committees of the EC and Euratom Specific programmes for the Sixth framework programme were actively involved in the implementation of FP6 in 2005.

The programme committee for the Specific programme ‘Integrating and strengthening the European research area’ (SP1) met in eight different configurations, seven thematic and one horizontal, and the Specific programme ‘Structuring the European Research Area’ in five configurations, four specific and one horizontal. The configurations relate to the different priorities and areas of FP6, but belong to the same committee (SP1 or SP2 respectively) and coordination efforts have therefore continued to make sure that they work in the same way.

The two EC Committees held in total almost 50 meetings in 2005. They were asked for over 200 opinions by the Commission, most of them on draft decisions on the selection of proposals and but also on changes to the work programmes. All opinions given were favourable. The Commission also consulted the committees informally for exchanges of views and for information on various issues.

The two consultative committees under the Specific programme under the Euratom treaty had in total seven meetings in 2005. The Fission committee met twice and the Fusion committee met five times.

The Standing Committee on Agricultural Research (SCAR), which was transferred from DG AGRI to DG RTD in 2004, met three times in 2005.

External Advisory Groups

The twelve advisory groups (AGs) created to cover the research activities and areas of FP6, (namely: Genomics and biotechnology for health; Information society; Nanotechnologies and nanosciences, Knowledge-based multifunctional materials and new production processes and devices’ technologies; Aeronautics; Space; Food quality and safety; Sustainable energy systems and nuclear energy; Sustainable surface transport; Global change and ecosystems; Social sciences and humanities in the European Research Area; Human resources; Science and Society) continued in 2005 to give the Commission advice on the overall strategy to be followed in the development in the various research activities, and in particular on the review of the various work-programmes.

In addition, some AGs produced reports on their activities which were put on-line and therefore made accessible to all at the following address: http://cordis.europa.eu/

European Research Advisory Board (EURAB)

The European Research Advisory Board (EURAB) is a high level, independent, advisory committee set up by the Commission in September 2001 and consisting of 45 top experts from academia and industry to provide advice on the design and implementation of Community research policy 20. EURAB has focused its attention on the impact of policy instruments, such as the Framework Programmes, delivering advice and opinions on specific issues either at the request of the Commission or on its own initiative.

In July 2004 EURAB completed its first cycle of operation (three years) and half of its members were changed. EURAB has greatly contributed to raising the profile of European research policy. From March 2004 to December 2005 EURAB, produced a number of new recommendations. The recommendations concerned the design of the new Framework Programme (FP7), the Financial Perspectives, the criteria for selection of research themes, the assessment of the FP6 instruments with a forward look to FP7, the increase in the industrial participation in FP7, on International Cooperation, on the integration of Social Sciences and Humanities in FP7, on the regional, potential of research and innovation and the role and importance of Research and Technology Organisations (RTOs) in the European RTD scene.

Furthermore, EURAB continues its work on the establishment of a European Institute of Technology (EIT). It produced its advice on EIT in June 2006 for the summer European Council.

More information on EURAB, the EURAB recommendations and a brief presentation of its 45 members can be found at http://ec.europa.eu/research/eurab/index\_en.html

Monitoring and evaluation

At Framework Programme level, the Commission responded to the Five-Year Assessment of Community Research Activities carried out by a Panel of thirteen high level experts under the chair of Dr E. Ormala (Report in December 2004). A communication was adopted in August 2005 and a Commission Staff Working Paper provided more detailed analysis and comments for each specific recommendation[53]. The Commission broadly agreed with the recommendations put forward by the Panel. Also the Commission noted the positive assessment of the implementation, results and added value of the Framework Programmes, notably in terms of contribution to the European knowledge base, networking among researchers and structuring of the research system in Europe.

A Panel of independent experts reported in 2005 on 2004 Monitoring exercise on framework programme implementation singled out attention for what it believed was the astounding record of achievement of the framework programme. It linked this with the increasingly routine practice of collaboration between enterprises, universities and research institutions from all Member States for the creation of new scientific and technological knowledge for the good of society. The Panel reported that the fundamental concepts of the framework programme have been highly successful through the continuous enabling of RTD ‘hotbeds’ on a European scale but also as role models for Member States’ RTD programmes. Although the Panel noted that the new instruments of FP6 had caused, and were still causing, stress to some of the actors involved, the Panel nonetheless felt that this was a good sign and indicative of the positive effects of FP6 on learning and innovation. In addition, the Panel focused its attention on some key issues: new initiatives, both in FP6 and being proposed for FP7; the implementation process; the participation of actors and the evaluation process.

Among the Panel’s recommendations were the need to promote learning processes for new initiatives and instruments, to define clear ‘rules of the game’ for recognising Technology Platforms; to expand the means in FP7 for institutional cooperation between Member States within ERA-NETs; to increase remote assessment of research proposals; to carry out further review of the implementation of Networks of Excellence; to create a tighter link between planning of the framework programme and IT tools; and to develop further the proposals for evaluation under FP7 including a new ex post evaluation exercise at framework programme level. The Panel’s report and the Commission responses to this have recently been published.

The 5-year assessment of Information Society Research and Technology Development [54] has concluded that EU investment has contributed positively to progress in this area. The Evaluation Panel, chaired by Professor Gago, concluded that EU investment should continue at a level that can assure continued leadership and a 'critical mass' of effort in key areas. The Panel also recommended reinforced collaboration across borders and between industry, governments and academia[55].

The evaluation of research and technology development has been complemented by two major studies; firstly to develop a coherent understanding of the 'causal links' between IST-RTD and the higher-level objectives of the FP[56]; and secondly, to map the networks of collaboration in information society research and innovation; to assess how these have evolved and fit in with global collaboration networks[57].

Statistical tables on the implementation of the 6 TH FRAMEWORK PROGRAMME

The statistical annex which accompanies this working document provides data on proposals received in 2005, on proposals retained for funding that were submitted in 2005, and on contracts signed in 2005 under the 6th Framework Programme. The format of the tables is the same as for the previous Annual Report and reflects the structure of the 6th Framework Programme.

Explanatory notes

The following notes apply to the tables:

- In the group ‘Candidate and Associated Countries’, Bulgaria, Romania and Turkey are both candidate and associated countries. Croatia became associated to FP6 for the year 2006 only and this is not reflected yet in these tables. FYROM (Former Yugoslav Republic of Macedonia) became a candidate country in December 2005 (it will appear under the heading 'candidate countries' in the 2006 statistical tables of the next annual report) and is not yet associated to FP6. Iceland, Liechtenstein and Norway are associated countries in the framework of the European Economic Area, and Switzerland and Israel are associated countries in the framework of an association agreement.

- It is not possible to calculate countries’ ‘success rates’ from the number of proposals received and/or selected and those that result in contracts signed, since a proposal selected in year n might not result in a signed contract until year n+1 .

- The figures related to EC financial contributions refer to commitments and not payments.

- A collaborative link is assumed to exist between each pair of participants in each contract. The number of collaborative links created by a project is calculated in the following way:

- When there are n participants from a given country in a project, the number of collaborative links between participants from the given country formed as a result of the project is assumed to be n\*(n-1)/2 .

- When there are m participants from one country and p from another country in a project, the number of collaborative links created between the two countries as a result of the project is assumed to be m\*p .

The total number of collaborative links is calculated by summing across all projects.

List of tables in the statistical annex

Table 1a: FP6 Proposals submitted in 2005: Participation by Priority Area and Instrument

Table 1b : FP6 Proposals submitted in 2005: Participation by Priority Area and Country

Table 2a : FP6 Proposals retained for funding that were submitted in 2005: Participation by Priority Area and Instrument

Table 2b : FP6 Proposals retained for funding that were submitted in 2005: Participation by Priority Area and Country

Table 3a : FP6 Contracts signed in 2005: Participation and Contribution by Priority Area and Instrument

Table 3b: FP6 Contracts signed in 2005: Participation and Contribution by Priority Area and Type of Beneficiary

Table 3c: FP6 Contracts signed in 2005: Participation and Contribution by Priority Area and Country

Table 3d : FP6 Contracts signed in 2005: Participation and Contribution by Instrument and Country

Table 3e: FP6 Contracts signed in 2005: Participation and Contribution by Type of Beneficiary and Country

Table 4: Collaborative Links within contracts signed in 2005

[1] COM(2005)488, SEC(2005)1253 and SEC(2005)1289 of 12.10.2005

[2] Adopted in April 2003

[3] A partial general approach is a way of fixing Council discussions on non-budgetary elements which are linked to the pending negotiation on the financial perspective for the period 2007-2013. It leaves open the possibility of adjusting agreed parts of a proposal should that be necessary following agreement on budgetary amounts.' Competitiveness Council conclusions (11.10.05)

[4] Dr. Bordignon (IT), Prof. Castells (ES), Prof. Dr. Crutzen (NL), Prof. Dewatripont (BE), Dr. Esteve (FR), Prof. Exner (CZ), Prof. Dr. Freund (DE), Prof. Hall (UK), Prof. Dr. Heldin (SE), Prof. Dr. Kafatos (EL), Prof. Dr. Kleiber (PL), Prof. Kroo (HU), Prof. V.T. Lago (PT), Dr. Marín Parra (ES), Prof. May (UK), Prof. Nowotny (AT), Prof. Nusslein-Volhard (DE); Dr. Peltonen-Palotie (FI), Prof. Peyraube (FR), Dr. Rostrup-Nielsen (DK), Prof. Settis (IT) and Prof. Dr.med. Zinkernagel (CH)

[5] The report 'Frontier Research: the European Challenge' published by the High-Level Expert Group set up in 2004, analyses the benefits that are likely to accrue to the establishment of the ERC and the ways in which these benefits may be maximised.

[6] http://ec.europa.eu./comm/research/future/basic\_research/index\_en.html

[7] Process for identification in the Commission's 'Report on European Technology Platforms and Joint Technology Initiatives: fostering Public-Private Rand D Partnerships to Boost Europe's Industrial Competitiveness', SEC(2005) 800

[8] Budget grants within the thematic priorities

[9] Brussels, 6-7 October 2005, upon the initiatives of leading French and other European research organisations

[10] Communication from the Commission: 'Cohesion Policy in support of Growth and Jobs: community Strategic Guidelines, 2007-2013 (SEC/2005/904) – COM(2005)299

[11] Brussels, 9-11 March 2005

[12] A high-level, independent, advisory committee created by the Commission to provide advice on the design and implementation of EU research policy. EURAB is made up of 45 top experts from EU countries and beyond. Its members are nominated in a personal capacity and come from a wide range of academic and industrial backgrounds, as well as representing other societal interests.

[13] Sustainable partnership (pilot programme) between the EU and developing countries set up on basis of Article 169 of the Treaty. Switzerland associated end 2005, thus becoming the16th participating country.

[14] An international alliance of independent organizations dedicated to accelerating the development of an HIV/AIDS vaccine through collaborative research efforts in pursuit of a common scientific agenda, by building consensus in the HIV vaccine field on scientific priorities, mobilizing new resources to implement these priorities, and facilitating the rapid sharing of information that can advance the field as a whole.

[15] G8 initiative, aimed at promoting, through international cooperation, basic research on biological functions.

[16] HIRO is an informal forum encompassing the major funders of biomedical scientific research across the globe, including the US, China, Australia, Japan and Canada.

[17] Communication from the Commission to the Council and the European Parliament : 'European Space Policy - Preliminary Elements '{SEC/2005/664} – COM(2005)208

[18] Communication de la Commission au Conseil et au Parlement européen : « La surveillance mondiale pour l’environnement et la sécurité (GMES): du concept à la réalité » {SEC/2005/1432} – COM(2005)565

[19] European Food Safety Authority, Food and Agriculture Organization of the United Nations, World Health organization and World organisation for animal health

[20] A disease of animals that can be transmitted to humans

[21] Initiated by the Confederation of the food and drink industries of the EU (CIAA)

[22] 'A European vision for the oceans and seas'

[23] The New European Maritime Policy conference attempts to articulate the views of the representative European maritime organisations as a contribution to the consultation process of the European Commission for its Green Paper on maritime policy.

[24] MARBEF, ALTER-NET and EDIT

[25] Through the Earth System Science Partnership (ESSP), a joint initiative of four global change programmes: DIVERSITAS (an integrated programme of biodiversity science), IGBP (International Geosphere-Biosphere Programme), IHDP (International Human Dimensions Programme on Global Environmental Change) and WCRP (World Climate Research Programme)

[26] http://ec.europa.eu/research/fp6/ssp/index\_en.htm

[27] http://ec.europa.eu/sinapse

[28] The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro.’ ( Extract of Article 2 of the Annex of Recommendation 2003/361/EC)

[29] Founded in 1971, COST is an intergovernmental framework for European Cooperation in the field of Scientific and Technical Research , allowing the co-ordination of nationally funded research on a European level. COST Actions cover basic and pre-competitive research as well as activities of public utility.

[30] Created as an intergovernmental Initiative in 1985, EUREKA aims to enhance European competitiveness through its support to businesses, research centres and universities who carry out pan-European projects to develop innovative products, processes and services.

[31] European Science Foundation’s, scheme promoting the coordination of national funding to support trans-national research projects.

[32] ERA-MORE is a European network of researchers' mobility centres

[33] e.g. jobs.ac.uk, EIROforum, SINAPSE

[34] http://ec.europa.eu./eracareers/pdf/am509774CEE\_EN\_E4.pdf

[35] In Denmark, Finland, Italy and Poland.

[36] During the Science and Society Forum in Brussels (9 March 2005)

[37] Staff Working Document 'Women and Science: Excellence and Innovation - Gender Equality in Science' (COM(370) 2005, March 11, 2005)

[38] http://europa.esn.be/comm/research/science-society/page\_en.cfm?id=3177

[39] http://ec.europa.eu/comm/research/index\_en.cfm

[40] EUR 22254 EN, ISBN-10 92-79-01568-0, ISSN 0376-5482

[41] Efficient and environmentally friendly aircraft engine

[42] Policy and innovation in low-tech.

[43] An international comparative research project studying the attitudes of the population to demographic change and population-relevant policies.

[44] The world's largest nuclear fusion research facility

[45] A framework contract between Euratom and its partners in the field of fusion energy research

[46] ITER aims at reproducing the physical reaction - fusion - that occurs in the sun and stars at a scale and in conditions that will demonstrate the scientific and technological feasibility of fusion as an energy source.

[47] IGL7

[48] Such as IGLs 8 and 10

[49] Reference Eurostat, national statistical offices

[50] The information provided here refers to budget forecasts of the so-called ‘Government Budget Outlays or Appropriations on R&D’ (GBOARD). It covers bud[51]8BMQRSqrst™©ªÆ | & \* + 5 > ? @ A S T k l m n Š ‹ ùõñæßÛñ×ßæßæßæñÏÊñßÆñ¾¶®¾ßõ§œ•œ‚tktget provisions rather than money actually spent.

[52] European Commission – DG-JRC and DG-RTD – 'The 2005 EU industrial R&D investment Scoreboard' – EU 21 851 EN.

[53] European Commission – DG-JRC and DG-RTD – 'The Survey on Business Trends in R&D investment' - EUR 22162 EN.

[54] COM (2005) 387 and SEC (2005) 1054 of 24.8.2005; documents available at http://ec.europa.eu/research/reports/2004/fya\_en.html

[55] IST-RTD 5-Year Assessment 1999-2003 (GAGO report) available at: http://ec.europa.eu/dgs/information\_society/evaluation/rtd/5\_year\_assessment/index\_en.htm

[56] IST-RTD 5-Year Assessment 1999-2003 (GAGO report) available at: http://ec.europa.eu/dgs/information\_society/evaluation/rtd/5\_year\_assessment/index\_en.htm

[57] Technopolis report available at: http://ec.europa.eu/dgs/information\_society/evaluation/studies/s2004\_03/index\_en.htm

[58] CESPRI report available at: http://ec.europa.eu/dgs/information\_society/evaluation/studies/s2004\_02/index\_en.htm

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