CELEX: 51988PC0385R(01)
Language: en
Date: 1988-08-23
Title: Proposal for a COUNCIL DECISION adopting a specific research and technological development programme of the European Economic Community in the fields of industrial manufacturing technologies and advanced materials applications (BRITE/EURAM) (1989-1992) (presented by the Commission)

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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(88) 385 final - SYN 142 /2
CORRIGENDUM
                                                   Brussels , 23 August 1988
CE DOCUMENT ANNULE ET REMPLACE
LE DOCUMENT C0MC88) 385 final - SYN 142
Ne concerne que les versions F , D et E
                                   Proposai for a
                                  COUNCIL DECISION
  adopting a specific research and technological development programme of
             the European Economic Community in the fields of
                 industrial manufacturing technologies and
                       advanced materials applications
                            (B RITE / EURAM) ( 1989-1992 )
                         ( presented by the Commission )
                             «
                      SI   U
 ---pagebreak---                                        V.    SUMMARY
  This DRITE / EURAM programme integrates the actions foreseen in line 3.1 and 3.2
  of the Framework Programme for Community activities in the field of research
  and technological development ( 1987-1991 ) covering manufacturing technologies
  and advanced materials , building on the achievements already emerging in the
  first BRITE and EURAM programmes .
  The principal objective of       this programme is to enhance the competitive
  position of the Community 's    materials and manufacturing industries in world
  markets through the support      of a programme of research and development to
  provide the industrial and        materials technology required for innovative
. products and process development .
  The   programme    will  contribute     to   the   competitiveness by   stimulating
  cooperation in industrial oriented research at the precompetitive stage across
  frontiers , between different industry sectors and between industry, research
  institutes and universities and will also contribute to establishing the
  Common Market in 1992 .       Special considerations will be given to projects
  involving SMEs , in order to ensure their adequate participation in the
  programme .
  The programme covers the following fields :
  - advanced materials technologies ;
  - design methodology and assurance of products and processes ;
  - application of manufacturing technologies ;
  - technologies for manufacturing processes .
  Industrial applied research : the programme will be implemented essentially by
  cost shared contracts .      Projects must include at least 10 man years of
  activity and the total project cost should fall in the range 1-3 Mio ECU .
  The Community contribution will not exceed 50 % of total cost , the remainder
  to be provided by industry .
  Up to 7 % of the total programme budget will be made available for focussed
  fundamental research in areas of materials development .           Projects should
  include at least 10 man years of activity and fall in the range of 0,4 to
  1 Mio ECU .
  The Commission is also introducing a pilot scheme of Feasibility Awards aimed
  at assisting SMEs establish the feasibility of a device , process or concept as
  a means of enhancing their stature in finding a partner . The Commission would
  support up to 75 % of the cost of research up to 25.000 ECU lasting up to six
  months .
  A small proportion of the total programme budget will be spent on coordinated
  activities .
  In addition , demonstration projects will be supported . Their modalities will
  be determinated as projects within the first BRITE and EURAM programmes- near
  completion .
 ---pagebreak---                                      INDEX
SUMMARY                                                       1
INTRODUCTION                                                  3
OBJECTIVES                                                    3
PROGRAMME JUSTIFICATION                                       4
ACHIEVEMENTS OF THE FIRST BRITE AND EURAM PROGRAMMES          8
THE TECHNICAL CONTENT OF THE PROGRAMME                       11
PROGRAMME IMPLEMENTATION                                     12
PROJECT SELECTION                                            14
RELATED EUROPEAN PROGRAMMES                                  15
PROGRAMME EVALUATION                                         16
ANNEX A  :  TECHNICAL AREAS FOR THE NEW PROGRAMME            17
ANNEX B  :  OPINION OF CGC INDUSTRIAL TECHNOLOGIES           31
ANNEX C  :  OPINION OF CGC RAW MATERIALS AND OTHER MATERIALS 32
PROPOSAL FOR A COUNCIL DECISION                              33
 ---pagebreak---                                       - 1 - >*Г
SUMMARY
Manufacturing industry , accountinq for some 30% of GNP and employinq some 41
million people , is and will remain an essential element of the Community 's
economy .   There are , however , r signs of structural weaknesses in the capacity
of European manufacturers to respond to growing and increasingly more
competitive demands in the more developed markets .
The case for this new programme is based , first , on the need for a positive
response to the pressure of world competition in the market place for
manufactured goods and in the supporting technology development of products
and processes .     Second , R&D collaboration , bridging national and sectoral
boundaries is an effective way of exploiting available resources and a
valuable route towards the internal market .
The new BRITE / EURAM programme integrates the actions anticipated in lines 3.1
and 3.2 of the Framework Programme for Community Activities in the Field of
Research and Technological Development ( 1987-1991 ).         It falls under the
heading of modernisation of industrial sectors and covers manufacturing
technologies and advanced materials .       The programme builds on the experience
and the achievements already emerging in the BRITE and EURAM programmes .
The encouraging signs from the first BRITE and EURAM programmes , confirmed by
the BRITE and EURAM Evaluation Panels , showed that the Programmes occupied an
important position in Community Science and Technology policy .       Not only were
a very satisfactory 80% of projects proving to be making good progress but a
new and important dimension had been added through the creation and
consolidation of industrial transboundary alliances for R&D , and through
transfrontier links between industries and universities .        It was also found
that the Programmes have helped SMEs to link with large companies and
universities and also to benefit from the resulting business .          Smaller and
less developed Member States have also participated fully .
The principal objective of      this programme is to enhance the competitive
position of the Community 's   materials and manufacturing industries in world
markets through the support     of a programme of research and development to
provide the industrial and       materials technology required for innovative
products and process development .
The programme will contribute to industrial competitiveness by stimulating
cooperation in industrial orientated research at the precompetitive stage
across frontiers , between different industry sectors and between industry,
research institutes and universities and will also contribute to establishing
the Common Market in 1992 .      Special consideration will be given to projects
involving SMEs ,     in order to ensure their adequate participation in the
programme .
The new programme is not intended to substitute for the responsibility of
industry to conduct adequate research and development in support of its needs
but , as with the previous programmes , it has a catalytic role in providing the
incentive to    encourage the best use of the resources available in the
Community .
As a result of encouragement from industry and experience from the earlier
programmes , materials and manufacturing technologies are now to be included in
a single programme covering the following fields :-
 ---pagebreak---                                      - 2 -
 - advanced materials technologies
 - design methodology and assurance for products and processes
 - application of manufacturing technologies
 - technologies for manufacturing processes .
 The four-year programme will , together with the contributions anticipated
through the involvement of EFTA countries , amount to nearly 1 billion ECU of
activity .    Of this the Commission will provide 439.5 mio ECU .    There will be
four separate forms of support .
Industrial Applied Research ,     with more than 90% of the budget , will be
implemented by cost shared contracts ,       involving at least two independent
industrial enterprises .     Total projects   costs should fall in the range of
1-3 mio ECU and cover at least 10 man       years of activity .      The Community
contribution will not exceed 50% of total   costs , the remainder to be provided
by industry .
Up to 7% of the budget will be made available for Focussed Fundamental
Research in areas of materials development where industrial progress is
hindered by weaknesses in basic science .       To ensure a true industrial focus
for this activity which need not include an industrial partner , there will be
a requirement for industrial endorsement by nominated individuals from
industry .    Projects in the range of 0.4 to 1 mio ECU must cover at least 10
man years of activity .
The Commission is also introducing a pilot scheme of Feasibility Awards aimed
at assisting SMEs establish the feasibility of a device , process or concept as
a means of enhancing their stature in finding a partner for a subsequent call
for proposals for the Industrial Applied Research .      These awards are intended
to help offset the particular difficulties experienced by SMEs .               The
Commission would support up to 75% of the cost of research up to 25.000 ECU
lasting up to six months .. This activity will be co-financed by the Task Force
SME .
A small proportion of the total programme budget will be spent on Coordinated
Activities .
In addition , demonstration projects will be supported within the Industrial
Applied Research .    Their modalities will be determined as projects within the
first BRITE and EURAM programmes near completion .
A calendar of annual calls for proposals will be announced in the first
Information Package .    The priority themes will be revised annually to reflect
the changing requirements of industry .        The regular calls are intended to
overcome the problems and uncertainty for potential participants experienced
from the long gaps in the previous programme .
 ---pagebreak---                                        - 3 -
INTRODUCTION
In its Communication of 28 September 1987               the Commission presented its
initial comments on the programme to follow on from the first BRITE
Programme*1 .
The new programme integrates the cost _shared actions foreseen in lines 3.1 and
3.2 of the Framework Programme for Community Activities in the Field of
Research and Technological Development             ( 1987-1991)covering manufacturing
technologies and advanced materials , so building on the achievements already
emerging in the first BRITE and EURAM4 programmes . Experience with managing
these two programmes together with the            strong encouragement revealed in
consultations with industrialists and, in        particular , the Industrial Research
and Development Advisory Committee ( IRDAC )     and the panels evaluating the first
BRITE and EURAM programmes underlines the        inseparable links between materials
development , product design and manufacturing technology . A single programme
will best serve the R&D needs of European industry .
 The objectives and strategic goals set out below are in keeping with the
 thrust of the Framework Programme towards improving industrial performance
 particularly in relation to the 'modernisation of industrial sectors' and
 also 'towards a large market and an information and communication society' .
 While the development of information technology will be excluded from the new
 programme the application of IT will of course be encouraged . By strengthening
 the scientific and technological basis of European industry and encouraging it
 to become more competitive,, at            international level the aims expressed
 in the Single European Act 5 are reflected . The Programme does not replace the
 responsibility of industry . to conduct adequate R&D in support of its needs but
 it has a catalytic role in providing the incentive to encourage the best use
 of the resources available in the Community . This applies particularly to the
 established sectors of industry where the R&D base has to be seen as a more
  important element of company strategy .                             --
  OBJECTIVES
  The principal objective of the Programme is to help enhance the competitive
  position of the Community 's manufacturing industries in world markets through
  the support of a programme of research and development to provide the
  industrial and materials technology base required for strategic , innovative
  product and process development .
  There are two subsidiary objectives .          First , to encourage transfrontier
  collaboration within the Community in strategic industrial research between
  industrial companies and complementary centres of expertise in industry,
  research organisations , and universities .         Second , to encourage transfer of
    C0M(87)307 FINAL / 2
  2 OJ N° L    83,25.3.1985, p.    8
  3 OJ N° L   302, 24. 10. 1987,p.   1
  4 OJ N° L   159, 14.6.1986, p.   36
  5
  5 OJ N° L   169,29.6.1987, p.    1
 ---pagebreak---                                         4
 technology between sectors and particularly to those sectors ,        often with a
 high predominance of SMEs ,    which are slow in exploiting new technologies to
 improve their performance .
 Strategie Goals
 The main instrument for meeting the objectives will be collaborative ,
 transfrontier R & D able to provide the technological            tools for better
products and processes . These will include the development and application of
new materials and engineering technologies and encouraging the wider
application of IT developed elsewhere . The tools will be aimed at meeting
strategic goals for improving the performance of manufacturing industries by :
- Developing       advanced materials and their processing for applications
   requiring improved physical and environmental behaviour , better performance
   repeatability and reliability , and cost effectiveness .
- Incorporation of best practice into design ( i.e. materials selection and
   design rules for manufacturing , assembly, reliability and maintenance ).
- Reduction        of design to product      lead time ,   including reducing the
   manufacturing lead time .
- Improving management of the manufacturing operation ,          including process
   control , product quality assurance and condition monitoring .
- Improving the cost effectiveness of manufacturing .
PROGRAMME JUSTIFICATION
The case for the programme is       based , first , on the need for a positive
response to the pressure of        world competition in the market place for
manufactured goods and in the      supporting technology development of products
and processes .     Second , R & D collaboration , bridging national and sectoral
boundaries    is an effective way of exploiting available resources and a
valuable route towards the internal market .
The challenge in the world market place
Manufacturing industry is and will remain an essential part of the Community 's
economy . It provides around 30% of GNP and accounts for 75% of the industrial
workforce of some 41,000,000 people .      In spite of a strongly positive balance
of trade in manufactured goods of 130% in 1985 , structural weaknesses have
developed over the years , in particular the capacity to respond to growing
demand in the more developed markets .
Within manufacturing industry there are sectors with a fast growing demand
( e.g. instruments , chemicals ) and sectors with a stagnating demand ( e.g.
clothing , textiles , motor vehicles ).          The common element is that the
performance of the European industries and those of the most developed
industrial countries will be less concentrated on maintaining or increasing
market share of the total market .      Instead they will seek to capture the top
end of the market by new or improved products often with a high technology
content in the product itself or its means of manufacture .              This trend
establishes technology as one of the crucial factors for the competitiveness
of manufacturing industry . Its effective use in both production equipment and
new products is a potential source of spectacular improvements in industrial
performance .      Technology can increase equipment availability , introduce
 ---pagebreak---  flexibility into the production process and so improve market adaptability .
 It also makes possible smaller production runs and allows for reduction in
 time for manufacture .    Here the appropriate application of IT systems is of
 relevance to all manufacturing industries . More detailed examples showing
where technology could be exploited to enhance the economic performance are
 included in the technical areas for the new programme in Annex A.
 Increasingly the distinction between leading edge and mature industries will
disappear .    The potential for increasing productivity and flexibility is
greater in mature industries as is the incentive to employ new technology .
 For the future the dividing line will be between those who make full use of
the available technology and those who do not , even within the same sector .
Already this 'denaturing' process is evident in established sectors such as
motor vehicles or clothing .
The development and adoption of new technologies is therefore crucial .
However , the challenge of new technology goes far beyond sectoral definitions ;
it concerns the competitiveness of European industry as a whole - its very
ability to exploit new opportunities .
To assess the state of Community industry and the means of improving the
Community 's technological competitiveness , the innovation process can be
broken down into
- the création of new technologies ,
- their use in the production process and
- their implementation in products .
The création of new technologies
Trends in the funding of research give rise to concern underpinning the need
for an increased level and synergy of R S D activity in Europe .        The funds
devoted to R 8 D activities for the EEC ( 70 billion ECU ) were , in 1986, only
about 60 % of that of the US .     As the annual increase was about 4 X in both
cases this difference is unlikely to change rapidly .        In contrast , while
Japanese R 8 D expenditure is 30 % below that of Europe its growth rate, 9 %,
is twice as high .    Looking at research expenditure as a percentage of gross
domestic product , this rate reached 2,8 % in Japan and US in 1985 .     Only FRG
approached this level , which together with France and UK at 2,3 X exceeded the
Community average of about 2 X. A further impediment to European industry
benefitting from applied research and technology        transfer comes from the
lower industrial contribution in the distribution of R 8 D between industry
and the public sector within Europe .
A quantitative comparison identifies an overall weakness in the R 8 0
potential of the entire Community .     It , of course , neglects the effect of
twelve components between which there is little synergy .     The European effort
tends to cover the whole range of R 8 0 activity from basic to industrial
prototypes .   Japan and the US concentrate much more on R 8 0 with a view to
later industrial use .    This difference in strategies means that the Community
lags behind in crucial enabling areas such as new materials and production
technologies , in addition to the microelectronics based technologies .
Technology in the production process .
In production technology the Community is beginning to catch up with the use
of advanced computer aided techniques and equipment after a slow start and
here the advanced IT developed in the ESPRIT programme is of major importance .
 ---pagebreak---                                        - 6 -
 But improvements are needed concerning the reliability and predictability of
 machine behaviour as enterprises become more dependent on expensive machinery .
 Recognising the characteristics of Community industry consisting of few large
 and many medium sized and small enterprises ,        there is a particular need to
 reduce the complexity and cost of new production technologies and systems .
 However , the evidence from the first BRITE and EURAM programmes confirms that
 in the Community industry there is a greater confidence that it is capable ,
particularly when assisted by universities and research institutes , of
mounting a realistic challenge to the market performance of the major
 industrial competitors .
Technology in products .
Exploiting new technology in products is essential whether directly as in the
use of new materials or indirectly through improved design , reliability ,
servicing or marketing .      Here the Community industry has generally been less
successful than its competitors , particularly from the Far East .           In fast
moving advanced technology markets the Community industry has often retreated
into established production of engineered commodities such as colour
televisions without an equivalent activity in R&D - so leading to losses in
industrial employment . Because of the government support in the US and Japan ,
the Community lags behind in the engineering aspects - performance, and methods
of component manufacture of new materials .        Failure to exploit new materials
to improve product performance , durability and reliability bars the Community
from competing in rapidly expanding and traditional markets .
The programme aims to reduce the constraints and limitations at each of these
levels and help to provide European industry with the necessary enabling
technologies which demand an intersectorial and interdisciplinary approach .
Collaboration across frontiers and sectors
The importance of collaboration can also be demonstrated through the structure
of European industry . Individual sectors of industry are not islands but are
dependent on others .     For example , to be competitive established sectors must
incorporate the products of the high technology sectors ,                  including
microelectronics and information processing , for which they are a very
important market , into their products , processes and business systems .          A
similar dependence extends to the service sector as much of its activity is
geared to manufacturing .
Unfortunately , the supply chain in Europe is often fragmented compared to that
of its major industrial competitors .        Japan has a relatively small number of
giant financial holding companies while the US has economy of scale .             In
Europe a very varied market is met by a large number of suppliers who in turn
are customers for many suppliers of components , processes and services .        Too
often there is poor communication between functions - design , engineering ,
manufacturing , purchasing , marketing - both within and between companies .
This   situation   slows    down  the    rate   of  innovation   and  its effective
implementation .     It is desirable for both customers and suppliers to be
working together to ensure that resources are directed to RSD which will bring
the maximum benefits . Almost always supply chains involve firms of all sizes ,
so that attention has to be given to ensure that technology based SMEs can
also benefit , recognising their particular problems , such as a lack of human
and financial resources to plan and implement change .        Indeed, in almost all
sectors industrial success will often be largely influenced by performance of
SMEs in the role of suppliers of materials , components or services .
 ---pagebreak---                                      - 7 -
 The commercial development of tools - the products and processes - is the
 primary responsibility of those companies able to exploit the commercial
 benefits they bring . This development process is more likely to be successful
 if  companies   have  access   to preparatory or pre-competitive     research and
 development at the leading edge .     There are considerable resources available
 in the Community which should be used to best effect .      The catalytic role of
 Community programmes can provide the incentive for this collaboration to take
 place .
 Pre-competitive R&D - applied research not leading directly to commercially
 exploitable results - is an essential enabling instrument for competitiveness
 but may be too wide in application , of too long a time scale , or too risky to
make it acceptable for funding by single companies , particularly SMEs . It is
 exactly in this field where existing resources in Europe are not exploited to
 a sufficient level .
 Additional and external funding will make it possible to provide ,         at the
 European level , the linkages which enable the complementary expertise of those
 in industry and research organisations to work together and so specify , manage
and implement the work required .       The Commission support will enable those
able to make a worthwhile contribution to the task in hand to participate
towards the internal market .                                         •
Towards the internal market
The challenges within the programme fall squarely within the scope of the
 Framework Programme .    Only by working together across national boundaries can
Europe look to a future where the strength of the Far East and the US
manufacturing base can be challenged on a broad front .        Working together in
R&D will lead to companies seeing mutual benefits for their future in
continuing collaboration in R&D and possibly extending this to marketing ,
manufacturing and training .       Collaboration also provides opportunities for
bringing application expertise to new sectors through demonstrations of
technology or transfer of human expertise . In a more direct response to the
challenge of the single integrated market foreseen for 1992, the involvement
of partners from several countries will be a valuable step in the
harmonisation of manufacturing practices .      This convergence of practices will
encourage the quest for standards .       One of the outcomes of the BRITE / EURAM
programme will hopefully be an enriched range of European standards produced
under the aegis of CEN and CENELEC .           Standardisation at European level
contributes , on one side , to break down the technical barriers to trade within
the Community and , on the other side , it enhances the competitiveness of
European industry in its home market . The inclusion of work in support of the
standards making activity should not be a definitive selection criteria for
the programme .    However , encouragement will be given to projects which aim to
exploit a potential market opportunity arising from advancing the development
of new standards or other codes of practice , including those which might be
associated with environmental or safety considerations . The European dimension
realised through the transfrontier collaboration ensures complementarity with
nationally supported initiatives .
An integrated Community is also better served when its technical expertise is
available to reach out across national boundaries . Community support can also
result , because of the structure of the market place or high cost of R&D, in
work which is unlikely to be funded by one company or one country, thereby
making more efficient use of resources for research , more efficient use of
capital equipment or the generation of a critical mass of expertise .
 ---pagebreak---                                      - 8 -
 ACHIEVEMENTS OF THE FIRST BRITE AND EURAM PROGRAMMES
 The programme builds on the encouraging signs which have already emerged
 within BRITE and EURAM and recognised by their evaluation panels .   Though the
 first research work funded under the BRITE programme did not start until early
 1986 and, in the case of EURAM, not until late 1987, encouraging progress has
 already been made with most of the projects underway in the process of
 fulfilling their objectives .    The BRITE Evaluation Panel judged that a very
 satisfactory 80% of projects were progressing well .       BRITE had helped to
 consolidate industrial transborder alliances and to create new ones .       The
 Panel considered that BRITE had benefitted SMEs , both by being involved in
 research and from the resulting commercial opportunities .      The smaller and
 less developed Member States had participated fully . Important results are
appearing which could not have happened without an enabling instrument for
 transboundary collaborative research .    Examples are given at the end of this
 section .
 In the first BRITE and EURAM programmes more than 1200 proposals were received
 involving almost 5000 individual partners .        130 experts from different
 industrial sectors , universities and research institutes from all Member
States were involved in the technical and economical evaluation , and assessing
the potential industrial impact of the proposals .         These experts worked
together in groups in Brussels under the chairmanship of Commission officials
not belonging to the staff of the programmes .
About 300 projects are now being supported .      Within BRITE , of the projects
being 'supported 60% of partners are . from industry ,        21% from research
institutions and 19% from universities .            There was significant SME
participation amounting to about 35% of the industrial partners .      The major
difference in EURAM was that somewhat less , 44% of partners , are from
industry , the major part being from universities and research institutes . In
both cases there was an encouraging level of collaboration between
universities and industry .     Both programmes included projects with a high
materials element integrating problems of design and production .    Recognising
that in many cases no clear distinction can or should be 'made between a
programme with objectives relating to materials applications and production
technology , underlines the need for a single programme to follow on from the
first BRITE and EURAM .
A characteristic of the previous BRITE and EURAM programmes was the large
number of very good projects which were not supported because of budget
limitations .   In fact only about 1 in 4 of good projects was supported .   The
scale of the opportunities lost among those whose projects were rejected in
the earlier programmes makes a strong case for the substantially larger budget
for the new programme , an argument endorsed by the BRITE Evaluation Panel .
The programmes have helped to remove the bias against technical collaboration
in Europe and so will help in the realisation of the single market . The level
of interest will increase and this was underlined by the BRITE Technological
Days held in December 1987 which attracted more than 1000 delegates .
To achieve a better balance between the available funds and the number of good
projects submitted , the information pack will seek to give a more precise
definition of the projects which will be supported .      This will put greater
emphasis on the evaluation criteria and more closely define the priority
themes .   The introduction of an annual call for proposals should also help .
As before , the project selection will be undertaken by independent experts
familiar with the needs of industry , drawn from industry itself , but also
including experts from universities and research institutes . The fairness and
 ---pagebreak---                                     - 9 -
efficiency of this process was seen as a particular feature of the programme .
Careful consideration will be given to the improvements recommended by the
BRITE Evaluation Panel .
An important feature of the first BRITE programme was the 'expression of
interest' mechanism operated by the Commission which allowed those interested
in forming partnerships to be put into touch with one another .        Even when a
project did not emerge productive introductions often resulted . This process
was supported by the contact points in each Member State who provided a source
of information close to intending partners . With EURAM advanced materials
networks organised with the European Materials Research Society ( EMRS ) and in
conjunction with industries and universities has provided a valuable
co-ordination    for  work  in  11 different   specialised   fields  of  materials
research .    The new integrated programme will build on the successful features
of the first BRITE and EURAM programmes , taking account of the comments from
their Programme Evaluation Panels .
Results from the first BRITE and EURAM programmes .
The following examples illustrate early achievements and targets from the
earlier programmes .
European mould makers are often SMEs and face a challenge not only from their
major customers , such as the car industry , which requires its suppliers to be
equipped with CAOCAM but also from the strong competition arising outside the
Community .    The objective is to shorten the whole process of mould design and
manufacture , which now is typically six months .      Success would increase the
competitiveness of the mould maker through shorter delivery times , and by
allowing smaller batch sizes or more complex parts to be produced from the
moulds .    The aim is to produce moulds with little or no reworking while
currently moulds may have to be modified 5 to 10 times .         In the consortium
seven enterprises , ranging from very small to very large , and two research
organisations are involved . . The first part of the project investigating the
weaknesses of existing approaches has already led to useful developments in
mould design .
The man-made fibre industry is anticipating even fiercer competition from
competitors outside Europe where developments in higher speed meltspinning
have been identified . For this reason major man-made fibre producers in three
Community countries , a specialised equipment maker together with two research
institutes , have come together to improve the technology for the melt spinning
of continuous synthetic yarn . This project aims at improving the productivity
and reducing the manufacturing costs of melt spinning of nylon and polyester
by increasing the collection speeds from typically 6 km per minute up to 10 km
per minute . Key requirements are to ensure zero defect operation and delivery
of yarns of the required quality . This project could lead to a cost reduction
of up to 10% in the final product . Preliminary results indicate that this aim
is feasible .
The most expensive part in the clothing production process is the assembly of
cut parts .     It accounts for roughly 50% of the production costs , of which
about 80% is the handling of the parts and only 20% the actual sewing process .
A clothing manufacturer , a machine manufacturer and a robot producer from two
Community countries have come together to develop a flexible system which is
capable of receiving stacks of cut parts , typically of between 50 and 200
pieces , removing a single component from each stack and then carrying out
several stages of sequential assembly automatically . The system is limited to
operations that start and finish flat .      Final assembly will continue to be
 ---pagebreak---                                       - 10 -
 manual .    As most of the handling is 2-dimensional , there is scope for cost
 reductions in the production process of up to 25% , while maintaining and even
 increasing the flexibility and the quality .       Considerable progress has been
 made towards the objective of a full-scale laboratory prototype assembly
 system .    This laboratory prototype could be the basis for the first fully
 automated flexible clothing assembly cell in Europe .
 Dyeing of fabrics is one of the most important steps in the manufacturing
 process of textiles .     About 80% of the fabrics are dyed in continuous line .
 Currently about 5% of material is waste because of variations in shade and
 colour . Two textile producers , an equipment company and a research laboratory
 from three Community countries are collaborating in a project to study the
parameters of continuous dyeing and to develop on-line sensors and real time
 control mechanisms that will give consistency and shade repeatability . A
 feasibility study has shown that it could be possible to control the key
process parameters to give consistent shade and colour across the width and
along the length of the fabric .        A successful outcome could lead to price
reductions of up to 20%, which would place the European textile industry in a
stronger position in an increasingly competitive world market .
Welding takes up 20 - 30% of production time in European shipyards .         While
about 80% of welds are made in Japanese yards with automatic or semi-automatic
devices , about 80% of welds in Europe are still made manually . To improve the
European technological capability a shipyard, a supplier of welding equipment ,
a paint producer , two welding research organisations and a shipbuilding
research organisation , sponsored by shipyards , have joined together to achieve
a large-scale shift to mechanised welding processes .         The aim is a simple
automation of the welding of sub-components and the application of welding
robots , within the context of the shipbuilding industry . The welding problems
posed by the primer of the steel are also being studied in order to reduce the
influence of the prefabrication primer on mechanized, automated and robotic
welding . First results have led to data which could serve to define normalized
fume boxes .     Considerable progress towards automated welding -has already been
made .
Laser technology will be used as a tool to cut and to identify defects in
natural materials .        This project ,    involving industries and research
organisations from two Community countries , aims at the reduction of material
waste and an increase in productivity rates for industries based on the use
and transformation of indigenous materials such as cork , leather, wood and
marble . The major objectives of research are to define the laser cutting
process and parameters for each material , especially for cork and marble where
laser cutting is a promising technique, and to develop methods for defect
identification by size , shope and colour .      Cutting speed should be increased
by up to 35% for leather and 50% for cork using laser , compared to manual
cutting .     It is estimated that such developments could lead to the waste of
material being reduced by 40% .     These important economic benefits explain the
high interest from industries which are generally SMEs .
In the field of materials research , a variety of projects address the
substitution of strategic materials with more available and versatile
materials leading to products with enhanced physical or mechanical properties .
The degree of dependency of important European industries on metals such as
chromium, cobalt , tungsten or some rare earth metals , supplied mainly from
outside the Community, can be reduced by substitution . For example , bringing
together partners with expertise in metallurgy , process engineering , design
and magnetic theory has enabled a new and more efficient production process
for magnetic powder material of the new alloy iron , neodymyum and boron to be
 ---pagebreak---                                        11
developed for the manufacture of high energy permanent magnets . In another
example , hard particles and ceramic whiskers introduced into white cast iron
powder produced a new hard metal powder replacing more expensive and alloyed
steels .     Similarly , in electrical contact and switching materials , a new
silver alloy with a drastically reduced silver content was found and is now
patented and in commercial production .
The stimulation of cooperation in European manufacturing industry is ,    in many
sectors , breaking new ground and providing mutual help which ultimately must
result in a stronger position in the market place .
THE TECHNICAL CONTENT OF THE PROGRAMME
With a limited budget , less than   4 % of industrial R & D spending by Community
Governments , the programme must    focus on the R&D most likely to be effective
in meeting those goals which are    most critical to securing the competitiveness
of the Community 's manufacturing    industry , in the medium term, that is 5-10
years hence .
The technical areas for the programme have been selected after an extended
process of consultation .     In addition to a postal enquiry sent to some 1,000
companies across the Community , this involved inputs from many individuals ,
professional and trade associations from a wide range of manufacturing sectors
together with the industrial technologies and advanced materials working
groups of the Industrial Research and Development Advisory Committee ( IRDAC ).
The Member     States were consulted through the appropriate Management and
Co-ordination Advisory Committees ( CGC ).
The technical areas shown in greater detail in Annex A cover :
- Advanced Materials Technologies - the development of advanced materials and
   their processing for industrial use .
- Design Methodology and Assurance of Products and Processes - engineering
   technologies       for product design , means of manufacture and assurance ,
   together with          design and assurance of manufacturing processes .
- Application of Manufacturing Technologies - identification and addressing
   the needs of manufacturing industry and particularly the less advanced
   sectors , many of which have a major part made up of SMEs .
- Technologies for Manufacturing Processes - new and improved manufacturing
   techniques for more effective production .
In these areas there is a strong need for collaborative research , bringing
together partners drawn from suppliers of materials or components , users
( including where appropriate the end user ), the suppliers of expertise and
equipment for use in design , control , testing and systems integration ,
together with the research organisations and universities .            There are
opportunities for firms of all sizes .
BRITE / EURAM in a Global Industriai R&D Context
Consultations with industry have confirmed the requirement for a better
awareness of emerging technological development as an important element of the
technology strategy of industrial companies both large and small and , at the
same time , for reinforcing the market pull of the BRITE / EURAM Programme as
 ---pagebreak---                                        12 -
 recommended by the BRITE Evaluation Panel .     The Commission will take further
 initiatives , such as workshops , in consultation with IROAC and the CGC . The
 aim will be to bring together the global science and technological trends with
 the planning needs of individual companies recognising this cannot be limited
 to a single sector but must also involve related sectors which are major
 customers and existing or potential suppliers of materials , equipment and
 expertise .
 PROGRAMME IMPLEMENTATION
 In line with its overall objectives ,         the programme will be open to
enterprises from all sectors of industry and research organisations , including
universities , within the Community and EFTA countries .        Projects involving
partners from EFTA countries will be welcomed where their participation can
contribute to the competitiveness of manufacturing industry as a whole .       The
projects must fulfill the normal eligibility criteria with the EFTA partner
being additional to the required type and number of partners from the
Community .      There will not be any financial contribution from Community
towards the participation costs of partners from EFTA countries who will be
required to contribute to the programme overheads .
Within the Programme there will be four separate forms of support .            The
Industrial Applied Research will be the principal action with more than 90% of
the budget .    There will also be Focussed Fundamental Research with up to 7 %
of the budget - that is one fifth of the budget for the work on materials ,
together with Feasibility Awards for SMEs          and support for Co-ordinated
Activities with approximately 0.5% and 1.5% ,       respectively of the programme
budget .
To ensure the objectivity of the selection procedure and the selection
criteria , the details will be established in advance taking the advice of the
CGC .
Budget and Staff
The   indicative   allocation of funds   between  the different' technical themes
given below reflects the experience of the first BRITE and EURAM programmes ,
together with a grouping of the sub themes in such a way that the main themes
for the manufacturing elements of the programme are evenly balanced . The size
of allocation to the materials theme also reflects the balance of funding
foreseen in the Framework Programme for this subject .       The actual allocation
wilt be determined in conjunction with the CGC taking account of the response
to the calls for proposals .
                                                   %
Advanced materials applications                    30
Design and assurance of products                   21
Manufacturing systems                              21
Technologies for manufacturing processes           21
Administration                                       2.5
Personnel                                            4.5
                                                  100.0
 ---pagebreak---                                       - 13 -
 The total budget for the execution of the programme will amount to 439.5 mio
 ECU including expenditure on staff whose costs will not exceed 4.5% of the
 Community contribution .
 In managing the programme , the Commission will increasingly seek the help of
external experts in the technical monitoring of projects in order to ensure
the necessary technical expertise . The BRITE evaluation panel has also made a
 similar recommendation .
 Industrial Applied Research
The principal form of support for industrial applied research of a
pre-competitive character will be through cost shared action .       The conditions
for participation will be that in each project there will be at least 50%
financing from industrial partners and at least two independent industrial
enterprises from different Member States per project .       To be classified as an
independent enterprise , research organisations should normally receive the
industrial 50% in direct payments from nominated companies involved in
steering the project . Recognising the important role of SMEs in developing the
manufacturing base of the Community and the merits of their participation in
the programme , the Commission is considering , in conjunction with IRDAC , how
best research organisations can act within the programme as a focus for
meeting the R&D needs of SMEs . Projects should include at least 10 man years
of activity, the realistic minimum for an effective collaborative project , and
the total project costs should fall in the range 1-3 mio ECU . Subsidiaries of
multinational companies based outside the Community may participate if the R&D
and exploitation takes place within the Community .
Focussed Fundamental Research
In some areas of materials development industrial progress is hindered by
weaknesses    in  basic  science .     These   areas  will  be  identified  in   the
Information Pack for each call for proposals . Transfrontier co-operation would
be required but there will not be a requirement for - partners to include an
independent industrial enterprise .      However , to ensure the industrial focus ,
there will be a requirement for industrial endorsement by nominated
individuals from at least two independent industrial enterprises .              Each
individual will be required to commit at least two days per year in steering
the project .    Projects should include at least 10 man years of activity and
fall in the range of 0.4 to 1 mio ECU total project costs .
Feasibility Awards for SMEs
The Commission will introduce a pilot scheme of Feasibility Awards aimed at
assisting SMEs establish the feasibility of a device , process or concept as a
means of enhancing their stature in finding a partner in a subsequent call for
proposals under the shared cost action . The Commission will support up to 75%
( maximum 25000 ECU ) of the cost of research lasting up to six months .      • High
standards of evaluation will ensure that the awards are highly competitive and
recognised as prestigous .        This scheme will be co-financed by the Task
Force SME .
Co-ordinated Activities
In cases where work , supported by national funds or entirely privately funded
is already going on , the Commission 's role may be limited to simply organising
the co-ordination of the work and the Community funding confined to covering
the cost of such co-ordination activities . However , in certain cases where it
 ---pagebreak---                                      - 14 -
 is clear that strategically important work requires more than simple
 co-ordination , the Commission could, in consultation with the CGC , consider a
 higher Community funding .
 Demonstration Projects
 If is to be expected that demonstrations of project results will be required
 as the wide range of projects supported within the first BRITE and EURAM
 programmes near completion .     The type of support needed will be included
 within the Industrial Applied Research and will be defined with the advice of
 the CGC and reported on during the mid-term review of the programme .
 Calls for Proposais
 The closing date for the first of the annual calls for proposals is expected
to be in March 1989 .    This is subject to the adoption of a Common Position by
 the Council before the end of 1988 .    By early autumn of 1988 an advance call
 for proposals , giving early warning of the programme , will be published in the
Official Journal for those intending to participate .
There will be a separate call for proposals for the Feasibility Awards . This
will take place at about the same time , in order that the winners can be
selected and have undertaken the work in advance . of the second call for
proposals for the Industrial Applied Research .
As a basis for calls for proposals the Commission will , in consultation with
the CGC ,    establish and update annually information packages specifying
detailed topics and priorities within the scope set out in the Technical Annex
to the Council Decision .     For this purpose the Commission will encourage an
exchange of views between related sectors about their future technology needs .
A similar but simplified information package will be adopted for the
Feasibility Awards to SMEs .
To assist in the process of finding partners , potential participants would be
invited to submit an 'expression of interest' so that they can be put in
contact with those having similar interests . The network of 'national contact
points' within the Member States will continue to be encouraged to provide an
initial form of introduction to the programme .            The arrangements for
expressions of interest and the national contact points are of particular
benefit to SMEs and will be developed in consultation with the CGC .
PROJECT SELECTION
Experts , from industry, research organisations and universities , familiar with
the research needs of industry will assist the Commission in the selection of
projects for funding .      Those projects satisfying the eligibility criteria
related to conformance with the technical themes , composition of partnerships ,
and project size will be judged on the basis of the relevance of the project
to advancing industrial performance and to the technical quality and degree of
innovation .     Project partners should include those who are able to follow
through the results into industrial exploitation .
A particular welcome will be given to projects which :
- encourage the wider use of more advanced techniques , processes and materials
   associated with CADCAM , modelling , expert systems , etc .; including those
   developed in other Community supported Programmes such as ESPRIT .
 ---pagebreak---                                      - 15 -
- establish links between enterprises from different horizontal or vertical
  sectors , particularly bridging the customei–supplier interface ;
- exploit the capacity of SMEs to provide innovative solutions to technical
  problems and also open up advanced technology for more effective use by
  SMEs ;
- aim to exploit a potential market opportunity which will arise from
  advancing the development of new standards or other codes of practice
  including those which might be associated with environmental or safety
  considerations ;
- aim to develop a level of human interaction with the manufacturing system or
  process which best serves and extends man 's creative and intellectual
  abilities and capacity , while taking away the tedium and drudgery of
  repetitive or undesirable tasks .
RELATED EUROPEAN PROGRAMMES
Links with complementary EC programmes are aimed at avoiding gaps and avoiding
unnecessary overlaps .       For example , some of the technical areas         are
complementary to parts of the work programme for the second phase of the
ESPRIT programme .       However ,  the primary objectives and scope of the
programmes are very different .       Links between the programme managers will
encourage the wider use of appropriate deliverables from ESPRIT , such as
advanced manufacturing systems approaches , within projects .           Of course ,
proposals which fall clearly within ESPRIT will not be considered within the
new programme . In the reverse direction it is anticipated that the wide
sectorial coverage within the new programme would provide a valuable input
into the periodic redefinition of the ESPRIT Work Programme .        There will be
similar exchanges of information with the BCR , ECSC Steel Research , and SPRINT
Programmes and with appropriate COST actions .      Links will also be maintained
with appropriate JRC activities .      Care will also be .taken to ensure that the
envisaged Aeronautical , ENERGY and TELEMAN Programmes take into account the
scope of BRITE / EURAM .
In the important area of high critical temperature superconductivity,          the
programme   will , together with other Community programmes igcluding ESPRIT and
SCIENCE form part of the Community Superconductivity Action0
Recognising that successful innovation and its implementation depends on
appropriately trained and experienced people , links with the SCIENCE Plan and
the COMETT programme and related actions will aim to develop the scope for
increasing the human transfer of technology within the new programme and this
will include grants for students undertaking work related to the themes of the
programme .
In addition to exchanging information at the stage of programme definition and
setting of priority themes , unnecessary overlaps between programmes will also
be avoided by involving teams from other programmes in the selection process
itself .
There will also be a continuing exchange with the EUREKA Programme and this
will include initiatives such as joint workshops .         This will be aimed at
accelerating the path of innovative R&D into the market place . Projects within
the new programme could be regarded as establishing the pre-competitive
6
  OJ No . C 124 , 11.4.1988 , p. 6
 ---pagebreak---                                      16 -
deliverables which might be taken to the market place within EUREKA . Contacts
would continue to be encouraged between participants in similar technical
areas .
PROGRAMME EVALUATION
In the third year the programme will be evaluated by an independent group of
experts . The cost of this evaluation will be approximately 400,000 ECU .
 ---pagebreak---                                       - 17 -
                                                                               ANNEX A
                       TECHNICAL AREAS FOR THE NEU PROGRAMME
                         1 . ADVANCED MATERIALS TECHNOLOGIES
The work in this area will focus on the development , processing and
application of improved or new materials and material processing . In addition
to materials and composites based on metals , polymers and non-metallic
materials , the work will cover materials for a range of specialised
applications . Among the wide range of possible applications of these new
materials , some are directly related to IT and are therefore excluded from
this programme . Developments of materials already covered by ESPRIT are , for
instance , dealing with magnetic , magneto-optical , optical thin films for
sensors , recording media and heads , optical layers and specific materials for
opto-electroni cs , ceramics and polymers for IC packaging and specific
substrates , superconducting thin films for low current applications and
devices .
 1.1 . METALLIC MATERIALS AND METALLIC MATRIX COMPOSITES
 For metallic materials , including metallic based composites , . advances in
 processing and alloying technologies have considerably widened the design
 scope . For example , castings can now be made to high accuracy and are used in
 critical fatigue loaded applications in ways that were not considered possible
 10 years ago . The potential of metal matrix composites is in the early stages
 of realisation and they are already demonstrated as ceramic reinforced light
 alloy pistons .     A major challenge is to establish confidence in the new
 materials and improve processing techniques of these and more established
 materials so as to bring production costs to competitive levels .
 A particular focus of this class of materials is in those industries where
 improved materials can be exploited by designers to . secure .the reduction in
 operating and maintenance costs , including savings in energy, necessary for
 success in the market place .
 Up to now most      structural materials    have been   homogeneous metallics      and
alloys .      Increasingly , anisotropic materials using various strengthening
 techniques such as particles or fibre reinforcement will be required to meet
 the exacting requirements of the designer .         The optimised approach demands
 that the material is designed alongside the specific component and matched to
 the appropriate manufacturing process .
Goals
- Extended working life of components
- Higher operating temperatures for increased thermal efficiency
- Better and more effective material processing techniques          -
1.2    MATERIALS   FOR   MAGNETIC,     OPTICAL,    ELECTRICAL   AND   SUPERCONDUCTING
       APPLICATIONS
These materials     are crucial    to advances   in a   wide  range of     industries .
Magnetic materials , for example , play an indispensable part in the electrical
and computer industries .       The value of their annual production worldwide is
approximately 5 billion ECU .        There is considerable scope for developments
which permit effective and          economical exploitation as ,        for example ,
 ---pagebreak---                                          - 18 -
     polymer-bonded anisotropic permanent magnets or massive segments of metallic
     glass for applications such as electric motors,             security systems, ore
     separation, medical equipment and magnetic levitation for transport .
     Optical materials are of major importance particularly for optical
     communication in a wide range of applications such as laser beam delivery
    systems   . New materials are emerging which have the prospect of reducing
    signal attenuation .
    Among materials for electrical applications are those for electrochemical
      evices .   Improved materials based on solid state ionics are needed as the
    basis for a new generation of batteries and fuel cells .
   The discovery of high temperature superconductor materials aroused worldwide
   in erest and is expected to have a great impact in the medium and longer term
   on most of the high technology industry sectors , particularly in component
     esign for reduced energy consumption . However, many basic problems remain
   unso ved .      The industrial breakthroughs will not be achieved without a
   systematic investigation of the operating mechanism and engineering problems .
  Goal
       Improved materials and materials processing for optical ,              magnetic ,,
       electrical and superconducting applications
  1.3 HIGH TEMPERATURE NON-METALLIC MATERIALS            r^
 There are estimates that the world market for engineering ceramics , including
 special glasses and amorphous materials , will be some 12 billion ECU within a
 few years .      It is expected that the demand will be evenly divided between
 electro-ceramics and structural ceramics . The demand is increasing for high
 temperature materials that can also take structural          loads needed to contain
 the processes now being used in the materials and chemical processing
 industries . They are also needed in the power generation, energy conversion
and motive power industries instead of metals so that the energy losses due to
cooling are minimized, more efficient high temperature combustion can be used
and combustion products produce as little pollution as possible . In contrast
to the US and Japan , the European share of today 's activity is very low .        The
 large potential of this class of materials depends on solving some difficult -
problems .       In speciality powders , such as whiskers , there are supply
difficulties within Europe .      If this technology is to meet the user 's needs ,
there will be a requirement for closer links with powder producers .
There are still many basic problems . There is a very limited understanding of
the most appropriate structure , such as the optimum spectrum of grain size ,
for a particular application .       Large scale manufacture of advanced ceramics
can introduce pollution issues , considering that there may be some 40% of
organic additive to be burnt off in some processing steps .            Not only is it
difficult to control the process to achieve desired levels of porosity,
particularly in products designed with variable porosity , but there are also
problems in quality assurance , both           in establishing that the desired
structure is achieved and also that it is       defect free .
The potential application goes a long way in defining a ceramic and so there
must always be close user involvement .       Similarly , there is a need for the
manufacturing process to reflect properly the characteristics of ceramics .
Too often the equipment used is a modified version of what is used in other
 ---pagebreak---                                         19 -
applications ,    for example ,   in traditional ceramics ( slip casting ) or even
plastics injection moulding .      New equipment specially designed for processing
advanced ceramics will be required .
Finish machining of ceramics is not easy but even with near-net shape forming
it is often necessary .       Though an important aspect of ceramics technology ,
Europe is currently behind its major competitors .
Goals
- Design methodologies for products based on ceramics ,      glasses and amorphous
  materials
- Improved monolithic and ceramic composites and metal / ceramic interfaces for
  industrial applications
- Better processing techniques and quality control strategies .
1.4     POLYMERS AND ORGANIC MATRIX COMPOSITES
The world polymer market is of the order of 120 billion ECU , of which
engineering polymers , including polymer matrix composites , amount to 5 billion
ECU .     Europe is a net importer of engineering polymers .     The US with 70% of
the world production and Japan with 10% are increasing market share at the
expense of Europe with 10-15% .      Europe has been slow to respond to the trends
of general purpose materials replaced by functional materials .           There are
major opportunities for Europe to respond in specific applications .
Set    in the context   of 815000 tons as    the  US  market for  fibre  reinforced
thermosets in 1986 , the US market for high performance composites is expected
to be 10,000 tons within 5 years .        Currently the market for these advanced
materials is limited and mostly in the US because of the aerospace dependance .
Growth will come from cheaper applications .       For example , in automobiles or
construction where materials have to be , typically , an order of magnitude less
expensive per kilogram than for aerospace .
The polymer industry is characterised by large suppliers of raw materials ,
equipment manufacturers ( tending towards medium sized units of larger groups
supplying injection moulding machinery or extruders ),             specialist SMEs
manufacturing moulds , or handling equipment or polymer finishing , and SMEs as
component suppliers .       There is however a tendency for the machinery
manufacturers to restructure into larger groups and also for the major users
to process more of the polymers themselves .
The availability of new polymers components with specific properties is a
serious consideration in the lead time of new products . Modelling should help
and is already being used in mould design and extrusion dies for simpler
components but it is not yet capable of dealing with the moulding process for
complex parts ,      and anisotropic shrinkage in injection moulding without
excessive computing costs .
The major problems limiting the applications of polymer composites to motor
vehicles - springs , suspension , drive shafts - include the need for more
economic process techniques for composites made from long fibre thermosets
and / or thermoplastics and joining composites to other components .
Moving to greater use of polymers in consumer products puts more emphasis on
environmental consideration , particularly when there are some 7000 types of
polymer in circulation .       The scope for recycling should be included in the
specification for new polymers .
 ---pagebreak---                                        - 20 -
 Guals
 - Development of polymers , for specific applications
 - More cost effective process techniques for parts made from polymer and
   polymer matrix composites
 - Design rules for the specification and manufacture of engineering polymers
   and composites
 - New polymers with improved recycling attributes
 - Improved product assurance techniques
 1.5   MATERIALS FOR SPECIALISED APPLICATIONS
 There are classes of materials whose development is dominated by a single area
of application .       These will relate to either established or emerging
opportunities .
New and improved materials are essential to the packaging industry which is of
major economic and technical significance and had an annual turnover in the
Community of about 30 billion ECU in 1984 employing about 1 million people .
Packaging 'systems' are vital elements of preservation and product security
 'systems' in a range of market sectors such as the food, pharmaceutical and
paint industries .      Innovation in this fragmented industry is essential to
respond to rapidly changing market requirements focussed on the competitive
edge of a customers' products .       The material and its processing route must
meet a novel combination of properties - strength , heat resistance , barriers
to gases , liquids and micro-organisms – for the product and short lead times
for the process .
For the time being biomaterials for which there is a growing world market have
emerged as being of special interest for the Community .        For example , the
world market for joint prostheses in 1985 was 700 mio ECU and is expected to
be more than double at 1500 mio ECU by 1989 . In contrast to the US and Japan,
biomaterial products emerge from a large number of small companies in Europe .
They cannot afford the research investment to secure European competitiveness
in this field .     Nevertheless , the European market is. sufficiently large to
provide a good demand base .     Its development requires effective collaboration
between industry , the clinics and research expertise in universities and
research organisations . Areas of potential application include bone and joint
replacement , osteosynthesis materials , dental implants , drug delivery systems
and catheters and materials in direct blood contact , non thrombogenic
materials , and organ replacement materials .
Other   materials  which   will be   considered will  include the   more advanced
materials for the building and civil engineering industry .
Goa I
- Improved materials and their processing for specialised applications
 ---pagebreak---                                     - 21
           2 . DESIGN METHODOLOGY AND ASSURANCE OF PRODUCTS AND PROCESSES
 The development of techniques to improve product quality and the reliability
 and maintainability of structures ,    and manufacturing systems by clarification
of the design aims for both product and process , and by refinement of the
 criteria against which the attributes are measured .           The exploitation of
materials for sensors , and the reduction in the whole life costs of sensors
are also included in this section . This will complement work in Community IT
programmes where on-line control is treated ,           including monitoring and
diagnostics , prédictive maintenance and quality assurance .
2.1 QUALITY, RELIABILITY AND MAINTAINABILITY IN INDUSTRY
The costs relating to total quality have been estimated in one of the Member
States to be some 10% of GNP and can typically range from 5 - 25% of company
turnover .     These costs are often unmeasured and hence uncontrolled , but it is
estimated that it would not be difficult to make a reduction by 70% of their
present level through better management and control .
The costs of quality are related to the imperfections and also costs of
process and product assurance .       A major task is to reduce the imperfection
rate while reducing the assurance costs .            BRITE / EURAM wilt contribute
improvements in product quality and in the reliability and maintainability of
manufacturing systems by clarification of the design aims for both , and by
refinement of the criteria against which these attributes are measured .         It
will thus complement work in ESPRIT, where on-line control is treated ,
including monitoring and diagnostics , predictive maintenance and quality
assurance .
However , in a world moving to low inventory or Just In Time (JIT) manufacture ,
the requirements for reliability and maintainability are growing more
stringent .     Work is needed to ensure that all elements of the process perform
reliably, because their availability has become more critica-l with more high
capital based integrated manufacturing systems . ... However , due to the
irregularity or short cycle nature operations in these sectors , there are
problems in determining the physical characterisitics of the process which can
be the basis of condition monitoring systems , such as those being developed in
ESPRIT .
Goals
- Improved performance measurement for manufacturing operations in a wide
   variety of industries
- Improved and more predictable physical and environmental behaviour of
   products
- Improved quality control strategies
- Design rules for reliability and maintainability of components , structures
   and systems including machinery operating under varying conditions
2.2 PROCESS AND PRODUCT ASSURANCE
In many sectors there has been a concern expressed over limitations of
available process control and the means by which the product specified is
assured .     The control of processes may be limited by the understanding of the
process itself as in powder atomisation, or the availability of sensors to
measure and enable real time corrections to be made as in metal cutting or
meat processing .      In product assurance - non destructive evaluation - there
 ---pagebreak---                                    - 22 -
 are many problems in establishing the presence of significant defects such as
 might affect safe use as in ceramics for aero engine components , or customer
 satisfaction as in textiles .
 Sensors are key elements in controlling any process and their importance
 increases with scale and flexibility of the systems they are operating within .
 The exploitation of materials for application in sensors , and the reduction in
 the whole life costs of sensors are key objectives towards better
 competitiviness .    However, the development of small area and large area
 sensors , with built-in or chip signal processing , based on microelectronic
 related technologies , is covered by ESPRIT .
A promising area appears to be fibre optics sensors.' Potentially they are
cheap ,   attractive and capable of detecting many variables within hostile
environments    including  electromagnetic   fields .   There   can be problems ,
particularly when more than one variable changes .      This is a new technology
which is expected to be particularly suitable for measuring distance and
 liquid levels , and for fire detection .
The areas of testing, detection and inspection are well illustrated by the
developing technology of optical engineering . This has a number of very
attractive and industrially significant applications . However , in almost all
cases applied R&D , and even some more fundamental work , is required before
wide cost-effective operation is achieved .
As a technology holography is capable of meeting the motor industry 's needs
for tyre examination where current tests are inadequate . However , the process
is currently too slow and too expensive . There would be many applications for
structural and vibration testing if a breakthrough allowed the process to be
easily operated by a technician .
An outstanding technical problem for manufacturing industry is that many
precision manufacturing machines can work to a greater accuracy and rate than
the measurement capability which is typically manual .     Contactless in-situ 30
measurement and vision systems , such as those developed in other Community
programmes , are attractive tools to overcome the problems to solve most of the
weaknesses in tracking technology .       Therefore the use of those innovative
systems for testing and monitoring of products and processes based , for
example , on ultrasonic measurement techniques must be a target of the
programme .
A further important aspect of control technology concerns power control
engineering , that is the ability to control the energy flow in industrial
processes and machines for speed or position as in electric motores used in
metal cutting machinery .     It is at the base of advances in automation in all
kinds of industry . Though there were strengths in the past , European and US
manufacturers are now losing market share against Japan .     It is essential for
the European manufacturers of process and production machinery to have access
to the most suitable technology .      Advancing this technology in Europe will
depend on close co-operation between producers and users exploiting advanced
materials and IT techniques .
 ---pagebreak---                                  - 23 -
Goals
- Reduction of whole life costs of sensor systems for process control
- Exploitation of materials properties for applications in sensors
- Use of advanced measurement techniques for more cost effective examination
  of topology
- Improved energy control for industrial applications
- Improved non destructive testing methods for product assurance
              i
 ---pagebreak---                                     - 24 -
                   3 . APPLICATION OF MANUFACTURING TECHNOLOGIES
 In this area the task is to identify and address the needs of manufacturing
 industry and particularly - the less advanced sectors , many of which have a
 major part made up of SMEs .    It is to be expected that modelling of physical
 processes will be a valuable instrument for progress .     Also addressed is the
 challenge to the industries based on the use of flexible materials . . Overall
 the work will mainly focus on product and process development transferring
 and adapting technology already used in other sectors . This should complement
 work in ESPRIT where IT systems for advanced manufacturing and CIM are being
 developed .
 3.1 ADVANCING MANUFACTURING PRACTICES
 There is a need to apply the principles of the best manufacturing practices
 already established in the leading sectors to others which have been slow to
 exploit the benefits that can be obtained in terms of business performance .
 Those sectors most likely to gain will include a high proportion of SMEs and
 have limited research and development capabilities themselves and so be
 dependent on the expertise and experience of other sectors .
 The challenge is to identify common opportunities relevant to a significant
number of companies in the Community and then , in conjunction with those
 having relevant expertise and / experience , to develop th® manufacturing
processes which will enable them to improve the services they give their
 customers .
Modelling is essential in many areas of interest to established industries ,
such as the filling of complex injection moulds , particle formation in
atomisers , positioning of sensors in condition monitoring systems , noise
generation in machinery or the design of composite materials . However ,
modelling projects can only be justified in applied R8D when their application
would be used as an effective industrial tool .             ’* ■
Goals
- Identifying means for improving manufacturing practices in specific sectors
- Transfer and adaptation of technology already used in other sectors
3.2 MANUFACTURING PROCESSES FOR FLEXIBLE MATERIALS
This activity addresses the challenge to the industries based on the
processing and use of flexible materials including textiles , leather, non
woven products , composites and packaging materials . Their importance is well
illustrated by the Community 's textile and leather related industries where
some 3.5 million people are employed .
The clothing industry illustrates the problems of these industries .          Its
manufacturing processes deliver very large batches of similar products , but
often at a price not competitive with the rest of the world .     The long runs >
high stocks and long lead times are no longer applicable to today 's markets
where the competition is worldwide .      Clothing retailers have to be able to
carry the right amount of the latest style .      No longer is it acceptable to
have the lead times of 6 months or even longer characteristic of many of
today 's clothing manufacturers , to go from design through selection of fabric ,
cutting, assembly and batch preparation . Uncertainties associated with long
lead times result in considerable waste at all stages of the process , from
 ---pagebreak---                                   - 25 -
ordering of too much raw material , through high work in progress to unsold
stocks of finished goods .     The challenge for the textile suppliers is to
provide short delivery of small batches having reproducible dyes , finishes and
properties .
In the clothing industry about 80X of production comes from SMEs ,      many of
which have limited technical capabilities .        The . transfer and further
development of technology already used in other sectors is seen as an
important means of meeting their needs . Where appropriate , prototype
developments might be demonstrated to potential users to keep them informed of
emerging technologies .
 Though the clothing industry has been used to illustrate the R8D
opportunities , there is much in common with other , but quite different ,
 applications in the physical, processes involving flexible materials used in
 the     packaging , meat processing and composite material manufacturing
 industries .
 Goals
 ~ Increased process f        ty
 - Reduce waste of asternal
 - To improve process aru producí quolity
 ---pagebreak---                                        - 26 -
                      4. TECHNOLOGIES FOR MANUFACTURING PROCESSES
   Improved techniques for shaping, joining and assembly, surface treatment ,
   chemical processes and particle technology are fundamental needs for industry .
  Advancement of these processes is essential for securing manufacturing
  competitiveness .
  4.1 SURFACE TECHNIQUES
  Surface treatments vary considerably in nature and are applied across industry
 to a very wide range of materials for a wide variety of reasons , including
 improving resistance to wear , corrosion and high temperatures . In the case of
 corrosion it has been estimated that the costs of its prevention and effects
 amount to about 4% of Gross National Product in industrial countries .      Similar
 figures can be given for wear .     Such information indicates the scale of the
 problem,     although the scope for cost-effective amelioration may be
 considerably less .
 In almost all surface treatment systems ,         quality assurance , condition
monitoring in service and control of the treatment process are very weak
areas .     For example , there are no satisfactory tests for the adhesion of
coatings or coating quality in general .             Because of the . variety of
applications , materials and environments , research work on a surface system
has to be applications driven and recognise that there can be major problems
in scaling up laboratory scale techniques .
The selection of the best system should be assisted by the increasing emphasis
on the understanding of the degradation of materials . This requires the
synergistic appreciation of environmental , stress and ageing issues . With a
better understanding of the way in which surface systems behave , it should be
possible to model systems to optimise selection .      With some exceptions , such
as in parts of the process industry, it is unlikely that existing knowledge is
sufficiently complete to support the use of expert systems which would bring
enough benefit to others to justify their development costs .       Development of
such a knowledge here , but not the mere collection of data , should be a
further topic for development .
Overall this is an area where collaboration is needed to bring complementary
expertise together and to ensure that equipment suppliers and users , which
include many SMEs , are able to integrate the different technologies into
cost-effective applications making use , as appropriate, of the advanced
information handling technologies developed elsewhere .
Goals
- Cost-effective surface treatments for industrial applications
- Techniques    for quality assurance and control   of   the treatment process
4.2 SHAPING, ASSEMBLY AND JOINING
Technologies for shaping ,        assembly and joining are fundamental to
manufacturing industry .      Many of these technologies are regarded as mature
with scope for development being limited to changes necessary for their
incorporation into computer integrated manufacturing systems .      However , ever
increasing demands for improved performance including high precision and
faster operation , and the availability of more advanced materials both to be
treated and also for use in the treatment process , challenge conventional
practice .
 ---pagebreak---                                   - 27 -
As the programme progresses the need to improve methodologies for shaping
processes and assembly will be developed .     For this purpose shaping is taken
to mean component processing techniques including forging , moulding and
cutting and particularly those approaching near net shape .
 In the area of joining , besides meeting more stringent technical requirements ,
an overriding priority is to reduce fabrication costs in all the major
 industrial areas , e.g. power generation , process plant , petro chemical ,
offshore hydrocarbon extraction ,         transportation ,   civil engineering ,
automobiles and construction plant .     For example , manual metal arc welding ,
whilst offering considerable flexibility and tolerance in use , has low
productivity and is being progressively replaced in many applications by
alternative and particularly more automated processes such as those being
developed in ESPRIT which include seam tracking , adaptive control and sensing
when geometrical changes occur in the joint . These technologies are equally
applicable to adhesive bonding .
Adhesive bonding , in addition to providing an alternative to welding , has
opened up new approaches to joining , particularly suited to the assembly stage
and the joining of dissimilar materials .        Improvements in the speed and
control of curing , together with wider operating temperature ranges would be
welcome .
An associated problem to joining is the limited reliability of the non
destructive inspection methods used to evaluate the weld soundness and its
behaviour in service , an area where physical principles require development to
allow better reliability of results and service predictability .
In certain manufacturing industries , where there is a large throughput of
repetitive fabrication , the use of friction welding or the power beam
processes such as electron beam and laser may be practicable and economic but
their inflexibility ,     high capital costs and often poor stability and
reliability outweigh their general use .                 •
In the case of laser systems for materials processing, the laser itself is of
low efficiency and often there is poor conversion efficiency at the workpiece
where there is little understanding of the interaction of the beam with the
target .
Lasers are suited  to a limited range of applications and it is important that
research reflects  their needs .   This will pull together the eventual users -
to ensure that     a cost-effective solution can emerge - with potential
manufacturers and  the reservoirs of expertise in research organisations .
Goals
- Improved methodologies for shaping processes and assembly
- Improved joining techniques to improve reliability and reduce defect levels
- Methods for testing welded and bonded joints to improve reliability of
   results and service predictability
- Design methodology for joining
- Better understanding of beam /workpiece interactions for industrial power
   beam processes
 ---pagebreak---                                     - 28 -
 4.3 CHEMICAL PROCESSES
 There are many aspects underpinning the effectiveness and usefulness of
 chemical manufacture which will only result if there is collaboration between
 chemical manufacturers , users and suppliers of new technology or expertise .
 Improved predictability of chemical reactions          will help in optimising
 specificity, safety and energy conservation . This    is a vital area where tools
 can be of wide applicability but where, as in          the case of chemical and
 electrochemical sensors , the European industry is    under considerable pressure
 from Japan and the USA .
 The effectiveness of many chemical reactions depends on the use of catalysts .
 The supply is generally local and Europe is generally strong but needs to
 maintain and improve its position . ' Most catalysts are of high specificity and
 so their development is generally inappropriate for collaborative research .
 There are , however , . basic problems related to the performance of catalysts
such as poisoning which , if solved, would underpin the competitive edge of the
 European catalyst manufacturers and users .
Separation technologies are vital elements of many industrial processes .       In
addition to opportunities to develop operating efficiency , the incentive for
new technology in this area may come from a cost effective response to
environmental pressures such as those associated with effluent control . Though
many separation processes are of importance , membrane technology is currently
identified as having a particular potential for development .
In the face of strong competition , Europe has been slipping behind in membrane
innovation .     In terms of installed capacity, desalination is by far the
largest application area .      The size of the world market for membranes is
estimated to be about 400 mio ECU / year .   This is likely to grow significantly
in the future as new applications for membranes are identified, such as gas
f i Itration .                                            •
New membranes are very expensive to develop and, for some types, can typically
take up to 10 years . Few users are willing to make such an investment ,        so
development is left to the membrane makers .      Many of these are unwilling to
make such long term and high risk investments . Development tends to be highly
experimental reflecting the poorly categorised media to be processed and the
very limited understanding of membrane separation processes .
Membrane processes often have to trade off separation efficiency against flux
rate .     Rarely does a membrane behave in the anticipated way and fouling
problems can severely limit life .     There is considerable scope for optimising
the design of the membrane systems , such as to enhancing turbulence at the
membrane surface and also techniques to inhibit fouling .
Goals                                                                       .
-  Improved predictability and yield in chemical processes
-  Membrane materials with improved characteristics
-  Improved performance of membrane processes
-  New systems for separation in hostile environments
 ---pagebreak---                                    - 29 -
4.4 PARTICLE AND POWDER PROCESSES
Particles , whether in the form of powders , dusts , gaseous or suspensions , or
porous media , are found in almost every area of manufacturing industry .
Problems with their production , separation , stability and categorisation limit
their application in both quality and quantity , such that alternative and much
more expensive solutions have to be employed .
In general , the Japanese are in the lead on the novel approaches to particle
production and application .     Europe, like the US , has its strengths but has
not been so good at bringing together complementary expertise to tackle common
problems .    There is a need to bring together the complementary expertise from
the different interests - the material suppliers , the users , the instrument
makers ( often small specialists ), the process plant manufacturers and the
innovators from universities and research organisations .
There is a series of common problems which are found in many very different
particle systems and these include the inability to fully categorise particles
- not only in-process but also for batch sampling .           There is also poor
efficiency and size control within many conventional processes - such as
milling and classification .     There are also many problems in maintaining even
flow and distribution in the flow of powders and suspensions .             Serious
difficulties also arise when separating suspensions , particularly at high
temperatures or when the medium is of high viscosity .          In contrast , the
improved stability of colloids ,          including micro-emulsions ,    would be
advantageous in many sectors .
The scale of the powder technology industry is illustrated by the level of
production in the US - about 270,000 tonnes (of which 200,000 tonnes is
stainless steel ) per year valued , in parts and products , at about 2 billion
ECU .    Japan and Europe produce about 1 billion ECU each . The value is
illustrated by the value of steel semi-finished powder and metallurgical
components being between 20-50 ECU / kilo , while ceramic powde.r parts can cost
2000 ECU / kilo .
Overall it is an area where international competition is very strong , driven
in part by the requirements and spin-offs , such as vacuum technology , from the
space programmes .     Though not in the lead overall , Europe has strengths in
some  process areas .
There are a number of areas , such as aero and automative engines , magnets ,
tools steels and electronic materials , where advanced powder materials could
meet industrial requirements , though in each the technology is limiting the
achievement of potential benefits .
Better products will come from improvements in      powders and their processing .
There is sufficient understanding of the powder    categorisation and the physics
and chemistry of the processes involved but , to   date , there has been a limited
application of modelling techniques to address      the problems .    It is likely
that modelling techniques could assist in improving the performance of powder
production ( for example , the yield of atomisers is typically around 60% ),
pressure transmission in compaction , and sintering . The high capital cost of
powder production and processing equipment makes the need for an improved
understanding of the processes necessary .
 ---pagebreak---                                  - 30 -
 For the future ,    the competitive edge will reflect advances in process
techniques to supply and compact smaller quantities of high quality powder .
Movement in this direction would allow smaller companies to exploit the
potential of powder technology .
Goals
- Improved techniques for particle production to optimise product shape ,
   structure and stability
- Cost-ef fective techniques for particle catégorisation       and process
   performance
- Better approaches to handling and separation
- Cost effective routes for small lots of high quality powder
 ---pagebreak---                                   - 31
                                                                         ANNEX U
          OPINION OF THE MANAGEMENT AND COORDINATION ADVISORY COMMITTEE
                             ON INDUSTRIAL TECHNOLOGY
After having examined and discussed in depth the draft communication from the
Commission to the Council and to Parliament concerning a Research and
Technological Development Programme of the EEC in the fields of industrial
manufacturing technologies and advanced materials application ( BRITE / EURAM)
( 1989-1992 ), dated 3 May 1988 ( CGC-IT / 88 / 20) ;
After having been informed of the preliminary conclusions and recommendations
expressed by the panel of external experts in charge of the evaluation of the
on-going BRITE programme ( 1985-1988);
The Management and Coordination Advisory Committee on Industrial Technology
delivered the following opinions and suggestions at its meeting on 30 May
 1988 .
 The Committee having had a joint meeting with the CGC - Raw Materials and
 Other Materials :
 - subscribes to the general approach proposed for the new programme and
    recognises the relevance of 'the objectives set out in it , in particular
    subscribes to the importance of the possibility of inclusion of Focussed
    Fundamental Research in all areas of the programme ;
 - approves the scientific and technical content of the new programme ,      which
    comprises four technical areas : advanced materials technologies , design and
   assurance of products and processes , manufacturing systems and technologies
    for manufacturing processes ;
 -   recommends that the draft programme be approved and adopted by the
    Commission in good time for the Council decision to be taken within the
   deadline needed for its implementation from 1 January 1989;
 - recommends that 500 mio ECU should be made available for the implementation
   of the programme .
 ---pagebreak---                                      - 32 -
                                                                               ANNEX C
                  OPINION OF C6C RAW MATERIALS AND OTHER MATERIALS
 After having examined and discussed in depth the draft communication from the
 Commission to the Council and to the Parliament concerning a Resarch and
Technological Development Programme of the EEC in the fields of industrial
manufacturing technologies and advanced materials application ( BRITE / EURAM )
 ( 1989-1992 ), dated 3 May 1988 ( CGC-IT / 88 / 20 );
After having been informed of the preliminary conclusions and recommendations
expressed by the panel of external experts in charge of the evaluation of the
on-going BRITE ( 1985-1988 ) and EURAM ( 1986-1989 ) Programmes ;
The Management and Coordination Advisory Committee on Raw Materials and Other
Materials delivered the following opinion and suggestions at its meeting on 30
May 1988 .
The Committee , having had a joint meeting with the CGC-Industrial Technology :
- subscribes to the general approach proposed for the new programme and
    recognises the relevance of the objectives set out in it ;
- approves in general the scientific and technical content of the new
    programme , which comprises four technical areas : advanced materials , design
    and assurance of products and processes ,              manufacturing systems and
    technologies for manufacturing processes ;
- recommends that the Commission , after consultation with the CGC , should take
    into account   the  conclusions of the       above mentioned evaluations    in the
    implementation of the programme ;
- recommends that the amount set aside for focussed fundamental research could
    be increased to as much as 20% of the total budget in each research area
    when it appears necessary , for progress to be made ;
- recommends tht the Commission be flexible in its approach to modalities so
    that the programme will be seen as dynamic and capable of adapting to meet
    the changing needs of the Community .              It further recommends that the
    CGC-Materials be consulted at regular intervals in this regard ;
- recommends that the BRITE / EURAM Programme should not overlap with other
    Community programmes and , in particular , with ESPRIT and SCIENCE in the area
    of superconductivity ;
- recommends that a minimum of 500 mio ECU should be made available for the
    implementation of the programme ;
- recommends that the draft programme be approved and adopted by the
Commission in good time for the Council decision to be taken within the
    deadlines needed for its implementation from 1 January 1989 .
A majority of the delegations of the CGC recommended that the participation of
universities and similar organisations in any project of the BRITE / EURAM
Programme should be financed up to 100% of their marginal costs .
The CGC welcomes the technical balance of the programme .            It notes that the
Commission proposes to strengthen the proposal by reference to the technical
comments of the CGC .
 ---pagebreak---                                            - 33 -
                                           PROPOSAL FOR
                                       A COUNCIL DECISION
    ADOPTING A SPECIFIC RESEARCH AND TECHNOLOGICAL DEVELOPMENT PROGRAMME OF THE
                         EUROPEAN ECONOMIC COMMUNITY IN THE FIELDS
                       OF INDUSTRIAL MANUFACTURING TECHNOLOGIES AND
                       ADVANCED MATERIALS APPLICATIONS ( BRITE/ EURAM)
                                           ( 1989 - 1992 )
   THE COUNCIL OF THE EUROPEAN COMMUNITIES,
  Having regard to the Treaty establishing the European Economic Community and ,
  in particular , Article 130 Q C2 ) thereof .
  Having regard to the proposal from the Commission^
  In cooperation with the European Parliament2,
  Having regard to the opinion of the Economic and Social Committee3,
 Whereas Article 130 K of the Treaty stipulates that the Framework Programme
  shall   be   implemented through         specific     programmes developed within each
 activity ;
                                                         4
 Whereas by its Decision 87/ 516/ Euratom. EEC ,                   the Council has adopted a
  framework programme of Community research and technological development ( 1987
 - 1991 ) providing for activities in the field of science and technology for
 manufacturing industry and advanced materials ;.
  Whereas that Decision provides that a particular aim of Corrmunity research shall be to
 strengthen the scientific and technological basis of European industry and to
 encourage it to become more competitive at the international level and that
 Community action is justified where research contributes inter alia to the
 strengthening of the economic and social cohesion of the Community and the
promotion of its overall harmonious development , while being consistent with
the pursuit of scientific and technical quality ; whereas it is intended that
the BRITE / EURAM programme should contribute to the achievement of these
objectives ;
Whereas Council Decision 85/196/EEC 3 decided on a first multiannual research
and development programme for the European Economic Community in the fields of
basic technological research and the application of new technologies ( BRITE,
1985 - 1988 );
   0J N°
2 0J N°           , 0J N°
3 0J N°
4 0J N° L 302, 24.10.1987, p. 1
5
       N° L 83, 25.03.1985 , p. 8
 ---pagebreak---                                         - 34 -
     Whereas Council Decision 86/235/EEC^ decided on a research programme on
     materials ( raw materials and advanced materials ) ( 1986*1989 );
    Whereas it is necessary to react adequately to the interest shown by the
     industry in transnational cooperation ;
    Whereas it is necessary to involve small and medium-sized enterprises to the
    maximum extent possible in the development of industrial technologies by
    taking into account their particular and specific requirements while
    respecting the objective of the scientific and technical quality of the
    programme ;
    Whereas it is necessary to underline the industrial and transnational nature
    of the programme by requiring applied research projects with at least two
    industrial partners from two different Member States ;
    Whereas it is necessary to ensure the industrial nature of the programme by
    requiring focussed fundamental research projects with industrial endorsement
    from at least two independent enterprises ;
    Whereas the participation of organizations from EFTA countries in
    industrially-oriented R S D projects, under appropriate conditions , may
    contribute to the competitiveness of manufacturing industry as a whole ;
 ' Whereas it is in the Community 's interest to consolidate the scientific and
    technical basis of European research by means of the involvement to a greater        •
    extent of the EFTA countries in certain Community programmes, particularly in
, programmes involving cooperation in research and , development of basic
    industrial technologies including advanced materials; .
   Whereas the implementation of concerted actions in the COST framework is an
   essential element to complement industrially-oriented R & D projects ;
   Whereas the     Scientific and   Technical Research   Committee    ( CREST ) has been
   consulted on the following measures ,
   HAS ADOPTED THIS DECISION :
                                         ARTICLE 1
   A specific research and technological development programme for the European
   Economic Community in the fields of industrial manufacturing technologies and
   advanced materials applications , as defined in Annex I , is hereby adopted for
   a period of four years , from 1 January 1989 .
                                         ARTICLE 2
   The funds estimated as necessary for the execution of the programme amount to
   439,5 Mio ECU ,including expenditure on staff whose cost shall not exceed 4,5
   Z of the Community contribution .
                                         ARTICLE 3
   1 . Detailed rules for the implementation of the programme and the. rate of . the
        Community 's financial participation are set out in Annex II .
  6
      OJ No . L 159, 14.06.1986, p. 36
 ---pagebreak---                                     - 35 -
                                  ARTICLE   4
 1 . In the third year of the programme implementation the Commission shall
     undertake a review of the programme and report to the Council and to the
      European Parliament on the results of this review, together , if necessary ,
     with any proposals for modification or prolongation .
 2 . An evaluation of the results achieved shall be conducted before the end
     of the programme by the Commission which shall report thereon to the
     Council and the European Parliament .
3 . The abovementioned reports shall be established having regard to the
     objectives set out in Annex III to this Decision and in conformity with
     the provisions of Article 2(2 ) of the Framework Programme .
                                  ARTICLE   5
1 . The Commission shall be responsible for the execution of the programme
     and shall be assisted in its implementation by the Management and Co¬
     ordination Advisory Committee ( CGC ) on Industrial Technology, set up by
     Council Decision 84 / 338, Euratom , ECSC , EEC .
2.     The contracts entered into by the Commission shall regulate the
       rights and obligations of each party , including the methods of
       disseminating , protecting and exploiting the research results .
                                  ARTICLE   6
1 . Where Framework Agreements for scientific and technical cooperation
     between non-Community European countries and the European Communities
     have been concluded , organizations and enterprises established in those
     countries may, under appropriate conditions to be defined by the Com¬
     mission , become partners in a project undertaken within the programme .
     For each such project , the Committee referred to in Article 5 shall
     assist the Commission in defining those conditions .
  T
     OJ No L 177, 4.7.1984, p.25
 ---pagebreak---                                   36
?. No contractor established outside the Community who uart i r ipa f es as a
   partner in a project undertaken within the programme shatl be entitled to
    Community financing intended for the programme .         The contractor will
   contrioute to general administrative expenses .
                                    ARTICLE 7
Tne Commission shall ensure that procedures are set up to allow for
anpropriate cooperation with COST activities related to the areas of research
cohered by the programme ,    by    ensuring regular exchanges of information
between   the Committee  referred   to  in  Article   5  and  the   relevant COST
Management Committee .
                                    ARTICLE 8
This Decision is addressed to the Member States .
Done at
                                                  For the Council ,
                                                   The President .
 ---pagebreak---                                    - 37 -
                                                                         ANNEX t
                                  TECHNICAL ANNEX
1.  ADVANCED MATERIALS TECHNOLOGIES
    The work in this area will focus on the development of improved or new
    materials      and material processing for a wide range of possible
    applications except those directly related to IT covered in ESPRIT .
     Including in particular :
     - 1.1 . Metallic Materials and Metallic Matrix Composites
             Goals
             - Extended working life of components
             - Higher operating temperatures for increased thermal efficiency
             - Better and more effective material processing techniques
       1.2 . Materials for Magnetic ,   Optical , Electrical and Superconducting
             Appications
             Goa I
                 Improved materials and materials processing for optical ,
                magnetic , electrical and superconducting applications
       1.3 . High Temperature Non-metallic Materials
             Goals
             - Design methodologies for products based on ceramics , glasses and
               amorphous materials
             - Improved monolithic and ceramic composites and metal / ceramic
               interfaces for industrial applications
             - Better processing techniques and quality control strategies
       1.4 . Polymers and Organic Matrix Composites
             Goals
             - Development of polymers for specific applications
             - More cost effective process techniques for parts made from
               polymer and polymer matrix composites
             - Design rules for the specification and manufacture of
               engineering polymers and composites
             - New polymers with improved recycling attributes
             - Improved product assurance techniques
 Developments of materials already covered by ESPRIT are , for instance ,
 dealing with magnetic , magneto-optical , optical thin films for sensors ,
 recording media and heads , optical layers and specific materials for
 opto-electronics , ceramics and polymers for IC packaging and specific
 substrates , superconducting thin films for low current applications and
 devices .
 ---pagebreak---                                        - 38 -
•      1.5 .    Materials for Specialised Applications
                Goal
         .      - Improved materials and their processing for specialised'
                  applications
 2.  DESIGN METHODOLOGY AND ASSURANCE FOR PRODUCTS AND PROCESSES
     The development of techniques to improve product quality and the
     reliability and maintainability of structures and manufacturing systems
     by clarification of the design aims for both product and process , and by
     refinement of the criteria against which the attributes are measured .
     The exploitation of materials for application in sensors , and the
     reduction in the whole life costs of sensors are also included in this
     section .       This will complement work in Community IT programmes ,  where
     on-line      control   is  treated,    including monitoring and diagnostics ,
     prédictive maintenance and quality assurance .
     Including in particular :
      2.1 .    Quality and Reliability and Maintainability in Industry
               Goals
             ' - Improved performance measurement for manufacturing operations in
                  a wide variety of industries
               - ImprPved      and more predictable physical and environmental
                  behaviour of products          ■    *
               - Improved quality control strategies
               - Design rules for reliability and maintainability of components ,
                  structures and systems including machinery operating under
                  varying conditions
      2.2 .    Process and Product Assurance
               Goals
               - Reduction of whole life costs of sensor systems for process
                  control
               - Exploitation of materials properties for applications in sensors
               - Use of advanced measurement techniques for more cost effective
                 examination of topology
               - Improved energy control for industrial applications
               - Improved non-destructive testing methods for product assurance
3.  APPLICATION OF MANUFACTURING TECHNOLOGIES
    Here the task is to identify and address the needs of manufacturing
    industry and particularly the less advanced sectors , many of which have a
    major part made up of SMEs .          It is to be expected that modelling of
    physical processes will be a valuable instrument for progress .           Also
    addressed is the challenge to the industries based on the use of flexible
    materials .          The work will mainly focus on product and process
    development , transferring and adapting technology already used in other
    sectors .        This should complement work in ESPRIT where IT systems for
    advanced manufacturing and CIM are being developed .
 ---pagebreak---                                  - 39
   Including in particular :
    3.1 .  Advancing Manufacturing Practices
           Goals
           - Identifying means for improving manufacturing practices in
              specific sectors
           - Transfer and adaptation of technology already used in other
              sectors
     3.2 . Manufacturing Processes for Flexible Materials
           Goals
            - Increased process flexibility
            - Reduce waste of material
            - Improved process and product quality
4.  TECHNOLOGIES FOR MANUFACTURING PROCESSES
    Improved techniques for shaping , joining and assembly, surface treatment ,
    chemical processes and particle technology are fundamental needs for
    industry .     Advancement of these processes is essential for securing
    manufacturing competitiveness .
    Including in particular :
     4.1 .  Surface Techniques
            Goals
            - Cost-effective surface treatments for industrial applications
            - Techniques for quality assurance and control of the treatment
               process
     4.2 .  Shaping , Assembly and Joining
            Goals
            - Improved methodologies for shaping processes and assembly
            - Improved joining techniques to improve reliability and reduce
               defect levels
            - Methods for testing welded and bonded joints to improve
               reliability of results and service predictability
            - Design methodology for joining
            - Better understanding of beam /workpiece interactions for
               industrial power beam processes
 ---pagebreak---                                  40
 4.3 .   Chemical Processes
        Goa l s
        - Improved predictability and yield in chemical processes
        - Membrane materials with improved characteri st ics
        - Improved performance of membrane processes
        - New Systems for séparation in hostile environments
4.4 .  Particle and Powder Processes
       Goals
       - Improved techniques for particle production to optimise product
          shape , structure and stability
       - Cost-effective techniques for particle catégorisation and
          process performance
       - Better approaches to handling and separation
       - Cost-effective routes for small lots of high quality powder
 ---pagebreak---                                  - 41 -
                                                                          ANNEX II
                                  RULES FOR THE IMPLEMENTATION
Participants may be industrial organizationss , research institutes and
universities , established in the Community . The Community contribution shall
not normally exceed 50% of total expenditure, the remainder in principle to be
provided by the industrial participants .          Industrial participants shall
include any research institute which is funded entirely or mainly by
industrial organisations .
Industrial Applied Research
The principal form of support for industrial applied research of a
pre-competitive character wilt be through cost shared action . The conditions
for participation will be .that in each project there will be 50 % financing
from industrial partners and at least two legally independent industrial
enterprises from different Member States per project .      To be classified as an
independent enterprise , research organisations should normally receive the
industrial 50 % in direct payments from nominated companies involved in
steering the project .
Recognising the important role of SMEs in developing the manufacturing base of
the Community and the merits of their participation in the programme , the
Commission is considering , in conjunction with IRDAC , how best research
organisations can act within the programme as a focus for meeting the R & 0
needs of SMEs . Projects should include at least 10 man years of activity , the
realistic minimum for an effective collaborative project , and the total
project costs should fall in the range 1-3 mio ECU .               Subsidaries of
multinational companies based outside the Community may participate if the R &
D and exploitation takes place within the Community .
Focussed Fundamental Research
Focussed fundamental research projects shall involve at least two partners
established in different Member States . When the partners are universities or
research institutes , the project should be endorsed by at least two legally
independent industrial enterprises and the Community could bear up to 100% of
the marginal costs of such partners . Projects should include at least 10 man
years of activity and fall in the range of 0.4 to 1 mio ECU total project
costs .
Feasibility Awards for SMEs
The Commission will introduce a pilot scheme of Feasibility Awards aimed at
assisting SMEs establish the feasibility of a device , process or concept as a
means of enhancing their stature in finding a partner in a subsequent call for
proposals under the shared cost action .     The Commission will support up to 75
% ( maximum 25.000 ECU ) of the cost of research lasting up to six months . High
standards of evaluation will ensure that the awards are highly competitive and
recognised as prestigous .      This scheme will be co-financed by the Task
 Force SME .
 ---pagebreak---                                  -4Z -
Coordinated Activities
In cases where work , supported by national funds or entirely privately funded
is already going on , the Commission 's role may be limited to simply organising
the coordination of the work and the Community funding confined to covering
the cost of such coordination activities .    However , in certain cases where it
is clear that strategically       important work requires more than simple
coordination ,  the Commission could,     in consulation with CGC ,    consider a
higher Community funding .
 ---pagebreak---                                     - 43 -
                                                                         ANNEX III
                           PROGRAMME EVALUATION CRITERIA
The results against which the programme should be evaluated must reflect its
objectives and the wider objectives of the Framework Programme .
1.   As the principal objective is to enhance the competitive position of the
     Community 's manufacturing industries , the evaluation should determine :
          the extent to which the projects were selected against credible and
          measurable industrial criteria ;
          the     extent to which substantial product or process development has
           resulted from the work supported .
2.   A further objective is to encourage transfrontier collaboration            in
   ' strategic industrial research . The evaluation should determine :
          to      what extent , before and after project completion, there were
          continuing links between partners for research , -development ,
          manufacturing, marketing or staff formation .
3.   A further programme objective is to encourage transfer of technology
     across Community frontiers and between sectors , particularly those with a
     high predominance of SMEs . The evaluation should determine :
     - the extent to which SMEs have exploited technologies and new materials
        arising from successfully completed projects ;
     - the     extent to which accomplishments are protected by patent action or
        are disseminated to     raise  awareness  in the   European  research and
        technology community .
4.   In the wider context of the Framework Programme,       the evaluation should
     determine :
     - the extent to which the projects have contributed to the harmonisation
         of the Community by reducing the technical barriers to trade .
The evaluation will be undertaken by independent evaluators .
 ---pagebreak---                                         - 4V-
                                  III . FINANCIAL RECORD
 Research and Technological Development programme of the EEC in the field of
 industrial manufacturing technologies and advanced materials applications
 ( BRITE / EURAM ) .
 1 . Relevant budget heading
       Chapter 73 - Item 7332 - BRITE - EURAM
2 . Legal basis
       EEC Treaty Article 130 Q § 2
3 . Description and justification of the programme -
      This integrated programme is one of the components of the Framework
      programme for Community activities in the field of research and
      technological development ( 1987 - 1991 ) and is included in it under the
      headings :
      - science and technology for manufacturing industry ( 3.1X300,0 Mio ECU );
      - science and technology for advanced materials ( 3.2 ) ( 139,5 Mio ECU ).
      The programme addresses industrial organizations , research institutes and •>
      universities ; special considerations will be given to projects involving
      SMEs , in order to ensure their adequate participation in the programme .
      It has been widely agreed that research in manufacturing technologies is an
      essential element for the competitiveness of community manufacturing
    : industry .     The Community can assist in increasing the competitiveness by
      stimulating cooperation       in industrial      oriented research at the
      precompetitive stage across the frontiers , between different industry
      sectors and between industry,            research institutes and academic
      institutions .
      The programme also contributes to the competitiveness of established and
      new industrial sectors in developing high-quality advanced materials , as _
      well as improved processing techniques for manufacturing them .
      Another purpose is to increase the level of cooperation between
      laboratories of different Member States and, in particular, to offer the
      opportunity to laboratories from all Member States to participate actively
      in a broader materials science and technology programme .
      The programme covers the following fields :
      -  Advanced materials technologies
      -  Design methodology and assurance of products and processes .
      -  Application of manufacturing technologies
      -  Technologies for manufacturing processes .
4 . Type of expenditure
      a.   The major part of the expenditure will be committed through cost shared
           contracts .
                                                                                 ЧЧ
 ---pagebreak---                                  - 4$-
b.   In some areas of materials development industrial progress is hindered
     by weakness in basic science .    Hence , up to 20 X of the budget for the
     materials field will be made available for such focussed fundamental
     research . Transnational cooperation would be requi red but partners
     would not need to include an independent enterprise .         However , to
     ensure the industrial focus , there should be an industrial endorsement
     by nominated individuals from at least two independent enterprises .
     Each would be required to commit at least two days per year in steering
     the project . Projects should include at least 10 man years of activity
     and fall in the range of 0.4 to 1 mio ECU total project costs .
c.   The Commission is also introducing a pilot scheme of Feasibility Awards
   * aimed at assisting SMEs establish the feasibility of a device , process
     or concept as a means of enhancing their stature in finding a partner .
     The Commission would support up to 75 X of the cost of research up to
     25.000 ECU lasting up to six months .        The Task Force SME will also
     support the first call of this pilot scheme of the Feasibility Awards .
     The financial support anticipated for 1989 by the Task Force SME is
     500.000 ECU .
d.   Part of the total budget will be spent on coordinated actions .
e.    In addition ,    demonstration projects will be supported .           Their
     modalities will be determined as projects within the first BRITE and
     EURAM programmes near completion .
 ---pagebreak---                                                 - 4'6-
5 . Financial inoli cations
                                         Aopropr iat ions for commitment ( MECUS )
                            I          I             I           I         1           II                 I
                           I    1989   I 1990        I  1991    1   1992   I   1993 * II      TOTAL       I
                           I          I              I          1          I           II
                          I1          II
                                      1
                                                               I1         I1           II                I1
    Personnel            1       4,0  1     4,9 1         5,1 1       5,4 1     -      II    1 9, 4      1
    Acinini st rat ion   I       1,3 1      2,9 1         3,4 1       3,5 1     -     II     11,1       1
    Contracts            I     69,9  1 ioo,i I         113,9 1      125,1 I     -     II    409,0       1
                         I           1                        1           I           II                1
                         '    **
                                     1                        1           I                             1
    TOTAL                1     75,2  1 107,9 I         122,4 1      134,0 I     -     II    439,5       1
                         1           1                        1           I           II                1
                                         Appropriations for payments ( MECUS )
                       1       1989      1990      I   1991         1992      1993 * I I     TOTAL     I
                       1                          I                                   II
                       1                           I                                  II               I
   Personnel           1         4,0        A, 9 I        5,1        5,4                       19 , 4 I
   Administration      1         1,3        2,9 I         3,4        3,5              II  .    11 , 1 I
   Contracts           1       18,8        45,5 I        75,1      100, 7    168,5    Μ      40 9,0   I
                       1                          I                                   II              I
                       1                          I                                   II              I
   TOTAL               1       24,1        53,3 I       8 4,0      109,6     16 8,5   II     439,5    I
   * = 1993 and following years
 ** = In order to cover the personnel and administration expenses , 2.8 mio ECU
        have been incorporated within the " old BRITE " budget , but to be
        reallocated with the " BRITE-EURAM " budget as soon as it is approved
                                                                                                            4*
 ---pagebreak---                                       -Hf-
           IV . COMPETITIVINESS AND EMPLOYMENT IMPACT STATEMENT ON SMEs
1 . The main reason for introducing the measure
    The programme is aimed at promoting collaborative technological research to
    enhance the precompetitive position of the Community 's manufacturing
    industries , in particular SMEs .      An important purpose of this European
    Community programme      is  to bring     together complementary  research of
    industrial firms , research institutes , universities and other organizations
    from different countries in the Community through transnational
    cooperation .
2 . Features of the business in question
    The programme is directed at European manufacturing industries where there
    is a need to improve technology in order to enhance competitive
    performance .
    This programme has been preceeded by the first BRITE programme with two
    calls for proposals , 1985 and 1987, and the EURAM programme with a call for
    proposals in 1987 .
    In the BRITE programme , a total of 939 proposals with transnational
    cooperation , involving 3.969 participants , were received by the Commission .
    205 projects are now being supported : 60 % of the participants are from
    industry , 21 % from research institutes and 19 7. from universities .
    The participation of SMEs in the BRITE programme increased from 30 X of
    industrial participants in the first round to 42 X in the second round .
    Consequently 50 X of projects included at least one SME in the first round
    increasing to 65 X for the second .
    EURAM had only one call for proposals in 1986 .      The Commission received a
    total number of 298 proposals with transnational cooperation involving 904
    individual partners . After the selection procedure 84 projects involving
    302 partners were retained with an average partnership of 3 .
    The participation of industry in EURAM was evident in a large proportion
    of the projects ; 44 7. of all partners involved came from industry, and
    included    a significant share of SMEs .
3 . Obligations imposed directly on business
    The BRITE and EURAM programmes have stimulated cooperation in manufacturing
    industry and universities at the European level which will contribute to
    the achievement of a Common Market , the unification of the European
    scientific and technological area by helping to break down the traditions
    of tight relationships within Member States and thus the more rational use
    of the research resources available .
    Obligations for participation in projects will         ensure and endorse the
    industrial nature of the BRITE / EURAM programme :
    a.  industrial applied research ( i.e. transnational cooperation,         50 X
        industrial financing ,      two independent industrial , partners     from
        different Members State per project );
    b.  focussed fundamental research ( transnational cooperation , two partners
        from universities or research institutes , endorsement by industrialists
        from at least two independent enterprises )
 ---pagebreak--- 4 . What indirect obligations are national ,        regional or local authorities
     likely to impose
    By implementing this draft council decision no action is required by
    national governments or local authorities .
5 . Are there any special provisions in respect of SMEs ?
    Feasibility Awards for SMES
    The Commission will introduce a pilot scheme of Feasibility Awards aimed at
    assisting SMEs establish the feasibility of a device, process or concept as
    a means of enhancing their stature in finding a partner in a subsequent
    call for proposals under the cost shared action .          The Commission would
    support up to 75 % of the cost of research up to 25.000 ECU lasting up to
    six months . High standards of evaluation will ensure that the awards were
    highly competitive and recognized as prestigous .
6 . What is the likely effect on :
    a . The competitiveness of business
        As the programme is aimed at precompetitive research , not leading
        directly to new commercial products or processes , there- will be no
        immediate effect on the competitiveness of businesses .
        In the longer term the programme is directed at improving the
        technological competences of European industry in general and of small
        and medium sized enterprises in particular . It must be pointed out that
        a number of projects in the programme deal with technical problems ,
        specific to SMEs .    The majority of the participants in these projects
        are SMEs .  The results of the projects , if successful , will be of real
        benefit to SMEs in the longer term .
        When a choice has to be made between projects of similar technical merit
        and likely industrial impact , preference will be. given to those projects
        involving SMEs .
        The advantages for SMEs in participating in the programme is that all
        signatories to a contract are treated on an equal footing , so that even
        with a relatively small contribution to make , a contractor has the right
        of full access to the foreground information .
        As the technical work develops ,    dissemination of information about the
        research results will commence .
    b . On employment
        The effects on employment ( in as much as these can be measured ) of the
        programme are and will continue to be of an indirect and positive nature
        in the immediate term .      The first BRITE and EURAM programmes have
        already encouraged about 250 SMEs to participate in research and
        development projects thereby enhancing their technological capabilities
        and their international market prospects .     Without BRITE and EURAM such
        firms would not have the funds available for research activity on the
        scale   now   possible   nor   would   they   benefit   from  international
        collaboration .
                                                                                  H4
 ---pagebreak---                                       - 49 -
7 . Have the relevant representative organizations been consulted ?
    The Industrial Research and Development Advisory Committee ( IRDAC ), in
    which the European Trade Union Confederation ( ETUC ), the European Centre
    for Public Enterprises ( ECPE ), the Union of Industries of the European
    Community ( UNICE ) and the Federation of European Industrial Cooperative
    Research Organizations ( FEICRO ) are represented , has been consulted during
    the preparation of the new programme ,       and has been consulted on the
    technical subjects of the programme .
                                                                         H5