CELEX: 51987PC0666
Language: en
Date: 1987-12-02
Title: Amended proposal for a COUNCIL REGULATION (EEC) concerning the European strategic programme for research and development in information technologies (ESPRIT) (presented by the Commission pursuant to Article 149(3) of the EEC Treaty)

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COM (87) 666
Vol. 1987/0310
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(87 ) 666 final
                                                Brussels , 2 December 1987
                                Amended proposal for a
                              COUNCIL REGULATION ( EEC )
           concerning the European strategic programme for research and
                  development in information technologies ( ESPRIT )
             ( presented by the   Commission pursuant to Article 149(3 )
                                  of the EEC Treaty )
■: ÛM(87 ) 666 final
 ---pagebreak---                                  - 2 -
                                                                      t! oM - (o ^
                                  INTRODUCTION
By transmitting to the Council its Communication on the second phase
of the ESPRIT Programme ( C0M(86 ) 269 of 21st May 1986 ), the Commission
has defined objectives , rationale and scope for the second phase of
ESPRIT . The said Communication also contains a management plan .
In the light of the discussions of the Council and the Parliament
concerning the framework programme of Community activities in the
field of research and technological development 1987-1991 ( C0MC86 )
430 ) and the Decision of the Council of                     , the Commission
has established and submits herewith a draft Council Regulation on the
continuation of ESPRIT . This draft Council Regulation is presented as
a specific programme under this framework programme , and the said
Communication on the second phase for the ESPRIT Programme has to be
regarded as an explanatory memorandum to it .
The proposal is in accordance with the orientations indicated by the
Council in its Resolution of 8th April 1986 ( 6239 / 86 ).       It takes into
account    the   recommendations   formulated   in  the   Mid-term   review   of
ESPRIT   ( C0MC85 ) 616 ) and  the new   initiatives   taken  both  inside and
outside Europe in the IT area . It builds upon the technical results of
ESPRIT achieved so far , which are described in the Communication from
the Commission to the Council ESPRIT Progress and Results ( C0M(86 ) 687
of 8th December 1986 ).
Spiralling costs of R&D caused by the extreme dynamics of the sector ,
and an uncertainty factor which leads to pursuing several
technological approaches in parallel , are main constraints on the IT
industry . At the same time , strong international competition , and the
increased resources devoted to research and development worldwide ,
have paved      the way    for a   coordinated    approach   to  research    and
development in Europe .
 ---pagebreak---                                  - 3 -
Therefore , it is the aim to ensure that in the future course of the
programme the number of researchers rise to the challenge of meeting
well-defined , ambitious technical objectives .
The size of ESPRIT effort must be such as to offer ample opportunity
for  industrial    concerns   to  meet    these  objectives   by    building  on
cooperation within the Community .
In estimating the total volume of effort ,           the Commission has been
guided by the defined technical objectives which the Community IT
industry must meet in order to sustain competitiveness in key
strategie areas in thè medium and long term .             These determine thè
scope and content of thè ESPRIT Programme .
Scope and content have been translated into estimated resources , a
process undertaken in full consultation with the Community IT
industry .    This   industry has proposed , and at the same time has
committed itself ,   to the raising of efforts devoted to IT cooperative
development to a     minimum level of 40,000 manyears for the envisaged
total duration of    the programme ( 1984-1993 ).      This has been endorsed
by the ESPRIT Advisory Board .
In this respect the foremost necessity at Community level is to devote
the necessary critical mass efforts , defined as the minimum manpower
needed to reach ESPRIT objectives in due time .                New activities
comprising an overall estimate of 28,000 manyears of R&D work coupled
with the some 12,000 already covered by the first phase , will be
needed   to  ensure    that  this   critical    mass   effort    is   maintained
throughout  the   IT   industry .      In   accordance   with  the    provisions
foreseen in the Framework Programme Regulation , out of the 28,000
manyears for new activities deemed to be necessary , an effort of
21,000 manyears is proposed to be initiated during the period
1988-1992 . In establising these figures the following further points
which have been taken into account are :
     - the present      level of existing human resources in the areas
       selected ;
 ---pagebreak---                             - 4 -
   - present and future levels of overall investment in R&D in IT
     worldwide and in Europe ;
   - substantial increase in public support of funding of R&D in
     USA and Japan ;
   - the financial constraints imposed by the said Framework
     Programme Régulation ;
   - présent and scheduled programmes in Member States on which
     ESPRIT can build by ensuring complementarity .
On the basis of a 50% contribution the budgetary load for the
Community would be 1600 Million ECU . An addditional 190 Million ECU
are already covered by the first phase of the Programme for the
period 1987-1988 .
Moreover , the Commission will facilitate , by means of new financial
engineering mechanisms which are being prepared , the financing of
cooperative , transnational projects , downstream the precompeti ti ve
R&0 work undertaken in this programme .
The programme will also be submitted to external independent
evaluation ; in particular the report foreseen in 1990 ( Article 8 of
proposed regulation ) will be based on an evaluation by a Panel of
high-level experts .
 ---pagebreak---                  Resource Estimates ( Community contribution in MECU *))
                                       Commitment Credits
   I                   ! 1984 / 86   11987 I 1988 11989 1 1990 I 199111992 ~[T^93+ I Total Γ
 ( Activities         I       -
                                     I - I 263.5 I 465 1 4Û4 1137.51 330    1 - 11600      I
  I second phase      I              I      I      I     1     1      1     I      I       I
 ¡(1987-1991 )        I              I      I      I     1     1      1     I      I       I
 II                   I
                                     I
                                     I
                                            I
                                            I
                                                   1
                                                   1     1     I1     11    II     II       II
 ( Activities first I       560      1173.51  16.5 1  -  1  -
                                                                            I       I 750  !
 I phase              I              1      1      1     1     1       1     I      I        I
 I ( 1984-1983 )      I            1
                                     1      1      1     1     1      1      I      I        I
  [ Grand Total       I     560      1173.51 280   1 465 1 404 1137.51 330 I        12350    1
                                         Payment Credits
| Grand Total         |     263.6 1 187.4 | 17A.5 | 373 | 430 | 311.5 | 310 | 300 | 2350 |
*) CalcuLated on the basis of a 50X contribution to R&D projects .
      The resources for accompanying measures and personnel are allocated proportio -
      nally to the R&D sectors .
1
     Inluding commitment and payaient appropriations carried over
 ---pagebreak---                                        Pr\       l for a
                                 COUNCIL RE GULATION ( EEC )
                concerning the European strategic programme for research and
                       development in information technologies ( ESPRIT )
         THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
         Having regard to the Treaty establishing the European Economic
         Community , and in particular Article 130Q paragraph 2 thereof .
         Having regard to the proposal from the Commission,^
                                                                             2)
         Having regard to the opinion of the Economic and Social Committee ,
         In coopération with the European Parliament ,^
                                            4)
         Whereas by Decision 84 / 130 / EEC       the first phase of the
         European strategic programme for research and development in
1)
   0J
2)
   Opinion given on                OJ
   Opinion given on           ; ( Approval ) ( Amendaient s ) given on
   OJ No L 67 , 9.3,1984 , p. 5';.
 ---pagebreak---          inf orinati ?n technologies iESFRIT ) was adopted by thè Council on
         23 February 193 ^ ;
         Whereas the framework programme of Community activities in tne field
         of research and tecbnoloaical development ( 1937-1991 ) WGS adopted by
                 ....                  _1 )
         Council Decision         /    / EEC
        Whereas the ESPRIT workprogramaes periodically established in close
         consultation with the Information Technology ( IT ) industry , industrial
        users and science have proved to be an efficient means of programme
        management ;
        Whereas the Commission set up an independent high-level body , known as
        the ESPRIT Review Board , to assess the progress of the Programme ;
        Whereas the ESPRIT Review Board concluded that the Programme has been
        successfully established and is well on its way to meeting its
        original objectives , is progressing faster than initial ly expected , -
        has initiated trans-European cooperation at all levels especially
        where small and medium-sized companies are concerned , has enabled
        more ambitious research projects and has accelerated the execution of
                    .    *>
        these projects
        Whereas the      ESPRIT Review Board   recommended  that  for  the_ future
        development of ESPRIT emphasis should continue to be on precompetitive
        research and development , the research areas be consolidated and
        restructured and particular attention paid to technology
        integration projects ;
   OJ No                                  1987
2)
   C0M(85 ) 616 Brussels 19th November 1985
 ---pagebreak--- Whereas in a broad consultation process with a large number of
representatives from industry and science the future technical scope
of the programme has been define.'
Whereas a continuous need exis -s to ensure        systematic coordination
between ESPRIT, national progre res and EUREKA projects and other
international activities in tr,n information technology sector ;
Whereas this programme meets the absolute need for the constitution or
consolidation of a specifically European industrial potential in the
technologies concerned and for the preservation and creation of
jobs in the Community ; whereas its primary participants must
therefore be the undertakings , universities and research centres
in the Community which are best suited to attain these objectives ;
Whereas the programme should give these establishments in disad ¬
vantaged regions full access to Community potential and contribute
to reducing the disparities in technological development within
the Community ;
 Whereas small and medium-sized companies should be encouraged to
 maintain a high level of participation in the programme ;
 Whereas adequate dissemination of , and access to results of projects
 of Community interest is essential to the pursuit of the aims of the
 Community and in particular to the needs of small and medium-sized
 companies ;
 Whereas there exists a need for periodic assessment of the Programme ;
 Whereas it  is necessary for the execution of the programme that the
 Commission be assisted by a    committee ;
Whereas provisions should be made for appropriate consultation of
 the social partners in the i lementat i on of the programme ;
Whereas   it   is in  the   .Cot-Amity 's   interest  to   consolidate  the
scientific and financial basis of European research by means of the
involvement to a greater extent of participants from the EFTA
countries in certain Cot . . unity programmes and , particularly ,       in
prograanes involving coo pa ration     in   research  arid  development  of
information technology ?
 ---pagebreak---                                       - 9
       Whereas the implemeiitat ion of actions In basic research providing tong
       term prospects as well as concerted action * in the COST framework are
       essential elements to complement industrially-oriented R&D projects ;
       Whereas the Council, in its Resolution of 8 April 1986^, has
       re-emphasized its commitment to the ESPRIT Programme and requested the
       Commission to ensure , in its implementation of the programme that , in
       scope and flexibility , the programme continues to provide an effective
       response to the evei–increasing challenge in the IT field ;
       Whereas the Scientific and Technical     Research Committee  ( CREST ) has
       expressed its opinion ,
1
  OJ No C 102 , 29.4.1986 , p. 1 .
 ---pagebreak---                                   - 10 -
   HAS AOOPTEO THIS REGULATION :
                                      Article 1
   1.          A second phase of the ESPRIT Programme of research and
  development for the European Economic Community , hereinafter referred
   to as 'the programme' ,      is hereby adopted for a period ending on
  31 December 1992 .     The technical scope of the programme is described
   in Annex I.
   2.     The programme shal l comprise pre-competit ive research and development
   projects ( hereinafter referred to as 'the projects' ), actions in basic
   research ( hereinafter referred to as 'the actions' ) and accompanying
  measures .
                                      Article 2
     1.    The ESPRIT programme shall pursue the following general
     objectives : it shall seek to increase the compet i t i veness of
     European undertakings in the information technologies sector ,
     improve the scientific and techno logi ca l basis for the future
     development of European undertakings in this sector and contri -
     bute to strengthening the économie and social cohésion of the
     Community promoting its overall harmonious development ;
   The detai led objectives and the type of projects to be undertaken
   as well as the corresponding financial plans shall be set out in an
   annual work programme to be adopted in accordance with the procedure
    laid down in Article 7 .   Any updates which may be required during the
   year under consideration shall be adopted in accordance with the same
   procedure .
   2.    The eyMuation of the projects and actions which are submitted
  shalT be undertaken by the Commission having due regard to the general
  objectives of the programme and of the annual work programme .         With
  regard to projects requiring R & D efforts exceeding 100 man-years , the
 eligibility of these projects shall be decided in accordance with the
                                  ■ t
 procedure laid down in Article 7 .        with regard to the other projects
 and the actions , the results of their evaluation shall be brought to
 the attention of the Cpmmlttee referred to in Article 6 .
3 . The projects shall be carried out by means of contracts , to be
concluded by the Commission with companies, including small and
medium-sized undertakings, universities and other bodies established
in the Community .
 ---pagebreak---                                     11
   The Commission shall ensure that the participation of SMUs in this
   second phase is no less than it was in the first phase of the
   programme ,
  The proposals for projects shall as a rule be submitted by the
   interested parties in reply to an open invitation published in the
  Official Journal of the European Communities .        The projects must
  normally involve the participation of at least two independent
  industrial partners not established in the same Member State .      Each
  contractor will be expected to bring a significant contribution to the
  project .   The contractors shall be expected to bear a substantial
  proportion of the costs , 50% of which shall normally be borne by the
  Community .
 In the case of small and medium-sized undertakings , the percentage
 to be financed by the Community may exceed 50% .
 4 . The actions shall be carried out by means of contracts to be
 concluded by the Commission with universities , research institutions
 or undertakings established within the Community .     The proposals for
 actions shall as rule be submitted by the interested parties in reply
 to an open      invitation published   in the Official   Journal  of  the
 European Communities .       The actions must , normally , involve the
participation of at least two universities or research institutions
not established in the same Member State .
 In the case of actions in basic research , up to 100% of the marginal
 cost of non-i ndust r i a l participants may be financed from the
 Community budget .
5 . In exceptional cases where the call for proposals has not
resulted in a satisfactory response, or in cases of urgency, or where
a call for proposals is not the most appropriate procedure on grounds
of cost and efficiency it may be decided, in accordance with the
procedure laid down in Article 7, to depart from the general
provisions set out in paragraphs 3 and 4, viz .
       - the public call for proposais;
         the participation in the projects of at least two industrial
         partners not established in the same Member State;
      - the participation in the actions of at least two universités
         or research Institues not established in the same Member
         State .
 ---pagebreak---                                     12
  6.   Contracts for the execution of projects and actions which conform
  to the rules laid down in paragraphs 3 and 4 may include companies ,
  universities and other bodies established in one of the non-Member
  States referred to in Annex II . That Annex may be changed by the
  Council , acting by qualified majority , on the basis of a proposal
  submitted by the Commission ; any change must be based on the criterion
 of mutual benefit both to those countries and to the Community .
 7 . The accompanying measures , in particular those referred to in
 Annex 1(C ), aim specif ically at providing an adequate communications
 infrastructure, access to project results and the coordination of
 research and development activities carried out under the programmes
 of the Community and of the Member States , as well as facilitating
access for enterprises in the regions furthest from the centre of
the Community market .
                                   Article 3
The Commission is hereby authorised to conclude ,      in accordance with
Article 130N    of   the  Treaty ,     agreements with non-Member  States
participating in European cooperation in the field of scientific and
technological research ( COST ) with a view to ensuring concerted action
between the Community activities relating to the collaboration in
actions in basic research and accompanying measures referred to in
Annex I and the relevant programmes of such States .
                                   Article 4
The Community shall contribute to the performance of the programme
within the limits of the appropriations entered to this end in the
budget of the European Communities .
The overall amount of the appropriations estimated to be necessary for
the Community 's contribution to the projects , actions and accompanying
measures under the programme shall be 1600 MECU . The amounts include
expenditure on staff , whose cost shall not exceed 4,5% of the
Community contribution .
 ---pagebreak---                                    13 -
Up to a maximum of 25% of the Community 's total contribution to new
projects launched under this programme may for the first year be
allocated to new projects which fall below the threshold referred to
in Article 2(2 ).      If the call for proposals has not resulted in a
satisfactory   response    this   percentage     figure  may   be    changed    in
accordance with the procedure laid down in Article 7 .
                                    Article 5
The Commission shall ensure that the programme is properly performed
and , to this end , shall establish the appropriate measures and
infrastructures , without prejudice to the powers provided for in
Articles 2 , 3 and 4 .
                                    Article 6
1.   The Commission shall be assisted by a Committee ,            consisting of
two   representatives    of   each     Member   State ,   and   chaired     by   a
representative of the Commission ,         hereinafter referred to as         'the
Committee ' .
Members   of the   Committee may      be assisted     by experts    or advisers
depending on the nature of the issue under consideration .
The proceedings of the Committee shall be conf idential .
The Committee shall adopt its own rules of procedure .
Secretarial   services   for   the    Committee   shall  be   provided    by   the
Commission .
2.   The Commission may consult the Committee on any matter falling
within the scope of this Regulation .
 ---pagebreak---                              - 14 -
                                Article 7
 Where the procedure laid down in this Article is to be followed ,     the
 representative of the Commission shall refer to the Committee a draft
of   the  measures   to  be  adopted . The  Committee   shall  deliver  an
opinion within a time limit set by the chairman       in relation to the
urgency of the matter .  The opinion shall be delivered by the majority
specified  in Article 148(2 ) of   the Treaty  for decisions which the
Council is required to adopt on a proposal from the Commission ,       the
votes of the representatives of the Member States being weighted as
indicated in that Article .  The chairman  shall not vote .
The Commission shall adopt measures which shall apply directly .
However , if they do not coincide with the Committee 's opinion , the
Commission shall immediately communicate those measures to the Council .
In that case the following shall apply :
The Commission may postpone the implementation of the measures it has
decided on by a neriod of no more than one month from such notification .
Within the period mentioned in the preceding paragraph , the Council
may adopt a different decision acting by a qualified majority .
                               Article 8
The Commission shall address a report to the Council and to the
European Parliament at the latest either in 1990 or as soon as 60% of
the appropriations judged necessary have been committed, in order to
assess the interim results achieved as compared with the objectives of
the programme. This report shall be accompanied by suggestions for
changes which may be necessary in the light of these results .
 ---pagebreak---                              - 15 -
                                Article 9
With regard to the activities provided for in Article 1(2 ), the Member
States arid the Community shall exchange all appropriate information to
which they have access and which they are free to disclose concerning
the areas covered by this Regulation , whether or not planned or
carried out under their authority .
The information shall be exchanged in accordance with a procedure to
be defined by the Commission after consulting the Committee , and will
be treated as confidential at the supplier 's request .
                               Article 10
This Régulation shall enter into force on A December 1987 .
This  Régulation   shall  be  binding   in its  entirety  and  directly
applicable in ail Member States .
Done at Brussels , 30 September 1987                     For the Counci l
                                                          The President
 ---pagebreak---                                      16
                                  ANNEX I
                                  ESPRIT
The programme contains research and development projects ,      actions in
basic research and accompanying measures .
A. Research and development projects
Research and development projects will be carried out in the following
three sectors :
1.   Microelectronics and peripheral technologies
2.   Information Processing Systems
3.   IT Application Technologies
   1.   Microelectronics and peripheral technologies
   Work in this sector will have          to be addressed primarily at
   improving    the competitiveness of     the Community Microelectronics
   industrial sector so as to enable       it to provide the IT industry
   with full system capability through     access to up to date functional
   components and subsystems based in particular on state of the art
   semiconductor technology .      To this end and in support of the
   developments   of  application    systems ,    it  will  encompass  the
   provision of the technological capability to design , manufacture
   and test application specific integrated circuits ( ASIC ) in a
   " system on a chip " concept .      Such circuits to range from high
   complexity random logic including several million elementary
   devices to very high speed lower complexity circuits capable of
   operating at up to 5 GHz .
 ---pagebreak---                                  17 -
The R&D activities to be pursued include :
- High density integrated circuits : The goal is to provide random
  logic integrated circuits ( ICs ), including up to A million gates
  for use in particular where a high degree of parallel processing
  is possible as , for instance , in processor arrays or systolic
  arrays . To this end it will be necessary :
  . to develop user friendly CAD systems ,        including automatic
    layout    and  design   verification   tools   ( advanced    silicon
    compi lers ) ;
  . to develop low power high density processes , including the
    optimisation of an automated flexible manuf acturing line for
    high yield production .
- High speed integ rated circuits : The aim is to fabricate      devices
  for use where processing of large quantities of information in
  real time cannot be assured by parallelism due to high serial bit
  rate .     They are potentially valuable    in   supercomputers     or
  front end processors for telecommunications systems .       The target
  performance will be :
     operation between 5 and 10 GHz clock frequency or gate delays
     less than 50 ps ;
  . complexity greater than 10.000 gates .
  The main activities towards this goal are :
  - development of a very fast Silicon bipolar process ;
  - GaAs FET technologies will also be considered , as appropriate ;
  - spécial CAD tools to optimise circuit speed ;
  - spécial packaging techniques for GHz operation .
- Nultifunction Integrated Circuits :      The goal is to build a
  complete System on a chip with digitai and analog functions ,
  operating over a wide range of speeds .         Complexity up to 1
  million transistors , minimum achievable gate delay of 50 ps .
  power control and non-volatile memory capability will have to be
  implemented to meet the requirements of peripherals ( display and
 ---pagebreak---    LAN control , memory management ), telecommunications equipments
   ( voice and image processing ),      factory and office automation
   ( intelligent sensors and actuators ).
   In order to enhance the performances of very large information
   systems , optoelectronic ICs will be developed and used to
   optically interconnect distributed processors for instance .
   The main activities to be pursued are :
   . tuning of manuf acturing processes for dedicated application
   . adaptation of CAD tools to mixed functions ,             such   as
      analog-digital device design .
      Throughout the execution of the programme ,;, a special emphasis
      will be given to definition of standards both on the software
      side ( data exchange , tool portability between CAD system and
      manufacturing equipment ) and on the mechanical side to meet
      requirements for higher degree of automation and flexibility .
- Peripheral Technologies :    This area of the programme is aimed at
   ensuring that Europe develops the specific technologies necessary
   to play a sustainable role in future peripheral systems
   developments .   Topics requiring action are , in particular , those
   of magneto-optic and optical mass storage and retrieval systems ,
   non-impact printers ,     displays ,   devices incorporating logic
   elements in conjunction with sensors , transducers , and actuators .
2 . Information Processing systeas
     The main objective of this sector is to bring together tools and
     technologies from the hardware and software domains , in order to
     enable the design and development of the information processing
     systems of the 1990s .   Particular attention will be paid to new
    approaches to systems design which will enable high quality
     complex systems to be developed efficiently .      To develop the
    methods and tools needed ,    it is imperative that alt aspects of
 ---pagebreak---                               - 19 -
the system ( e.g.    architecture , interfaces ) are considered while
at the same time new technologies like knowledge engineering are
integrated .
As a consequence ,        work in this sector will provide the
capability of producing systems ( of similar complexity to those
produced now )        with a significant increase in designer
productivity . For example, the methods and tools developed will
provide the mechanism by which the development costs of selected
system components ( e.g. microprocessors , real-time software
modules ) will   be reduced     to 10X of the current development
costs .
The R&D activities to be pursued fall into four complementary
areas :
- Systems design :
  This area addresses the process from the définition of the
  requirements of an IT System,         through to its manufacture ,
  distribution and maintenance .      Activities include :
      Evaluation    of   methods  and   toots ,     guidance   in   method
      introduction and product evaluation metrics .
  .   Intégration and rationalisation of Integrated Programming
      System Environment interfaces , project support environments
      and knowtedge-based techniques .
   .  Reusable system components , automated generation of high
      quality programs for real-time systems , formal techniques
      and methods .
- Knowledge engineering :
  This area includes the development of systems which help
   reasoning and decision making under conditions of uncertainty
  and incomplete information .      Activites include :
   .  Knowledge   acquisition ,     learning    and   adaptive    systems ,
      knowledge representation ,         knowledge     manipulation    and
      validation of knowledge-based systems .
 ---pagebreak---                                    - 20 -
         . Natural    communication    processing   and  user   interaction
            mechanisms .
         . Integration of      knowledge    engineering   techniques   into
            systems design .
     - Advanced systeas architectures : This area includes , notably ,
        parallel architectures aimed at overcoming system limitations
        and at supporting modular construction . Activities include :
         . Parallel architecture and       interconnection of   cooperating
            processors , programming and verification techniques .
         . Distributed Systems of semi autonomous components .
         . Specialised architectures for signal processing              and
            knowledge based information subsystems .
     - Signal processing :     This area addresses the need to cope with
        the complexity of processing signals of varied physical
        nature ( eg . temperature , pressure , image , natural voice ).
        Activities include :
        . Formai     description     of    information   flow ,    symbolic
           manipulation .
        . Preprocessing ,     feature identification ,     classif ication ,
           error correcting methods .
       . System components for signal Processing , real-time Systems .
       . Advanced technologies for multi-sensor signal processing
           systems .
3.  IT Application technologies
   The main objective of this sector is to enhance European
   capabilities in the integration of IT into systems able to be
   used in a broad range of applications and to validate the
   results in selected , realistic environments .
   The R&D activities to be pursued in IT Application Technologies
   fall into three complément a ry areas :
 ---pagebreak---                             - 21
- Computer Integrated Hanufacturing :         The objective is to
provide the technology base which is necessary for system
vendors in order to successfully meet the competitive
requirements of the world market .       At the same time , it is
expected that the rapid uptake of these IT-based technologies
will induce a completion of the modernization process in a wide
range of manufacturing industries .
The scope of work will include the application of IT not only
in discrète part production but to a wide range of industries
up to and including continuous process .
The    establishment    of   Open   System   concepts    to   support
multi-vendor operation is an important means of achieving the
objective of the area .
  Activities include :
  - Design and analysis systems allowing flexible product
    development so that time , materials and other resources for
    production are minimised .
  - Factory management , planning and production control so that
    availability and usage         of equipment      are increased ,
    man-machine interactions       for production planning and
    control     systems    optimised ,     real-time     applications
    implemented and just - in -time production supported .
  - Robotics Systems .
  - Integration of material handling systems ( including robots )
     in the production and assembly process .           Issues to be
    addressed are eg . tool change , monitoring , washing , waste
    disposal ,    assembling and other tasks associated with
    production .     Particular emphasis will be put on solutions
     for smaller batches .
  - Computer Integrated Control in process industries to create
    more efficient plant operation .
 ---pagebreak---                              - 22 -
   - Architecture and methods for integration , including the
      development of methods and tools for installing , operating ,
      and monitoring Computer Integrated Manufacturing Systems
      and the demonstration of early implementations addressing
     different manufacturing requirements .
- Integrated Information Systems :       This area addresses systems
   intégration R&D for selected applications .             Application
  domains      include   office   environment    and    the    domestic
   envi ronment .
  Activities include :
  - User environment analysis and support in order to evaluate
      requi rements ,    constraints ,    human    factors ,     reduce
      introduction periods and increase productivity through
      improvement of useï–System interaction .               Particular
     emphasis will be put on the requirements of less skilled
     users and flexibility aspects .
  - Systems engineering comprising systems integration and
     validation tools , reliability , availability and security of
     systems .
  - Generic communication technologies and integrated office
     systems comprising multimedia handling on the basis of Open
     System Architectures , generation , routing , monitoring of
     office information , remote activities support and selected
     special functions .
  - Distributed systems with particular emphasis on integration
     of knowledge based systems and advanced distributed storage
     systems .
  - Data collection and monitoring Systems in non-factory
     environments ( e.g . home , laboratory ) comprising telecontrol
     and networking of autonomous equipment , management of data
     acquisition Systems .
 ---pagebreak---                                     - 23 -
       - IT Application Support Systeas :
         This area addresses the intégration of basic IT components
         into subsystems .      The major goal is to provide low cost
         technologies and . large scale applicabi lity .           Particular
         emphasis will be put on modularity and fail-safe aspects .
         Activities include :
         - workstations for multiple application purposes ;
         - storage    and  processing     subsystems   for   stand-alone  and
           distributed systems ;
         - local network Systems and related basic services ;
         - user interfacing subsystems Ceg . visual , vocal , manual );
         - subsystems interfacing the physical environment ( eg . vision
           and environment understanding, laboratory data acquisition ,
           monitoring and control ).
                                        o
                                  o           o
   Throughout these three sectors ( Microelectronics and Peripheral
   Technologies , Information Processing Systems and IT Application
   Technologies ) a limited number of technology integration projects
   will be undertaken .    These projects will aim at meeting ambitious ,
   well-defined industrial targets ,          will be preplanned at an
   appropriate level of detail in the work programme , and normally
   require large-scale industrial efforts of a Community dimension .
B. Actions in basic research
   The envisaged actions in basic research aim at complementing the
   proposed precompetitive IT R&O efforts by providing a Community
   dimension to fundamental research work in selected areas of long
   lead-time .   They   include  promotion     of  high   level  professional
 ---pagebreak---                                    - 24 -
   training in areas of particular concern to the Community .           The
   actions shall ,   in particular,   encourage highly qualified research
   institutes in IT to become international in their orientation .
   The work areas include :
   - Molecular electronics ;
   - Artificial intelligence and cognitive science ;
   - Applications of solid State physics to IT ;
   - Advanced System Design ;
   and other areas of basic research which may be identified during
   the course of the programme .
C. Accoopanying aeasures
   The main objective of the accompanying measures is to provide the
   framework necessary to make optimum use of the R&D activities
   undertaken in the ESPRIT Programme and related activities .
   The accompanying measures include in particular :
   - coordination    of   Community   and   Member   States   research  and
     development programmes and with programmes at international
     level ,   acquisition of information ,       both within the ESPRIT
     programme and from the world at large , and its appropriate
     dissémination .
   - coordination and    documentation   of  standards   within  the ESPRIT
     programme and their relationship with national and international
     standards .
   - provision of means to ensure ease of communication , to serve the
     good technical execution of research and development projects as
     well as their management , and the appropriate dissemination of
     and access to their results , including an Information Exchange
     System ( IES ).
 ---pagebreak---                                ?5
                              ΛΝ.Μΐ: X II
The non-meinber States referred to in Article 2(6 ) are
     - Republic of Austria
     - Republie ol Finland
     - Kingdoiii of Noruay
     - Kinodom of Sweden
     - Swiss Confédération
 ---pagebreak---                                    - 26 -
                 FINANCIAL              STATEHENT
1. Budget Heading and Title
   B 7341
   ESPRIT ( Européen Strategie Programme for Research and Development
   in Information Technology )
2. Legal Basis
   - Council Decision 84 / 130 / EEC of 28th February 1984 adopting the
     first phase of the ESPRIT Programme .
   - Framework Programme Régulation of ...
   - Single European Act , in particular title 2 , articles 130 K , P
     and Q
3. Description
   The ESPRIT Programme was conceived for a ten year period with
   three main objectives :
   - to contribute towards providing European IT industry with the
     basic technologies required to meet the compétitive requirements
     of the 1990s ;
   - to promote European industrial coopération in precompetitive R&D
     in IT ;
   - to contribute to the development of international standards .
   The programme comprises pre-competitive research and development
   projects , carried out by the collaborative effort of Community
   undertakings , as well as the coordination of R&D activities
   carried out under the programme of the Member States and of the
   Community .
 ---pagebreak---                                  - 27 -
    The proposal submitted herewith describes the scope and content of
    the extension of the Programme . Building   on the experience of the
    first three years of the Programme , it is  planned to continue
    support for new projects of an industrial   nature demonstrating
    cross-border collaborative effort . It is   also proposed to add
    some selected topics in fundamental IT research ( aimed
    specifically at academia ) and accompanying measures , in particular
    encouragement of technology transfer , which will be of particular
    interest for small and medium-sized enterprises .
    The proposai contains a Draft Council Régulation concerning the
    extention of the Programme which is in accordance with the
    Régulation for the framework programme for research and
    technological development . The Council is expected to adopt the
    Régulation in the third quarter of 1987 .
4.  Justification
    The ESPRIT Programme meets the absolute need for the constitution
    or consolidation of a specifically European industrial potential
    in the technologies concerned . The extension is designed to
    ensure that , in scope and flexibility , the Community continues to
    provide an effective response to the ever-increasing international
    challenge in the field of information technology .
5.  Financial implications for operating appropriations
5.1 The amount of commitment appropriations required for budget years
    1987 to 1992 , is 1790 Million ECU , of which 190 Million ECU are to
    be counted in the 750 Million ECU of the 1984 Decision .
5.2 Each project of the Programme is normally financed 50% from the
    Community budget , and 50% by the participating organisations .
    This modality is regulated by contracts to which ail participants
    are signatories .
    In the case of actions in basic research , up to 100% of marginal
    costs of non-industrial participants may be financed from the
    Community budget .
 ---pagebreak---                                                           - 28 -
5.3.1              Timetable of appropriations required ( MECU )
                                              Commitment Credits
 I                 2)        I 1984 / 86    ¡1987 ¡1988 ¡1989          I 1990 I 1991 1992 ¡1993+ I Total 1
 ( Activities               I               I - 1 ¿63.5 I 465          I 4Û4 ¡137.5 33Ó j        ¡1600   1
 ¡second phase               I              I       1          I        I      I            I    I       1
 1(1987-1991 )               I              I       1          I       I       I            I    I       1
                                                               I
 II                                                 j          I       II      I
                                                                                            I
                                                                                            I    1       I
  ¡Activities first I             560       ¡173.5 1 16.5 I        -    I  -
                                                                               I  -         I    1 750   1
  j phase                   I               I      I           I        I      I            I    1       1
  I ( 1984-1988)                         1  I      I           I        I      I            I    1       1
 ¡Grand Total               I     560      ¡173.5 ¡280        I 465 I 404 ¡137.5       330  I    ¡2350   1
       Contracts                                   256.4         442.5 380.2 112.7 304.0
       Personnel costs                                 4.7        14.5 15.5 16.5 17.5
       Admin , costs ( Including the cost              2.4         8.0     8.3    8.3   8.5
       for external independent evaluation
       by high-level experts , currently
       estimated at 210,000 ECU ).
                                                Payment Credits
| Grand Total              |      263 . 61 [ 187.4 1 1 74 . 5 | 373 | 430 1 31 1 . 5 | 310 | 300 ! 2350 [
       Personnel cost                                   4.7       14.5    15.5   16.5  17.5
       Admin , cost                                     2.4        8.0     8.3    8.3   8.5
       ( for second phase )
              5.3.2 Method of calculation
                      The amounts are calculated on the basis that critical mass
                     efforts across the Community , defined as the minimum manpower
                      required to afford the ESPRIT partners the opportunity to attain
                     the ESPRIT objectives , will be supported for the period of the
                     Programme ( 1984-1992 ).
             6.      Financial implications for staff
             6.1     Staff working on the Programme
                    The overall Programme is scheduled to extend over 10 years ,
                     covered by Council Decision 84 / 130 / EEC and the current draft
                     Council Regulation . The Commission will require to maintain and
                     to augment to a certain extent the level of staff needed to
             1
                 Including commitment and payment appropriations carried over
 ---pagebreak---       assure an effective , responsible , and transparent management .
      The nature of the Programme is such that the posts can be
      temporary posts , by number and category as follows :
I   Category    I Complement 1987 1 Complement 1988 I Complement 1989  |
I       A       I       10        I        23       !         6        I
I       B       I        9        I        11       I         A        I
I       C       I        8        I        12       I         A        I
      In order to give a complete picture of the execution of the
      Programme , it is necessary to add those temporary posts .
      already authori sed for the execution of the 1984 Decision
      as follows :
                Category             1984 Decision       Extension
                    A                     65                 39
                    B                     16                 24
                    C                     39                 24
6.2   The appropriations required to cover the above staff are to
      be entered in budget line 7341 .
7.    Financing of operating expenditure
      The appropriations required to cover the Community's
      contribution to this programme are to be entered in future
      budgets .
8.    Implications for revenue
      There are no implications for revenue .
9.    Type of control
      Sums will be disbursed after a technical control by the
      Commission , on the basis of documents submitted by the
      contractors proving execution of the relevant part of the
      workprogramme laid down in the previously signed contract .
      Budgetary control is exercised by the Financial Controller .
 ---pagebreak---                                - 30
                     COMPETITIVENESS AND EMPLOYMENT
                            IMPACT STATEMENT
Subject : Proposal for a Council Regulation concerning ESPRIT .
          Draft Workprograaae 1987 .
I.   Reason for Introducing Measure
     This regulation is a contribution to the European Technological
     Community ( Ref . Framework Programme of Community Activities in
     the Field of Research and Technological Development 1987 - 1991
     C0M(86 ) 430 ).
II . Features of the Business in Operation
     The regulation is of an industrial nature and is primarily
     directed to Information Technology enterprises .
 ---pagebreak---                                  - 31
III . Obligations Directly Imposed Upon Business
      This proposal confirms the principles of the existing
      administrative procedures , refers to improvements already
      achieved and stresses the continuous need for further
      improvements in terms of simplifying and speeding up ,
      particularly in view of the needs of SMEs .
      There are no disadvantages to enterprises except for the
      additional costs , quite minimal , relating to the preparation of
      unsuccessful proposals .
IV .  Indirect Obligations by National Authorities
      Coordination with national programmes is foreseen in Article 9 .
V.    Provisions in Respect of SME's
      The advantage for SMEs is that all signatories to an ESPRIT
      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 and exploitation of results , known
      technically as ’foreground information' .
      During the second phase of the Programme , when the results of
      Phase I projects will be becoming available , it is evident that
      technology transfer measures will play an increasing role . In
      particular , actions in information dissemination , aimed
      specifically at SMEs , will be stressed .
 ---pagebreak---                                     - 32 -
      With respect to the technical content of the second phase , new
      emphasis within the wo '^programme ( new or enhanced areas such
      as peripheral technology ,. factory automation and system design
      tools ) seem to be particularly suited to SMEs because of their
      large presence and vital impact in these areas .
VI .  Likely Effects on Employment
      The effects on employment ( inasmuch as these can be measured )
      of the ESPRIT Programme are and will continue to be of an
      indirect and positive nature in the immediate term .     ESPRIT has
      so far permitted over 150 SMEs to participate in research and
      development thereby enhancing their technological capabilities
      and their international market prospects .     Without ESPRIT such
      firms would not have the funds available for significant
      research activity nor would they be able to benefit from
      international collaboration .     For the reasons mentioned above
      and because of its increased volume , ESPRIT Phase II is
      expected to offer to a considerably larger number of
      high - tech -oriented SMEs chances to participate in international
      projects .
VII . Consultation
      One hundred and fifty ( 150 ) companies participated in workshops
      and panels to create the 1987 work programme . The Member
      States representatives at the EMC have commented on its form
      and content . The Regulation will be submitted to the Economic
      and Social Committee for opinion .