CELEX: 51987PC0313
Language: en
Date: 1987-09-30
Title: Proposal for a COUNCIL REGULATION (EEC) concerning the European strategic programme for research and development in information technologies (ESPRIT) (presented by the Commission)

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                               Proposai for a
                          COUNCIL REGULATION ( EEC )
        concerning the European strategic programme for research and
              development in information technologies ( ESPRIT )
C0MC87 ) 313 final / 2
 ---pagebreak---                                 - 2 -
                                 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 ( C0M(86 )
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 ( COM ( 85 ) 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
strategic areas in the medium and long term .           These determine the
scope and content of the 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 precompetitive
R&D 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---                                             - 5 -
                 Resource Estimates ( Community contribution in MECU *))
                                      Commitment Credits
 I                    ! 1984 / 86   11987 11988 11989 I 1990 I 1991 1992 1 1993 + I Total I
( Activities          I      -
                                    I      I 263.5 I 465 I 4Ö4 1137.5 330 I - 11600 I
 I second phase       I             I      j       I      I     I          I      I       I
¡(1987-1991 )         I             I      I       I      !     I          I      I       I
                      I                    I       II     I     II         II     II      I
                                                                                          I
¡Activities first     I    560      1173.5 I 16.5         I  -
                                                                            I      I 750  I
I phase               I             I      I        I     I      I          I      I      I
 I ( 1984-1988)       I           1 I      I        I     I      I          I      I      I
¡Grand Total          I    560      1173.5 I 280    I 465 I 404 1137.5 330  I      I 2350 I
                                        Payment Credits
| Grand Total         |    263.6 1 187.4 | 174.5 | 373 | 430 | 311.5 | 310 l 300 l 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 payment appropriations carried over
1
 ---pagebreak---                                          - 6 -
                                       Proposai for a
                                 COUNCIL REGULATION ( 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 Economi
         Community , and in particular Article 130Q paragraph 2 thereof ,
                                                                1)
         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
3)
   Opinion given on           ; ( Approval ) (Amendments ) given on
4)
   OJ No L 67 , 9.3.1984, p. 54 .
 ---pagebreak---                                         7 -
        information technologies ( ESPRIT ) was adopted by the Council on
        28 February 1984 ;
        Whereas the framework programme of Community activities in the field
        of research and technological development ( 1987-1991 ) was adopted by
        Council Decision
        Whereas the ESPRIT workprogrammes 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 initially 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
                   . . 2.)
        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 ;
4)
   OJ No                               1987
2)
   C0M(85 ) 616 Brussels 19th November 1985
 ---pagebreak---                              - 8 -
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 defined ;
Whereas a continuous need exists to ensure     systematic coordination
between ESPRIT and national programmes in the 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 ;    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 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 it is in the Community '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 Community programmes and , particularly , in
programmes involving cooperation in research and development of
information technology ;
 ---pagebreak---                                        - 9 -
      Whr -* es the implement at ion of actions in basic research providing long
       term prospects as well as concerted actions 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 ever-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 ADOPTED THIS REGULATION :
                                     Article 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 shall comprise pre-competitive 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 detailed 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 evaluation of the projects and actions which are submitted
  shall 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
                                  •»              i
 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 Cpmmittee 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 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 .
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 .
The Community may bear up to 100X of the costs of the actions .
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 universities
        or   research  institutes   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 .
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 .
                                 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--- 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 property 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 the proposed measures if they are in
accordance with the Committee 's opinion . If the proposed measures
are not in accordance with the Committee 's opinion , or if no opinion
 is delivered , the Commission shall without delay submit to the Council
a proposal concerning the measures to be taken . The Council shall act
by a qualified majority .
 If the Council has not acted within a period of one month of the
proposal being submitted to it,      the proposed provisions shall be
adopted by the Commission .
                                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 60Z 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 and 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   1 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 4 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 manufacturing line for
    high yield production .
- High speed integrated 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 .
- Multifunction Integrated Circuits : The goal is to build a
  complete system on a chip with digital 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---                                - 18 -
   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 Systems
     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 all 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 10% 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 tools ,         guidance  in method
      introduction and product évaluation metrics .
  .   Intégration and rationalisation of Integrated Programming
      System Environment interfaces , project support environments
      and knowledge-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 ,   classification ,
        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 complementary areas :
 ---pagebreak---                           - 21
- Computer Integrated Manufacturing ;         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
integration R&D for selected applications .           Application
domains     include  office    environment   and   the   domestic
environment .
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 user-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 ( eg . 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&D 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. Accompanying masures
   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---                               ANNEX II
The non-mernher States referred to in Article 2(6 ) ai
     - Republie of Austria
     - Republic of Finland
     - Kingdoiri of Norway
     - Kingdom of Sweden
     - Swiss Confédération
 ---pagebreak---                                     - 26 -
                  FINANCIAL              STATENENT
1.  Budget Heading and Title
    B 7341
    ESPRIT ( European 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 welt 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 1s 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
                         1984 / 86    "198? | 1988    w ÏM 1991 ÏW T995+ Total
| Activities                                 1263.5 "46F "404" Ï3775 330                  1600
| second phase
1(1987-1991 )
I
lActivities first           560        173.51 16.5                                         750
| phase
  ( 1984-1988 )
| Grand Total               560        173.5|280       465   404   137.5      330         2350
     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 l 187.4 | 174.5 | 3?3 | 430 | 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---                                       - 29 -
     ' 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 1988i I Complement 1989 |
I        A       I       10        I         23       I         6       I
I        B       I        9        I         11       I         4       I
I        c       I        8        I         12       I         4       I
       In order to give a complete picture of the execution of the
       Programme , it is necessary to add those temporary posts .
       already authorised 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 : Proposai for a Council Régulation 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
     COM ( 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 workprogramme ( 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 Employaient
      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 .