Businesses: 'Why should we invest in EIT?'

The Commission expects businesses to invest 2.1 billion euro in the future European Institute of Technology, but businesses want to know what incentives will be offered.

The Commission adopted its official proposal for the European Institute of Technology (EIT) on 18 October 2006. The final proposal does not differ greatly from the two previous Commission communications on the issue except that the Knowledge Communities are now described as Knowledge and Innovation Communities and that this document, finally, spells out the budget foreseen for the institute. (For the two previous communications see EurActiv 23 February 2006 and 9 June 2006.)

Some €2.4 billion is foreseen to be spent between 2008 and 2013. The Commission proposes €310 million to be allocated directly from the EU budget, mainly for the initial start-up phase. The rest, €2.1 billion, is expected to come from the private sector. The institute will also be eligible to apply for money from EU aid funds - the Knowledge and Innovation Communities can, for example, apply for project funding under FP7. Education Commissioner Jan Figel said that an "EIT foundation" could be established to gather the necessary funds.

The European Chambers of Commerce immediately reacted to the proposal, asking for clarification. "Where will the money come from?" asks the association, which represents more than18 million enterprises in Europe. In paricular, it wants to know how the Commission intends to attract private investors. 

"I've met many business leaders and they agree with the aims of the EIT. I'm sure that EIT won't lack finance," said Commission President Jose Manuel Barroso, revealing "fighting climate change" as EIT's top priority. "Our ambition is to have the EIT up and running before the end of the mandate of this Commission. I am looking to the informal summit of heads of state and government in Lahti [20 October 2006] to provide their political support for this new flagship for innovation in Europe," he added.

Positions

European Chambers of Commerce, EUROCHAMBRES, welcomes the proposal for an EIT "as a symbol of integration of research, education and entrepreneurship", but asks for clarifications on the incentives that the Commission foresees for the private sector in order to get them on board.

The European Association of Craft, Small and Medium-sized Enterprises (UEAPME) is supportive of the project "only under the strict conditions that it can provide some added value for European craft, small and medium sized enterprises". 

The European Information and Communication Technologies Association (EICTA) states that "Europe's problem is less the lack of new ideas but more the transformation of new ideas into innovation and global competitiveness, the availability of financial resources including Venture Capital, the provision of research- and innovation-friendly conditions and the entrepreneurial spirit that bridges the academic and industrial world."  

Representatives of the European universities, the European University Association (EUA), the League of European Research Universities (Leru) and the Coimbra Group universities all doubt the relevance of an EIT.

"A politically motivated idea, starting from a wrong premise and with a vague and then unrealistic financial underpinning, will not help Europe forward," comments Euroscience, an open forum of Euroepan scientists, the EIT plans. 

Dr. Jorgo Chatzimarkakis member of the European parliament (ALDE) said: "Discussing the possible award of a European University degree for example will still block or at least seriously delay the legislative process in the Council of Ministers."

Next Steps

• Lahti Summit will discuss the official proposal on 20 October 2006.
• Parliament and Council could adopt the proposal before the end of 2007 or early 2008.
• EIT's governing board could be appointed in 2008.
• EIT could be operational in 2009.
• The first two Knowledge and Innovation Communities (KIC) could be set up and start their activities in 2010.
• The aim is to create approximately six KICs by 2013, addressing strategic long-term challenges in fields of key potential economic and societal interest for Europe.