EU research: business investment and creation of demand are key

The EU's Science and Research Commissioner Janez Potocnik highlighted the need to create lead markets for technology-intensive goods and services. "Creating good framework conditions for European research and innovation is not sufficient if we don't have market demand for new technologies that meet economic opportunities and societal needs," he said.

"We have focused too much on the supply side, whereas the demand side is as important, if not more", continued the chair of the report 
Creating an innovative Europe
 and the former Primer Minister of Finland, Esko Aho. "We have been rather poor in creating services in the single market and, as the services directive has shown, it is not easy to allow the creation of these services," he added.

However, "services account for 60% of the EU's GDP, and freedom of workers and services, two of the four freedoms created by the single market, are still not properly functioning," commented Commissioner Potocnik.

Esko Aho, describing European societies as "risk-avoiding societies", had, accordingly, a tough message for high-level politicians: "It is better to lose elections and have made some good/necessary policy decision than to always win elections with bad and short-sighted decisions. Those having taken difficult, but essential, decisions will be remembered as great men."

Both Potocnik and Aho are expecting much from technology platforms and think these platforms are an excellent way for the private sector to participate in European R&D. Commissioner Potocnik even foresaw the possibility of them taking "a proactive approach to standardisation and regulation". 

Dr Jens Rostrup-Nielsen, a member of the European Research Council (ERC), highlighted the need for European technology platforms to deliver in a reasonable period of time, so as to avoid turning into mere "discussion clubs".

With regard to the 3%  target, Commissioner Potocnik said that the Commission's analysis indicated that if all member states realise all measures they currently propose, the EU will be investing 2.7% of its GDP in R&D in 2010. Compared to the 1.9% in 2004, it would, indeed, be a huge improvement. 

As to the continuous comparison of EU and US R&D, the Commissioner pointed out that "the US is functioning as one whereas we [the EU] are functioning as 25 with different national interests and priorities. Our challenge is to turn European interest into national interest. Unless we have that kind of unity, it is very difficult to make true comparisons with the United States."

The EU wants to meet the goal of investing 3% of GDP in research and development activities by 2010. At least two thirds of the investment should come from the business sector. At present, the Europe's R&D investment is desperately stagnating and, according to the latest Eurostat figures, private sector investment has even declined by one percentage point.

• The European Spring Council will take place on 23-24 March 2006.

EU official documents

• Commission press release:Speech of Commissioner Potocnik: EU Research: building a knowledge-based economy(16 March 2006)

Non-assigned links

• European Business Summit (EBS)