What is the problem? Low private investment in ICT R&D is a threat to the European economy

Europe continues to under-invest in ICT related research and development. Compared to major trading partners such as the US, R&D in ICT in Europe is not only a much smaller proportion of total R&D spend (17% compared to 29%), but in absolute terms represents around 40% of US expenditure (€ 37 billion, versus € 88 billion in 2007).

Given that ICT represents a significant share of total value-added in European industrial strengths such as automobile (25%), consumer appliances (41%) or health and medical (33%), the lack of investment in ICT R&D is a threat to the entire European manufacturing and service sectors.

Why is EU action required?

Europe must leverage private investment through pre-commercial procurement, public-private partnerships and support to Small and Medium sized Enterprises (SMEs) in order to keep its competitive edge in ICT R&D.

What are the Commission's plans?

Main strands of action:

• Increase the use of pre-commercial procurement to share risks and benefits of designing, prototyping and testing of new products and services with suppliers, create conditions for wide commercialisation, and pool efforts.
• Maintain and encourage public-private partnerships.
• Provide attractive conditions for those wishing to invest in European SMEs and stimulate financial resources that are sufficient to sustain SME growth.
• Greater and more efficient use of structural/regional development funds for ICT research and innovation (see DAE Action 55).

In 2010:

• Launch of Call for Proposals on pre-commercial procurement under FP7
• Continued implementation of current public-private partnerships under FP7
• Launch of an ICT finance market place initiative

In 2011:

• Communication on orientations for next Research Framework Programme, and wide consultation
• Proposal for next Research Framework Programme

Contact:

morten.moller@ec.europa.eu