A50: Leverage more private investment for ICT research & innovation
Leverage more private investment through the strategic use of pre-commercial procurement and public-private partnerships, by using structural funds for research and innovation and by maintaining a pace of 20% yearly increase of the ICT and R&D budget at least for the duration of FP7.

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


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A50: Leverage more private investment for ICT research & innovation
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