13 Evaluation of eContent Programme
| (24957)
13644/03
COM(03) 591
| Commission Communication concerning the mid-term evaluation of the multiannual Community programme to stimulate the development and use of European digital content on the global networks and to promote linguistic diversity in the information society (eContent).
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| Legal base | — |
| Document originated | 10 October 2003
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| Deposited in Parliament | 17 October 2003
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| Department | Trade and Industry
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| Basis of consideration | EM of 3 November 2003
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| Previous Committee Report | None; but see (21502) 10541/00; HC-23 xxvii (1999-2000), paragraph 21 (25 October 2000)
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| To be discussed in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
13.1 The eContent programme was developed by the Commission to
encourage growth and development of the digital content industry
in Europe. The programme was established by Council Decision 2001/42/EC.
The programme began in 2001 and will run until 2005. It has a
budget of €100
million. The programme aims to stimulate the production, use and
distribution of European digital content (e-content) on global
networks by encouraging the growth of a competitive EU digital
content industry. The Council Decision required the Commission
to organise a mid-point evaluation of the programme. The evaluation
was conducted by independent consultants in the first half of
2003. During 2001-02, 58 projects were co-financed, involving
468 organisations. The Communication reports the evaluators' findings
and recommendations.
The document
13.2 The evaluators found that the benefits of the
programme were significant in relation to the level of resources
allocated to it. The programme fulfils the role of demonstrating
the economic benefits of information held by the public sector
as well as the market access opportunities provided by linguistic
and cultural adoption of digital content to target audiences.
Few participants have so far made firm plans about marketing,
sales procedures, target customers and revenue models. Most projects
were still at the feasibility stage. Further time and money will
be needed for market studies, pilot phases and other pre-launch
activities before potentially commercial outputs may be expected.
But uncertainty about commercial outcomes is an unavoidable aspect
of the innovation process.
13.3 The evaluators concluded that the programme
was well structured, with a clear hierarchy of objectives. It
was, overall, well managed. It reached its target audience; small
and medium-sized enterprises (SMEs) represented 43% of participants
and 44% of funding went to them.
13.4 The evaluators' main recommendations to the
Commission were:
- The financial requirements
imposed on participants are too strict for SME and start up businesses;
and the Commission should reduce payment delays to participants.
- The commercial dimension of projects should be
emphasised.
- Feedback to unsuccessful bidders should be improved.
- The Commission should encourage collaboration
and networking among national contact points.
13.5 The Commission reports that most of the recommendations
have already been taken into account in the running of the programme.
SMEs are bound by the EU's rules on legal and financial matters,
but the Commission supports the participation of SMEs and start-ups
by providing pre-financing of up to 30% of the contractual amounts,
sharing the costs of financial guarantees when needed.
13.6 The evaluators encourage Member States to promote
the commercial value of digital content as well as the importance
of 'multilinguality' and to consider digital content-related activities
in their domestic funding programmes.
13.7 The Commission's Communication invites the Council,
the European Parliament, the Economic and Social Committee and
the Council of the Regions to:
"Recognise the role of digital content as a
means to increase access to information by the citizens and to
stimulate the economic and social development of European businesses.
"Support the role of the eContent programme
as supporting demonstrators for the re-use of public sector information
and the creation of European multilingual [and] multicultural
content".
The Government's view
13.8 The Minister for Energy, E-Commerce and Postal
Services, Department of Trade and Industry (Mr Stephen Timms)
tells us that he shares the evaluators' judgement that the programme
had reached its target audience and overall was well managed.
The Government accepts the evaluators' recommendations for the
promotion of the commercial value of digital content and multilinguality
and is already promoting the importance of digital content in
connection with matters such as promoting broadband uptake.
13.9 Finally, the Minister tells us that the Communication
has no impact on UK law and no financial or policy implications
for the UK.
Conclusion
13.10 We are glad to note this encouraging evaluation
of the eContent programme at its mid-point. We consider that the
Communication is politically important and, accordingly, we draw
it to the attention of the House at the same time as we clear
it from scrutiny.
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