Select Committee on Science and Technology Sixth Report


2  BACKGROUND

The History of the Framework Programmes

  7.  The European Union has had a policy of supporting science and technology, via its Framework Programme, for the past twenty years—since 1984. The Framework Programme is now the European Union's main instrument for research funding in Europe. The overall budget for the Sixth Framework Programme 6 (FP6) will be €17.5 billion (of which €16.27 billion is under the EC Treaty and €1.23 billion under the EURATOM treaty). Although a sizeable sum, it should be borne in mind that this comprises only 5% of EU public civil Science and Technology expenditure.[2] A programme is proposed by the European Commission and adopted by the European Council and Parliament following a co-decision procedure. Framework Programmes cover a period of five years, with the last year of one programme overlapping with the first year of the following programme. FP6 was operational from January 1 2003 and will run until 2006. The first calls for proposals were in December 2002; the deadlines for submissions of proposals fell within March and April 2003, with the first contracts let in Summer 2003.

PARTICIPATION IN FP6

  8.  Participation is open to all types of organisations engaged in research, including businesses, research institutes and academia.[3]

  9.  Once the European Council and the European Parliament adopt the Framework Programme, the European Commission is responsible for its implementation. There are no "national quotas" for Framework Programme funds. Other key principles as outlined by the Directorate General for Research are:

  • the EU will only fund projects which involve several partners from different countries;
  • Framework Programme funds are allocated following competitive "calls for proposals" published by the Commission on a regular basis;
  • projects will only be eligible for Framework Programme funding if their scope and objectives reflect priorities as outlined in "calls for proposals";
  • quality and technological relevance of projects submitted for funding are assessed by external, independent experts: each proposal is evaluated, on average, by five experts;
  • Framework Programme funds are not "subsidies" to research organisations or companies, and may only be used for carefully described work or research developments.[4]

Purpose of the Framework Programmes

  10.  The Framework Programmes were originally aimed at encouraging co-operation between European research players. After Framework Programme Five (FP5), the Commission considered that, despite the effects of these programmes, European research efforts were still fragmented between countries and member states' resources were not used efficiently.[5] The result was that FP6 represents a shift in approach to previous programmes. FP6 and its specific programmes have been designed to support the establishment of an European Research Area (ERA), with the Commission's optimistic aim of "making Europe the most competitive and knowledge based economy in the world by 2010."[6]

  11.  The Lisbon European Council adopted the European Research Area in March 2000, to lay "the foundation for a common science and technology policy across the European Union."[7] The ERA aims to coordinate national research policies in the direction of shared objectives, expertise and resources. In 2002 the Barcelona European Council agreed (subsequently confirmed by member states) the objective of increasing the European Union's global expenditure on research to 3% of GDP (1.5 times its current level) by 2010 (2/3 of which should consist of private sector investment), in order to bridge the gap with the USA (2.7%) and Japan (3.1%). The Commission believes that Europe does not do so as well as the US and Japan due to insufficient financial and human resources, lack of innovation and dispersion of effort. For example, in 1999, when the US had roughly the same GDP as Europe today, it spent €75 billion more on R & D than the EU did.[8]

  12.  However, the Commission claims that despite the unfavourable comparisons to the US and Japan, Europe does produce almost one third of the world's scientific knowledge. The Commission cites Airbus, Ariane and the high energy physics developed at CERN as examples of the results that can be achieved when European researchers join forces.[9] The Commission believes that with the introduction of the ERA as the central focus and FP6 as a "conduit" the future of Europe underpinned by scientific excellence, improved competitiveness and innovation, will be secured by encouraging greater co-operation and co-ordination.[10]

  13.  The evidence presented to us makes it clear that the Commission still has a long way to go to convince the UK research community that the creation of the ERA and the changes from FP5 to FP6 will achieve the Barcelona objective. It does not promote confidence that "previous programmes have been criticised for a lack of demonstrable economic impact and Commission management weakness."[11] Nonetheless, the change in direction of FP6 shows the Commission's has listened to the criticism and also demonstrates its continuing commitment to the framework programmes.

The new instruments of FP6

  14.  Previous Framework Programmes were implemented through co-operative research projects. The Commission believed that the drawbacks to the structure were that in most cases the end of a given research project meant the end of the consortium as well; and that in many cases projects did not reach the critical mass necessary to have any real impact, either scientifically, industrially or economically.[12] The bulk of the funding in FP6 will be delivered in the priority thematic areas through two new larger-scale funding instruments: "Networks of Excellence" and "Integrated Projects" were designed to move FP6 from multiple project funding to the funding of coherent programmes of research activities, giving consortia flexibility and autonomy.

NETWORKS OF EXCELLENCE

  15.  The Commission states that Networks of Excellence (NoE) "aims at progressively integrating activities of network partners thereby creating 'virtual' centres of excellence."[13] This instrument is aimed at addressing the perceived fragmentation of research across the EU.[14] The Government says that NoE's objective is to apply lasting integration of the research capacity available in given fields, with an emphasis on longer-term basic research.[15] Each Network needs to have participants from a minimum of three countries (of which at least two must be Member States/associated candidate countries) networking on the basis of a "joint programme of activities" (this could include research, training, mobility, electronic networks, knowledge transfer activities etc). The programme of activities, representing several millions of euros per annum, will be defined on the basis of pre-defined research themes and topics, but not on the basis of pre-defined objectives or results.[16]

INTEGRATED PROJECTS

  16.  The Integrated Projects are aimed at addressing key scientific, social and policy challenges facing EU states.[17] The Commission states that these will be projects of substantial size, designed to help build up the "critical mass" in objective-driven research with clearly defined scientific and technological ambitions and aims.[18] The Government explains:

    "Integrated projects, representing up to several tens of millions of euros, will have clearly defined objectives in terms of scientific and technological knowledge or products, processes or services. They will involve a minimum of three partners from industry/academia and include collaborative activities relating to dissemination, transfer and exploitation of knowledge."[19]

  17.  Both Networks of Excellence and Integrated Projects will be selected on the basis of calls for proposals and will be administered by the participants with a high degree of autonomy.

ARTICLE 169

  18.  The Commission intends to start using an instrument which has been in principle available for quite some time, but has so far been unused: the EU's participation in research programmes undertaken by several Member States. This is in Article 169 of the Amsterdam Treaty. The Government told the Committee:

ERA-NET

  19.  It is recognised that Framework Programmes comprise only 5% of EU public civil S&T expenditure and that the creation of a European Research Area must involve greater networking between Member States' national R&D programmes. A new scheme entitled "ERA-NET" is therefore an important addition to FP6. ERA-NET is aimed at research funding organisations (Research Councils and Government Departments) in the Member States and will provide financial support to cover the additional costs associated with joint activities. A broad spectrum of activities are covered by ERA-NET, from the simple exchange of information (lists of projects etc) and best practice through to complex jointly planned and funded R&D programmes.[21]

THE UK RESEARCH COMMUNITY'S REACTION TO THE CHANGES FROM FP5

  20.  Dr Oonagh Kinsman of GlaxoSmithKline was critical of the changes to FP6. She told the Committee:

  21.  She cited difficulties faced by industry in committing a given number of researchers to the networks, as required by the process.[23]

  22.  Dr Kinsman continued:

    "I would question the outcomes of the networks of excellence at this stage […] With integrated projects, I see that we have a role, but I would question the amount of money that they want to dedicate to SMEs […] why not encourage industry, at whatever level, but encourage SMEs to make sure there is participation?"[24]

  23.  Save British Science considered that Networks of Excellence would disappear once the funding ran out. It was felt that the quality of the networks could not be measured as it was unclear what these networks were meant to do.[25]

  24.  Some of the evidence expressed concern over the large scale of the programmes and projects likely under FP6. Dr Douglas Robertson of Newcastle University compared the likely size of a consortium to be the equivalent of managing a medium-sized company, with the consequent resource and effort implications.[26]

  25.  Professor Manfred Horvat, Chairman of the 2001 Framework Programme Monitoring Panel, considered that:

    "Major changes in the approach have to be prepared with care and should be based on well prepared evidence. In that respect, it is a matter of concern that the preparation of FP6 as the main instrument for the creation of the European Research Area (ERA) and the change to the new instruments for implementation was not based on any analytic studies, be it evaluation and assessment or technology foresight, but just on the political will for a 'radical change'. This looks like a rather risky approach."[27]

  26.  We are concerned that evidence suggests that large sections of the UK research community were not consulted in the formulation of the new instruments. Whilst the Commission is responsible for disseminating information about the Framework Programmes, it now falls to the UK Government to ensure that the research community is fully aware of the opportunities available and the new structure of FP6. This could be done through the National Contact Point network, which is discussed later in this Report. The Government and Research Councils should monitor the UK take up of FP6 carefully to carry forward suggestions for improvement in FP7.

CHANGES TO THE MARIE CURIE FELLOWSHIPS

  27.  A substantial amount of evidence submitted to the Committee has expressed concern over the changes to the Marie Curie Host Fellowship Scheme—described by BNFL as "the best thing since sliced bread".[28] The CBI told the Committee that the Fellowship schemes were "perhaps the best regarded aspect of the Framework Programmes".[29] Under FP5 this scheme was managed within the Human Resources and Mobility Programme and gave young researchers the opportunity to receive transnational research training in companies. They were aimed at researchers without industrial or commercial experience and sought to encourage technology transfer between industry and academia.[30] Professor Sir David King, the Government Chief Scientific Adviser, told the Committee that the UK received 32% of fellowships under FP5.[31] They provided a valuable opportunity for industry to access skills and knowledge from the academic base across Europe.

  28.  Marie Curie Fellowships as they were under FP5 have been replaced with a scheme that focuses on the mutual exchange of researchers between organisations. The CBI believes this is unlikely to facilitate the subsequent movement of fellows into employment with business.[32] Marie Curie Fellowships are now open to researchers at the beginning of their research career with less than four years' active research experience (e.g. researchers undertaking a doctoral degree); and to experienced researchers with more than four years of active research experience or those with a doctorate degree. For some actions, researchers with more than ten years of experience will not be eligible.[33]

  29.  Dr Kinsman of GlaxoSmithKline told the Committee:

    "There are alternative measures to bring academia and industry together, but specifically the early stage training scheme which we had hoped would be the equivalent of a young post-doctoral training where industry could put in proposals alongside research institutes or academic institutes to provide a training environment, they have now excluded applications from people with PhDs, so it has now turned into a European PhD programme [therefore] we will probably not be involved so much in the early training because it has not what we had hoped it would be".[34]

  30.  Dr Robert Leslie (Chair of the 1998/99 Evaluation Panel for the Marie Curie Industry Host Scheme) told the Committee "It has been brilliantly successful […] Frankly why that scheme has been dropped I just do not know, I regret it very much."[35]

  31.  The Marie Curie Fellowship Scheme under FP5 seems to have been well regarded by the research community and it is unclear to us why change was necessary. The Government should monitor their take up under FP6 and consult industry for its views of the success of the new fellowships. If necessary the Government should negotiate with the Commission for improvement or reinstatement of the previous scheme.

Monitoring of the Framework Programmes

  32.  The Commission publishes the following reports on the Framework Programmes.[36]

  • Annual monitoring reports are published each year for each FP, and each specific programme, giving independent feedback on the progress and quality of the measures taken to implement the programmes;
  • Five-year assessment Reports published every fourth year, for each FP and each specific programme, which give an independent valuation of the "relevance, efficiency, results and impact of the EU RTD programmes";
  • Research and development: annual statistics, published every year, statistics on expenditure, patents, and personnel for R & D in the member states;
  • R & D and Innovation Statistics, on candidate countries and the Russian Federation;
  • Statistics on Science and Technology in Europe; and
  • The Commission's annual budgetary documents.

Measuring the success of European research

  33.  Traditionally, the indicators reflecting the dynamism of knowledge creation have been the number of scientific research publications, the number of occasions on which these papers have been cited and the number of international patent registrations. 36% of the patents registered in Europe originate from within the EU, 36% from the US and 21% from Japan. However, patents registered by European organisations amount to only 9% of patents registered in the USA and 2% of patents registered in Japan.[37] The Commission claims that the low number of patents registered and originating in the EU, from within the EU, is due to the lack of a Community Patent.[38]

THE COMMUNITY PATENT

  34.  The European Union currently suffers from the high cost and complexity of the requirement to register a patent in each Member State to gain Europe-wide protection of a product. Discussions in the past for European legislation to remedy this problem had failed to agree (on language matters in particular) on a single "community patent". The European Patent Office (EPO), based in Munich, currently provides some limited, de facto protection for intellectual property rights and inventions. The EPO grants European patents for the states which have contracted into the European Patent Convention (EPC) (the UK is a member), which was signed in Munich on 5 October 1973 and entered into force on 7 October 1977. The EPO processes 150,000 patent applications a year, and has recently developed an online registered patent database. The EPO's task is to grant European patents for inventions, on the basis of a centralised procedure. By filing a single application in one of the three official languages (English, French and German) it is possible to obtain patent protection in some of the EPC contracting states.[39]

  35.  However, the current situation will soon change. The Council of the European Union approved a common political approach to a Community Patent on 7 March 2003.[40] The proposals include a central court to rule on disputes, language regimes, costs, the role of national patent offices and the distribution of fees. The Commission claimed that the Community Patent would give inventors the option of obtaining a single patent legally valid throughout the EU at a fraction of the existing cost of doing so. At the moment, patent protection in just eight European countries costs some €50,000 per product—around five times as much as in the USA or Japan. The Community Patent, on the basis of the current compromise, would halve these costs for 25 Member States rather than just eight—and while that cost would still be more than in the USA or Japan, it will be an improvement on the current situation.[41]

  36.  The Commission reported at the end of April that the Council was now due to agree and adopt the text of the proposed Regulation on the Community Patent. In the meantime, the Commission would present proposals for Council Decisions to confer jurisdiction on the European Court of Justice to rule on issues arising from Community Patents and to establish a specialised court. For its part, the Council was due to propose to the European Patent Organisation (EPO) to convene a diplomatic conference to revise the 1973 Munich Convention to allow the European Patent Office in Munich to issue Community Patents. This would then have to be ratified by the EPO member countries. [42]

  37.  We welcome the development of a European Patent as a step towards encouraging the registering of patents in the EU, and recommend that the Government monitor the situation carefully to ensure that the resulting patent is favourable to UK interests and not unduly delayed by the enlargement of the EU. As a tool for measuring the success of FP6, the number of patents registered in Europe may be misleading, as a community patent would no doubt produce a larger number of patents registered in Europe as a consequence of its creation.

THE BRAIN DRAIN

  38.  The European Commission states that half of the 8,760 European students completing doctorates in the USA between 1988 and 1995 opted to continue their careers in that country. The Commission believes that although the increasing complexity and interdependence of modern science and scientists means that they need a strong international component as part of their scientific pedigree, there is no good reason to believe that such a high level scientific pedigree can only be obtained in the United States. There is also a perception of higher quality research facilities in the USA. Investing in the development of human resources in science and for science by promoting mobility is an essential contribution to the ERA objectives.

  39.  Mobility programmes have been among the very successful activities of past FPs. The future scheme will not be limited to doctoral students or postdocs; it will be open to applicants from third countries; it will actively promote the return to Europe of European scientists working in a third country so as to counteract the "brain drain"; institutions will be able to apply for funds to host researchers from abroad as much as the individual scientist who wants to work in a laboratory outside his or her own country. The Commission considers that under the new scheme all structural problems which have been obstacles to researchers' mobility will be addressed. The Commission believes this will be true for social security and taxation as much as for career patterns and perspectives, where the respective national systems are essentially closed to applicants from other countries—including from other Member States.[43]

  40.  We welcome these measures but they are unlikely to be satisfactory on their own. As a recent Report pointed out: "European companies are increasingly spending their research budgets in the US with 'dire' consequences for the European economy and its universities".[44] The report also comments on the fact that "In the 1990s Europe managed to catch up and overtake the US in terms of the number of new science graduates." The Government has recognised the problem in the UK, as outlined in its White Paper, Excellence and Opportunity: a science and innovation policy for the 21st century, and is taking steps so remedy this. The Government needs to monitor the impact of these measures closely. [45]

HOW TO MEASURE THE SUCCESS OF FP6

  41.  Professor Mike Beveridge of Plymouth University told the Committee that "there are definite benefits, but until we have got some kind of taxonomy of what those benefits might be in research terms it is very hard to make much progress. We need a policy which looks at what the research benefits are in different research areas requiring different kinds of investment and infrastructure and seeing where European funding can benefit".[46]

  42.  Professor Martyn Thomas of the Institution of Electrical Engineers believed that the success of collaborations produced by the framework programmes could be measured by the length of time they endure. He told the Committee that some collaborations between French and British Universities in the field of IT had already been running for twenty years and could be measured also in terms of scientific peer review output.[47]

  43.  Due to the scale of the changes from FP5 to FP6, the assessment of the success of the new instruments in FP6 will be an important undertaking. The Government must make it clear to the UK research community how it, and the Commission, will be assessing the performance of FP6. The Framework Programmes will have gone a long way if, by the end of FP6, the UK research community accept the Framework Programmes as equally important as those funded by the research councils.

The UK's performance in Framework Programme 5

  44.  The Office of Science and Technology (OST) told the Committee that the UK's performance in FP5 was strong, with the UK obtaining about 15% of the available funding—the joint highest return alongside that of Germany.

  45.  Information on success rates of proposals for individual calls for proposals are provided to Programme Committee members on a confidential basis. The annual reports and technological development activities of the European Union provide information on the number of proposals received each year and the number of proposals selected for funding each year. It is not, however, possible to calculate "success rates" as proposals selected in one year may have been received in the previous year.[48]

  46.  According to OST statistics, the UK continually wins more funding through competitive bids to Framework Programmes than it pays through UK membership of the EU (OST statistics).[49] RCUK told the Committee that, under the FP5 Quality of Life Programme, the UK was involved in around 75% of proposals submitted, around 80% of which were awarded. This provided a significant financial return (above the UK juste retour—that is above the UK contribution to Framework Programmes as a Member State). Statistics collated by OST show that during the first three years of FP5, the UK's total return from EU R&D expenditure was €1457.7 million.[50]

  47.  RCUK also gave details of the UK's success in the Framework mobility programmes, with approximately 30% of all EU fellowships held in the UK (whilst only 6% of fellowships are held by UK nationals going to other European countries).[51] This can be explained in part by the fact that more continental Europeans speak English than the reverse.

  48.  The Office of Science and Technology provided information to the Committee on the scale of participation by UK organisations and individuals in FP5.[52] Up to 2001, there had been 8,319 participants in FP5. 1,437 were from Higher Education Institutes (at 43%, the highest percentage of participation from this category in the EU); 980 participants were from industry (29% of UK participants, second highest in the EU behind Germany); 635 were from small and medium enterprises (SMEs) (19% of UK participants, second highest in the EU behind Germany); and 25, 490 co-operation links were formed between UK organisations and those in other Framework Programme participating countries.[53]

  49.  In Brussels the Committee was told by the Research Directorate General that of all the European Countries, the UK had shown the most interest in the Framework Programmes and got the biggest share of project funding. Countries such as the UK, France, Germany and Belgium, with stronger, more competitive national research programmes, had done better than others from the programmes.

  50.  The Government told the Committee that, according to an independent survey, 88% of researchers attained or exceeded their goals for forming European partnerships or networks and 94% enhanced their knowledge bases.[54]

  51.  The Government told the Committee that it was hard to quantify the wider benefits which industry and research obtain from participation in Framework Programme: increasing research skills, accessing international markets, sharing risk or developing key industry standards. Professor Sir David King, the Chief Scientific Adviser told the Committee "a big plus arising from all the of the activity funded by the Framework Programmes is learning about good practice from other countries in the EU […] it terms of producing value for money for research I think that is where we have the benchmark".[55] He continued, "the measures of success are whether we raise our level of activity by comparing with the best in Europe […] the European Union provides a very good test against which we can measure ourselves".[56] Professor King cited the example of the significant support given by German Länder to R & D, particularly SMEs. SMEs in the UK are not winning the same amount of European research funding as their German counterparts, and Professor King suggested that UK RDAs could learn from the German example.[57] The Government also confirmed that it benefits from the generation of new knowledge which can help to inform important policy issues.[58]

  52.  When asked how the Commission measures the success of the Framework Programmes, Dr John Taylor, Director General of the Research Councils answered: "they would say, to what extent is it really building on wealth-creation and prosperity in Europe, on the one hand, and the creation and development of an European Research Area on the other?"[59]

  53.  Whilst there are no conclusive statistics available from the European Commission on the amount of funding received by the UK from FP5, the indications are that the UK did better than most, if not all, of the other countries participating in FP5. That does not necessarily mean value for money: but it does speak volumes for the relative strength of the UK science base.


2   Q 376 Back

3   Ev 122 Back

4   European Commission, Sixth Framework Programme: Frequently Asked Questions, http://europa.eu.int/comm/research/fp6/pdf/faq_en.pdf Back

5   European Commission, The European Research Area: An internal knowledge market, Office for Official Publications of the European Communities, Luxembourg, 2002, p 8. Back

6   Lisbon European Council, Presidency Conclusions, 23 and 24 March 2000. Back

7   Lisbon European Council, Presidency Conclusions, 23 and 24 March 2000. Back

8   The European Research Area, p 6 Back

9   ,The European Research Area, p 5 Back

10   European Commission, Participating in European Research: Guide for applicants under the Sixth Framework Programme for European Research & Technological Development (2002-2006), October 2002, Office for Official Publications of the European Communities, Luxembourg, p 5 Back

11   Ev 122 Back

12   Sixth Framework Programme, FAQ, p 3 Back

13   The European Research Area, p 16 Back

14   Ev 89 Back

15   Ev 129 Back

16   Ev 129 Back

17   Ev 89 Back

18   Sixth Framework Programme, FAQ, p 3 Back

19   Ev 129 Back

20   Ev 129 Back

21   Ev 130 Back

22   Q 182 Back

23   Q 182 Back

24   Q 183 Back

25   Qq 28 and 29 Back

26   Q 76 Back

27   Ev 162 Back

28   Q 279 Back

29   Ev 43 Back

30   Ev 51 Back

31   Q 349 Back

32   Ev 43 Back

33   http://europa.eu.int/comm/research/fp6/mariecurie-actions/action/level_en.html#2 Back

34   Q 181 Back

35   Q 219 Back

36   European Commission, Report from the Commission, Research and Technological development activities of the European Union 2002 Annual Report, COM(2003) 124, Brussels, 20 March 2003, p 3. Back

37   Eurostat. Back

38   European Research Area, p 7 Back

39   For further information see the EPO website: http://www.european-patent-office.org Back

40   Competitiveness Council Memo, DN MEMO//03/47. Back

41   European Commission Press Notice, 22 April, 2003, http://europa.eu.int/comm/research/industrial_technologies/16-04-03_patent_en.html  Back

42   See also European Scrutiny Committee, Twenty Second Report of Session 2002-03, HC 63-xxi, para 5. Back

43   Sixth Framework Programme, FAQ, p 5 Back

44   European Round Table of Industrialists, The European Challenges, March 2003 Back

45   Department for Trade and Industry, Excellence and Opportunity: a science and innovation policy for the 21st Century, Cm 4814, July 2000 Back

46   Q 97 Back

47   Q 123 Back

48   The 2002 report is available at http://europa.eu.int/comm/research/report2002.html Back

49   Ev 124 Back

50   Ev 89 Back

51   Ev 89 Back

52   Ev 140 Back

53   This number had been measured as contracts signed in 2001, and the figure was the highest for any EU Member State, Ev 140. Back

54   Ev 124 Back

55   Q 341 Back

56   Q 346 Back

57   Q 341 Back

58   Ev 124 Back

59   Q 347 Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2003
Prepared 24 July 2003