Select Committee on European Scrutiny Twenty-Fourth Report


2 Nanotechnology

(25678)

9621/04

COM(02)338

Commission Communication — Towards a European strategy for nanotechnology

Legal base
Document originated12 May 2004
Deposited in Parliament20 May 2004
DepartmentTrade and Industry
Basis of considerationEM of 17 June 2004
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested and an opinion requested from the Science and Technology Committee

Background

2.1 Broadly speaking, nanoscience studies the manipulation and assembly of matter at the atomic or molecular level; and nanotechnology applies nanoscience to create products and processes.[5]

2.2 In its recent Report on the application of nanotechnology in the UK, the Science and Technology Committee said:

"Nanotechnology is more than an exciting new technology. It represents a whole new method of manufacturing … It is better described as a collection of technologies which are genuinely 'disruptive' — that is, they will render many existing technologies and processes obsolete and create entirely new types of products…. Nanotechnology has been described as a new industrial revolution."[6]

The document

2.3 The Communication proposes a programme of action to maintain and strengthen European research and development (R&D) in nanosciences and technologies. The Commission says that its proposals are in line with the relevant Conclusions of the European Councils of Lisbon (for the EU to become the most competitive and dynamic knowledge-based economy in the world), Gothenburg (agreeing a strategy for sustainable growth) and Barcelona (agreeing that spending on R&D and innovation should be increased to 3% of GDP by 2010).[7]

2.4 The Communication begins by outlining the scope for nanotechnology to lead to innovations in fields such as medicine, information technology, energy production and storage, materials science, manufacturing, instrumentation and the environment.

2.5 The Communication compares public expenditure on R&D in nanotechnology in the EU and elsewhere. In 2003, the public expenditure of the EU (including the spending of the Community, Member States and associated countries) was €1,150 million, compared with €1,070 million in the USA and €810 million in Japan. According to the Commission's figures, the UK's public expenditure on nanotechnology R&D in 2003 was €130 million; Germany's was €250 million and France's €180 million; all the remaining Member States invested less than the UK.

2.6 The Commission notes that in 2003 per capita R&D public expenditure on nanotechnology was €2.9 in the EU (excluding the accession states), €3.7 in the USA and €6.2 in Japan. Per capita expenditure is to rise to €8 in Japan in 2004 and €5 in the USA by 2006.

2.7 The Commission comments that:

"One of the crucial differences between the EU and our main competitors is that the landscape of European R&D in nanotechnology risks becoming relatively fragmented with a disparate range of rapidly evolving programmes and funding sources. The EC contribution under FP 6 [the 6th R&D Framework Programme] of €350 million in 2003 amounts to around one third of the overall European expenditure in nanotechnology.

"Our main competitors are characterised by coordinated and/or centralised R&D programmes in nanotechnology. In the USA, for example, over two-thirds of funding is allocated as part of the National Nanotechnology Initiative within the auspices of the federal programme. It appears unlikely that the EU can remain competitive at world-level without better focussing and coordination at Community level."[8]

2.8 The Commission says that the EU needs to ensure not only that it produces world-class R&D but also that it takes action on: R&D infrastructure; education and training; innovation; and "the societal dimension".

2.9 The Commission believes there is a risk that the EU's public expenditure on nanotechnology R&D will be significantly less than that of its competitors over the next five years. So it proposes a threefold increase in Community expenditure by 2010. Member States should also increase their own spending on nanotechnology R&D. The Commission adds, however, that:

"national capacities are often proving inadequate for the creation of world-class poles of excellence [that is, infrastructure for nanotechnology R&D]. It is therefore urgent that [national] programmes are coordinated in a way that effort is consolidated and focussed so as to ensure a critical mass and greater impact within the ERA [European Research Area] on the three synergistic axes: research, infrastructure and education."[9]

2.10 The Commission discusses the value of "technology roadmaps" and "foresighting" for nanotechnology. Roadmaps and foresighting define and assess progress, bringing together those with relevant knowledge to consider possible developments, challenges, risks and future needs. Several roadmaps are already being prepared.

2.11 The Commission defines "infrastructure" as the facilities, equipment and instrumentation that needs to be available to researchers in order to develop nanotechnology and show whether R&D can be translated into commercially viable products and processes. In the Commission's view, Europe urgently needs world-class nanotechnology infrastructure:

"To achieve the necessary critical mass, we need to concentrate our resources in a limited number of infrastructures within Europe. Sectors that can benefit from mutual synergy include nanoelectronics, nanobiotechnology and nanomaterials. However, the need to minimise fragmentation and duplication must be offset against the importance of ensuring competition and thus R&D excellence." [10]

Infrastructure for nanoelectronics has already been identified as one of the areas for investment under the European Investment Bank's initiative for "Quick Start" projects.

2.12 The Commission notes that Europe needs sufficient and suitable qualified researchers and engineers if it is to realise the potential of nanotechnology. It calls for action in schools to introduce children to the concepts of nanotechnology; and proposes new approaches to first degree and postgraduate education in the sciences and engineering, including training in entrepreneurial skills.

2.13 The Commission says that:

"Scientific investigation and assessment of possible health or environmental risks associated with nanotechnology need to accompany the R&D and technological progress…. In particular, nanoparticles might behave in unexpected ways due to their small size. They may present special challenges, for example, in terms of production, disposal, handling, storage and transport. R&D is needed to determine the relevant parameters and prepare for regulation, where necessary…" [11]

2.14 The Commission calls on Member States to create conditions that promote investment in R&D by industry. It encourages the European Investment Bank and European Investment Fund to contribute to strengthening the capital base for innovation in nanotechnology. It also calls on Member States to explore the use of Structural Funds for R&D and to forge closer cooperation between patent offices.

2.15 The Commission synthesises its proposals into 19 specific "actions" addressed to Member States and sets out others addressed to the Commission itself.

The Government's view

2.16 The Parliamentary Under-Secretary of State for Science and Innovation at the Department of Trade and Industry (Lord Sainsbury of Turville) notes the Commission's proposal that EU-level expenditure on nanotechnology R&D should increase threefold by 2010. He comments that:

"it is likely that the Commission will wish to continue with the larger scale R&D actions that are currently being used in FP6, although at this stage there are very few actions underway and there is no evidence that the impact of such actions represents good value for money."

2.17 The Minister also comments on the Commission's view that resources should be concentrated on a limited number of R&D infrastructures. He says:

"From a UK perspective, unless the new infrastructures are based in the UK and are directed to UK industrial strengths, the benefits to UK competitiveness are limited."

2.18 The Minister concludes:

"It is unlikely that many Member States will agree to the large proposed increase in the R&D budget for nanotechnology or to the building of very large nanotechnology infrastructures at the European level, particularly the New Member States."

Conclusion

2.19 In our view, the Minister has highlighted the two most important and controversial aspects of this Communication. These are, first, the proposal for a huge increase in Community spending on nanotechnology R&D; and, second, the risk that, if the Commission's approach were adopted, new major infrastructure might be located to the detriment of the UK.

2.20 We should be grateful, therefore, if the Minister would keep us fully informed of the discussions between Member States on these proposals. Given that the Science and Technology Committee has recently reported on nanotechnology, we also ask that Committee for its opinion,[12] and would like to receive this by 15 July. Meanwhile, we shall keep the document under scrutiny.


5   A nanometre is one billionth of a metre. Back

6   Fifth Report, 2003-04, Too little too late? Government Investment in Nanotechnology, HC 56-1, para 1. Back

7   Lisbon European Council, 23/24 March 2000, para 5; Gothenburg European Council, 15/16 June 2001, paras 19-32; Barcelona European Council, 15/16 March 2002, para 47. Back

8   Commission Communication, p.8. Back

9   Commission Communication, p.11. Back

10   Commission Communication, p.13. Back

11   Commission Communication, p.21. Back

12   Standing Order No. 143(ii). Back


 
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