Select Committee on European Union First Report


Proposal to Establish the European Institute of Technology: Interim Report

1.  This Interim Report refers to issues raised by the European Commission's proposal to establish the European Institute of Technology.[1]

2.  The Commission's view is that there is a weakness in the EU in technological innovation arising from its limited capacity to convert research results into commercial opportunities. The aim is for the establishment of the EIT to address this weakness and to establish a global reputation by integrating effectively education, research and innovation. This, in turn, would support the EU's aims of promoting growth and employment.

3.  The Commission's early thinking about the possible form of an EIT included the concept of a new physical entity which would be attended by students and would form a focus for research into the application of technology in Europe.[2] Following consultation, however, this controversial approach has disappeared in the present proposal.

4.  The Commission now envisage the EIT operating through the activities of a number of Knowledge and Innovation Communities (KICs). These KICs would consist of partnerships between the private sector, research organisations and higher education institutions; it is envisaged that six of them would be established during the period up to 2013. The KICs would use state-of-the-art research networking and computing infrastructures in order to achieve their aims of integrating activities between participants in their partnerships. The EIT would have an independent Governing Board, including high level representation from academia and industry. The Board would set the strategic objectives of the EIT and would define the areas in which KICs would be established. Supporting the Board would be a central staff of up to 60 people composed in equal proportions of scientists and support staff.

5.  We share the general agreement among stakeholders about the Commission's identification of the European Union's relative weakness, compared to its main international competitors, in applying knowledge and research to innovation in order to enhance business activity and jobs. However, we are yet to be convinced that there is a need for a new European institution, in the EIT form currently proposed, in order to address this problem. Our grave concern is that, in practice, the EIT model put forward by the Commission would cost a great deal of money and would be largely ineffective.

6.  We therefore invited Baroness Warwick of Undercliffe (Chief Executive) and Mr Chris Hale (Policy Adviser) from the organisation Universities UK to speak to us, on 22 February 2007, about this subject. In this Report, we make available for the information of the House, the oral evidence that they gave to us.

7.  In answering questions from the Sub-Committee, the evidence from Universities UK covered the following topics:

  • the problem faced by EU Member States in converting education and research results into commercial opportunities (Q 1);
  • the shift in the Commission's EIT proposals from an EIT as a physical entity to one based on a network approach (Q 2);
  • the likely effectiveness of the Knowledge and Innovation Communities (KICs) now proposed by the Commission as a basis for the EIT (Q 3);
  • the Commission's proposals for the Governing Board and support staff of the EIT (Q 4);
  • funding of the EIT (Q 5);
  • the strategic direction of the EIT (Q 6);
  • measures to ensure the quality of EIT activities (Q 7);
  • the award of EIT branded degrees (Q 8);
  • Universities UK's view of desirable modifications to the EIT proposal (Q 9); and,
  • Universities UK's view of how the EU's technological innovation problem might be addressed in the absence of an EIT (Q 10).

8.  Our meeting with the representatives from Universities UK helped to improve our understanding of the significant issues raised by the Commission's EIT proposal. The evidence they provided confirmed to us that our concerns about the lack of precise information relating to the proposal and its costs are well founded. We therefore decided to write to the European Commission about our concerns, asking for the Commissioner's views on the following issues:

  • The merit of the idea of carrying out a review, in advance of establishing the EIT, in order to identify, much more clearly than is now the case, the nature of the knowledge transfer problem in the EU that needs to be tackled, and to establish how incentives could be introduced for the business community to become involved in the proposed Knowledge and Innovation Communities (KICs).
  • How the central funding of the EIT would be established from both internal EU and external sources; and whether the need to find internal EU funding would divert funding from the existing EU Framework Programme for Research and Development (FP7).
  • The need to ensure that the administrative arrangements for the EIT should be as light-touch as possible in order not to deter support from business; and our concern that the present proposal for as many as 60 staff (30 scientists and 30 others) directly employed by the EIT might not be seen in this way.
  • The provisions in the Commission proposal with regard to the degree-awarding powers of the EIT; and whether it was now envisaged that degrees should be awarded by the individual higher education institutions in each KIC, with the possibility of the EIT name being included in order to demonstrate that the degree has been awarded as part of the work of a KIC.

9.  In concluding our letter to the Commission, we emphasised that we agreed that the EIT proposal does address a serious problem. We said also that we accepted that an EIT, in an appropriate form, could potentially make a positive contribution to solving that problem. We explained, however, that we would very much appreciate the Commissioner's thoughts on the matters of concern we had raised, so that we could make a fully informed judgement on the issue.

10.  In this Interim Report, we make available for the information of the House: the document sent to us by Universities UK as background information for our meeting with them (Appendix 1); and a transcript of the oral evidence they gave us (Minutes of Evidence reproduced at the end of the Report (pp 1-11)).

11.  We also make available our letter to the Commission (Appendix 2); and our correspondence with the UK Government Minister responsible for the EIT dossier (Appendix 3). We will return to this matter when we have received the responses to our letters.


1   Proposal for a Regulation of the European Parliament and Council-Establishing the European Institute of Technology (EIT), COM(206) 604 final Back

2   For comment on this original proposal see: (a) European Union Committee 33rd Report of Session 2005-06, "Seventh Framework Programme for Research" (paras 49 and 50); (b) House of Lords debate "Universities: Research and Development" (27 April 2006) Hansard, column 278  Back


 
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