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FP6

Impacts of IST-RTD in Key Strategic Objectives on Growth and Jobs, OJ reference: 2006/S171-182019 08/09/2006, SMART: 2006/0020, Tender Specifications

Funded under: FP6-IST

Abstract

The renewed Lisbon Strategy calls for a more competitive Europe and proposes efforts focused on delivering stronger and lasting growth and creating more and better jobs.
Investment in R&D and innovation is a key driver of productivity growth. However, the EU invests less of its GDP in R&D than its main competitors. The EU overall research effort represents 1. 96% of GDP, as against 2.59% for United States, 3.12% for Japan and 2.91% for Korea. The gap between US and EU, in particular, is currently about EUR 120 billion a year, 80% of it due to the difference in business spending in research and development.
The global picture for ICT R&D is also not encouraging. A recent study commissioned by the French Ministry of Higher Education and Research highlights that Europe is three time less 'ICT R&D intensive' than Japan and the United States, and that ICT is the only sector in which such huge difference in the volumes of R&D investments can be observed between Europe and USA. It also confirms that the main factor behind these differences is the low rate of investment in ICT R&D by European business and that the leverage effect of public ICT R&D funding on private funding is relatively insufficient (except Finland and Sweden).
The main reason for businesses failing to invest enough in R&D and innovation in Europe is the lack of an innovation-friendly market in which to launch new products and services. This is one of the key conclusions made by an independent Expert Group on R&D and innovation appointed following the Hampton Court Summit and chaired by Mr. Esko Aho.

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Record Number: 8119 / Last updated on: 2006-09-12
Category: SUPP