Council outlines actions to increase investment in R&D
In support of the Commission's recent communication on raising the level of expenditure for research and innovation; ministers attending the Competitiveness Council in Brussels on 22 September invited the Commission and Member States to make more effective use of financing instruments, including the EU's structural funds, for research and development (R&D). The Council welcomed the communication 'investing in research: an action plan for Europe', and endorsed its main message which calls for a comprehensive and coherent range of actions to increase investments in research and to close the gap with Europe's main competitors. 'Investing in research and technological development and stimulating innovation and transfer of knowledge is essential to increasing European competitiveness, and to the strategy set by the Lisbon European Council for Europe's economic, social and environmental development [...] there is a particular need to stimulate and improve conditions for more private investment for research and innovation,' state the draft Council conclusions. Ministers also referred to the importance of developing broad policy mixes, adapted to the respective national and regional contexts, combining financial incentives and measures to improve framework conditions and stimulate private investment in R&D. In particular, ministers recognised the significant role that small to medium sized enterprises (SMEs) have to play in raising the level of expenditure in research and innovation, and called on Member States and acceding countries to enhance access to equity and debt financing for research and innovation through a range of measures. Ministers also called for the development of a European risk capital and venture capital market, as well as increased complementarity between European Investment Bank (EIB) and European Investment Fund (EIF) initiatives and national initiatives with specific regard to the needs of SMEs. With regard to making better use of the funds available, ministers supported the Commission's ongoing initiatives to simplify and modernise State Aid rules and procedures to facilitate Member States' efforts to redirect State Aid towards R&D activities. They also suggested that funds at EU level, such as structural funds, could be used to a greater extent for R&D and innovation purposes. They called for a closer examination of this possibility. In the context of developing a strategic approach to growth and competitiveness, the ministers invited the Commission to report annually, from 2004 onwards, on the progress achieved in reaching the three per cent objective, on the implementation of the communication, identifying remaining obstacles and, where appropriate, new actions needed. Other items covered by the ministers included the Commission's communication on life sciences and biotechnology, the Community patent, and the chemicals legislative package. The Council agreed to return to the issues of EU funding for human embryonic stem cell research, and the identification of a European candidate site to host the nuclear fusion energy research project (ITER), at the next Council meeting on 27 November.