Heads of State and Government make research a 'vital strand' of Lisbon relaunch
If we did not know already that research and innovation are moving up the European policy agenda, the results of the recent meeting between the EU's Heads of State and Government make this very evident. The relaunch of the Lisbon agenda, intended to make Europe the most competitive economy in the world by 2010, was discussed at length at the European Council on 22 and 23 March. Research makes its entrance on page three of the Council's conclusions, and dominates the section on 'vital strands of the relaunch'. '[It] is important to develop research, education and all forms of innovation insofar as they make it possible to turn knowledge into an added value and create more and better jobs,' reads the paper. 'Moreover, in the years to come, a genuine dialogue must be encouraged among those directly involved in the knowledge-based society in the public and private sectors.' The objective of increasing research investment to three per cent of GDP is to be maintained. Increasing the contribution from the private sector will be done through tax incentives, a better leverage effect from public investment, and the more modern management of research institutions and universities. All Member States are also asked to continue working towards a reduction in the general level of State aid while redeploying aid in favour of certain horizontal objectives such as research and innovation and the optimisation of human capital. The role for both the Seventh Framework Programme (FP7) for research and development and the new Competitiveness and Innovation Programme are spelled out in the conclusions. FP7 shall enhance European cooperation, stimulate private investment in areas crucial to competitiveness and help to fill the technology gap. The programme is also intended to act as a lever to increase national research budgets. Improving the conditions for researchers and creating a European Research Council to support basic research are also mentioned. Europe's leaders agreed that innovation policies should be developed at national level in accordance with national needs, but should be comparable in terms of their objectives: establishing support mechanisms for innovative small and medium sized enterprises (SMEs); promoting joint research between undertakings and universities; improving access to risk capital; refocusing public procurement on innovative products and services; developing partnerships for innovation; and creating innovation centres at regional and local level. The Competitiveness and Innovation Programme should establish a new mechanism for financing innovative SMEs with a high growth potential, agreed the European Council. It should streamline and strengthen technical support for innovation in companies and support the development of regional centres and European networks for innovation. New support will come from the European Investment Bank (EIB) in the form of its Structured Finance Facility, which will be extended to research projects. New ways of using Community funds as a lever for EIB loans will also be investigated. The importance of investing in information technology and environmental technologies was also noted by Europe's Heads of State and Government. Eco-innovation and eco-technology can contribute to both quality of life and growth and employment, and should therefore be a focus of attention, particularly in the energy and transport sectors, state the Council conclusions. 'The European Council invites the Commission and the Member States to implement the action plan for eco-technology as a matter of urgency,' they continue.