IRDAC, the European Community's Industrial R&D Advisory Committee, has recently published its opinion on the Commission's Green Paper on Innovation. IRDAC welcomes the Green Paper as an attempt to launch a debate on innovation in Europe, and in particular, welcomes the fact that it addresses all aspects related to innovation and not simply RTD. The Committee warns, however, that for the Green Paper to be successful, it must define clear goals, with a realistic timetable and budget. Of the 13 actions in the Green Paper, IRDAC gives the highest priority to improving the financing of innovation, setting up a fiscal regime beneficial to innovation and creating a favourable legal and regulatory framework. Action in these areas, according to IRDAC, are likely to have the greatest effect on innovation, and are more likely to favour innovation than direct actions such as the establishment of regional innovation centres. IRDAC would also like to have seen greater emphasis given in the Green Paper to innovation in services and the public sector, which it sees as important economic groups. In addition, it would like to see greater discussion of the reasons for innovation and the cultural factors relating to innovation.