Second European Report on Science and Technology Indicators

The "Second European Report on S&T Indicators 1997" has just been published by the European Commission, DG XII. The report is structured in a similar way to the first edition, published in 1994, but in addition contains material on inter-enterprise cooperation, innovation, nat...

The "Second European Report on S&T Indicators 1997" has just been published by the European Commission, DG XII. The report is structured in a similar way to the first edition, published in 1994, but in addition contains material on inter-enterprise cooperation, innovation, national foresight studies, and the Mediterranean countries. The aim is to establish regular reports which will allow a detailed study of the development of European science and technology through time.

The long-term aims for the report include the establishment of a base of information and knowledge, in order to assess the problems existing at European level for research and development. In particular, this should contribute to the coordination of Member States' and EU activities. A second objective is to stimulate the development of indicators and science and technology analyses to address the needs of the policy-makers. Fulfilling these objectives will require the development of cooperation between users and producers of these science and technology indicators, and specialists in the fields of economy, technological progress and innovation. In order to further these objectives, the Commission's proposal for the Fifth RTD Framework Programme includes an initiative for the development of a European system of science and technology indicators.

The report is divided into five parts, as follows:

- An analysis of the position of European science and technology relative to the rest of the world:

The report shows that while economic growth in the EU has been similar to that in its major competitors, such as the USA and Japan, (except in terms of job creation) Europe devotes a considerably lower share of GDP to research than do those competitors. In personnel terms, EU companies and organizations employ a relatively small number of researchers in comparison to those in the EU's main competitors. While investment in training and education has risen, in per capita terms, the EU produces fewer graduates in engineering and sciences than its competitors. One area where the EU does come out favourably in comparison is in scientific publications, with EU researchers publishing more than their US counterparts in 1995.

- The relationship between intangible investment, innovation and the economic and commercial performance of countries, industry sectors and companies:

Focusing on innovation and the process of transforming research success into increased competitiveness in Europe, the report shows that European industry in the main high technology sectors has been increasing in productivity. However, whilst European researchers tend to be most successful in the mature industries, Europe lags behind in key emerging technologies.

- Studies of the different national R&D systems and support mechanisms within the EU's Member States and other European countries, highlighting both national differences and areas of convergence:

The report illustrates the different approaches to research and development in European countries. For example, in France, R&D is largely government-based; in Germany, it focuses on applied research; and in the UK, it favours the enterprise sector. Ireland has the fastest growing R&D sector, although in general, in the small Member States, R&D is dependent on a small number of multinationals. The main pressure on each Member State's research policy is undoubtedly budgetary, and the report suggests a need to organize policy objectives more efficiently. Europe is dominated by a small number of technologically-intensive regions, although the gap between the least advanced and the middle-ranking technological regions is narrowing.

The economies in transition - the Central and Eastern European countries which have applied to join the EU - are focusing increasingly on basic research. The main source of funding within these countries for R&D is the governments, although the low levels of appropriations indicate that it is not yet a high priority for these governments. In the Mediterranean countries, other than Israel and Turkey, the R&D sectors are still very much at an early stage in development.

- An analysis of cooperation in science and technology at European level, looking at those involved and the issues raised:

In the last ten years, cooperation in R&D across European frontiers has become a fundamental feature of the European scientific landscape. The EU's successive Framework Programmes have been decisive in this development and are now the principal driver behind European scientific cooperation. The funds allocated by the EU for research have also become a more important source of R&D investment, amounting to 9.7% of governments' civilian R&D spending in 1995-96, almost double the proportion of ten years before.

The model of EU-supported research projects has changed the profile of cooperative activities, with much less focus on geographical and linguistic proximities than previously. Furthermore, the system has led to much greater involvement of those smaller countries which were previously marginalized to an extent. EU support for the mobility of students and young researchers has helped foster a global research and education system, although linguistic barriers represent a major problem.

- Studies of the EU's cooperative scientific activities with other countries and regions in the world, both industrialized and developing, picking up in greater detail on points raised in the first section:

Whilst internal European links and cooperative activities are developing, Europe is also working to develop ties with its major industrial partners. Whether through the negotiation of agreements allowing mutual access to each others' research programmes and activities, or through foreign direct investment, there is no doubt of the attractiveness of developing increased cooperation. EU companies are responsible for two-thirds of foreign R&D investment in the USA.

The EU's support for cooperative activities with the Central and Eastern European countries and developing countries has had an important effect. Firstly, in sustaining research activities in the CEECs, EU funding has helped compensate for the fall in governments' spending. In the developing countries EU-funded activities have focused on problems such as agriculture, health and sustainable development. Despite contributing more funding than the US or Japan, the report suggests that the EU's contribution needs to be increased.

The report is presented in two volumes: the first contains the main body of the report (text, graphics, tables and maps), while the second contains statistical and methodological annexes. A CD-ROM version is also available.