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Europe Daily Bulletin No. 9289
GENERAL NEWS / (eu) eu/technology

Commission presents its proposal for creation of EIT - Not clear where funding will come from

Brussels, 18/10/2006 (Agence Europe) - On Wednesday, European Commission President José Manuel Barroso and Commissioners Jan Figel (Education) and Janez Potocnik (Research) presented the Commission's formal draft regulation to establish a European Institute of Technology (EIT). The aim is for the Institute to become a flagship of excellence in innovation, research and higher education (the “triangle of knowledge”). It will be a reference model in the way it combines the worlds of academia, research and business so as to enable Europe to face the challenges of globalisation more effectively and catch up with the United States and the Asian countries (led by China and India) in the technology race.

The idea of setting up the Institute was first spoken of by Mr Barroso last year during the mid-term review of the Lisbon Strategy. Following a communication in February, heads of state and government called on the Commission to present a formal proposal in the autumn. The question of funding is one that has been raised from the very start. Mr Barroso said in February that funding would come from various sources, particularly the European Union, its Member States and the business world, without giving any further details, except that its form of organisation would allow it to seek private capital. Last week, while Commissioner Figel was assuring MEPS on the Parliament's culture and education committee that the funding of the Institute would come to €2.4 billion, without affecting the 7th framework programme, Industry Commissioner Günter Verheugen appeared to be saying something quite different. In its formal proposal, the Commission remains vague, saying that funding will come from “a variety of sources”, including “a contribution (of €300 million) directly from the Community budget”. That would leave €2.1 billion to be found from relevant programmes, such as the 7th research framework, lifelong learning and competitiveness and innovation programmes, as well as structural funds, said the Commissioner, and the private sector. Mr Barroso admitted that initially the EIT had not featured in the financial perspective, but he saw the funding and location of the Institute to be of secondary importance, so long as the project was viable. Companies will follow on the European level, just as they commit to national projects today, he said. He indicated that several European flagship companies, including Nokia, British Petroleum and Ericsson, were interested in the project, and Eurochambres was also favourable to it. The Commission would make a very clear call to companies, confident that the worth of the project would attract their interest and investment. The thorny question of funding would only be asked in the first start-up phase (until 2013) because the EIT should ultimately become self-funding, added Commissioner Figel. It should thereafter be able to release its own resources from its profits, he hoped.

The operation of the EIT is to be flexible. The Commission proposes that it be built around a small central governance structure and a network of “Knowledge and Innovation Communities” (KICs) which will carry out the tasks of the EIT. 1) Central governance: the EIT will consist of a governing board, assisted by a limited number of around sixty scientific and administrative staff. Excellence will be the motor. The governing board will be made up of a balanced, representative group of 15 high profile people from business and the scientific community, plus 4 further members representing staff and students from the EIT and its KICs. It will be responsible for setting the overall strategic priorities of the EIT and for selecting KICs to address them. It will evaluate their progress towards agreed objectives and coordinate their work in the strategic areas concerned. 2) The KICs: going beyond a network approach, they are joint ventures of partner organisations representing universities, research organisations and businesses who come together to form an integrated partnership in response to calls for proposals from the EIT. Their objectives will be laid down on a contractual basis with the EIT, but they will have a high level of autonomy in terms of how they organise themselves and how they achieve the agreed objectives. The Commission proposes that the EIT should create approximately six KICs by 2013.

We need innovation to make Europe competitive on the global scene. And we need a European space for innovation in which excellence can thrive. … through its networks, the EIT will tear down the walls between research, education and business, to unlock Europe's potential for innovation,” Said Mr Barroso. He is hoping for the support of the heads of state and government who will meet in Lahti on Friday for the informal meeting. If the Parliament and the Council adopt the proposal before the end of 2007, the EIT could become operational in 2008, with it up and running from 2009, Mr Figel hoped. Mr Potocnik wanted the EIT to be at the basis of a change in attitude which would encourage innovation in Europe. (il)

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