Public consultation on ICT research and innovation

The European Commission launched a public consultation on ICT research and innovation in order to revamp the current ICT research strategy and make the European ICT industry a global leader. ICT is rapidly changing global production, work and business...

The European Commission launched a public consultation on ICT research and innovation in order to revamp the current ICT research strategy and make the European ICT industry a global leader.

ICT is rapidly changing global production, work and business methods, and at the same time has a great potential to enhance the quality of life. Currently, the ICT sector in the EU employs about 6 per cent of the workforce and generates about 8 per cent of EU GDP. However, a number of key failings in ICT research and innovation in the EU have recently been highlighted in a report on the effectiveness of ICT Research in the sixth framework programme. The report, published last June, and put together by former Finnish Prime Minister Esko Aho, concludes that the effectiveness of Europe's ICT research is too often stifled by "red tape, a lack of venture capital and a risk-averse mentality".

Consequently Europe has been underperforming in both the level and intensity of its research and innovation investments. For instance, today 33 per cent of research and innovation in developed economies worldwide is in ICT, in Europe this accounts for less than 25 per cent, mainly because it is highly fragmented and overlapping. At the same time the EU at present represents 32 per cent of the global ICT market, but European companies only take approximately 22 per cent of the global market. In addition, despite a very strong presence in some key ICT sectors, very few EU innovative SMEs in ICT have been able to become world leaders in the last years.

The same goes for the development of ICT clusters, whereby the EU has a limited representation in the list of worldwide top clusters. In overall numbers Europe is investing less in ICT research and development than its international competitors, although the investment of the EU industry at an individual level is comparable to their competitors. The consolation, which asks three main questions, will assist the European Commission in defining a new ICT strategy. The strategy, set for publication in April 2009, will identify new areas on which the bloc ought to concentrate its resources and capacities in order to become leaders in the area. The strategy will also work in tandem with the current EU efforts in augmenting and providing various types of funds to assist in the development of ICT research. ICT is one of the main research themes of the seventh framework programme (FP7) whereby the member states have earmarked a total of €9.1

billion for ICT funding over the duration of programme (2007-2013). This makes the ICT theme the largest research theme in the FP7 cooperation programme, which is itself the largest specific programme of FP7 (with 64 per cent of the total budget). In addition, running in parallel with FP7, there is the competitiveness and innovation programme (CIP) which assists businesses to apply research findings and improve their competitive advantage. The ICT policy support programme, within CIP, has another €730 million earmarked for the sector. The ICT policy support programme aims at stimulating innovation and competitiveness through the wider uptake and best use of ICT by citizens, governments and businesses.

At the launch of the consultation period, EU Commissioner for Information Society and Media, Viviane Reding, pointed out that "ICT is the primal force for innovation and development in the global economy, which is why Europe must attract investments in ICT research and development and the best minds and ideas... the consultation is the first step towards an integrated strategy for research and innovation in the ICT sector." Clearly Europe has strengths and weaknesses in ICT and the EU has much to gain in maintaining and developing this sector. The new ICT research strategy, will attempt to identify these shortcomings and give the European industry a thrust forward in order to become the main vanguard in the ICT sector.

The online consultation, which will remain open until November 7, can be accessed on: http://ec.europa.eu/yourvoice/ipm/forms/dispatch?form=ICTRDI

http://www.impetuseurope.com, marvin.cuschieri@impetus-europe.com

• Mr Cuschieri is an executive at Impetus Europe Consulting Group Ltd.

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