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The fast lane between Israel and Europe "Europe is Israel’s closest and most natural market,” says ISERD Director General Marcel Shaton "The European Framework Programme was designed to create scientific and industrial cooperation and help Europe increase its capacity to compete,” says Marcel Shaton, director general of ISERD (Israel Europe Research and Development Directorate). “Our participation in the program enables us to benefit from the achievement of these goals.” ISERD was established in 1996 to serve as the liaison between Israel and the European Framework Programme for Research and Technological Development. Its establishment was supported by Israeli government ministries: the Ministry of Industry, Trade and Labor, the Ministry of Science, Culture and Sports and the Planning and Budgeting Committee of the Council for Higher Education. ISERD advances four fronts simultaneously: n promoting Israel’s interests at the European Commission and assuring that financing and projects are appropriate for Israeli organizations n conducting negotiations with the European Union regarding the terms of Israel’s participation n representing the European Framework to Israeli government offices n “marketing” the Framework Programme to research entities in eligible Israeli research entities What is ISERD’s role? “Nine years ago, ISERD began its operations led by: the chief scientist at the Ministry of Industry, Trade and Labor, who serves as chairman; the chief scientist at the Ministry of Science, Culture and Sports, and a representative of the Planning and Budgeting Committee, who serve as deputy chair. There are also representatives of the Finance and Foreign Ministries. ISERD formulates Israel’s position on all aspects of the Framework Programme and presentation to the EU authorities, ensuring the participation of Israeli entities in the program and reporting to the Israeli government on the implementation of ISERD’s goals. “ISERD represents Israel in the Framework Programme’s management committees at the European Commission, is responsible for the promotion of Israeli interests to the Framework Programme’s key organizations, such as research institutions and universities. We function as the national contact point for the 20 sub-programs in the Seventh Framework Programme and participate in networking and training projects. Our role includes increasing the awareness and recognition of the program in Israel among candidate organizations, university research authorities, the professional examiners at the chief scientist’s office at the Ministry of Industry, Trade and Labor Ministry. We are also a key contact for Israel’s consulting companies.” How can you quantify the benefit derived from Israel’s participation in the Framework Programme? “A review of the Sixth Programme, conducted by ISERD, revealed that the Israeli partners in this program participated in projects valued at over 3.5 billion euros, even though they received only about 200 million euros [in research grants]. We figure that the total sum reflects the value of the knowledge Israel gained from the Sixth Programme, along with other elements, such as contacts and reputation. “Compugen, for example, partnered with a consortium that received a budget of 4 million euros from the EU. Even though only a quarter of that sum reached Compugen directly, over 80 percent of the consortium’s activity was designed to enrich Compugen’s knowledge inventory, which benefited from the knowledge gained from the project. This means that the value of the knowledge the company received equals the value of the entire project. Without the EU, Compugen would have had to raise the total investment required for the project. “When I visited Peptor, I heard about their participation in a small consortium. Peptor received just a few tens of thousands of euros. There are new developments in themes, such as nanotechnology. There are larger budgets for safety in transportation and a greater emphasis on alternative energy. There will also be structural and organizational changes
30 / 31 However, under the auspices of the consortium, clinical testing was conducted on a molecule, thanks to a financing grant of 1.8 million euros. This means that Peptor saved 1.8 million euros on tests that the company would have conducted anyway. These examples demonstrate how total project budgets can be used to measure the true value of the benefit Israeli organizations derived from their participation.” How did the Framework Programme develop? “Over the years, the EU’s attitude toward the R&D program changed. The original intention was to encourage research that supported policies. It gradually developed into a program that initiates research designed to respond to social problems within the EU. This is the source of the emphasis on applied research. “At the same time, the program expanded: the budget for the Fourth Programme was double that for the Third Programme, and the budgets kept growing: from 13.5 billion euros for the Fifth Programme to 17.8 billion for the Sixth Programme, and an estimated total of 50 billion euros for the Seventh Programme. The Seventh Programme, unlike its predecessors, will run for seven years to bring it in line with the EU’s budget, which is drafted every seven years. The program’s budget will be about 7 billion euros a year, although after 2010 there will be larger annual budgets.” What is new and different about the Seventh Programme? “There are new developments in themes, such as the increased budget for nanotechnology – which is up to 3.5 billion. There are larger budgets for safety in transportation and a greater emphasis on alternative energy. But there will also be structural and organizational changes. The Seventh Programme will establish a fund to finance research, to be called the European Research Council (ERC). Its role will be similar to the American National Science Foundation. Individual researchers will be able to submit applications for funding. The ERC’s budget for 2007 will be 500 million euros, designated for young researchers who completed their doctorates within the past ten years. “Reimbursement of costs to universities will be substantially higher, relative to the Sixth Programme. Rebates to small and medium enterprises will also be increased, to preserve the program’s attraction for small companies in the EU. The EU Commission’s projects are becoming suitable mainly for large companies.” What does this mean for Israel? “In the short term, there will be greater competition, since larger budgets will be released only in another three years. Israeli companies and research organizations will have to study the calls for proposals more closely to find suitable partners. In the Seventh Programme, Israeli organizations will be able to obtain financing for Homeland Security projects. This will be the first time Israeli participants will be able to join a pan-European program in the field of security. “One must remember that Israel is in the Framework Programme as an associate partner and enjoys all the rights of member countries. This is the only arena in which there is full integration between Israel and the European community. When a young Israeli engineer works with a German engineer, he or she gains insight into new thought processes and business methods and gains familiarity with the European industrial culture. This is an opportunity for Israelis to have close encounters with the EU. From the perspective of the Framework Programme, Israel is part of the European continent.” How much does the program cost? “In the Fourth Programme, Israel paid membership fees of 100 million euros, and in return received grants totaling 50 million euros. In the Fifth Programme, Israel paid 154 million euros and received 167 million euros in grants. In the Sixth Programme we paid 191 million euros, and will receive a total of 203 million in grants. As for the Seventh Programme, we could receive up to 40 percent more in grants. Negotiations are still under way between Israel and the EU.” What is the program’s impact on Israel? “It is evident that the Sixth Programme became the second largest financer of academic research in Israel, after the Israel Science Foundation. In the Fifth Programme there were some 3,300 partnerships in proposals for projects and this number grew to over 4,000 in the Sixth Programme. A total of 783 Israeli proposals were accepted: university proposals numbered 429, there were 209 from industry and another 145 from other organizations, including government ministries. That is a success rate of close to 20 percent.” What are the main hurdles facing Israel? “The competition in the Seventh Programme will be much stiffer, so greater effort must be invested in the quality of the projects. There will be large projects managed by big companies and research institutions. This requires a greater presence in Europe and a change in the nature of the preparations by Israeli organizations. They will have to promote their candidacy with marketing and sales skills: learn the market well, and know the competition, the partners and the customers. The improved success rate for university proposals in the Sixth Programme, for example, was the result of better organization and a greater investment of effort in proposal preparation. “This past year, ISERD initiated a pilot support fund for small enterprises, to assist them in integrating into the Framework Programme. The fund awarded grants of up to NIS 10,000 so that small companies could send representatives to meetings, briefings or for consulting services, in exchange for expense receipts totaling NIS 20,000. ISERD plans to expand and extend the pilot project with the commencement of the Seventh Programme.” What is the relative impact of the Framework Programme in the context of the full range of economic and scientific contacts between Israel and Europe? “The Framework Programme is a useful means for gaining entry to the European integration process, along with the EUREKA program and various binational programs. The Framework Programme is a European highway for which you are not only given a car, but also gas and travel expenses so that you can get to Europe and spend time there. It is worth noting that Europe is Israel’s closest and most natural market. One can go to Europe and return on the same day. We are accompanying the European integration process, and essentially, we are an inseparable part of this process.”
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