25.03.2014 Views

Draft Report of the Expert Group on International STI Cooperation to ...

Draft Report of the Expert Group on International STI Cooperation to ...

Draft Report of the Expert Group on International STI Cooperation to ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Internati<strong>on</strong>al Cooperati<strong>on</strong> in<br />

Science, Technology and Innovati<strong>on</strong>:<br />

Strategies for a Changing World<br />

<str<strong>on</strong>g>Report</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> established <strong>to</strong><br />

support <str<strong>on</strong>g>the</str<strong>on</strong>g> fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r development <str<strong>on</strong>g>of</str<strong>on</strong>g> an EU<br />

internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> strategy<br />

Research and<br />

Innovati<strong>on</strong><br />

EUR 25508 EN


EUROPEAN COMMISSION<br />

Direc<strong>to</strong>rate-General for Research and Innovati<strong>on</strong><br />

Unit D2 — North America, Latin America and Caribbean<br />

E-mail:<br />

Sieglinde.GRUBER@ec.europa.eu<br />

RTD-PUBLICATIONS@ec.europa.eu<br />

C<strong>on</strong>tact: Sigi GRUBER<br />

European Commissi<strong>on</strong><br />

B-1049 Brussels


EUROPEAN COMMISSION<br />

Internati<strong>on</strong>al Cooperati<strong>on</strong><br />

in Science, Technology and<br />

Innovati<strong>on</strong>: Strategies for<br />

a Changing World<br />

<str<strong>on</strong>g>Report</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> established <strong>to</strong> support<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r development <str<strong>on</strong>g>of</str<strong>on</strong>g> an EU internati<strong>on</strong>al <strong>STI</strong><br />

cooperati<strong>on</strong> strategy<br />

edited by:<br />

Dr Sylvia Schwaag Serger (<str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> Chairpers<strong>on</strong>) and<br />

Dr Svend Remoe (<str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> Rapporteur)<br />

Direc<strong>to</strong>rate-General for Research and Innovati<strong>on</strong><br />

2012 Internati<strong>on</strong>al Cooperati<strong>on</strong><br />

EUR 25508 EN


EUROPE DIRECT is a service <strong>to</strong> help you find answers<br />

<strong>to</strong> your questi<strong>on</strong>s about <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong><br />

Freeph<strong>on</strong>e number (*):<br />

00 800 6 7 8 9 10 11<br />

(*) Certain mobile teleph<strong>on</strong>e opera<strong>to</strong>rs do not allow access <strong>to</strong> 00 800 numbers<br />

or <str<strong>on</strong>g>the</str<strong>on</strong>g>se calls may be billed<br />

LEGAL NOTICE<br />

Nei<str<strong>on</strong>g>the</str<strong>on</strong>g>r <str<strong>on</strong>g>the</str<strong>on</strong>g> European Commissi<strong>on</strong> nor any pers<strong>on</strong> acting <strong>on</strong> behalf <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> is resp<strong>on</strong>sible for <str<strong>on</strong>g>the</str<strong>on</strong>g> use<br />

which might be made <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> following informati<strong>on</strong>.<br />

More informati<strong>on</strong> <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong> is available <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> Internet (http://europa.eu).<br />

Cataloguing data can be found at <str<strong>on</strong>g>the</str<strong>on</strong>g> end <str<strong>on</strong>g>of</str<strong>on</strong>g> this publicati<strong>on</strong>.<br />

Luxembourg: Publicati<strong>on</strong>s Office <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong>, 2012<br />

ISBN 978-92-79-26411-5<br />

doi 10.2777/18000<br />

© European Uni<strong>on</strong>, 2012<br />

Reproducti<strong>on</strong> is authorised provided <str<strong>on</strong>g>the</str<strong>on</strong>g> source is acknowledged.<br />

Cover Image © vladgrin, #38287105, 2012. Source: Fo<strong>to</strong>lia.com.


Table <str<strong>on</strong>g>of</str<strong>on</strong>g> c<strong>on</strong>tents<br />

Compositi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Internati<strong>on</strong>al <strong>STI</strong> Cooperati<strong>on</strong> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g>.............................................5<br />

List <str<strong>on</strong>g>of</str<strong>on</strong>g> abbreviati<strong>on</strong>s ..................................................................................................................7<br />

Executive summary....................................................................................................................9<br />

Introducti<strong>on</strong>..............................................................................................................................16<br />

Background..........................................................................................................................16<br />

Understanding internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>......................................................................17<br />

The internati<strong>on</strong>al dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA ...................................................................................18<br />

Integrate <str<strong>on</strong>g>the</str<strong>on</strong>g> external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA.........................................................................19<br />

A balance between cooperati<strong>on</strong> and competiti<strong>on</strong> in a strategic framework ....................19<br />

Internal and external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA: Towards a symbiosis......................................20<br />

Drivers <str<strong>on</strong>g>of</str<strong>on</strong>g> globalizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong>............................................................................................20<br />

Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D: characterizing <str<strong>on</strong>g>the</str<strong>on</strong>g> phenomen<strong>on</strong> ........................................21<br />

Drivers and barriers for <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Science ............................................21<br />

Drivers for <str<strong>on</strong>g>the</str<strong>on</strong>g> growing internati<strong>on</strong>alizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D and innovati<strong>on</strong>s by firms.............22<br />

Priority setting: Defining objectives and understanding roles.................................................24<br />

Prioritize for <str<strong>on</strong>g>the</str<strong>on</strong>g>mes and challenges....................................................................................24<br />

Key objectives for internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong>........................................................24<br />

Current practice in priority setting...................................................................................24<br />

Negotiating priorities .......................................................................................................26<br />

The Emergenc(y)e <str<strong>on</strong>g>of</str<strong>on</strong>g> Global Challenges in internati<strong>on</strong>al <strong>STI</strong> Cooperati<strong>on</strong>....................28<br />

Prioritizing with instruments................................................................................................29<br />

Policy levels and instruments...........................................................................................29<br />

Principles and criteria for priority setting ........................................................................34<br />

Streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning policies for industry and innovati<strong>on</strong>.............................................................35<br />

The need <strong>to</strong> differentiate between research performers...................................................35<br />

Horiz<strong>on</strong>tal and vertical dimensi<strong>on</strong>s .................................................................................38<br />

Internati<strong>on</strong>al R&D strategies <str<strong>on</strong>g>of</str<strong>on</strong>g> MNEs............................................................................39<br />

An industry view <strong>on</strong> policy support.................................................................................40<br />

Reducing transacti<strong>on</strong> costs for SMEs ..............................................................................41<br />

Towards a strategic approach...............................................................................................43<br />

Exploit variable geometry........................................................................................................45<br />

Objectives for <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> policies ..................................................................45<br />

EC-Member States Coordinati<strong>on</strong> for internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> ...................................46<br />

3


Recommendati<strong>on</strong>s for promoting partnerships....................................................................48<br />

The need for an evidence- and analysis-based strategy...........................................................53<br />

Promoting indica<strong>to</strong>rs and informati<strong>on</strong> .................................................................................53<br />

Indica<strong>to</strong>rs..............................................................................................................................53<br />

The basic rati<strong>on</strong>ale ...........................................................................................................53<br />

Which indica<strong>to</strong>rs are needed? Functi<strong>on</strong>s and levels <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs ...................................54<br />

Key indica<strong>to</strong>rs for a European internati<strong>on</strong>alisati<strong>on</strong> strategy................................................56<br />

Informati<strong>on</strong> and data sharing ...............................................................................................60<br />

Basic principles................................................................................................................60<br />

Data ga<str<strong>on</strong>g>the</str<strong>on</strong>g>ring and sharing for <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs suggested .....................................................60<br />

Informati<strong>on</strong> sharing <strong>to</strong> support <str<strong>on</strong>g>the</str<strong>on</strong>g> “policy cycle” in <strong>STI</strong> collaborati<strong>on</strong> .............................61<br />

Principles..........................................................................................................................61<br />

Modalities and practices <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> sharing .................................................................64<br />

C<strong>on</strong>clusi<strong>on</strong>s and key policy recommendati<strong>on</strong>s........................................................................65<br />

References................................................................................................................................68<br />

Annex 1: Mandate <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> (extract) ....................................................................71<br />

Annex 2: Dimensi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> strategic priority setting ...................................................................75<br />

Annex 3: Trends, Drivers and Impact from Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong>..................................77<br />

Annex 4: INCO <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> Industry Workshop, Brussels 17 April 2012: Summary <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Issues Raised............................................................................................................................84<br />

Annex 5: Outcomes <str<strong>on</strong>g>of</str<strong>on</strong>g> a survey <strong>on</strong> SMEs...............................................................................88<br />

4


Compositi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Internati<strong>on</strong>al <strong>STI</strong><br />

Cooperati<strong>on</strong> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g><br />

Chairpers<strong>on</strong><br />

1. Sylvia SCHWAAG SERGER<br />

Executive Direc<strong>to</strong>r Internati<strong>on</strong>al Strategy and Networks, VINNOVA, S<strong>to</strong>ckholm,<br />

Sweden, Senior Research Fellow, Research Policy Institute, University <str<strong>on</strong>g>of</str<strong>on</strong>g> Lund<br />

Vice-chairpers<strong>on</strong><br />

2. Erik ARNOLD<br />

Chairman, Technopolis <str<strong>on</strong>g>Group</str<strong>on</strong>g> / Pr<str<strong>on</strong>g>of</str<strong>on</strong>g>essor <str<strong>on</strong>g>of</str<strong>on</strong>g> Internati<strong>on</strong>al Innovati<strong>on</strong>, University <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Twente<br />

Chief Rapporteur<br />

3. Svend REMOE<br />

Special Adviser, Internati<strong>on</strong>al R&D Policy, Research Council <str<strong>on</strong>g>of</str<strong>on</strong>g> Norway<br />

Sec<strong>on</strong>d rapporteur<br />

4. Vandana UJJUAL<br />

Research Fellow (SPRU - Science and Technology Policy Research), University <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Sussex, UK<br />

Members<br />

5. Zoya DAMIANOVA<br />

Programme Direc<strong>to</strong>r, Applied Research and Communicati<strong>on</strong>s Fund, Bulgaria<br />

6. Kurt DEKETELAERE<br />

Secretary General, LERU<br />

7. Jakob EDLER<br />

Pr<str<strong>on</strong>g>of</str<strong>on</strong>g>essor <str<strong>on</strong>g>of</str<strong>on</strong>g> Innovati<strong>on</strong> Policy and Staretegy, Executive Direc<strong>to</strong>r, Manchester<br />

Institute <str<strong>on</strong>g>of</str<strong>on</strong>g> Innovati<strong>on</strong> Research, MBS, University <str<strong>on</strong>g>of</str<strong>on</strong>g> Manchester<br />

8. Lutz HEUSER<br />

CTO, Urban S<str<strong>on</strong>g>of</str<strong>on</strong>g>tware Institute GmbH & Co.KG<br />

5


9. Lorenz KAISER<br />

Divisi<strong>on</strong> Direc<strong>to</strong>r for Legal Affairs and C<strong>on</strong>tracts, Fraunh<str<strong>on</strong>g>of</str<strong>on</strong>g>er Gesellschaft, Munich<br />

10. Rajneesh NARULA<br />

Pr<str<strong>on</strong>g>of</str<strong>on</strong>g>essor <str<strong>on</strong>g>of</str<strong>on</strong>g> Internati<strong>on</strong>al Business Regulati<strong>on</strong>, University <str<strong>on</strong>g>of</str<strong>on</strong>g> Reading<br />

11. Klaus SCHUCH<br />

Strategic Research Manager and Senior Scientist at <str<strong>on</strong>g>the</str<strong>on</strong>g> Centre for Social Innovati<strong>on</strong><br />

(ZSI), Vienna, Austria<br />

12. Reinhilde VEUGELERS<br />

Pr<str<strong>on</strong>g>of</str<strong>on</strong>g>essor <str<strong>on</strong>g>of</str<strong>on</strong>g> Managerial Ec<strong>on</strong>omics, Strategy and Innovati<strong>on</strong>, Katholieke Universiteit<br />

Leuven<br />

6


List <str<strong>on</strong>g>of</str<strong>on</strong>g> abbreviati<strong>on</strong>s<br />

AC<br />

Countries Associated <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU Framework Programmes<br />

CIS<br />

Community Innovati<strong>on</strong> Survey<br />

CNRS Nati<strong>on</strong>al Centre for Scientific Research, France<br />

CREST European Uni<strong>on</strong> Scientific and Technical Research Committee (since 26<br />

May 2010 renamed in<strong>to</strong><br />

ERAC European Research Area Committee)<br />

DG R&I Direc<strong>to</strong>rate General Research and Innovati<strong>on</strong><br />

EC<br />

European Commissi<strong>on</strong><br />

EEN Enterprise Europe Network<br />

EFTA European Free Trade Associati<strong>on</strong><br />

EG<br />

<str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g><br />

EIRMA European Industrial Research Management Associati<strong>on</strong><br />

ERA European Research Area<br />

ERAC European Research Area Committee<br />

EU<br />

European Uni<strong>on</strong><br />

EUA European University Associati<strong>on</strong><br />

EUI European University Institute<br />

FDI Foreign Direct Investments<br />

FP<br />

Framework Programmes<br />

FP7 Framework Programme 7<br />

G20 The <str<strong>on</strong>g>Group</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> Twenty.<br />

“The <str<strong>on</strong>g>Group</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> Twenty Finance Ministers and Central Bank Governors<br />

(also known as <str<strong>on</strong>g>the</str<strong>on</strong>g> G-20, G20, and <str<strong>on</strong>g>Group</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> Twenty) is a group <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

finance ministers and central bank governors from 20 major ec<strong>on</strong>omies:<br />

19 countries plus <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong>, which is represented by <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

President <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Council and by <str<strong>on</strong>g>the</str<strong>on</strong>g> European Central Bank.[3]<br />

The G-20 heads <str<strong>on</strong>g>of</str<strong>on</strong>g> government or heads <str<strong>on</strong>g>of</str<strong>on</strong>g> state have also periodically<br />

c<strong>on</strong>ferred at summits since <str<strong>on</strong>g>the</str<strong>on</strong>g>ir initial meeting in 2008. Collectively, <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

G-20 ec<strong>on</strong>omies account for more than 80 percent <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> gross world<br />

product (GWP),[4] 80 percent <str<strong>on</strong>g>of</str<strong>on</strong>g> world trade (including EU intra-trade),<br />

and two-thirds <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world populati<strong>on</strong>.[3] They fur<str<strong>on</strong>g>the</str<strong>on</strong>g>rmore account for<br />

84.1 percent and 82.2 percent <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world's ec<strong>on</strong>omic growth by nominal<br />

GDP and GDP (PPP) respectively from <str<strong>on</strong>g>the</str<strong>on</strong>g> years 2010 <strong>to</strong> 2016,<br />

according <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> Internati<strong>on</strong>al M<strong>on</strong>etary Fund (IMF).”1<br />

G8<br />

The <str<strong>on</strong>g>Group</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> Eight.<br />

“The <str<strong>on</strong>g>Group</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> Eight (G8) is a forum for <str<strong>on</strong>g>the</str<strong>on</strong>g> governments <str<strong>on</strong>g>of</str<strong>on</strong>g> eight <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

world's largest ec<strong>on</strong>omies. … The forum originated with a 1975 summit<br />

hosted by France that brought <strong>to</strong>ge<str<strong>on</strong>g>the</str<strong>on</strong>g>r representatives <str<strong>on</strong>g>of</str<strong>on</strong>g> six<br />

1 http://en.wikipedia.org/wiki/G-20_major_ec<strong>on</strong>omies<br />

7


governments: France, Germany, Italy, Japan, <str<strong>on</strong>g>the</str<strong>on</strong>g> United Kingdom, and<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> United States, thus leading <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> name <str<strong>on</strong>g>Group</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> Six or G6. The<br />

summit became known as <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> Seven or G7 <str<strong>on</strong>g>the</str<strong>on</strong>g> following year<br />

with <str<strong>on</strong>g>the</str<strong>on</strong>g> additi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Canada. In 1997, Russia was added <strong>to</strong> group which<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>n became known as <str<strong>on</strong>g>the</str<strong>on</strong>g> G8.[1] The European Uni<strong>on</strong> is represented<br />

within <str<strong>on</strong>g>the</str<strong>on</strong>g> G8 but cannot host or chair summits.[2]”2<br />

GDP Gross Domestic Product<br />

GPN Global Producti<strong>on</strong> Networks<br />

GVCs Global Value Chains<br />

H2020 Horiz<strong>on</strong> 2020<br />

HBA Home-base Augmenting<br />

ICT Informati<strong>on</strong> and Communicati<strong>on</strong> Technologies<br />

IISER Integrated Informati<strong>on</strong> System <strong>on</strong> European Researchers<br />

INCO Internati<strong>on</strong>al Cooperati<strong>on</strong><br />

IP<br />

Intellectual Property<br />

IPR<br />

Intellectual Property Rights<br />

IRSES Internati<strong>on</strong>al Research Staff Exchange Scheme<br />

IT<br />

Informati<strong>on</strong> Technologies<br />

JP<br />

Joint Programming<br />

JPIs Joint Programming Initiatives<br />

JRC IPTS Joint Research Centre, Institute for Prospective Technological Studies<br />

KET Key Enabling Technologies<br />

MNEs Multinati<strong>on</strong>al Enterprises<br />

MS<br />

Member States<br />

OECD Organisati<strong>on</strong> for Ec<strong>on</strong>omic Cooperati<strong>on</strong> and Development<br />

PROs Public Research Organisati<strong>on</strong>s<br />

PROTON ProT<strong>on</strong> Europe, <str<strong>on</strong>g>the</str<strong>on</strong>g> European Knowledge Transfer Associati<strong>on</strong>, created<br />

in 2003 by <str<strong>on</strong>g>the</str<strong>on</strong>g> European Commissi<strong>on</strong> and self supporting since 2007<br />

R&D Research and Development<br />

RI<br />

Research Infrastructures<br />

RTD Research and Technology Development<br />

RTDI Research, Technology Development and Innovati<strong>on</strong><br />

S&T Science and Technology<br />

SFIC Strategic Forum for Internati<strong>on</strong>al S&T Cooperati<strong>on</strong><br />

SMEs Small and Medium-sized Enterprises<br />

SRA Strategic Research Agendas<br />

<strong>STI</strong><br />

Science, Technology and Innovati<strong>on</strong><br />

UN<br />

United Nati<strong>on</strong>s<br />

UNCTAD United Nati<strong>on</strong>s C<strong>on</strong>ference <strong>on</strong> Trade and Development<br />

WB World Bank<br />

2 http://en.wikipedia.org/wiki/G8#cite_note-0<br />

8


Executive summary<br />

Changes in <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al landscape require urgent policy acti<strong>on</strong><br />

Over <str<strong>on</strong>g>the</str<strong>on</strong>g> past few decades <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al landscape has changed in ways that seem both<br />

dramatic and c<strong>on</strong>tradic<strong>to</strong>ry. New players have emerged, notably emerging ec<strong>on</strong>omies such as<br />

China, Brazil, India, and South Africa. Smaller ec<strong>on</strong>omies like Vietnam are <strong>to</strong> a greater<br />

degree imitating <str<strong>on</strong>g>the</str<strong>on</strong>g> Chinese strategy <str<strong>on</strong>g>of</str<strong>on</strong>g> placing science, technology and innovati<strong>on</strong> (<strong>STI</strong>) at<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> centre <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> ec<strong>on</strong>omic development strategies, and raw materials based ec<strong>on</strong>omies like<br />

Australia are increasingly <strong>STI</strong>-driven. Although Europe, Japan and North America still<br />

dominate aggregate <strong>STI</strong> investment globally, <str<strong>on</strong>g>the</str<strong>on</strong>g>ir shares are declining, and <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al<br />

landscape is increasingly multi-polar.<br />

The current ec<strong>on</strong>omic and budgetary crisis in many European countries are increasingly<br />

resulting in a stagnati<strong>on</strong> or even reducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> public spending <strong>on</strong> research, innovati<strong>on</strong> and<br />

educati<strong>on</strong> in Europe at <str<strong>on</strong>g>the</str<strong>on</strong>g> same time as it undermines Europe’s ability <strong>to</strong> attract global talent<br />

and corporate <strong>STI</strong> investments. As a result, <str<strong>on</strong>g>the</str<strong>on</strong>g> EU as a regi<strong>on</strong> risks falling behind. Europe is<br />

still attractive as an <strong>STI</strong> locati<strong>on</strong> due <strong>to</strong> its developed markets, advanced demand and high<br />

science and technology capacity but <str<strong>on</strong>g>the</str<strong>on</strong>g>re is increasing global competiti<strong>on</strong> for attracting<br />

foreign R&D and talent. Overall, <str<strong>on</strong>g>the</str<strong>on</strong>g> changing global landscape both creates opportunities<br />

and increases <str<strong>on</strong>g>the</str<strong>on</strong>g> need for streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning internati<strong>on</strong>alizati<strong>on</strong>, e.g. due <strong>to</strong> increasing R&D<br />

costs and skills shortages, <str<strong>on</strong>g>the</str<strong>on</strong>g> emergence <str<strong>on</strong>g>of</str<strong>on</strong>g> new markets and persistent European and global<br />

challenges. The rapid increase in research and innovati<strong>on</strong> resources outside Europe combined<br />

with Europe’s relatively weak linkages <strong>to</strong> emerging research and innovati<strong>on</strong> hubs in Latin<br />

America, Asia and Africa (and <str<strong>on</strong>g>the</str<strong>on</strong>g> Middle East), and <str<strong>on</strong>g>the</str<strong>on</strong>g> benefits <str<strong>on</strong>g>of</str<strong>on</strong>g>fered by internati<strong>on</strong>al<br />

cooperati<strong>on</strong> in science and technology, underline <str<strong>on</strong>g>the</str<strong>on</strong>g> urgent need for strategic policy acti<strong>on</strong>.<br />

A more strategic EU as a global player in <strong>STI</strong><br />

The changing global landscape warrants a strategic European framework <strong>to</strong> tackle<br />

internati<strong>on</strong>al developments in a coherent and proactive fashi<strong>on</strong>. This should involve <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Member States and Associated Countries in well-functi<strong>on</strong>ing partnerships with an efficient<br />

divisi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> labour <strong>to</strong> generate high impact against clearly stated objectives. It should also<br />

involve key stakeholders <strong>to</strong> optimize <str<strong>on</strong>g>the</str<strong>on</strong>g> efficient pooling and allocati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> resources and <strong>to</strong><br />

ensure that initiatives are relevant and anchored. Such a framework requires moving <strong>to</strong> a<br />

genuinely European-level strategy based <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> needs and goals <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU as a whole <strong>to</strong><br />

streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n Europe's attractiveness and competitiveness in research and innovati<strong>on</strong>. Whereas<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> recent strategy for internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> gave much attenti<strong>on</strong> <strong>to</strong> cooperati<strong>on</strong>, a<br />

new strategy should be based <strong>on</strong> collaborati<strong>on</strong> and integrati<strong>on</strong>.<br />

In <str<strong>on</strong>g>the</str<strong>on</strong>g>ir current forms, EU <strong>STI</strong> policies already have internati<strong>on</strong>al dimensi<strong>on</strong>s, e.g. in<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>matic programmes <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Framework Programme, but <str<strong>on</strong>g>the</str<strong>on</strong>g>y are fragmented, driven by<br />

diverse and sometimes c<strong>on</strong>flicting objectives and lack <str<strong>on</strong>g>of</str<strong>on</strong>g> strategy, strategic intelligence and<br />

effective instruments.<br />

9


A strategic approach <strong>to</strong> internati<strong>on</strong>alizati<strong>on</strong> and internati<strong>on</strong>al cooperati<strong>on</strong> should increase<br />

coherence, define acti<strong>on</strong>s big enough <strong>to</strong> make a difference and have clear impacts at EU level<br />

and bey<strong>on</strong>d. They should direct EU resources <strong>to</strong>wards initiatives that Member States cannot<br />

initiate or effectively c<strong>on</strong>duct al<strong>on</strong>e. The European Commissi<strong>on</strong> and its resources, such as <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Framework Programme (FP), occupy a unique positi<strong>on</strong>, which should be used <strong>to</strong> shape<br />

cooperati<strong>on</strong> with o<str<strong>on</strong>g>the</str<strong>on</strong>g>r parts <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world, using Horiz<strong>on</strong> 2020 as its instrument. The EU<br />

should take <strong>on</strong> a more ambitious global role in <strong>STI</strong> and become a str<strong>on</strong>ger and more coherent<br />

internati<strong>on</strong>al ac<strong>to</strong>r. A clear EU strategy will benefit European Member States, citizens and<br />

companies and help <str<strong>on</strong>g>the</str<strong>on</strong>g> EU <strong>to</strong> more effectively tackle global challenges.<br />

Perhaps most importantly, an effective strategy must combine 3 levels <str<strong>on</strong>g>of</str<strong>on</strong>g> measures, namely<br />

initiatives for internati<strong>on</strong>al cooperati<strong>on</strong> that target strategically relevant areas or ac<strong>to</strong>rs,<br />

measures aimed at promoting <str<strong>on</strong>g>the</str<strong>on</strong>g> general opening <str<strong>on</strong>g>of</str<strong>on</strong>g> European projects and programmes <strong>to</strong><br />

internati<strong>on</strong>al participati<strong>on</strong> – for example through mobility-promoting activities – and<br />

streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning c<strong>on</strong>ducive framework and regula<strong>to</strong>ry measures in order <strong>to</strong> reduce transacti<strong>on</strong><br />

costs for internati<strong>on</strong>al cooperati<strong>on</strong>. An effective strategy, crucially, also requires a more<br />

effective coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> measures across relevant Direc<strong>to</strong>rate-Generals within <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Commissi<strong>on</strong> and between <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong>, Member States and stakeholders.<br />

The strategy should focus <strong>on</strong> global challenges and <str<strong>on</strong>g>the</str<strong>on</strong>g>matic priorities<br />

Thematic priorities can be defined bot<strong>to</strong>m up by research and innovati<strong>on</strong> performers or <strong>to</strong>p<br />

down with <str<strong>on</strong>g>the</str<strong>on</strong>g> aim <str<strong>on</strong>g>of</str<strong>on</strong>g> addressing politically defined objectives. In reality, priority-setting is<br />

typically a mix <str<strong>on</strong>g>of</str<strong>on</strong>g> both and a key message from <str<strong>on</strong>g>the</str<strong>on</strong>g> EG is <str<strong>on</strong>g>the</str<strong>on</strong>g> need <strong>to</strong> allow for both bot<strong>to</strong>m<br />

up and <strong>to</strong>p down. A strategic focus should be developed through a structured <strong>to</strong>p-down<br />

process, but without stifling interesting bot<strong>to</strong>m up initiatives, in order <strong>to</strong> set priorities that are<br />

legitimate and effective in allocating resources <strong>to</strong> clear goals. A successful process should<br />

involve <str<strong>on</strong>g>the</str<strong>on</strong>g> research and innovati<strong>on</strong> community and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r stakeholders.<br />

Thematic and geographic priority setting for <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al collaborati<strong>on</strong> strategy should be<br />

based <strong>on</strong> an assessment <str<strong>on</strong>g>of</str<strong>on</strong>g> where<br />

• cooperati<strong>on</strong> can increase <str<strong>on</strong>g>the</str<strong>on</strong>g> world’s ability <strong>to</strong> tackle global challenges<br />

• complementary scientific and innovative strengths lie outside <str<strong>on</strong>g>the</str<strong>on</strong>g> EU<br />

• <str<strong>on</strong>g>the</str<strong>on</strong>g>re are important gaps in European competences<br />

• cooperati<strong>on</strong> can increase access <strong>to</strong> global markets and infrastructures<br />

Priorities for internati<strong>on</strong>al cooperati<strong>on</strong> should focus <strong>on</strong> acti<strong>on</strong>s that can ga<str<strong>on</strong>g>the</str<strong>on</strong>g>r large enough<br />

resources and funding <strong>to</strong> attract interest from industry and high-capacity scientific groups.<br />

Global challenges should <str<strong>on</strong>g>the</str<strong>on</strong>g>refore guide priorities in building large-scale, effective,<br />

multilateral cooperati<strong>on</strong> platforms. The EU should build <strong>on</strong> less<strong>on</strong>s from acti<strong>on</strong>s such as <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

European and Developing Countries Clinical Trials Partnership (between 14 MS, Switzerland<br />

and Norway and Sub-Saharan countries), and <str<strong>on</strong>g>the</str<strong>on</strong>g> Human Fr<strong>on</strong>tier Science Programme (EU in<br />

cooperati<strong>on</strong> with 13 countries around <str<strong>on</strong>g>the</str<strong>on</strong>g> world). The EU could use existing co-operati<strong>on</strong>s<br />

such as G8 or G20 <strong>to</strong> enable this.<br />

10


Research and innovati<strong>on</strong> infrastructure is an important building block for internati<strong>on</strong>al<br />

cooperati<strong>on</strong>. The EU should give priority <strong>to</strong> ensuring mutual access, mutual benefits and c<str<strong>on</strong>g>of</str<strong>on</strong>g>unding<br />

for research and innovati<strong>on</strong> infrastructure needed <strong>to</strong> tackle global challenges. The<br />

strategy should also recognize <str<strong>on</strong>g>the</str<strong>on</strong>g> importance <str<strong>on</strong>g>of</str<strong>on</strong>g> European research infrastructures for<br />

European attractiveness in order <strong>to</strong> bring talent and investment <strong>to</strong> Europe.<br />

The needed strategy should be based <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>matic foci or global challenges, it should tackle<br />

different parts <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world in different ways, and be selective about Europe’s choice <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

preferred partners.<br />

Addressing industry and innovati<strong>on</strong><br />

Firms go internati<strong>on</strong>al <strong>to</strong> access markets that may be faster growing or more dynamic than<br />

mature European <strong>on</strong>es, search for skilled labour, participate in increasingly internati<strong>on</strong>al<br />

value chains, de-locate producti<strong>on</strong>, source knowledge and access raw materials, <strong>to</strong> name a<br />

few reas<strong>on</strong>s. These drivers generate sec<strong>to</strong>r- and firm-specific patterns <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al<br />

cooperati<strong>on</strong>. In many cases, internati<strong>on</strong>alising firms are moving bey<strong>on</strong>d being ‘multinati<strong>on</strong>al’<br />

in <str<strong>on</strong>g>the</str<strong>on</strong>g> sense <str<strong>on</strong>g>of</str<strong>on</strong>g> retaining str<strong>on</strong>g ties <strong>to</strong> a ‘home’ country and becoming more ‘transnati<strong>on</strong>al’<br />

with producti<strong>on</strong>, R&D and ownership spread across multiple countries. For many<br />

multinati<strong>on</strong>al companies it is necessary <strong>to</strong> have both research and producti<strong>on</strong> outside Europe<br />

in order <strong>to</strong> keep and expand activities in Europe. In many cases research activities outside<br />

Europe can also be directly used in Europe.<br />

A strategic approach <strong>to</strong> internati<strong>on</strong>al cooperati<strong>on</strong> that includes a focus <strong>on</strong> industry and<br />

innovati<strong>on</strong> needs <strong>to</strong> balance two aims: streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning internati<strong>on</strong>al R&D cooperati<strong>on</strong>; and<br />

promoting framework c<strong>on</strong>diti<strong>on</strong>s that underpin a global ‘level playing-field’ in innovati<strong>on</strong>.<br />

Streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning R&D cooperati<strong>on</strong> involves ensuring that Europe is attractive as a regi<strong>on</strong> for<br />

lead markets, pilots and dem<strong>on</strong>strati<strong>on</strong>, infrastructure for testing and technology verificati<strong>on</strong>,<br />

and that Europe take a lead in technology platforms and standardisati<strong>on</strong> through cooperati<strong>on</strong><br />

with stakeholders, all with a view <strong>to</strong> reduce uncertainty for industrial innovati<strong>on</strong>. These aims<br />

in turn require that Europe stimulates mobility <str<strong>on</strong>g>of</str<strong>on</strong>g> researchers and students and access <strong>to</strong> talent<br />

and research.<br />

Ensuring a level playing field means that<br />

• The EU should lead projects aiming <strong>to</strong> set global standards and norms. This represents<br />

an opportunity <strong>to</strong> take <str<strong>on</strong>g>the</str<strong>on</strong>g> initiative and have a decisive influence <strong>on</strong> market<br />

opportunities<br />

• The EU should lead key projects addressing some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> grand challenges, where a<br />

global effort is beneficial for every<strong>on</strong>e. This is especially useful in ‘horiz<strong>on</strong>tal’ issues<br />

where IPR is not a major c<strong>on</strong>cern<br />

• More broadly, EU internati<strong>on</strong>al projects should have clear and transparent IPR and<br />

exploitati<strong>on</strong> rights. The EU should work <strong>to</strong>wards more harm<strong>on</strong>ised internati<strong>on</strong>al rules<br />

and practices in relati<strong>on</strong> <strong>to</strong> IPR<br />

• The EU should ensure coherence with traditi<strong>on</strong>al trade and industry policy aspects<br />

such as reducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> trade barriers and encouraging entry under fair c<strong>on</strong>diti<strong>on</strong>s<br />

11


• The EU should develop a str<strong>on</strong>g European voice <strong>to</strong> influence o<str<strong>on</strong>g>the</str<strong>on</strong>g>r internati<strong>on</strong>al ac<strong>to</strong>rs<br />

<strong>on</strong> regula<strong>to</strong>ry matters<br />

Exploit variable geometry: Internal and external partnerships<br />

A key element <str<strong>on</strong>g>of</str<strong>on</strong>g> any strategy is positi<strong>on</strong>ing. In <str<strong>on</strong>g>the</str<strong>on</strong>g> present c<strong>on</strong>text this means positi<strong>on</strong>ing<br />

European ac<strong>to</strong>rs relative <strong>to</strong> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r competi<strong>to</strong>rs/partners globally. The European Commissi<strong>on</strong><br />

refers <strong>to</strong> this as geographical differentiati<strong>on</strong> <strong>to</strong> help target acti<strong>on</strong>s with partners. The<br />

Framework Programmes, including <str<strong>on</strong>g>the</str<strong>on</strong>g> proposed Horiz<strong>on</strong> 2020, have developed groups <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

countries <strong>to</strong> aid this targeting, including also principles for funding foreign partners (like<br />

industrialised and emerging countries, neighbourhood and enlargement countries and<br />

developing countries). In additi<strong>on</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g>re are c<strong>on</strong>tractual differentiati<strong>on</strong>s between countries:<br />

There are, for example, 20 science and technology cooperati<strong>on</strong> (S&T) agreements in<br />

operati<strong>on</strong> in 2011, and 14 associati<strong>on</strong> agreements <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> Framework Programme.<br />

The EG has <str<strong>on</strong>g>the</str<strong>on</strong>g> following recommendati<strong>on</strong>s:<br />

• The overarching perspective should be that internati<strong>on</strong>al cooperati<strong>on</strong> is integrated in<strong>to</strong><br />

and across EU <strong>STI</strong> activities, in particular <str<strong>on</strong>g>the</str<strong>on</strong>g> coming H2020. The guiding principle<br />

for priority setting should be horiz<strong>on</strong>tal and <str<strong>on</strong>g>the</str<strong>on</strong>g>matic ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than geographic, building<br />

<strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> priorities <str<strong>on</strong>g>of</str<strong>on</strong>g> H2020. The strategy should help enhance <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al<br />

dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA through mutually reinforcing <str<strong>on</strong>g>the</str<strong>on</strong>g> benefits that ERA and<br />

internati<strong>on</strong>al cooperati<strong>on</strong> may generate.<br />

• There is no great need <strong>to</strong> let <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong> be guided by an a priori<br />

geographical differentiati<strong>on</strong>. The FP/H2020 has general opening as its basic principle<br />

for internati<strong>on</strong>al cooperati<strong>on</strong>, and this principle does not differentiate between groups<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> countries. The <strong>on</strong>ly excepti<strong>on</strong> c<strong>on</strong>cerns funding, where in specific cases<br />

participants from 3 rd countries may be funded by <str<strong>on</strong>g>the</str<strong>on</strong>g> FP. Such differentiati<strong>on</strong> should<br />

be reduced <strong>to</strong> a funding rule. The Commissi<strong>on</strong> should give priority <strong>to</strong> developing a<br />

mechanism that allows stakeholders from any country <strong>to</strong> participate in programmes<br />

or c<strong>on</strong>sortia, provided that <str<strong>on</strong>g>the</str<strong>on</strong>g>y add value <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>sortia. The overall principle<br />

should be <strong>to</strong> allow and encourage “<str<strong>on</strong>g>the</str<strong>on</strong>g> best and brightest” <strong>to</strong> participate in projects,<br />

regardless <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir geographic locati<strong>on</strong>. Internati<strong>on</strong>al cooperati<strong>on</strong> should be clearly<br />

driven by <str<strong>on</strong>g>the</str<strong>on</strong>g>matic c<strong>on</strong>siderati<strong>on</strong>s, but implemented by geographical <strong>on</strong>es. In<br />

additi<strong>on</strong>, a str<strong>on</strong>ger encouragement and support in <str<strong>on</strong>g>the</str<strong>on</strong>g> various <str<strong>on</strong>g>the</str<strong>on</strong>g>mes in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Framework Programme is required <strong>to</strong> increase <str<strong>on</strong>g>the</str<strong>on</strong>g> level <str<strong>on</strong>g>of</str<strong>on</strong>g> participati<strong>on</strong> from n<strong>on</strong>-<br />

European countries.<br />

• C<strong>on</strong>tractual relati<strong>on</strong>s should be used more explicitly <strong>to</strong> gain a strategic grip <strong>on</strong><br />

internati<strong>on</strong>al cooperati<strong>on</strong>. S&T and associati<strong>on</strong> agreements <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> Framework<br />

Programmes define two important groups for EU/MS, <str<strong>on</strong>g>the</str<strong>on</strong>g> former a potential vehicle<br />

<strong>to</strong> develop targeted acti<strong>on</strong>s with key partners including in multilateral structures, <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

latter an arrangement for full participati<strong>on</strong> in and co-funding <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> FP. The EG<br />

suggests a third modality: Focused or limited associati<strong>on</strong> agreements that allow 3 rd<br />

countries, individually or collectively, <strong>to</strong> c<strong>on</strong>nect <strong>to</strong> European initiatives. Such<br />

agreements should be linked <strong>to</strong> ambitious, targeted acti<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> a multiannual nature <strong>to</strong><br />

12


allow strategic partnerships with a more reciprocal funding and mutual benefits, but<br />

bearing in mind that stakeholders (e.g. industrial firms) <str<strong>on</strong>g>the</str<strong>on</strong>g>mselves do not c<strong>on</strong>sider<br />

such reciprocity as important <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir acti<strong>on</strong>s. Such agreements may also be used <strong>to</strong><br />

allow partners from 3 rd countries <strong>to</strong> participate in smaller schemes and project<br />

c<strong>on</strong>sortia and hence support co-funding internati<strong>on</strong>ally.<br />

• A strategy for internati<strong>on</strong>al cooperati<strong>on</strong> should include an element <str<strong>on</strong>g>of</str<strong>on</strong>g> bot<strong>to</strong>m up<br />

selecti<strong>on</strong>. With this <str<strong>on</strong>g>the</str<strong>on</strong>g> EG means that bilateral programmes and initiatives that<br />

Members States or <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> have with 3 rd countries, and that are assessed <strong>to</strong><br />

be successful or “good practice” should take <str<strong>on</strong>g>the</str<strong>on</strong>g> role as “lead initiatives” around<br />

which o<str<strong>on</strong>g>the</str<strong>on</strong>g>r MS acti<strong>on</strong>s may be associated through mechanisms <str<strong>on</strong>g>of</str<strong>on</strong>g> mutual opening <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

programmes, <strong>to</strong> establish clusters <str<strong>on</strong>g>of</str<strong>on</strong>g> cooperati<strong>on</strong> based <strong>on</strong> variable geometry etc. This<br />

means that c<strong>on</strong>certed acti<strong>on</strong>s with significant synergies may develop without a <strong>to</strong>p<br />

down, a priori strategy (e.g. by <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong>). But <str<strong>on</strong>g>the</str<strong>on</strong>g> strategy should <str<strong>on</strong>g>the</str<strong>on</strong>g>n include<br />

platforms and agreed principles through which such clustering may effectively take<br />

place.<br />

• Horiz<strong>on</strong>tal acti<strong>on</strong>s coordinated by <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> must be undertaken multilaterally<br />

<strong>to</strong> establish comm<strong>on</strong> instituti<strong>on</strong>al settings <strong>to</strong> create a level playing field with global<br />

partners. The Commissi<strong>on</strong> should take <str<strong>on</strong>g>the</str<strong>on</strong>g> lead and, with <str<strong>on</strong>g>the</str<strong>on</strong>g> MS/AC, create global<br />

platforms for <strong>STI</strong> cooperati<strong>on</strong> in areas that need a global, c<strong>on</strong>certed effort <strong>to</strong> ensure<br />

critical mass and impact.<br />

• The Commissi<strong>on</strong> should cooperate with <str<strong>on</strong>g>the</str<strong>on</strong>g> MS <strong>to</strong> reignite <str<strong>on</strong>g>the</str<strong>on</strong>g> Strategic Forum for<br />

Internati<strong>on</strong>al <strong>STI</strong> Cooperati<strong>on</strong> (SFIC) as a truly high-level and more effective<br />

strategic body for collaborati<strong>on</strong> am<strong>on</strong>g MS/AC and <str<strong>on</strong>g>the</str<strong>on</strong>g> European Commissi<strong>on</strong>, with<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> aim <strong>to</strong> achieve an integrated, collaborative approach going bey<strong>on</strong>d cooperati<strong>on</strong><br />

and exchange <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> and experiences.<br />

Ensure policy is evidence based<br />

Informati<strong>on</strong> and data analysis are indispensable <strong>to</strong> support <str<strong>on</strong>g>the</str<strong>on</strong>g> definiti<strong>on</strong> and implementati<strong>on</strong><br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> strategy and <str<strong>on</strong>g>the</str<strong>on</strong>g> design <str<strong>on</strong>g>of</str<strong>on</strong>g> schemes and c<strong>on</strong>crete acti<strong>on</strong>. Systematic data collecti<strong>on</strong> and<br />

analysis must specifically support priority setting – as any strategic effort must make choices<br />

– and <str<strong>on</strong>g>the</str<strong>on</strong>g> choice <str<strong>on</strong>g>of</str<strong>on</strong>g> partner countries and regi<strong>on</strong>s for each <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> priority areas. It thus<br />

underpins negotiati<strong>on</strong>s within <str<strong>on</strong>g>the</str<strong>on</strong>g> European research area (ERA) including <str<strong>on</strong>g>the</str<strong>on</strong>g> Framework<br />

Programme, and with potential external partners and by doing so helps <strong>to</strong> create effective<br />

partnerships. It will also develop a new focus <strong>on</strong> supporting internati<strong>on</strong>al innovative<br />

activities.<br />

Four basic functi<strong>on</strong>s are relevant for jointly collecting data and producing indica<strong>to</strong>rs.<br />

• Understanding <str<strong>on</strong>g>the</str<strong>on</strong>g> status quo in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU’s <strong>STI</strong> pr<str<strong>on</strong>g>of</str<strong>on</strong>g>ile and <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong><br />

activities: this helps <strong>to</strong> define <str<strong>on</strong>g>the</str<strong>on</strong>g> needs as starting points for <str<strong>on</strong>g>the</str<strong>on</strong>g> strategy (competencies,<br />

gaps, needs as seen by various ac<strong>to</strong>rs within <str<strong>on</strong>g>the</str<strong>on</strong>g> EU)<br />

• Formulating targets, benchmarks <strong>to</strong> reach: this helps <strong>to</strong> define goals, <strong>to</strong> communicate <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

purpose <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al activities and <strong>to</strong> measure achievements later <strong>on</strong> (link <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>matic<br />

priorities <str<strong>on</strong>g>of</str<strong>on</strong>g> H2020)<br />

13


• Understand global bottlenecks (e.g. access <strong>to</strong> markets and infrastructure, legal obstacles<br />

<strong>to</strong> cooperati<strong>on</strong> etc.) and opportunities (<strong>STI</strong> pr<str<strong>on</strong>g>of</str<strong>on</strong>g>iles, “hot spots” abroad in light <str<strong>on</strong>g>of</str<strong>on</strong>g> a<br />

rapidly changing global landscape): this helps <strong>to</strong> link <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>matic priorities defined <strong>to</strong><br />

c<strong>on</strong>crete choices in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific and technological fields and in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> partner<br />

countries/regi<strong>on</strong>s (country follows priority) and it enables effective negotiati<strong>on</strong>s with<br />

partners<br />

• M<strong>on</strong>i<strong>to</strong>ring activities (at policy and ac<strong>to</strong>r level) and measuring <str<strong>on</strong>g>the</str<strong>on</strong>g> impact <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al<br />

activities <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> overall goals <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> policy and strategy<br />

Informati<strong>on</strong> sharing should be focused, based <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> need <strong>to</strong> minimise duplicati<strong>on</strong> and<br />

transacti<strong>on</strong> costs for those involved and avoid costs related <strong>to</strong> generic, n<strong>on</strong>-purpose<br />

informati<strong>on</strong> sharing. The Commissi<strong>on</strong> has an important role <strong>to</strong> play in providing systems and<br />

guidelines. There should be five activities.<br />

• Making nati<strong>on</strong>al/Commissi<strong>on</strong> informati<strong>on</strong> <strong>on</strong> bilateral programmes and related<br />

acti<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong> easily available, including evaluati<strong>on</strong>s and<br />

assessments, <strong>on</strong> public web sites<br />

• Producing regular reports by science counsellors in countries outside Europe about<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>ir <strong>STI</strong> policies, programmes and capacities<br />

• Creating comm<strong>on</strong> platforms for informati<strong>on</strong> sharing, i.e. include informati<strong>on</strong><br />

generati<strong>on</strong> and sharing as integrated parts in <str<strong>on</strong>g>the</str<strong>on</strong>g> strategic research agendas<br />

• Sharing forward-looking informati<strong>on</strong> such as trends, market developments and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

strategic intelligence developed at nati<strong>on</strong>al level<br />

• Exchanging experiences and good practice in governance <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong><br />

at nati<strong>on</strong>al level.<br />

Key recommendati<strong>on</strong>s<br />

The main message coming from <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> is that <str<strong>on</strong>g>the</str<strong>on</strong>g> EU urgently needs a<br />

collaborative and integrated strategy for internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong>. With this in mind<br />

several recommendati<strong>on</strong>s are launched:<br />

1. The strategy should focus <strong>on</strong> promoting European attractiveness as an internati<strong>on</strong>al<br />

research and innovati<strong>on</strong> hub and partner in order <strong>to</strong> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n European<br />

competitiveness and prosperity<br />

2. Theme- and problem-oriented prioritizati<strong>on</strong> is needed ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than geographic; Grand<br />

Challenges as a clear prioritizati<strong>on</strong> <strong>to</strong>ol should be mainstreamed also in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>al dimensi<strong>on</strong>. Prioritizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al collaborati<strong>on</strong> should follow<br />

closely <str<strong>on</strong>g>the</str<strong>on</strong>g> priorities <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU’s core research and innovati<strong>on</strong> programmes, while <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

geographical approach should be <str<strong>on</strong>g>the</str<strong>on</strong>g> core <str<strong>on</strong>g>of</str<strong>on</strong>g> an implementati<strong>on</strong> strategy<br />

3. Make <str<strong>on</strong>g>the</str<strong>on</strong>g> Horiz<strong>on</strong> 2020 truly open and attractive <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> best and brightest in <str<strong>on</strong>g>the</str<strong>on</strong>g> world<br />

allowing European ac<strong>to</strong>rs <strong>to</strong> work with <str<strong>on</strong>g>the</str<strong>on</strong>g> best brains wherever <str<strong>on</strong>g>the</str<strong>on</strong>g>y are<br />

4. The internati<strong>on</strong>al perspective needs <strong>to</strong> be more fully integrated in<strong>to</strong> ’regular’<br />

programmes at EU level<br />

14


5. Variable geometry should be exploited <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> full, with flexible arrangements (within<br />

EU and with countries outside EU) including multilateral platforms for strategic<br />

cooperati<strong>on</strong>. Variable geometry initiatives should also build <strong>on</strong> lead initiatives by<br />

individual Member States that expand <str<strong>on</strong>g>the</str<strong>on</strong>g>ir successful bilateral activities <strong>to</strong> several<br />

European partners<br />

6. A str<strong>on</strong>g focus <strong>on</strong> firms and innovati<strong>on</strong> is needed. This has not been properly<br />

addressed before and it requires a new/different approach; <str<strong>on</strong>g>the</str<strong>on</strong>g>re are fundamental<br />

differences in drivers <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong> between academia and industry and<br />

between research and innovati<strong>on</strong><br />

7. Reinforce efforts <strong>to</strong> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n framework c<strong>on</strong>diti<strong>on</strong>s for and removal <str<strong>on</strong>g>of</str<strong>on</strong>g> barriers <strong>to</strong><br />

internati<strong>on</strong>al cooperati<strong>on</strong><br />

8. Design targeted initiatives for streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning cooperati<strong>on</strong> in selected (prioritized)<br />

areas: <str<strong>on</strong>g>the</str<strong>on</strong>g>se can be multilateral, bilateral, and unilateral. The key criteria should be<br />

achieving benefits for European stakeholders, effectively address global, grand<br />

challenges, and support <str<strong>on</strong>g>the</str<strong>on</strong>g> Uni<strong>on</strong>’s external policies<br />

9. All initiatives must be based <strong>on</strong> more evidence- or analysis-based decisi<strong>on</strong>-making,<br />

including forward looking analysis <strong>to</strong> inform decisi<strong>on</strong> making about likely trends and<br />

future changes and systematic exchange <str<strong>on</strong>g>of</str<strong>on</strong>g> experiences.<br />

15


Introducti<strong>on</strong><br />

Background<br />

In <str<strong>on</strong>g>the</str<strong>on</strong>g> past decades, The European Uni<strong>on</strong> has made great strides in developing a European<br />

research community. The successive Framework Programmes for RTD have been a key<br />

c<strong>on</strong>tributing fac<strong>to</strong>r in this development, proving incentives and mechanisms for cross-border<br />

cooperati<strong>on</strong> in <strong>STI</strong>. In additi<strong>on</strong>, several programmes and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r initiatives have broadened <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

scope <str<strong>on</strong>g>of</str<strong>on</strong>g> European cooperati<strong>on</strong>, such as ERA-NETs, European Technology Platforms and<br />

Joint Technology Initiatives. The next Framework Programme called Horiz<strong>on</strong> 2020, signal an<br />

even greater effort <strong>to</strong> leverage <strong>STI</strong> for European ec<strong>on</strong>omic and social development in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

overall policy c<strong>on</strong>text <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Europe 2020 strategy. 3<br />

With <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Research Area since 2000 a clearer focus <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> need<br />

for more synergy and effectiveness in European <strong>STI</strong> efforts has developed. One c<strong>on</strong>sequence<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> this realizati<strong>on</strong> was <str<strong>on</strong>g>the</str<strong>on</strong>g> so-called ERA-initiatives aimed at speeding up <str<strong>on</strong>g>the</str<strong>on</strong>g> European <strong>STI</strong><br />

integrati<strong>on</strong> with c<strong>on</strong>crete measures. Against <str<strong>on</strong>g>the</str<strong>on</strong>g> backdrop <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> rapidly changing global<br />

landscape, <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al dimensi<strong>on</strong> has received more attenti<strong>on</strong> and resulted, am<strong>on</strong>g o<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

things, in a Strategic Forum for Internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> (SFIC) aimed at improving<br />

coordinati<strong>on</strong> am<strong>on</strong>g and between <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States and <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> in cooperati<strong>on</strong><br />

activities with countries and regi<strong>on</strong>s outside Europe. This partnership was launched in 2008.<br />

The policy c<strong>on</strong>text <str<strong>on</strong>g>of</str<strong>on</strong>g> Horiz<strong>on</strong> 2020 pays increasing attenti<strong>on</strong> <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> need for ec<strong>on</strong>omic<br />

growth, competitiveness and innovati<strong>on</strong>. This is manifested by <str<strong>on</strong>g>the</str<strong>on</strong>g> Flagship initiative<br />

“Innovati<strong>on</strong> Uni<strong>on</strong>” which is driven by an imperative <strong>to</strong> integrate a better strategy for<br />

innovati<strong>on</strong> in <str<strong>on</strong>g>the</str<strong>on</strong>g> overall <strong>STI</strong> efforts in Europe. Fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r, <str<strong>on</strong>g>the</str<strong>on</strong>g> changing global <strong>STI</strong> landscape<br />

and a greater focus <strong>on</strong> global challenges that require significant and c<strong>on</strong>certed inputs from<br />

research and innovati<strong>on</strong> reinforced <str<strong>on</strong>g>the</str<strong>on</strong>g> importance <str<strong>on</strong>g>of</str<strong>on</strong>g> finding new and better ways for<br />

internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong> as well as reaping <str<strong>on</strong>g>the</str<strong>on</strong>g> benefits from this cooperati<strong>on</strong>.<br />

Against this backdrop, <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> set up an <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> <strong>on</strong> internati<strong>on</strong>al science,<br />

technology and innovati<strong>on</strong> cooperati<strong>on</strong> <strong>to</strong> provide advice for <str<strong>on</strong>g>the</str<strong>on</strong>g> fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r development <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

internati<strong>on</strong>al cooperati<strong>on</strong> policy and <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA. The EG was<br />

launched in parallel with <str<strong>on</strong>g>the</str<strong>on</strong>g> preparati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> two important policy initiatives from <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Commissi<strong>on</strong>: A Communicati<strong>on</strong> <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA Framework and a Communicati<strong>on</strong> <strong>on</strong> a<br />

European Strategy for internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong> <strong>to</strong> be published in <str<strong>on</strong>g>the</str<strong>on</strong>g> early summer<br />

and early fall respectively. Hence, <str<strong>on</strong>g>the</str<strong>on</strong>g> mandate included giving input <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>se two<br />

Communicati<strong>on</strong>s as a 1 st phase <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EG’s work 4 .<br />

Two workshops were arranged during <str<strong>on</strong>g>the</str<strong>on</strong>g> course <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EG’s work. First, a stakeholder<br />

workshop for <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA Framework was c<strong>on</strong>ducted by <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> 13 th March <strong>to</strong><br />

which two <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EGs members were invited. In this workshop <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

3 COM(2010)2020 – Europe 2020 A strategy for smart, sustainable and inclusive growth.<br />

4 See annex 1 for <str<strong>on</strong>g>the</str<strong>on</strong>g> mandate for <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g>.<br />

16


ERA was discussed as part <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> process <str<strong>on</strong>g>of</str<strong>on</strong>g> preparing <str<strong>on</strong>g>the</str<strong>on</strong>g> Communicati<strong>on</strong> <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA<br />

Framework. Sec<strong>on</strong>d, a dedicated workshop for <str<strong>on</strong>g>the</str<strong>on</strong>g> industry and innovati<strong>on</strong> dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

EG’s work was arranged <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> 17 th April, with several industrial representatives present.<br />

This workshop provided useful c<strong>on</strong>tributi<strong>on</strong>s <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> group’s work.<br />

Since <str<strong>on</strong>g>the</str<strong>on</strong>g> SMEs were not presented at <str<strong>on</strong>g>the</str<strong>on</strong>g> industry workshop, and <str<strong>on</strong>g>the</str<strong>on</strong>g> EG c<strong>on</strong>sidered <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

SME input important <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> group’s work, semi-structured interviews were carried as a<br />

complementary activity out with 10 SMEs from <str<strong>on</strong>g>the</str<strong>on</strong>g> ICT industry in Germany, and 14 SMEs<br />

from different industries in Bulgaria. The findings are reflected in <str<strong>on</strong>g>the</str<strong>on</strong>g> report and summarized<br />

in annex 5.<br />

Understanding internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong><br />

A strategy for internati<strong>on</strong>al cooperati<strong>on</strong> relates <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> broader process <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>alizati<strong>on</strong><br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> which <str<strong>on</strong>g>the</str<strong>on</strong>g> EG defines <strong>on</strong> two levels:<br />

1) Generati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge and innovati<strong>on</strong>:<br />

• All internati<strong>on</strong>al cooperati<strong>on</strong> and coordinati<strong>on</strong>, inward and outward investment,<br />

inward and outward transfer <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge including inward and outward mobility,<br />

internati<strong>on</strong>al use and cost sharing <str<strong>on</strong>g>of</str<strong>on</strong>g> data and infrastructure;<br />

• by public and private researchers, public organisati<strong>on</strong>s, civil society, and private<br />

firms;<br />

2) Policy, frameworks and funding <strong>to</strong> support 1) above which involves activities and<br />

measures such as cooperati<strong>on</strong>, coordinati<strong>on</strong>, integrati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> policy and funding bodies<br />

(including foundati<strong>on</strong>s) in various forms (between and across levels), regula<strong>to</strong>ry issues,<br />

removing barriers <strong>to</strong> internati<strong>on</strong>alizati<strong>on</strong>.<br />

Internati<strong>on</strong>al cooperati<strong>on</strong> as such can be unders<strong>to</strong>od as all cooperative relati<strong>on</strong>ships between<br />

<strong>STI</strong> performers in n<strong>on</strong>-equity relati<strong>on</strong>ships. Hence, internati<strong>on</strong>al cooperati<strong>on</strong> is primarily<br />

driven by “bot<strong>to</strong>m up” priorities <str<strong>on</strong>g>of</str<strong>on</strong>g> individual researchers, research organisati<strong>on</strong>s or R&I<br />

performing enterprises: <strong>STI</strong> cooperati<strong>on</strong> includes informal and formal agreements that<br />

involve exchanges <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge <strong>on</strong> a systematic basis between R&D ac<strong>to</strong>rs that are<br />

organisati<strong>on</strong>ally separate. A strategy for internati<strong>on</strong>al cooperati<strong>on</strong> for <str<strong>on</strong>g>the</str<strong>on</strong>g> EU will hence<br />

include public policy priorities, acti<strong>on</strong>s and resources aimed at influencing internati<strong>on</strong>al<br />

cooperati<strong>on</strong> in accordance with given objectives. The EU may enter in<strong>to</strong> cooperative<br />

agreements, typically bilateral <strong>STI</strong> agreements, which define <str<strong>on</strong>g>the</str<strong>on</strong>g> incentives and c<strong>on</strong>straints<br />

for <str<strong>on</strong>g>the</str<strong>on</strong>g> cooperati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D performers. Nati<strong>on</strong>al governments may also enter in<strong>to</strong><br />

programme cooperati<strong>on</strong> through for example Joint Programming in <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA-case, or joint<br />

bilateral programmes and calls for proposals.<br />

It is useful <strong>to</strong> bear in mind <str<strong>on</strong>g>the</str<strong>on</strong>g> fact that policies and frameworks are <str<strong>on</strong>g>of</str<strong>on</strong>g>ten negotiated results<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> cooperative processes between governmental ac<strong>to</strong>rs or o<str<strong>on</strong>g>the</str<strong>on</strong>g>r public bodies. In additi<strong>on</strong>,<br />

frameworks for <strong>STI</strong> cooperati<strong>on</strong> in this manner c<strong>on</strong>stitute a certain level <str<strong>on</strong>g>of</str<strong>on</strong>g> coordinati<strong>on</strong><br />

17


am<strong>on</strong>g Member States and associated countries and between <str<strong>on</strong>g>the</str<strong>on</strong>g>se and <str<strong>on</strong>g>the</str<strong>on</strong>g> European<br />

Commissi<strong>on</strong> that stretch from no coordinati<strong>on</strong> (competiti<strong>on</strong>) through informati<strong>on</strong> exchange<br />

and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r measures <strong>to</strong> integrated strategy as fully coordinated acti<strong>on</strong>s:<br />

• Integrati<strong>on</strong>: joint strategic approach/programme<br />

• Collaborati<strong>on</strong>: Pooled programmes with merged management<br />

• Cooperati<strong>on</strong>: Distributed but linked programmes, shared access, strategic<br />

divergence/specializati<strong>on</strong><br />

• Co-ordinati<strong>on</strong>: Informati<strong>on</strong> exchange <strong>on</strong> distributed programmes<br />

• Competiti<strong>on</strong>: Overlapping programmes in competiti<strong>on</strong><br />

When assessing <str<strong>on</strong>g>the</str<strong>on</strong>g> opti<strong>on</strong>s for <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> and <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States in promoting a<br />

strategy for internati<strong>on</strong>al cooperati<strong>on</strong>, this c<strong>on</strong>text <str<strong>on</strong>g>of</str<strong>on</strong>g> public policy will be duly c<strong>on</strong>sidered. It<br />

will be a red thread throughout this report that <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a need <strong>to</strong> strive for moving upwards <strong>on</strong><br />

this scale <strong>to</strong> achieve a more collaborative and integrated strategy for internati<strong>on</strong>al<br />

cooperati<strong>on</strong>.<br />

The internati<strong>on</strong>al dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA<br />

The renewal <str<strong>on</strong>g>of</str<strong>on</strong>g> an EU strategy for internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> will take place in <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>text<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> emerging European Research Area. ERA was initiated in 2000, but redefined and relaunched<br />

in 2007-2008 through five ERA initiatives, <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> which was <str<strong>on</strong>g>the</str<strong>on</strong>g> external or<br />

internati<strong>on</strong>al dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA. Following <str<strong>on</strong>g>the</str<strong>on</strong>g> publicati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong><br />

Communicati<strong>on</strong> “A Strategic Framework for Internati<strong>on</strong>al Science and Technology<br />

Cooperati<strong>on</strong>” in 2008, <str<strong>on</strong>g>the</str<strong>on</strong>g> European Strategic Forum for Internati<strong>on</strong>al S&T cooperati<strong>on</strong><br />

(SFIC) was created with an overall aim <strong>to</strong> increase <str<strong>on</strong>g>the</str<strong>on</strong>g> coherence <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al S&T<br />

activities <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> MS and <str<strong>on</strong>g>the</str<strong>on</strong>g> EU. The SFIC is seen as a partnership where <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> is<br />

<strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> 28 partners, and where associated countries <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> FP7 are observers. SFIC received<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> following mandate by <str<strong>on</strong>g>the</str<strong>on</strong>g> Council:<br />

“To facilitate <str<strong>on</strong>g>the</str<strong>on</strong>g> fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r development, implementati<strong>on</strong> and m<strong>on</strong>i<strong>to</strong>ring <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>al dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA by <str<strong>on</strong>g>the</str<strong>on</strong>g> sharing <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> and c<strong>on</strong>sultati<strong>on</strong><br />

between <str<strong>on</strong>g>the</str<strong>on</strong>g> partners (Member States and <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong>) with a view <strong>to</strong> identifying<br />

comm<strong>on</strong> priorities which could lead <strong>to</strong> coordinated or joint activities, and<br />

coordinating activities and positi<strong>on</strong>s vis-à-vis third countries and within internati<strong>on</strong>al<br />

fora”. 5<br />

There are several critical aspects <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA that <str<strong>on</strong>g>the</str<strong>on</strong>g> EG would like <strong>to</strong> stress are key <strong>to</strong> an EU<br />

strategy for internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>, bearing in mind <str<strong>on</strong>g>the</str<strong>on</strong>g> broad objectives <str<strong>on</strong>g>of</str<strong>on</strong>g> ERAs<br />

external dimensi<strong>on</strong>:<br />

• Streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n <str<strong>on</strong>g>the</str<strong>on</strong>g> excellence and attractiveness <str<strong>on</strong>g>of</str<strong>on</strong>g> EU research and innovati<strong>on</strong>;<br />

• Underpin EU ec<strong>on</strong>omic and industrial competitiveness;<br />

5 Council C<strong>on</strong>clusi<strong>on</strong>s 16763/08.<br />

18


• Enable EU and MS <strong>to</strong> tackle global challenges;<br />

• Support external policies<br />

This secti<strong>on</strong> in <str<strong>on</strong>g>the</str<strong>on</strong>g> report highlights <str<strong>on</strong>g>the</str<strong>on</strong>g>se aspects <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA as <str<strong>on</strong>g>the</str<strong>on</strong>g> major c<strong>on</strong>text for an<br />

internati<strong>on</strong>al strategy for internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong>.<br />

Integrate <str<strong>on</strong>g>the</str<strong>on</strong>g> external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA<br />

The external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA is important for its success. The speed <str<strong>on</strong>g>of</str<strong>on</strong>g> globalisati<strong>on</strong> and<br />

internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong>, as well as <str<strong>on</strong>g>the</str<strong>on</strong>g> importance <str<strong>on</strong>g>of</str<strong>on</strong>g> enhancing Europe as a regi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

attractiveness <strong>to</strong> c<strong>on</strong>duct <strong>STI</strong> underpins <str<strong>on</strong>g>the</str<strong>on</strong>g> urgency and importance for ERA’s external<br />

dimensi<strong>on</strong>. Therefore, ERA’s external dimensi<strong>on</strong> cannot be an add-<strong>on</strong>, but should be<br />

integrated as a horiz<strong>on</strong>tal priority across ERA.<br />

The coming EU Framework Programme H2020 <strong>to</strong> be launched in 2014, will likely have<br />

general opening as a basic principle. The EG wants <strong>to</strong> address two key issues in this c<strong>on</strong>text.<br />

First, <str<strong>on</strong>g>the</str<strong>on</strong>g> H2020 should be a facilita<strong>to</strong>r and driver in ERA’s external dimensi<strong>on</strong>, providing<br />

momentum, directi<strong>on</strong> and synergy, including appropriate links with ERA activities through<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> “Grand Challenges” block <str<strong>on</strong>g>of</str<strong>on</strong>g> H2020. Sec<strong>on</strong>d, <str<strong>on</strong>g>the</str<strong>on</strong>g> bilateral activities <str<strong>on</strong>g>of</str<strong>on</strong>g> MS should be<br />

brought in<strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA through frameworks for mutual opening and<br />

joint programmes with 3 rd countries/partners, also linked <strong>to</strong> grand challenges.<br />

A balance between cooperati<strong>on</strong> and competiti<strong>on</strong> in a strategic framework<br />

The external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA should be operati<strong>on</strong>alized in a strategic framework that takes<br />

EU level interests and synergies as a starting point. The framework should clarify in which<br />

cases a joint or comm<strong>on</strong> strategy is warranted vis-á-vis looser forms <str<strong>on</strong>g>of</str<strong>on</strong>g> coordinati<strong>on</strong> such as<br />

policy harm<strong>on</strong>izati<strong>on</strong>, c<strong>on</strong>sultati<strong>on</strong> and informati<strong>on</strong> exchange. The EG sees <str<strong>on</strong>g>the</str<strong>on</strong>g> balance <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

cooperati<strong>on</strong> with competiti<strong>on</strong> am<strong>on</strong>g European partners as a key c<strong>on</strong>siderati<strong>on</strong>. An ERA<br />

strategic framework should ensure that those objectives and activities that require EU level<br />

acti<strong>on</strong>s are in fact included, while MS or regi<strong>on</strong>al level objectives and activities are left <strong>to</strong><br />

MS/AC. These are competitive arenas that are key <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> functi<strong>on</strong>ing <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA, and underpin<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> dynamism that MS/AC can bring <strong>to</strong> a c<strong>on</strong>certed effort for cooperati<strong>on</strong> with 3 rd countries<br />

or o<str<strong>on</strong>g>the</str<strong>on</strong>g>r global settings. Joint or coordinated acti<strong>on</strong> should be given priority in areas where<br />

nati<strong>on</strong>al c<strong>on</strong>tributi<strong>on</strong>s are <strong>to</strong>o small <strong>to</strong> have impact or where critical mass <strong>on</strong> EU level is<br />

needed, whereas competiti<strong>on</strong> and competitive arenas should be retained and stimulated<br />

between research and innovati<strong>on</strong> performers.<br />

The external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA will need <strong>to</strong> address how it can support and enhance <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

competitiveness and improve opportunities for European industry and business in general.<br />

For industry, appropriate framework c<strong>on</strong>diti<strong>on</strong>s are more important than public cooperati<strong>on</strong><br />

programmes in S&T. Cooperati<strong>on</strong> with 3 rd countries are key <strong>to</strong> establish platforms for<br />

technological soluti<strong>on</strong>s, standards and market access. These issues will be thoroughly<br />

discussed in <str<strong>on</strong>g>the</str<strong>on</strong>g> later secti<strong>on</strong> <strong>on</strong> industry and innovati<strong>on</strong>.<br />

19


Internal and external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA: Towards a symbiosis<br />

The ERA was originally launched with <str<strong>on</strong>g>the</str<strong>on</strong>g> aim <strong>to</strong> develop an internal market <str<strong>on</strong>g>of</str<strong>on</strong>g> research and<br />

development in Europe, taking in<strong>to</strong> account <str<strong>on</strong>g>the</str<strong>on</strong>g> fact that <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States provided by far<br />

most <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> resources and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r inputs for research. The ERA development has delivered a<br />

plethora <str<strong>on</strong>g>of</str<strong>on</strong>g> new, experimental instruments with variable geometries, which have been widely<br />

taken up by policy makers and funders, and it has introduced a range <str<strong>on</strong>g>of</str<strong>on</strong>g> new governance<br />

mechanisms <strong>to</strong> establish better coordinati<strong>on</strong> between MS and <str<strong>on</strong>g>the</str<strong>on</strong>g> EU. This has overcome <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

traditi<strong>on</strong>al two-level structure <str<strong>on</strong>g>of</str<strong>on</strong>g> funding in Europe (MS vs. FP) and led <strong>to</strong> more appropriate<br />

and efficient funding and support mechanisms. However, <str<strong>on</strong>g>the</str<strong>on</strong>g> positi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> is<br />

that <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a great urgency in moving from a strategy <str<strong>on</strong>g>of</str<strong>on</strong>g> coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> disparate activities<br />

<strong>to</strong> a more collaborative and integrated approach, thus making internati<strong>on</strong>al cooperati<strong>on</strong> truly<br />

strategic.<br />

However, ERA is not quite yet <str<strong>on</strong>g>the</str<strong>on</strong>g> str<strong>on</strong>g, open internal knowledge market with clear<br />

governance structures it is intended <strong>to</strong> become. In additi<strong>on</strong>, it has yet <strong>to</strong> establish a logical<br />

and well-coordinated link between <str<strong>on</strong>g>the</str<strong>on</strong>g> external and <str<strong>on</strong>g>the</str<strong>on</strong>g> internal dimensi<strong>on</strong>. The opini<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

EG is that <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a great need <strong>to</strong> develop ERA fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r as a European knowledge market in<br />

order <strong>to</strong> achieve an external dimensi<strong>on</strong> with significant impact, both in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> its effective<br />

functi<strong>on</strong>ing and in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> its attractiveness and competitiveness in <str<strong>on</strong>g>the</str<strong>on</strong>g> global producti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

knowledge and innovati<strong>on</strong>. The Strategic Forum for Internati<strong>on</strong>al <strong>STI</strong> Cooperati<strong>on</strong> (SFIC)<br />

has a great potential <strong>to</strong> be a driver <str<strong>on</strong>g>of</str<strong>on</strong>g> such a symbiotic development. However, SFIC has not<br />

yet lived up <strong>to</strong> that potential.<br />

The external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA has two key dimensi<strong>on</strong>s: On <strong>on</strong>e hand it cannot be successful<br />

and effective unless ERA itself c<strong>on</strong>stitutes a viable and attractive entity for research and<br />

development. Hence, it builds <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> efficiency and effectiveness <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA. On <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r hand,<br />

an effective external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA will be highly beneficial for <str<strong>on</strong>g>the</str<strong>on</strong>g> fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r development<br />

and completi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA, e.g. through providing effective channels for scientific and<br />

technological talent that Europe needs <strong>to</strong> develop its overall competitiveness. An EU strategy<br />

should <str<strong>on</strong>g>the</str<strong>on</strong>g>refore give c<strong>on</strong>siderable attenti<strong>on</strong> <strong>to</strong> c<strong>on</strong>vey this mutual relati<strong>on</strong>ship, and bring out<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> importance <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> external dimensi<strong>on</strong> for ERA as well as <str<strong>on</strong>g>the</str<strong>on</strong>g> need for a more mature ERA<br />

<strong>to</strong> better reach impact and attracti<strong>on</strong> globally.<br />

Drivers <str<strong>on</strong>g>of</str<strong>on</strong>g> globalizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong><br />

R&D and science and technology more generally are some am<strong>on</strong>g many areas from culture <strong>to</strong><br />

markets that are becoming global. This reduces <str<strong>on</strong>g>the</str<strong>on</strong>g> influence <str<strong>on</strong>g>of</str<strong>on</strong>g> individual countries or blocs<br />

such as <str<strong>on</strong>g>the</str<strong>on</strong>g> EU <strong>on</strong> developments both at home and abroad but also generates important<br />

benefits through specialisati<strong>on</strong>, trade and competiti<strong>on</strong>. The data show that R&D and science<br />

and technology is still str<strong>on</strong>gly focused <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘Triad’ countries overall. However, this pattern<br />

is weakening fast, as especially <str<strong>on</strong>g>the</str<strong>on</strong>g> large emerging ec<strong>on</strong>omies’ role in global science,<br />

technology and producti<strong>on</strong> c<strong>on</strong>tinues <strong>to</strong> increase. Given that changes in <str<strong>on</strong>g>the</str<strong>on</strong>g> locati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D,<br />

cooperati<strong>on</strong> patterns and human capital producti<strong>on</strong> all have l<strong>on</strong>g lead times, EU research and<br />

20


innovati<strong>on</strong> policy needs <strong>to</strong> anticipate a future where knowledge producti<strong>on</strong> and use – industry<br />

as in science – is increasingly multipolar and globally networked.<br />

Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D: characterizing <str<strong>on</strong>g>the</str<strong>on</strong>g> phenomen<strong>on</strong><br />

The internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Science, Technology and Innovati<strong>on</strong> materializes through a wide<br />

variety <str<strong>on</strong>g>of</str<strong>on</strong>g> complex processes, ranging from:<br />

• The internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Science and Technology Development at public or<br />

private research institutes or universities: through <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al mobility <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

S&T students and researchers; <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al collaborati<strong>on</strong> am<strong>on</strong>g S&T<br />

researchers (as witnessed by joint publicati<strong>on</strong>s or joint projects)<br />

• The internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Technology Development and Innovati<strong>on</strong> by firms who<br />

develop R&D activities internati<strong>on</strong>ally, simultaneously home and abroad. The<br />

R&D d<strong>on</strong>e at home uses inputs from abroad, through <str<strong>on</strong>g>the</str<strong>on</strong>g> recruiting <str<strong>on</strong>g>of</str<strong>on</strong>g> foreign<br />

S&T employees; building <strong>on</strong> existing knowledge located abroad. The R&D d<strong>on</strong>e<br />

abroad enables use <str<strong>on</strong>g>of</str<strong>on</strong>g> locally available S&T human resources sourcing <str<strong>on</strong>g>of</str<strong>on</strong>g> locally<br />

available know-how. Even if R&D is c<strong>on</strong>centrated in <str<strong>on</strong>g>the</str<strong>on</strong>g> home country and uses<br />

<strong>on</strong>ly home country resources, firms are exploiting <str<strong>on</strong>g>the</str<strong>on</strong>g>ir innovati<strong>on</strong>s <strong>on</strong> world<br />

markets, through licensing <str<strong>on</strong>g>the</str<strong>on</strong>g>ir technologies abroad or selling <str<strong>on</strong>g>the</str<strong>on</strong>g>ir innovati<strong>on</strong>s<br />

<strong>on</strong> foreign markets<br />

• Internati<strong>on</strong>al collaborati<strong>on</strong> in S&T, where partners (firms and research institutes)<br />

from more than <strong>on</strong>e country jointly research and develop technological know-how<br />

and innovati<strong>on</strong>s<br />

The <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> processes thus include <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> input side <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al<br />

mobility <str<strong>on</strong>g>of</str<strong>on</strong>g> human capital (S&T employees and researchers) as well as <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al<br />

mobility <str<strong>on</strong>g>of</str<strong>on</strong>g> physical and financial capital with R&D facilities and funds c<strong>on</strong>trolled from<br />

abroad. On <str<strong>on</strong>g>the</str<strong>on</strong>g> output side, <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> process includes <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al mobility<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge and technology and <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al producti<strong>on</strong> and sale <str<strong>on</strong>g>of</str<strong>on</strong>g> new products and<br />

services. 6<br />

Drivers and barriers for <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Science<br />

The <strong>on</strong>-going globalizati<strong>on</strong> and internati<strong>on</strong>alizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> is affected by a number <str<strong>on</strong>g>of</str<strong>on</strong>g> drivers<br />

and barriers. These are different for industry and innovati<strong>on</strong> compared with general science.<br />

Several fac<strong>to</strong>rs drive <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing globalisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> science:<br />

• The globalisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world ec<strong>on</strong>omy drives firms <strong>to</strong> increasingly access scientific<br />

sources outside <str<strong>on</strong>g>the</str<strong>on</strong>g>ir local boundaries.<br />

• Students and researchers are increasingly mobile. As a c<strong>on</strong>sequence, scientific<br />

instituti<strong>on</strong>s and firms are ever more competing for talent in a global labour market.<br />

6 Please see annex 3 for a broader discussi<strong>on</strong>, and Veugelers (2010) Bruegel Policy C<strong>on</strong>tributi<strong>on</strong> and <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

references cited <str<strong>on</strong>g>the</str<strong>on</strong>g>rein.<br />

21


• The ICT and <str<strong>on</strong>g>the</str<strong>on</strong>g> Internet revoluti<strong>on</strong> have reduced <str<strong>on</strong>g>the</str<strong>on</strong>g> cost <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al<br />

communicati<strong>on</strong> and boosted internati<strong>on</strong>al exchange in science. These trends are<br />

amplified by <str<strong>on</strong>g>the</str<strong>on</strong>g> growth in transport systems and reducti<strong>on</strong>s in real transport costs <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> last few decades.<br />

• ICT and internet have also fostered new ways <str<strong>on</strong>g>of</str<strong>on</strong>g> ga<str<strong>on</strong>g>the</str<strong>on</strong>g>ring knowledge, leading <strong>to</strong><br />

innovative internati<strong>on</strong>al knowledge transfer models in <str<strong>on</strong>g>the</str<strong>on</strong>g> fields <str<strong>on</strong>g>of</str<strong>on</strong>g> fundamental<br />

research. Examples such as <str<strong>on</strong>g>the</str<strong>on</strong>g> Milky Way Project or <str<strong>on</strong>g>the</str<strong>on</strong>g> Artigo Project build up<br />

databases with tremendous scientific gain. 7<br />

• The research agenda is increasingly being made up <str<strong>on</strong>g>of</str<strong>on</strong>g> issues that have a global<br />

dimensi<strong>on</strong>, such as climate change, energy, safety, pandemics.<br />

• Policy makers are increasingly focusing attenti<strong>on</strong> <strong>on</strong> internati<strong>on</strong>al S&T cooperati<strong>on</strong><br />

and funding programmes <strong>to</strong> stimulate internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> higher educati<strong>on</strong> and<br />

research. This includes many governments from emerging ec<strong>on</strong>omies, who have come<br />

<strong>to</strong> view Science and Technology (S&T) as integral <strong>to</strong> ec<strong>on</strong>omic growth and<br />

development. To that end, <str<strong>on</strong>g>the</str<strong>on</strong>g>y have taken steps <strong>to</strong> develop <str<strong>on</strong>g>the</str<strong>on</strong>g>ir S&T infrastructures<br />

and expand <str<strong>on</strong>g>the</str<strong>on</strong>g>ir higher educati<strong>on</strong> systems. This has brought a great expansi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

world’s S&T activities and a shift <strong>to</strong>ward developing Asia, where most <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> rapid<br />

growth has occurred.<br />

• Costs <str<strong>on</strong>g>of</str<strong>on</strong>g> and access <strong>to</strong> infrastructure lead <strong>to</strong> str<strong>on</strong>ger incentives <strong>to</strong> cooperate and share<br />

resources across boundaries.<br />

• Increased specialisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge producti<strong>on</strong> globally makes excellence being<br />

located more diversely and makes it vital <strong>to</strong> seek advanced knowledge where it is.<br />

• Scientific knowledge is produced with greater ”speed” and impact, creating incentives<br />

<strong>to</strong> avoid duplicati<strong>on</strong>.<br />

Never<str<strong>on</strong>g>the</str<strong>on</strong>g>less, also within science <str<strong>on</strong>g>the</str<strong>on</strong>g>re are still forces counterbalancing <str<strong>on</strong>g>the</str<strong>on</strong>g> globalisati<strong>on</strong>,<br />

such as <str<strong>on</strong>g>the</str<strong>on</strong>g> resilience <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> nati<strong>on</strong>al dimensi<strong>on</strong> in educati<strong>on</strong>, science and technology policy<br />

and public funding, proximity effects in <str<strong>on</strong>g>the</str<strong>on</strong>g> exchanges <str<strong>on</strong>g>of</str<strong>on</strong>g> tacit knowledge requiring face-t<str<strong>on</strong>g>of</str<strong>on</strong>g>ace<br />

interacti<strong>on</strong>s; cultural and language barriers, and <str<strong>on</strong>g>the</str<strong>on</strong>g> inertia <str<strong>on</strong>g>of</str<strong>on</strong>g> pers<strong>on</strong>al and instituti<strong>on</strong>al<br />

networks (Kaiser, et al. 2011).<br />

Drivers for <str<strong>on</strong>g>the</str<strong>on</strong>g> growing internati<strong>on</strong>alizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D and innovati<strong>on</strong>s by firms<br />

A number <str<strong>on</strong>g>of</str<strong>on</strong>g> changes in <str<strong>on</strong>g>the</str<strong>on</strong>g> competitive, internati<strong>on</strong>al and technological envir<strong>on</strong>ment have<br />

driven <str<strong>on</strong>g>the</str<strong>on</strong>g> increased R&D internati<strong>on</strong>alizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> multinati<strong>on</strong>al firms and <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing<br />

importance <str<strong>on</strong>g>of</str<strong>on</strong>g> asset-seeking foreign R&D.<br />

• Technological and scientific expertise has become more widely distributed in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

world.<br />

• In additi<strong>on</strong>, in countries such as China, rapid increases in R&D are combined with<br />

rapid growth in markets and income, making it much more attractive for foreign<br />

inves<strong>to</strong>rs for in particular adaptive R&D.<br />

7 See <str<strong>on</strong>g>the</str<strong>on</strong>g> websites <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> projects: http://www.milkywayproject.org/ and http://www.artigo.org/about.html.<br />

22


• Developing ec<strong>on</strong>omies with str<strong>on</strong>g governments increasingly require local R&D<br />

activity as a quid pro quo for allowing foreign participati<strong>on</strong> in local markets (a<br />

practice ranging from <str<strong>on</strong>g>the</str<strong>on</strong>g> earlier requirement for oil c<strong>on</strong>cessi<strong>on</strong>aires <strong>to</strong> do or fund<br />

R&D in Norway <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> demands <str<strong>on</strong>g>of</str<strong>on</strong>g> China for a local R&D comp<strong>on</strong>ent in aircraft<br />

producti<strong>on</strong> c<strong>on</strong>sortia)<br />

• Many nati<strong>on</strong>s have improved <str<strong>on</strong>g>the</str<strong>on</strong>g>ir infrastructure and business climate for foreign<br />

firms <strong>to</strong> c<strong>on</strong>duct R&D.<br />

• Based <strong>on</strong> internati<strong>on</strong>al treaties like <str<strong>on</strong>g>the</str<strong>on</strong>g> TRIPS agreement, patent right systems have<br />

significantly improved in some countries, primarily less-developed countries that<br />

his<strong>to</strong>rically had weak patent systems, like China and India 8 . Never<str<strong>on</strong>g>the</str<strong>on</strong>g>less, <str<strong>on</strong>g>the</str<strong>on</strong>g> risk <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

patent infringement is still high in <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al level, especially in <str<strong>on</strong>g>the</str<strong>on</strong>g> IT business<br />

(Kaiser 2010).<br />

• Developments in <str<strong>on</strong>g>the</str<strong>on</strong>g> codificati<strong>on</strong> and standardizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D processes have<br />

increased <str<strong>on</strong>g>the</str<strong>on</strong>g> possibilities <strong>to</strong> segment R&D activities over different locati<strong>on</strong>s.<br />

• Advances in informati<strong>on</strong> and communicati<strong>on</strong> technologies have fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r facilitated <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

management <str<strong>on</strong>g>of</str<strong>on</strong>g> globally distributed research and development activities.<br />

• More generally, <str<strong>on</strong>g>the</str<strong>on</strong>g> emergence <str<strong>on</strong>g>of</str<strong>on</strong>g> global supply chains and increased specialisati<strong>on</strong><br />

lead <strong>to</strong> a wider distributi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D activity. Companies must move new products<br />

from development <strong>to</strong> market at an even more rapid pace. C<strong>on</strong>sequently, firms build<br />

R&D networks that allow <str<strong>on</strong>g>the</str<strong>on</strong>g>m <strong>to</strong> access geographically distributed technical and<br />

scientific expertise at lower costs.<br />

• Products such as aircraft and large pieces <str<strong>on</strong>g>of</str<strong>on</strong>g> infrastructure increasingly have <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

properties <str<strong>on</strong>g>of</str<strong>on</strong>g> ‘large technical systems’, necessitating multi-nati<strong>on</strong>al and multicompany<br />

cooperati<strong>on</strong>. Airbus is an obvious example, as are <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>sortia that build<br />

aircraft engines. In <str<strong>on</strong>g>the</str<strong>on</strong>g> au<strong>to</strong>motive industry <str<strong>on</strong>g>the</str<strong>on</strong>g>re has been a l<strong>on</strong>g process <str<strong>on</strong>g>of</str<strong>on</strong>g> having<br />

first- and sec<strong>on</strong>d-tier suppliers <str<strong>on</strong>g>the</str<strong>on</strong>g>mselves design sub-systems and comp<strong>on</strong>ents, so<br />

that <str<strong>on</strong>g>the</str<strong>on</strong>g> vehicle assembler acts as a systems integra<strong>to</strong>r ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than designing all <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

parts <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> vehicle<br />

• More generally, while <str<strong>on</strong>g>the</str<strong>on</strong>g> idea <str<strong>on</strong>g>of</str<strong>on</strong>g> ‘open innovati<strong>on</strong>’ is much hyped, it does reflect not<br />

<strong>on</strong>ly <str<strong>on</strong>g>the</str<strong>on</strong>g> realities just described but also <str<strong>on</strong>g>the</str<strong>on</strong>g> growing proporti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> business R&D<br />

d<strong>on</strong>e extramurally in c<strong>on</strong>tract research organisati<strong>on</strong>s, <str<strong>on</strong>g>the</str<strong>on</strong>g> higher educati<strong>on</strong> and<br />

research institute sec<strong>to</strong>rs, and R&D partnerships am<strong>on</strong>g companies<br />

• User-driven innovati<strong>on</strong> also relies <strong>on</strong> more use <str<strong>on</strong>g>of</str<strong>on</strong>g> external collabora<strong>to</strong>rs – as in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

well-known role <str<strong>on</strong>g>of</str<strong>on</strong>g> airline cabin staff in <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> 777 interior by<br />

Boeing<br />

• Driven by <str<strong>on</strong>g>the</str<strong>on</strong>g> needs and opportunities in emerging markets, ‘frugal’ innovati<strong>on</strong> is<br />

changing <str<strong>on</strong>g>the</str<strong>on</strong>g> way engineering and producti<strong>on</strong> are d<strong>on</strong>e in some cases. Tata’s small,<br />

low-cost car (a sort <str<strong>on</strong>g>of</str<strong>on</strong>g> ‘Volkswagen’ for India) is <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> best-known examples.<br />

8 New patent regulati<strong>on</strong>s are also c<strong>on</strong>sidered as barriers for internati<strong>on</strong>al business. See Kaiser et al 2011, p. 19-<br />

20.<br />

23


Priority setting: Defining objectives and<br />

understanding roles<br />

Prioritize for <str<strong>on</strong>g>the</str<strong>on</strong>g>mes and challenges<br />

Key objectives for internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong><br />

Priority setting lies at <str<strong>on</strong>g>the</str<strong>on</strong>g> heart <str<strong>on</strong>g>of</str<strong>on</strong>g> any strategic approach <strong>to</strong> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>.<br />

The overarching objectives for internati<strong>on</strong>al cooperati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Uni<strong>on</strong> will be <str<strong>on</strong>g>the</str<strong>on</strong>g> reference<br />

point for priority setting:<br />

• Streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning <str<strong>on</strong>g>the</str<strong>on</strong>g> Uni<strong>on</strong>’s excellence and attractiveness in research and innovati<strong>on</strong> as<br />

well as its ec<strong>on</strong>omic and industrial competitiveness;<br />

• Tackling global societal challenges;<br />

• Supporting <str<strong>on</strong>g>the</str<strong>on</strong>g> Uni<strong>on</strong>’s external policies.<br />

While priority setting normally is seen as a process taking place in a given instituti<strong>on</strong> e.g.<br />

through providing criteria and rules for allocati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> funds, <str<strong>on</strong>g>the</str<strong>on</strong>g> EU level priority setting is<br />

different. Not <strong>on</strong>ly can <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> itself be seen as a multi-ac<strong>to</strong>r instituti<strong>on</strong> in which<br />

priority setting needs <strong>to</strong> take place through negotiati<strong>on</strong>s, <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> also needs <strong>to</strong> add<br />

two levels <str<strong>on</strong>g>of</str<strong>on</strong>g> negotiati<strong>on</strong>s <strong>to</strong> achieve sustainable priorities for <strong>STI</strong>: First this c<strong>on</strong>cerns <str<strong>on</strong>g>the</str<strong>on</strong>g> MS<br />

(and AS), in particular through <str<strong>on</strong>g>the</str<strong>on</strong>g> SFIC partnership, and sec<strong>on</strong>d, it c<strong>on</strong>cerns third countries<br />

as external partners in cooperative efforts.<br />

This complex negotiati<strong>on</strong> process can <str<strong>on</strong>g>the</str<strong>on</strong>g>n be classified according <strong>to</strong> drivers such as user<br />

needs, instituti<strong>on</strong>al or political c<strong>on</strong>cerns, but more importantly in this c<strong>on</strong>text is <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

differentiati<strong>on</strong> between scientific vs. social or broader political, ec<strong>on</strong>omic and societal goals,<br />

and include <str<strong>on</strong>g>the</str<strong>on</strong>g>matic and/or structural priorities (OECD 2012). With <str<strong>on</strong>g>the</str<strong>on</strong>g> above overarching<br />

objectives in mind, priority setting as <str<strong>on</strong>g>the</str<strong>on</strong>g> EG sees it, needs <strong>to</strong> be unders<strong>to</strong>od as negotiating<br />

processes including many stakeholders at various levels that delivers outcomes with<br />

significant added value <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> aggregate <strong>STI</strong> efforts. Priority setting c<strong>on</strong>cerns allocating<br />

resources (sometimes with partners) <strong>to</strong>wards certain goals formulated as targets related <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

stated objectives <strong>to</strong> influence acti<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> research performers. For <str<strong>on</strong>g>the</str<strong>on</strong>g> EG, this implies that <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

priority setting should be <str<strong>on</strong>g>the</str<strong>on</strong>g>matic/missi<strong>on</strong>/challenge oriented, ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than geographical<br />

which has been <str<strong>on</strong>g>the</str<strong>on</strong>g> preferred approach for e.g. SFIC up until now.<br />

Current practice in priority setting<br />

The EU’s activities in internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong> have been channelled through <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

research Framework Programmes. The current situati<strong>on</strong> has several key characteristics:<br />

• Internati<strong>on</strong>al cooperati<strong>on</strong> is mainstreamed across all <str<strong>on</strong>g>the</str<strong>on</strong>g>matic areas in FP7, with each<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>matic programme resp<strong>on</strong>sible for priorities being set.<br />

24


• The general opening principle applies <strong>to</strong> any research performing entity in <str<strong>on</strong>g>the</str<strong>on</strong>g> world,<br />

implying that priority setting follows <str<strong>on</strong>g>the</str<strong>on</strong>g> priorities laid down in <str<strong>on</strong>g>the</str<strong>on</strong>g> calls from <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>matic programmes.<br />

• Cooperati<strong>on</strong> with third countries is based <strong>on</strong> a differentiati<strong>on</strong> across key partner<br />

groups, in H2020 <str<strong>on</strong>g>the</str<strong>on</strong>g> proposal is now in three groups: Industrialised and emerging<br />

ec<strong>on</strong>omies, EU enlargement and neighbourhood countries and EFTA, and developing<br />

countries.<br />

• Targeted acti<strong>on</strong>s and joint calls vis a vis third countries and regi<strong>on</strong>s <strong>on</strong> specific <strong>to</strong>pics<br />

have grown <strong>to</strong> enhance <str<strong>on</strong>g>the</str<strong>on</strong>g> strategic impact <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong>.<br />

• The INCO activity in <str<strong>on</strong>g>the</str<strong>on</strong>g> FP7 Capacities programme has supported policy dialogues<br />

and coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong> am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> MS and AC.<br />

Four principles are currently being developed for H2020 <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> basis <str<strong>on</strong>g>of</str<strong>on</strong>g> FP7: 9<br />

• Openness: This is operati<strong>on</strong>alized through <str<strong>on</strong>g>the</str<strong>on</strong>g> principle <str<strong>on</strong>g>of</str<strong>on</strong>g> general opening <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Framework Programme, implying that any<strong>on</strong>e can participate in projects in this<br />

programme, when complying with universal eligibility criteria (but with restricti<strong>on</strong>s<br />

<strong>on</strong> funding for participants from industrialised or high GDP countries);<br />

• Effectiveness through enhanced scale and scope, as well as foreseen joint<br />

programming with Member States, raising <str<strong>on</strong>g>the</str<strong>on</strong>g> issue <str<strong>on</strong>g>of</str<strong>on</strong>g> partnerships and opportunities<br />

and obstacles in promoting such partnerships;<br />

• Partnerships with 3 rd country(ies) <strong>to</strong> reach win-win situati<strong>on</strong>s through comm<strong>on</strong><br />

interests and mutual benefits;<br />

• Synergies with o<str<strong>on</strong>g>the</str<strong>on</strong>g>r internal/external policies and programmes.<br />

The criteria for success in this respect have mostly been measured in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> share <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

internati<strong>on</strong>al participati<strong>on</strong>s in <str<strong>on</strong>g>the</str<strong>on</strong>g> FP, in FP7 this is currently 6-7%. This is <str<strong>on</strong>g>of</str<strong>on</strong>g>ten seen as <strong>to</strong>o<br />

low, however without a proper benchmark by which <strong>to</strong> qualify which level is <strong>to</strong>o low or<br />

satisfac<strong>to</strong>ry. Fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r, <str<strong>on</strong>g>the</str<strong>on</strong>g>re is little by way <str<strong>on</strong>g>of</str<strong>on</strong>g> assessing impacts <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong>,<br />

this is normally unders<strong>to</strong>od as necessary and useful. The EG agrees with this general view,<br />

seeing ERA and internati<strong>on</strong>al cooperati<strong>on</strong> in a symbiotic relati<strong>on</strong>ship in which ERA benefits<br />

hugely from global influences and effective internati<strong>on</strong>al cooperati<strong>on</strong> is highly dependent <strong>on</strong><br />

an effective ERA.<br />

The main message, crudely speaking, is that although <str<strong>on</strong>g>the</str<strong>on</strong>g>re are strategic elements <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>al cooperati<strong>on</strong> activities, <str<strong>on</strong>g>the</str<strong>on</strong>g>y are still rudimentary, and much is left <strong>to</strong> partially<br />

bot<strong>to</strong>m-up priorities facilitated through <str<strong>on</strong>g>the</str<strong>on</strong>g> principle <str<strong>on</strong>g>of</str<strong>on</strong>g> general opening, combined with an<br />

inbuilt drive <strong>to</strong>wards geographical prioritizati<strong>on</strong>. The EU has a large number <str<strong>on</strong>g>of</str<strong>on</strong>g> S&T<br />

agreements signed ad hoc (20 <strong>to</strong>day), <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a great number <str<strong>on</strong>g>of</str<strong>on</strong>g> small coordinated calls for<br />

proposals with foreign partners, with generally low levels <str<strong>on</strong>g>of</str<strong>on</strong>g> scale, scope and probably<br />

impact.<br />

9 Presentati<strong>on</strong> <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> by <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> 27 April 2012.<br />

25


The current situati<strong>on</strong> seems <strong>to</strong> reveal at least four main problems that need <strong>to</strong> be rectified in a<br />

new strategic approach, bearing in mind that internati<strong>on</strong>al cooperati<strong>on</strong> policy will need <strong>to</strong> be<br />

formulated <strong>to</strong> achieve goals <str<strong>on</strong>g>of</str<strong>on</strong>g> science, industry and foreign policy as well as goals related <strong>to</strong><br />

global challenges:<br />

a) The key issue <str<strong>on</strong>g>of</str<strong>on</strong>g> competitiveness is not properly addressed. This means that in<br />

practice <str<strong>on</strong>g>the</str<strong>on</strong>g> priorities in internati<strong>on</strong>al cooperati<strong>on</strong> are <strong>to</strong>o weakly linked <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

objective <str<strong>on</strong>g>of</str<strong>on</strong>g> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning <str<strong>on</strong>g>the</str<strong>on</strong>g> competitiveness <str<strong>on</strong>g>of</str<strong>on</strong>g> European industry, and innovati<strong>on</strong><br />

is not sufficiently integrated in <str<strong>on</strong>g>the</str<strong>on</strong>g> priorities. Internati<strong>on</strong>al cooperati<strong>on</strong> remains mostly<br />

a public <strong>to</strong> public cooperative relati<strong>on</strong>ship. The need for a new focus <strong>on</strong> industry and<br />

innovati<strong>on</strong> is addressed later in this chapter.<br />

b) There is <strong>to</strong>o little focus <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> needs <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> scientific community and how it can<br />

exploit internati<strong>on</strong>al cooperati<strong>on</strong> <strong>to</strong> enhance excellence <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European system.<br />

Ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r, internati<strong>on</strong>al cooperati<strong>on</strong> follows an implicit priority <str<strong>on</strong>g>of</str<strong>on</strong>g> extending globally <strong>to</strong><br />

as many countries as possible for some (marginal) participati<strong>on</strong> in <str<strong>on</strong>g>the</str<strong>on</strong>g> FP. The<br />

implicati<strong>on</strong> is <strong>to</strong> give more priority <strong>to</strong> cooperati<strong>on</strong> with countries with <strong>STI</strong> strengths.<br />

c) The fundamental principle <str<strong>on</strong>g>of</str<strong>on</strong>g> general opening <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> FP seems <strong>to</strong> forego strategic<br />

orientati<strong>on</strong>. Much <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> FPs resources (funding and DG R&I pers<strong>on</strong>nel) is focused <strong>on</strong><br />

managing this broad, all-covering interface, which hence also indirectly seems <strong>to</strong><br />

reduce <str<strong>on</strong>g>the</str<strong>on</strong>g> opportunities for effective, targeted partnerships with Member States.<br />

d) Too little flexibility in <str<strong>on</strong>g>the</str<strong>on</strong>g> allocati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> funds for strategic, targeted opportunities<br />

reduces <str<strong>on</strong>g>the</str<strong>on</strong>g> potential impact <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong>.<br />

Negotiating priorities<br />

The Strategic Forum for Internati<strong>on</strong>al S&T Cooperati<strong>on</strong> (SFIC) represents an EU level<br />

partnership mandated <strong>to</strong> enhance <str<strong>on</strong>g>the</str<strong>on</strong>g> overall strategic dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> priority setting. Its main<br />

approach has been <strong>to</strong> select pilot countries as geographical priorities and <str<strong>on</strong>g>the</str<strong>on</strong>g>n developed<br />

cooperative research and innovati<strong>on</strong> agendas. In <str<strong>on</strong>g>the</str<strong>on</strong>g> case <str<strong>on</strong>g>of</str<strong>on</strong>g> India, this started with a more<br />

incidental focus <strong>on</strong> water related research which was later expanded <strong>to</strong> comprise a broad<br />

cooperative agenda. In <str<strong>on</strong>g>the</str<strong>on</strong>g> case <str<strong>on</strong>g>of</str<strong>on</strong>g> China, a strategic approach was launched from <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

beginning, building up a strategic learning process, with <str<strong>on</strong>g>the</str<strong>on</strong>g> intermediary result <str<strong>on</strong>g>of</str<strong>on</strong>g> a set <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

recommendati<strong>on</strong>s for priorities via a vis China that were transmitted <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> and<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> Council in line with SFICs role as an advisory body.<br />

The priority setting process can briefly be described as complex negotiati<strong>on</strong> processes:<br />

• The <str<strong>on</strong>g>the</str<strong>on</strong>g>matically based priority setting takes place in <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>text <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>matic<br />

committees in <str<strong>on</strong>g>the</str<strong>on</strong>g> FP7, and expands <strong>to</strong> include o<str<strong>on</strong>g>the</str<strong>on</strong>g>r services in <str<strong>on</strong>g>the</str<strong>on</strong>g> research “family”<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> FP7, as well as bey<strong>on</strong>d <strong>to</strong> DGs or policy areas at EU level that research and<br />

internati<strong>on</strong>al cooperati<strong>on</strong> are supposed <strong>to</strong> serve;<br />

• The INCO programme committee is in line with <str<strong>on</strong>g>the</str<strong>on</strong>g> above as negotiating platform.<br />

• SFIC as a strategic forum serves as a base for negotiating am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> partnership,<br />

including <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong>. The priority has been <strong>to</strong>wards geographical selecti<strong>on</strong>. An<br />

inherent imperative has been <str<strong>on</strong>g>the</str<strong>on</strong>g> coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> nati<strong>on</strong>al, bilateral activities vis a vis<br />

26


third countries, while <str<strong>on</strong>g>the</str<strong>on</strong>g>se have also been cast in nati<strong>on</strong>ally grounded priority setting<br />

processes.<br />

• Regular negotiati<strong>on</strong> takes place with key internati<strong>on</strong>al partner countries <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> FP7 in<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>text <str<strong>on</strong>g>of</str<strong>on</strong>g> various agreements such as internati<strong>on</strong>al cooperati<strong>on</strong> agreements where<br />

priority setting is normally <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> agenda.<br />

• The need <strong>to</strong> link priorities from “bot<strong>to</strong>m up” (<str<strong>on</strong>g>the</str<strong>on</strong>g> research performing community)<br />

with “<strong>to</strong>p down” (from <str<strong>on</strong>g>the</str<strong>on</strong>g> policy making community) is typically underdeveloped.<br />

Better mechanisms for stakeholder involvement and communicati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> priorities are<br />

am<strong>on</strong>g key elements <strong>to</strong> develop this link in<strong>to</strong> a viable negotiati<strong>on</strong> and exchange<br />

system. An example may be that research ac<strong>to</strong>rs define internati<strong>on</strong>al partnerships and<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>n can apply and negotiate for support in a competitive allocati<strong>on</strong> process.<br />

From this simplified picture <strong>on</strong>e can deduce that a coherent internati<strong>on</strong>al cooperati<strong>on</strong> strategy<br />

is hardly feasible. The transacti<strong>on</strong> costs involved are high and <str<strong>on</strong>g>the</str<strong>on</strong>g> sum <str<strong>on</strong>g>of</str<strong>on</strong>g> compromises great.<br />

To better achieve a strategic approach for internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong>, it might be<br />

necessary <strong>to</strong> reduce <str<strong>on</strong>g>the</str<strong>on</strong>g> scope and scale <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> negotiati<strong>on</strong> system, taking in<strong>to</strong> account <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

following levels <str<strong>on</strong>g>of</str<strong>on</strong>g> priority-based rati<strong>on</strong>ales for internati<strong>on</strong>al cooperati<strong>on</strong>:<br />

1) Nati<strong>on</strong>al priorities limited <strong>to</strong> available nati<strong>on</strong>al resources and capacities: No<br />

internati<strong>on</strong>al cooperati<strong>on</strong>;<br />

2) Regi<strong>on</strong>al, neighbour (e.g. defined through <str<strong>on</strong>g>the</str<strong>on</strong>g> European Neighbourhood Policy) based<br />

focus <strong>on</strong> cooperati<strong>on</strong> based <strong>on</strong> priorities that can be met with such limited<br />

cooperati<strong>on</strong>;<br />

3) Bilateral cooperati<strong>on</strong> based <strong>on</strong> priorities linked <strong>to</strong> specific objectives in <str<strong>on</strong>g>the</str<strong>on</strong>g> nati<strong>on</strong>al<br />

policy making system, such as market growth in China or aid in developing<br />

countries;<br />

4) European cooperati<strong>on</strong> in areas <str<strong>on</strong>g>of</str<strong>on</strong>g> greater European c<strong>on</strong>cern and where <str<strong>on</strong>g>the</str<strong>on</strong>g> issues at<br />

stake warrant pooling <str<strong>on</strong>g>of</str<strong>on</strong>g> resources at this level;<br />

5) Global or multilateral cooperati<strong>on</strong> <strong>to</strong> meet global or large scale challenges with<br />

matched resources.<br />

A general approach <strong>to</strong> priority setting that will enhance strategic directi<strong>on</strong>, create momentum<br />

and synergies and reduce transacti<strong>on</strong> and negotiati<strong>on</strong> costs would be <strong>to</strong> exploit <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Framework Programme’s (so<strong>on</strong> H2020) weight and positi<strong>on</strong> <strong>to</strong> leverage multilateral<br />

cooperati<strong>on</strong> with <str<strong>on</strong>g>the</str<strong>on</strong>g>matically oriented priorities <strong>to</strong>wards challenges while ensuring <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

attractiveness <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA for investment in R&D and innovati<strong>on</strong>. Key principles should be<br />

• impact and value added<br />

• effective internal and external variable geometry<br />

• synergy and incentives<br />

• <str<strong>on</strong>g>the</str<strong>on</strong>g>matic targeting <strong>to</strong>wards global challenges<br />

• framework c<strong>on</strong>diti<strong>on</strong>s for industrial involvement for innovati<strong>on</strong><br />

• mutual benefit<br />

27


The Emergenc(y)e <str<strong>on</strong>g>of</str<strong>on</strong>g> Global Challenges in internati<strong>on</strong>al <strong>STI</strong> Cooperati<strong>on</strong><br />

With increasing material welfare, rising levels <str<strong>on</strong>g>of</str<strong>on</strong>g> c<strong>on</strong>sumpti<strong>on</strong>, based <strong>on</strong> accelerating<br />

globalising exchange relati<strong>on</strong>s, also global challenges multiply and gain importance ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

than being solved in <str<strong>on</strong>g>the</str<strong>on</strong>g> short-term. Examples for global challenges are manifold, such as<br />

security and sustainability <str<strong>on</strong>g>of</str<strong>on</strong>g> energy and food supply, <str<strong>on</strong>g>the</str<strong>on</strong>g> threat <str<strong>on</strong>g>of</str<strong>on</strong>g> (re-)emerging infecti<strong>on</strong>s<br />

diseases, climate change and <str<strong>on</strong>g>the</str<strong>on</strong>g> loss <str<strong>on</strong>g>of</str<strong>on</strong>g> biodiversity, chaotic mass migrati<strong>on</strong> phenomena, or<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> complexity <str<strong>on</strong>g>of</str<strong>on</strong>g> global financial systems moving out <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>trol <str<strong>on</strong>g>of</str<strong>on</strong>g> democratic<br />

legitimisati<strong>on</strong> and regulati<strong>on</strong>. What makes many global challenges even more difficult <strong>to</strong><br />

trace is that <str<strong>on</strong>g>the</str<strong>on</strong>g>y are interlinked across regi<strong>on</strong>s and disciplines. In additi<strong>on</strong>, effects <str<strong>on</strong>g>of</str<strong>on</strong>g> global<br />

challenges are unequally distributed and are sometimes impacting those later who bear <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

larger part <str<strong>on</strong>g>of</str<strong>on</strong>g> resp<strong>on</strong>sibility for <str<strong>on</strong>g>the</str<strong>on</strong>g>ir generati<strong>on</strong> or accelerati<strong>on</strong>.<br />

Science, technology and innovati<strong>on</strong> (<strong>STI</strong>) can play a central role in understanding <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

interacti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> relevant envir<strong>on</strong>mental, technological and social fac<strong>to</strong>rs <str<strong>on</strong>g>of</str<strong>on</strong>g> global<br />

challenges, in assessing risks and <str<strong>on</strong>g>the</str<strong>on</strong>g> possible unintended negative c<strong>on</strong>sequences <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

strategies, and – <str<strong>on</strong>g>of</str<strong>on</strong>g> course – in developing soluti<strong>on</strong>s (Stamm, Figueroa and Scorda<strong>to</strong> 2012).<br />

The organisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> <strong>to</strong>day, which is pre-dominantly embedded in nati<strong>on</strong>al and sometimes<br />

local frameworks, rati<strong>on</strong>ales and policies, has <strong>to</strong> be scaled up in its internati<strong>on</strong>al dimensi<strong>on</strong><br />

and broadened in scope. The internati<strong>on</strong>al cooperati<strong>on</strong> strategy <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU should include<br />

policies, acti<strong>on</strong>s and instruments <strong>to</strong> help <strong>STI</strong> create impacts <strong>on</strong> global challenges at an<br />

internati<strong>on</strong>al scale.<br />

Global challenges do not s<strong>to</strong>p at nati<strong>on</strong>al borders but affect a wide range <str<strong>on</strong>g>of</str<strong>on</strong>g> ac<strong>to</strong>rs, calling for<br />

increased cross-border and internati<strong>on</strong>al cooperati<strong>on</strong> <strong>to</strong> address <str<strong>on</strong>g>the</str<strong>on</strong>g>m and for building <strong>STI</strong><br />

capacity at both nati<strong>on</strong>al and internati<strong>on</strong>al levels. Usually single governments cannot ensure<br />

effective soluti<strong>on</strong>s and policy makers have clear legitimisati<strong>on</strong> disincentives <strong>to</strong> spend<br />

available R&D funding <strong>on</strong> multilateral undertakings. To lower individual risks for nati<strong>on</strong>al<br />

decisi<strong>on</strong> makers and programme implementers internati<strong>on</strong>ally co-ordinated acti<strong>on</strong> and<br />

collaborati<strong>on</strong> are required based <strong>on</strong> a clear political will (OECD 2012).<br />

Str<strong>on</strong>g European engagement in <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al <strong>STI</strong> arena will not <strong>on</strong>ly benefit <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

protecti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> public goods which naturally also benefit European citizens (e.g. <str<strong>on</strong>g>the</str<strong>on</strong>g> problem <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

over-fishing), but also <str<strong>on</strong>g>the</str<strong>on</strong>g> European ec<strong>on</strong>omy through <str<strong>on</strong>g>the</str<strong>on</strong>g> boosting <str<strong>on</strong>g>of</str<strong>on</strong>g> envir<strong>on</strong>mentally<br />

friendly technologies, products, processes and services <strong>on</strong> world markets and green job<br />

development. However, “frugal innovati<strong>on</strong>” that provide innovative goods and services at<br />

low cost <strong>to</strong> address global challenges that affect <str<strong>on</strong>g>the</str<strong>on</strong>g> poor (OECD 2011) can also be voiced. If<br />

adequate answers <strong>to</strong> global challenges are <strong>to</strong> be found, scientific input is also required from<br />

countries with limited availability <str<strong>on</strong>g>of</str<strong>on</strong>g> research infrastructures, human resources and financial<br />

means <strong>to</strong> support <strong>STI</strong> throughout <str<strong>on</strong>g>the</str<strong>on</strong>g> innovati<strong>on</strong> cycle from agenda setting <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> deployment<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> new soluti<strong>on</strong>s (Stamm, Figueroa and Scorda<strong>to</strong> 2012). Thus, internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong><br />

also has <strong>to</strong> c<strong>on</strong>sider research for development (by applying recognised standards <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

excellence and relevance) and <strong>STI</strong> capacity building in developing countries. While hands-<strong>on</strong><br />

S&T capacity building should be increasingly c<strong>on</strong>sidered in, and financed through, European<br />

28


and Member States <str<strong>on</strong>g>of</str<strong>on</strong>g>ficial development assistance programmes (<strong>to</strong> create necessary<br />

absorpti<strong>on</strong> capacities), strategic agenda setting and <strong>STI</strong> policy support (especially oriented<br />

<strong>to</strong>wards global challenges and frugal innovati<strong>on</strong>), as well as excellence based research for<br />

development should become an integral part <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU’s internati<strong>on</strong>al <strong>STI</strong> policy and<br />

embedded in internati<strong>on</strong>al oriented Horiz<strong>on</strong>2020 activities.<br />

It must be made clear that <str<strong>on</strong>g>the</str<strong>on</strong>g> use <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> for addressing global challenges cannot be reduced<br />

<strong>to</strong> a simple “technology fix”. Any strategy for using <strong>STI</strong> <strong>to</strong> address global challenges must<br />

also address potential unintended negative effects, since many <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>to</strong>day’s global challenges<br />

are partly effects <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> use <str<strong>on</strong>g>of</str<strong>on</strong>g> new technologies and innovati<strong>on</strong>s. This calls for an integrati<strong>on</strong><br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> ecological and social sciences and technology assessment approaches in technology<br />

development projects and for an enlightened <strong>STI</strong> policy dialogue with internati<strong>on</strong>al partners.<br />

Prioritizing with instruments<br />

Policy levels and instruments<br />

As shown in Fig. 1 basically three aggregate levels <str<strong>on</strong>g>of</str<strong>on</strong>g> interventi<strong>on</strong> <strong>to</strong> support <strong>STI</strong><br />

internati<strong>on</strong>alisati<strong>on</strong> can be differentiated. The most basic level c<strong>on</strong>cerns a comprehensive<br />

framework <strong>to</strong> forward techno-globalisati<strong>on</strong> and internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> in general. It is<br />

rooted in internati<strong>on</strong>al alignments and agreements as well as regula<strong>to</strong>ry measures aiming <strong>to</strong><br />

create comparable and fair c<strong>on</strong>diti<strong>on</strong>s for internati<strong>on</strong>al exchanges and transacti<strong>on</strong>s in <str<strong>on</strong>g>the</str<strong>on</strong>g> field<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> science, technology and innovati<strong>on</strong>. Examples are frameworks for technological standards,<br />

comm<strong>on</strong> IPR and <str<strong>on</strong>g>the</str<strong>on</strong>g>ir enforcement, anti-plagiarism regulati<strong>on</strong>s, reciprocal access c<strong>on</strong>diti<strong>on</strong>s<br />

(e.g. for public procurement) etc. If <strong>on</strong>ce settled, <str<strong>on</strong>g>the</str<strong>on</strong>g>se measures c<strong>on</strong>tribute <strong>to</strong> a reducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

transacti<strong>on</strong> costs (e.g. search costs, legal costs, communicati<strong>on</strong> costs, adaptati<strong>on</strong> costs etc.).<br />

The addressed policy levels are manifold including competiti<strong>on</strong> policy, labour market policy,<br />

and ec<strong>on</strong>omic policy. They go bey<strong>on</strong>d <str<strong>on</strong>g>the</str<strong>on</strong>g> sphere <str<strong>on</strong>g>of</str<strong>on</strong>g> narrow R&D policy and can be<br />

subsumed under science diplomacy in <str<strong>on</strong>g>the</str<strong>on</strong>g> broad sense. Today’s science diplomacy, however,<br />

is in many regards not ready <strong>to</strong> oversee <str<strong>on</strong>g>the</str<strong>on</strong>g> complexity and shape inclusive frameworks for<br />

internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>. A close cooperati<strong>on</strong> with and across o<str<strong>on</strong>g>the</str<strong>on</strong>g>r policy fields is<br />

required.<br />

The sec<strong>on</strong>d level <strong>to</strong> foster internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> emphasises general opening<br />

measures. These include <str<strong>on</strong>g>the</str<strong>on</strong>g> participati<strong>on</strong> and possibly funding <str<strong>on</strong>g>of</str<strong>on</strong>g> foreign researchers (and/or<br />

research organisati<strong>on</strong>s and/or companies) in nati<strong>on</strong>al programmes, <str<strong>on</strong>g>the</str<strong>on</strong>g> portability <str<strong>on</strong>g>of</str<strong>on</strong>g> grants<br />

across borders (in- and outward), facilitati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> mobility <str<strong>on</strong>g>of</str<strong>on</strong>g> researchers and students and<br />

especially also <str<strong>on</strong>g>the</str<strong>on</strong>g> opening <str<strong>on</strong>g>of</str<strong>on</strong>g> labour markets for foreign researchers. The latter also has <strong>to</strong><br />

take in<strong>to</strong> account adequate models c<strong>on</strong>cerning <str<strong>on</strong>g>the</str<strong>on</strong>g> attributi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> social security payments and<br />

guarantees (e.g. c<strong>on</strong>tributi<strong>on</strong> <strong>to</strong> pensi<strong>on</strong> system). Evidently, different policy areas are<br />

addressed <strong>on</strong> this level <strong>to</strong>o. The overall aim <str<strong>on</strong>g>of</str<strong>on</strong>g> this aggregate level is <strong>to</strong> facilitate and<br />

mainstream quasi-au<strong>to</strong>matic bot<strong>to</strong>m-up cooperati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> researchers across borders.<br />

29


Fig. 1: Interventi<strong>on</strong> levels for internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong><br />

Targeted <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> interventi<strong>on</strong>s, finally, c<strong>on</strong>stitute <str<strong>on</strong>g>the</str<strong>on</strong>g> third level for<br />

internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>. They are <str<strong>on</strong>g>of</str<strong>on</strong>g>ten based <strong>on</strong> bilateral and multilateral agreements<br />

and <str<strong>on</strong>g>of</str<strong>on</strong>g>ten executed via joint or coordinated calls for proposals addressing more or less<br />

narrowly defined S&T fields. Such targeted interventi<strong>on</strong>s are not necessarily <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘summit’ <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

internati<strong>on</strong>al cooperati<strong>on</strong> suggesting that <str<strong>on</strong>g>the</str<strong>on</strong>g>y are <strong>on</strong>ly implemented if <str<strong>on</strong>g>the</str<strong>on</strong>g> “lower” two<br />

aggregate levels <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> are fulfilled or are not adequate <strong>to</strong> fulfil<br />

overarching objectives: targeted interventi<strong>on</strong>s may be deployed because <str<strong>on</strong>g>the</str<strong>on</strong>g> two o<str<strong>on</strong>g>the</str<strong>on</strong>g>r levels<br />

are not working properly. In this sense, targeted interventi<strong>on</strong>s can be developed as pockets for<br />

enabling internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> (where o<str<strong>on</strong>g>the</str<strong>on</strong>g>rwise it would not work ‘au<strong>to</strong>matically’)<br />

AND as experiments <strong>to</strong> test whe<str<strong>on</strong>g>the</str<strong>on</strong>g>r or not more far-reaching steps for internati<strong>on</strong>al <strong>STI</strong><br />

cooperati<strong>on</strong> can subsequently be approached (scale-up and/or roll-out). Moreover, it is<br />

important <strong>to</strong> complement <str<strong>on</strong>g>the</str<strong>on</strong>g> rati<strong>on</strong>ale and routines <str<strong>on</strong>g>of</str<strong>on</strong>g> bot<strong>to</strong>m-up cooperati<strong>on</strong> by o<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

rati<strong>on</strong>ales stemming from o<str<strong>on</strong>g>the</str<strong>on</strong>g>r “arenas”, which would o<str<strong>on</strong>g>the</str<strong>on</strong>g>rwise not be adequately (e.g.<br />

early enough) addressed. Examples for missi<strong>on</strong>-oriented interventi<strong>on</strong>s from o<str<strong>on</strong>g>the</str<strong>on</strong>g>r “arenas”<br />

are for instance <str<strong>on</strong>g>the</str<strong>on</strong>g> initiati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al research cooperati<strong>on</strong> <strong>to</strong> address global<br />

challenges or <strong>to</strong> establish first-mover advantages with countries or regi<strong>on</strong>s with whom – due<br />

<strong>to</strong> political, ec<strong>on</strong>omic or cultural reas<strong>on</strong>s – bot<strong>to</strong>m-up <strong>STI</strong> cooperati<strong>on</strong> has been traditi<strong>on</strong>ally<br />

less developed.<br />

The EG c<strong>on</strong>siders all three interventi<strong>on</strong> levels as important for fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r EU engagement.<br />

Particularly it recommends <strong>to</strong> DG Research and Innovati<strong>on</strong><br />

• a closer interacti<strong>on</strong> and cooperati<strong>on</strong> with o<str<strong>on</strong>g>the</str<strong>on</strong>g>r DGs <strong>to</strong> improve <str<strong>on</strong>g>the</str<strong>on</strong>g> framework<br />

c<strong>on</strong>diti<strong>on</strong>s for internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> and <strong>to</strong> promote more str<strong>on</strong>gly <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

30


intrinsic objectives <str<strong>on</strong>g>of</str<strong>on</strong>g> science and research as well as internati<strong>on</strong>al academic values at<br />

different multilateral policy fora;<br />

• a retenti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> general opening up approach <str<strong>on</strong>g>of</str<strong>on</strong>g> FP7 in H2020;<br />

• an extensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> targeted internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> measures based <strong>on</strong> matching<br />

funds, reciprocity and variable geometry with major ec<strong>on</strong>omically potent cooperati<strong>on</strong><br />

partner countries;<br />

• a close divisi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> labour with <str<strong>on</strong>g>the</str<strong>on</strong>g> EU’s External Acti<strong>on</strong> Service and development aid<br />

acti<strong>on</strong>s <strong>to</strong> unilaterally fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r support S&T capacity development and excellencebased<br />

research for development <strong>to</strong> address global and regi<strong>on</strong>al challenges.<br />

Table 1 sums up some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> arguments described above by attaching <strong>to</strong> each <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> three<br />

aggregate interventi<strong>on</strong> levels <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>, which are basically identified<br />

in fig. 1, <str<strong>on</strong>g>the</str<strong>on</strong>g> major driving rati<strong>on</strong>ale (<str<strong>on</strong>g>the</str<strong>on</strong>g> why?), <str<strong>on</strong>g>the</str<strong>on</strong>g> major operati<strong>on</strong>al instruments for <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

implementati<strong>on</strong> (<str<strong>on</strong>g>the</str<strong>on</strong>g> how?) and <str<strong>on</strong>g>the</str<strong>on</strong>g> ac<strong>to</strong>rs resp<strong>on</strong>sible for <str<strong>on</strong>g>the</str<strong>on</strong>g>ir realisati<strong>on</strong> (<str<strong>on</strong>g>the</str<strong>on</strong>g> who?). In<br />

additi<strong>on</strong>, table 1 highlights in <str<strong>on</strong>g>the</str<strong>on</strong>g> bot<strong>to</strong>m-row <str<strong>on</strong>g>the</str<strong>on</strong>g> role <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al <strong>STI</strong> policy (i.e. science<br />

diplomacy), which influences all o<str<strong>on</strong>g>the</str<strong>on</strong>g>r levels <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>. Also at this<br />

generic horiz<strong>on</strong>tal level, <str<strong>on</strong>g>the</str<strong>on</strong>g> main rati<strong>on</strong>ales, comm<strong>on</strong> available instruments and main<br />

resp<strong>on</strong>sible ac<strong>to</strong>rs are shown. The EU as global player has <strong>to</strong> be in <str<strong>on</strong>g>the</str<strong>on</strong>g> positi<strong>on</strong> <strong>to</strong> make <str<strong>on</strong>g>of</str<strong>on</strong>g>fers<br />

<strong>to</strong> all regi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> this planet and <strong>to</strong> provide – at least – policy dialogue fora (by including <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Member States <strong>on</strong> variable geometry) and <strong>to</strong> stimulate good practice exchange and learning<br />

exercises by employing a variety <str<strong>on</strong>g>of</str<strong>on</strong>g> methods.<br />

A major rati<strong>on</strong>ale <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al <strong>STI</strong> policy cooperati<strong>on</strong> is <strong>to</strong> c<strong>on</strong>duct and support priority<br />

setting <strong>to</strong>wards joint objectives. Fig. 2 shows <str<strong>on</strong>g>the</str<strong>on</strong>g> different arenas, where priority setting<br />

<strong>to</strong>wards internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> is currently taken place in <str<strong>on</strong>g>the</str<strong>on</strong>g> EU. It shows a complex<br />

picture. The following arenas influencing priority-setting can be distinguished:<br />

• intelligence measures <strong>to</strong> support priority setting (e.g. benchmarking);<br />

• stakeholder c<strong>on</strong>sultati<strong>on</strong> and buy-in;<br />

• priority setting stipulated by overarching European <strong>STI</strong> policy (e.g. priorities <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

H2020);<br />

• priority-setting negotiated within bilateral S&T agreements (<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EC but also <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

single Member States with a number <str<strong>on</strong>g>of</str<strong>on</strong>g> third countries), which are <str<strong>on</strong>g>of</str<strong>on</strong>g>ten implemented<br />

by matching fund based instruments such as joint or coordinated calls;<br />

• priority-setting across several Member States exercised by SFIC (<str<strong>on</strong>g>the</str<strong>on</strong>g> Strategic Forum<br />

for Internati<strong>on</strong>al S&T Cooperati<strong>on</strong>);<br />

• a number <str<strong>on</strong>g>of</str<strong>on</strong>g> policy support projects which facilitate internati<strong>on</strong>al policy dialogue and<br />

which lead <strong>to</strong> priority-setting in certain problem areas;<br />

• a number <str<strong>on</strong>g>of</str<strong>on</strong>g> multilateral funding initiatives and projects, which – although sometimes<br />

geographical by initial orientati<strong>on</strong> – focus <strong>on</strong> certain <str<strong>on</strong>g>the</str<strong>on</strong>g>matic priorities when it comes<br />

<strong>to</strong> specific research funding agreements respectively calls for proposals.<br />

31


Tab. 1: Levels <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al RTDI cooperati<strong>on</strong> differentiated by main rati<strong>on</strong>ales, instruments<br />

and resp<strong>on</strong>sible ac<strong>to</strong>rs<br />

Levels<br />

Targeted<br />

R&D<br />

collaborati<strong>on</strong><br />

’open’ intl. R&D<br />

collaborati<strong>on</strong><br />

General measures<br />

<strong>to</strong> reduce<br />

transacti<strong>on</strong> costs<br />

Internati<strong>on</strong>al S&T-<br />

Policy Cooperati<strong>on</strong><br />

(across <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

categories<br />

menti<strong>on</strong>ed above)<br />

Why?<br />

Main S&T objective<br />

How?<br />

Main instruments<br />

intl. • Cooperati<strong>on</strong> <strong>to</strong> address global • Joint calls<br />

challenges<br />

• Co-ordinated calls<br />

• Addressing o<str<strong>on</strong>g>the</str<strong>on</strong>g>r joint <str<strong>on</strong>g>the</str<strong>on</strong>g>matic • ERA-NETs, JPIs,<br />

priorities (win-win)<br />

Twinning)<br />

• Regi<strong>on</strong>al priority rati<strong>on</strong>ales (e.g. • Joint centers (virtual or<br />

Neighbourhood policy, physical)<br />

R4Development)<br />

• Increasing research quality and • Opening up nati<strong>on</strong>al<br />

fostering excellence<br />

funding programmes <strong>to</strong><br />

• ’technology for market’ research intl. participati<strong>on</strong><br />

cooperati<strong>on</strong><br />

(’general opening’)<br />

• Gaining resources (know-how, • General funding intl<br />

brains, funding, students, research cooperati<strong>on</strong><br />

technologies ...)<br />

(e.g. <strong>to</strong>p-up funding for<br />

additi<strong>on</strong>al costs)<br />

• Promoting mobility<br />

• Promote globalisati<strong>on</strong><br />

• Fostering market access and<br />

penetrati<strong>on</strong><br />

• Streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning attractiveness for<br />

investment and human capital<br />

• Support science diplomacy<br />

(broad extensi<strong>on</strong>)<br />

• Support priority setting <strong>to</strong>wards<br />

joint objectives<br />

• Preparing and supporting joint<br />

activities (e.g. cost and risk<br />

reducti<strong>on</strong> c<strong>on</strong>cerning large<br />

scale RI; joint funding; joint<br />

evaluati<strong>on</strong>)<br />

• Support <strong>STI</strong> policy learning<br />

• Dem<strong>on</strong>stra<strong>to</strong>rs, test sites<br />

• Standard-setting<br />

• Simplificati<strong>on</strong><br />

• IPR protecti<strong>on</strong><br />

• C<strong>on</strong>sortia building<br />

support<br />

• Business advisory<br />

services (e.g. IPR<br />

helpdesk in China)<br />

• Removing mobility<br />

barriers<br />

• Policy dialogue fora<br />

• Good practice exchange<br />

and learning exercises<br />

• Intl. S&T policy mix peer<br />

reviews<br />

&<br />

benchmarkings<br />

• Joint ”intelligence”<br />

events<br />

• Policy support projects<br />

Who?<br />

Resp<strong>on</strong>sibilities<br />

• EC<br />

• Ministries<br />

• Research councils<br />

• Innovati<strong>on</strong> agencies<br />

• Regi<strong>on</strong>s<br />

• EC<br />

• Ministries (not <strong>on</strong>ly<br />

<strong>STI</strong>)<br />

• Research councils<br />

• Universities<br />

• Research institutes<br />

• EC<br />

• Ministries (not <strong>on</strong>ly<br />

<strong>STI</strong>)<br />

• Research councils<br />

• Trade and<br />

investment<br />

promoti<strong>on</strong> agencies<br />

• Innovati<strong>on</strong> and<br />

enterprise<br />

development<br />

agencies<br />

• Patenting <str<strong>on</strong>g>of</str<strong>on</strong>g>fices<br />

• EC<br />

• Ministries (not <strong>on</strong>ly<br />

<strong>STI</strong>)<br />

• Research councils<br />

and innovati<strong>on</strong><br />

agencies<br />

• <strong>STI</strong> policy support<br />

organisati<strong>on</strong>s<br />

• Development<br />

agencies<br />

32


Fig. 2: Measures and instruments for priority setting in internati<strong>on</strong>al cooperati<strong>on</strong><br />

Fig. 3: A Dynamic policy framework<br />

Fig. 3 illustrates a more dynamic view in which <str<strong>on</strong>g>the</str<strong>on</strong>g> measures and instruments are<br />

interc<strong>on</strong>nected, and priorities are linked clearly <strong>to</strong> EU policies and objectives. Key support<br />

activities such as bot<strong>to</strong>m-up stakeholders’ c<strong>on</strong>sulati<strong>on</strong> and buy-in as well as intelligence<br />

33


ased <strong>on</strong> indica<strong>to</strong>rs and informati<strong>on</strong> are necessary c<strong>on</strong>diti<strong>on</strong>s for a well-functi<strong>on</strong>ing policy<br />

and strategy framework.<br />

In order <strong>to</strong> capitalise synergies between <str<strong>on</strong>g>the</str<strong>on</strong>g> different approaches and <strong>to</strong> avoid redundancies<br />

and c<strong>on</strong>tradicti<strong>on</strong>s, <str<strong>on</strong>g>the</str<strong>on</strong>g> EG recommends<br />

• <strong>to</strong> maintain and advance a high level <str<strong>on</strong>g>of</str<strong>on</strong>g> evidence-based policy making;<br />

o by requesting and supporting strategic intelligence activities in its policysupport<br />

projects;<br />

o by establishing a comprehensive and user-friendly knowledge-management<br />

system which can be accessed by all European <strong>STI</strong> stakeholders ;<br />

o by promoting <str<strong>on</strong>g>the</str<strong>on</strong>g> development and use <str<strong>on</strong>g>of</str<strong>on</strong>g> relevant <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong><br />

indica<strong>to</strong>rs which grasp <str<strong>on</strong>g>the</str<strong>on</strong>g> objectives <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> policy; and,<br />

o by promoting standardised approaches <str<strong>on</strong>g>of</str<strong>on</strong>g> data recording across its Member<br />

States.<br />

• <strong>to</strong> increase <strong>to</strong>ge<str<strong>on</strong>g>the</str<strong>on</strong>g>r with <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States <str<strong>on</strong>g>the</str<strong>on</strong>g> level <str<strong>on</strong>g>of</str<strong>on</strong>g> stakeholder c<strong>on</strong>sultati<strong>on</strong> and<br />

buy-in across all <str<strong>on</strong>g>the</str<strong>on</strong>g>matic areas;<br />

• <strong>to</strong> str<strong>on</strong>gly support <str<strong>on</strong>g>the</str<strong>on</strong>g> priority-setting stipulated by H2020 as well as relevant<br />

internati<strong>on</strong>al commitments;<br />

• <strong>to</strong> increase <str<strong>on</strong>g>the</str<strong>on</strong>g> binding character, reciprocity, transparency and operati<strong>on</strong>al value <str<strong>on</strong>g>of</str<strong>on</strong>g> its<br />

bilateral S&T agreements;<br />

• <strong>to</strong> foster <str<strong>on</strong>g>the</str<strong>on</strong>g> cooperati<strong>on</strong> with SFIC by providing <strong>to</strong> SFIC adequate resources and by<br />

including SFIC in <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>sultati<strong>on</strong> for preparing calls for policy support projects;<br />

• <strong>to</strong> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n policy support projects through better priority-based guidance by<br />

c<strong>on</strong>currently maintaining a certain degree <str<strong>on</strong>g>of</str<strong>on</strong>g> freedom <strong>to</strong> test new cooperati<strong>on</strong><br />

approaches and <strong>to</strong> resp<strong>on</strong>d <strong>to</strong> urgent needs <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong> partners<br />

(especially those with whom <str<strong>on</strong>g>the</str<strong>on</strong>g> EC does not have a bilateral S&T agreement);<br />

• <strong>to</strong> fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r fund <str<strong>on</strong>g>the</str<strong>on</strong>g> coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al ERA-NETs according <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> priorities<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> H2020 and <strong>to</strong> co-fund research under ERA-NET PLUS by promoting <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

applicati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> harm<strong>on</strong>ised participati<strong>on</strong> and funding rules (simplificati<strong>on</strong>).<br />

Principles and criteria for priority setting<br />

The above discussi<strong>on</strong> leads <strong>to</strong> a revised set <str<strong>on</strong>g>of</str<strong>on</strong>g> principles with criteria that should create<br />

c<strong>on</strong>crete guidance for priority setting through operati<strong>on</strong>al implicati<strong>on</strong>s, bearing in mind <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

three overarching objectives referred <strong>to</strong> earlier:<br />

1) Thematically driven priorities: The strategic approach is best served through a<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>matic ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than geographic priority setting. Addressing global challenges or<br />

emerging scientific or technological areas through cooperati<strong>on</strong> in <strong>STI</strong> should lead<br />

<strong>to</strong> negotiating structures <str<strong>on</strong>g>of</str<strong>on</strong>g> internal and external variable geometry <str<strong>on</strong>g>of</str<strong>on</strong>g> partner<br />

countries for implementati<strong>on</strong>, in <str<strong>on</strong>g>the</str<strong>on</strong>g> case <str<strong>on</strong>g>of</str<strong>on</strong>g> global challenges preferably through<br />

multilateral platforms.<br />

2) Adding value <strong>to</strong> excellence and competitiveness: Internati<strong>on</strong>al cooperati<strong>on</strong> should<br />

give clear benefits <strong>to</strong> scientific excellence and overall competitiveness in Europe,<br />

34


and lead <strong>to</strong> a significantly more attractive Europe for both <strong>STI</strong> and investments.<br />

The implicati<strong>on</strong> is that internati<strong>on</strong>al cooperati<strong>on</strong>, guided by <str<strong>on</strong>g>the</str<strong>on</strong>g>matic priorities,<br />

should c<strong>on</strong>centrate <strong>on</strong> countries and regi<strong>on</strong>s with clear excellence, such as US and<br />

o<str<strong>on</strong>g>the</str<strong>on</strong>g>r industrialised countries, pockets <str<strong>on</strong>g>of</str<strong>on</strong>g> excellence in countries that are o<str<strong>on</strong>g>the</str<strong>on</strong>g>rwise<br />

not broadly excellent, countries and regi<strong>on</strong>s with market growth <strong>to</strong> ensure<br />

synergies with <str<strong>on</strong>g>the</str<strong>on</strong>g> strategic interests <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> business community, and sec<strong>to</strong>rs and<br />

countries with high levels <str<strong>on</strong>g>of</str<strong>on</strong>g> frugal innovati<strong>on</strong>.<br />

3) General opening: This is <str<strong>on</strong>g>the</str<strong>on</strong>g> basic, strategic principle <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Frameworks<br />

Programmes, and <str<strong>on</strong>g>the</str<strong>on</strong>g> EG supports this as <str<strong>on</strong>g>the</str<strong>on</strong>g> key vehicle by which European<br />

research performers can cooperate with those partners globally that <str<strong>on</strong>g>the</str<strong>on</strong>g>y see<br />

beneficial and necessary for <str<strong>on</strong>g>the</str<strong>on</strong>g>ir research.<br />

4) Flexibility: A key principle <str<strong>on</strong>g>of</str<strong>on</strong>g> a new strategy needs <strong>to</strong> be <str<strong>on</strong>g>the</str<strong>on</strong>g> ability <strong>to</strong> allocate<br />

significant resources <strong>to</strong> emerging opportunities, e.g. larger targeted acti<strong>on</strong>s.<br />

5) A knowledge based policy: A more focused strategy al<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> principles above<br />

needs <strong>to</strong> be built <strong>on</strong> a solid knowledge and evidence base. Intelligence and<br />

analytical efforts need <strong>to</strong> underpin <str<strong>on</strong>g>the</str<strong>on</strong>g> priority setting process more than is <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

case <strong>to</strong>day. This c<strong>on</strong>cerns not least forward-looking intelligence <strong>to</strong> improve <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

effectiveness <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> priority setting process.<br />

6) Improved coordinati<strong>on</strong> with (i) o<str<strong>on</strong>g>the</str<strong>on</strong>g>r EU policies and programmes (Development<br />

and Cooperati<strong>on</strong>, Regi<strong>on</strong>al Policy), (ii) internati<strong>on</strong>al organizati<strong>on</strong>s (such as UN<br />

and WB) and (iii) internati<strong>on</strong>al research agencies.<br />

7) Research infrastructures need <strong>to</strong> be an integral part <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU Strategy for<br />

Internati<strong>on</strong>al Cooperati<strong>on</strong> in <strong>STI</strong>. RI need <strong>to</strong> be in <str<strong>on</strong>g>the</str<strong>on</strong>g> focus <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> future<br />

negotiati<strong>on</strong>s and agreements <strong>on</strong> internati<strong>on</strong>al <strong>STI</strong> collaborati<strong>on</strong>.<br />

Streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning policies for industry and innovati<strong>on</strong> 10<br />

The need <strong>to</strong> differentiate between research performers<br />

In improving <str<strong>on</strong>g>the</str<strong>on</strong>g> competitiveness and level <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific excellence <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU <strong>STI</strong><br />

community, it is important <strong>to</strong> distinguish between three primary sets <str<strong>on</strong>g>of</str<strong>on</strong>g> ac<strong>to</strong>rs – firms, n<strong>on</strong>pr<str<strong>on</strong>g>of</str<strong>on</strong>g>it<br />

research organisati<strong>on</strong>s (PROs) and universities. Each <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>se three ac<strong>to</strong>rs have<br />

different sets <str<strong>on</strong>g>of</str<strong>on</strong>g> motives, priorities and objectives when engaging in <strong>STI</strong> cooperati<strong>on</strong>, and<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>refore require an explicitly nuanced approach <strong>to</strong> priority setting and instruments.<br />

Universities, for instance, tend <strong>to</strong> engage in more ‘science’ based activities (see figure 4), and<br />

are <str<strong>on</strong>g>of</str<strong>on</strong>g>ten engaged in a broader range <str<strong>on</strong>g>of</str<strong>on</strong>g> disciplines and technologies than PROs which tend <strong>to</strong><br />

be focused <strong>on</strong> specific subject areas. PROs may <str<strong>on</strong>g>of</str<strong>on</strong>g>ten be dedicated <strong>to</strong> specific industries, and<br />

while <str<strong>on</strong>g>the</str<strong>on</strong>g>y may engage in basic research (depending up<strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> maturity <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> dominant<br />

10 Former work by expert groups <strong>on</strong> internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong> has not covered industry and innovati<strong>on</strong> in<br />

any comprehensive way. Hence, this report seeks <strong>to</strong> give a dedicated treatment <strong>to</strong> this, not least due <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

increasing weight given <strong>to</strong> innovati<strong>on</strong> in European <strong>STI</strong> policy.<br />

35


technological paradigm within <str<strong>on</strong>g>the</str<strong>on</strong>g>ir sec<strong>to</strong>r 11 ), <str<strong>on</strong>g>the</str<strong>on</strong>g>ir activities have a substantially greater<br />

applied research comp<strong>on</strong>ent than universities. While large firms may engage in basic<br />

research, <str<strong>on</strong>g>the</str<strong>on</strong>g> majority <str<strong>on</strong>g>of</str<strong>on</strong>g> such firms, and almost all SMEs, tend <strong>to</strong> engage in applied research<br />

and development activities.<br />

Universities and PROs, by and large, are also much more locati<strong>on</strong>-bound than firms, with<br />

very limited opportunities for internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D activities, except through<br />

collaborati<strong>on</strong>. As such, <strong>STI</strong> cooperati<strong>on</strong> between PROs and universities in different countries<br />

is a well-established activity, with reas<strong>on</strong>ably well-established pro<strong>to</strong>cols governing this<br />

activity and its output. Since – by and large – universities and a good proporti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> PROs are<br />

state-subsidised or state-c<strong>on</strong>trolled as part <str<strong>on</strong>g>of</str<strong>on</strong>g> nati<strong>on</strong>al public goods, <str<strong>on</strong>g>the</str<strong>on</strong>g>se internati<strong>on</strong>al <strong>STI</strong><br />

collaborati<strong>on</strong>s are influenced by bilateral and multilateral inter-governmental agreements,<br />

unlike most <strong>STI</strong> collaborati<strong>on</strong>s by firms.<br />

More importantly, <str<strong>on</strong>g>the</str<strong>on</strong>g>re are l<strong>on</strong>g-established formal and informal instituti<strong>on</strong>s (rules) that<br />

determine <str<strong>on</strong>g>the</str<strong>on</strong>g> way in which inter-university <strong>STI</strong> collaborati<strong>on</strong> is undertaken, with or without<br />

bilateral or multilateral agreements. Universities differ from PROs and firms also because <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> l<strong>on</strong>ger-term horiz<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir research, and as such, agreements, property rights and <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

scientific output can be negotiated with greater deliberati<strong>on</strong>.<br />

Universities and PROs are locati<strong>on</strong>-bound and form <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘core’ <str<strong>on</strong>g>of</str<strong>on</strong>g> nati<strong>on</strong>al innovati<strong>on</strong><br />

systems. Since <str<strong>on</strong>g>the</str<strong>on</strong>g>y provide crucial inputs <strong>to</strong> PROs and firms (scientific knowledge and<br />

specialised human resources) that cannot be acquired from a distance, firms that require <str<strong>on</strong>g>the</str<strong>on</strong>g>se<br />

inputs must seek <strong>to</strong> locate close <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>m, creating important knowledge clusters. This is<br />

especially important in new and emerging sec<strong>to</strong>rs, because knowledge transfer in tacit areas<br />

requires physical proximity (Criscuolo and Verspagen 2008).<br />

However, whe<str<strong>on</strong>g>the</str<strong>on</strong>g>r firm, PRO or university, leadership in <strong>on</strong>e scientific or technological subdiscipline/area<br />

does not imply leadership in o<str<strong>on</strong>g>the</str<strong>on</strong>g>r related fields. Although <str<strong>on</strong>g>the</str<strong>on</strong>g>re may be<br />

several ac<strong>to</strong>rs at or close <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> fr<strong>on</strong>tier, leadership is rarely static am<strong>on</strong>gst <str<strong>on</strong>g>the</str<strong>on</strong>g> peer group.<br />

Hence, universities, firms and PROs do not regard <strong>STI</strong> cooperati<strong>on</strong> as a sign <str<strong>on</strong>g>of</str<strong>on</strong>g> weakness.<br />

Cooperati<strong>on</strong> is a necessary means <strong>to</strong> keep abreast <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir relative leadership within <str<strong>on</strong>g>the</str<strong>on</strong>g> peer<br />

group, as much as it is <strong>to</strong> develop work jointly (Narula and Santangelo 2009). That <str<strong>on</strong>g>the</str<strong>on</strong>g> peer<br />

group is widely distributed across several countries requires such cooperati<strong>on</strong> also <strong>to</strong> be<br />

internati<strong>on</strong>al (Narula 2003). This is <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> reas<strong>on</strong>s why “clustering” has become a<br />

strategic instrument for R&D&I. Clusters <str<strong>on</strong>g>the</str<strong>on</strong>g>mselves are a means for internati<strong>on</strong>al<br />

cooperati<strong>on</strong> as <str<strong>on</strong>g>the</str<strong>on</strong>g>y are <str<strong>on</strong>g>of</str<strong>on</strong>g>ten represented by cluster management organizati<strong>on</strong>s which focus<br />

<strong>on</strong> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al reach <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> cluster and c<strong>on</strong>necting it with clusters in o<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

parts <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world.<br />

11 For example, a PRO focused <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> wood and pulp sec<strong>to</strong>r will engage in very limited basic research,<br />

compared with a PRO dedicated <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> biotechnology industry.<br />

36


Fig. 4 L<strong>on</strong>g and medium term priorities (and possible instruments<br />

‘Science’<br />

L<strong>on</strong>g term<br />

5-15 years<br />

Basic<br />

research<br />

Applied<br />

research<br />

Medium term<br />

2-5 years<br />

Applied<br />

develop<br />

t<br />

‘Markets’<br />

Short- term<br />

1-2 years<br />

Cooperati<strong>on</strong> tends <strong>to</strong> be l<strong>on</strong>gterm,<br />

and pre-paradigmatic.<br />

Activity is n<strong>on</strong>-commercial and<br />

is primarily dominated by large<br />

MNEs, universities and PROs.<br />

Output is in <str<strong>on</strong>g>the</str<strong>on</strong>g> form <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

publicati<strong>on</strong>s, not patents.<br />

Technology is tacit, and property<br />

rights undeveloped - Object is <strong>to</strong><br />

invent and share costs and risks<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> innovati<strong>on</strong> -Equity and l<strong>on</strong>gterm<br />

commitments are preferred<br />

<strong>to</strong> n<strong>on</strong>-equity agreements.<br />

Horiz<strong>on</strong>tal agreements<br />

predominate.<br />

Cooperati<strong>on</strong> is motivated by<br />

market-related modificati<strong>on</strong>s and<br />

adaptive, with a short-term horiz<strong>on</strong>.<br />

Technology is more codifiable -<br />

possible <strong>to</strong> subc<strong>on</strong>tract - objective<br />

is <strong>to</strong> 'sell' innovati<strong>on</strong>, and share<br />

cost <str<strong>on</strong>g>of</str<strong>on</strong>g> making product saleable -<br />

R&D outsourcing more likely:<br />

Both vertical and horiz<strong>on</strong>tal<br />

agreements.<br />

Universities<br />

Public Research Organizati<strong>on</strong>s (PROs)<br />

Firms<br />

R&D cooperati<strong>on</strong> is not an alternative <strong>to</strong> in-house R&D, but complementary <strong>to</strong> it 12 . R&D<br />

cooperati<strong>on</strong> (which includes outsourcing) does not replace <str<strong>on</strong>g>the</str<strong>on</strong>g> need for firms and PROs <strong>to</strong><br />

undertake internal R&D activities, but it enhances it. This is because: 1) <str<strong>on</strong>g>the</str<strong>on</strong>g>re are cognitive<br />

limits <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> resources available <strong>to</strong> any given firm or PRO; 2) <str<strong>on</strong>g>the</str<strong>on</strong>g> costs <str<strong>on</strong>g>of</str<strong>on</strong>g> acquiring a worldclass<br />

expertise in all <str<strong>on</strong>g>the</str<strong>on</strong>g> different knowledge bases needed in multi-technology products is<br />

prohibitive; 3) Even where resources are not an issue, it is simply impossible <strong>to</strong> be at <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

fr<strong>on</strong>tier in every technological area, and finally 4) firms focus <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir core competencies and<br />

immediate attached areas while soluti<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g>fer require more, i.e. suppliers’ innovati<strong>on</strong>s..<br />

Leadership at <str<strong>on</strong>g>the</str<strong>on</strong>g> fr<strong>on</strong>tier <str<strong>on</strong>g>of</str<strong>on</strong>g> specific technological areas <str<strong>on</strong>g>of</str<strong>on</strong>g> firms and PROs shifts rapidly,<br />

particularly in new and emerging sec<strong>to</strong>rs (but less so in more mature industries).<br />

12 Ibid.<br />

37


Universities and PROs <str<strong>on</strong>g>of</str<strong>on</strong>g>ten are a source <str<strong>on</strong>g>of</str<strong>on</strong>g> breakthrough science and innovati<strong>on</strong>. The role <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

universities and PROs in collaborative research is well described in <str<strong>on</strong>g>the</str<strong>on</strong>g> Resp<strong>on</strong>sible<br />

Partnering Handbook developed by EIRMA, PROTON and EUA. The Resp<strong>on</strong>sible<br />

Partnering framework provides ten, experience-based less<strong>on</strong>s <strong>to</strong> support successful<br />

collaborative research. These less<strong>on</strong>s or guidelines can be summarized as follows:<br />

• foster str<strong>on</strong>g instituti<strong>on</strong>s<br />

• align interests <str<strong>on</strong>g>of</str<strong>on</strong>g> collaborating partners<br />

• treat collaborati<strong>on</strong> strategically<br />

• organize for lasting collaborati<strong>on</strong>s<br />

• provide <str<strong>on</strong>g>the</str<strong>on</strong>g> right pr<str<strong>on</strong>g>of</str<strong>on</strong>g>essi<strong>on</strong>al skills<br />

• establish a clear intent for <str<strong>on</strong>g>the</str<strong>on</strong>g> collaborative work<br />

• use standard practices and communicate regularly<br />

• achieve effective management <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual property<br />

• provide relevant training<br />

• view innovati<strong>on</strong> as a trans-disciplinary activity<br />

Over <str<strong>on</strong>g>the</str<strong>on</strong>g> last ten years, those ten principles have become <str<strong>on</strong>g>the</str<strong>on</strong>g> cornerst<strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> collaborative<br />

frameworks deployed across Europe by universities and PRO's alike. They serve as a useful<br />

basis for a policy <strong>to</strong> support <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> strategic alliences between research<br />

performing instituti<strong>on</strong>s outside Europe. The Commissi<strong>on</strong> should ensure greater awareness <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>se guidelines.<br />

MS and <str<strong>on</strong>g>the</str<strong>on</strong>g> EU have been relatively successful in promoting <strong>STI</strong> cooperati<strong>on</strong> between<br />

universities and PROs. However, <str<strong>on</strong>g>the</str<strong>on</strong>g> success <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D cooperati<strong>on</strong> between firms is hard <strong>to</strong><br />

judge a priori. Despite large investments <strong>to</strong> promote intra-EU R&D cooperati<strong>on</strong>, in new<br />

technologies, firms c<strong>on</strong>tinue <strong>to</strong> show a preference <strong>to</strong> engage in alliances with US and<br />

Japanese firms ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than EU firms (Narula 1999). In o<str<strong>on</strong>g>the</str<strong>on</strong>g>r words firms will not always<br />

benefit from cooperati<strong>on</strong> activities sancti<strong>on</strong>ed or supported by EU instruments, and indeed,<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>y may have a higher risk fac<strong>to</strong>r than promoting intra-EU collaborati<strong>on</strong>. However,<br />

internati<strong>on</strong>al R&D cooperati<strong>on</strong> is not an alternative <strong>to</strong> intra-EU cooperati<strong>on</strong>. It is an essential<br />

complement <strong>to</strong> it, and has been for <str<strong>on</strong>g>the</str<strong>on</strong>g> last 25 years. Research has shown that EU-subsidised<br />

R&D cooperati<strong>on</strong> leads <strong>to</strong> an increase in n<strong>on</strong>-EU cooperative activity.<br />

Horiz<strong>on</strong>tal and vertical dimensi<strong>on</strong>s<br />

It is important <strong>to</strong> distinguish between horiz<strong>on</strong>tal R&D cooperati<strong>on</strong> and vertical R&D<br />

cooperati<strong>on</strong>. Each has different primary motivati<strong>on</strong>s:<br />

Horiz<strong>on</strong>tal cooperati<strong>on</strong> takes place am<strong>on</strong>g enterprises operating in <str<strong>on</strong>g>the</str<strong>on</strong>g> same industry,<br />

engaged in roughly <str<strong>on</strong>g>the</str<strong>on</strong>g> same kinds and types <str<strong>on</strong>g>of</str<strong>on</strong>g> value adding activity. The opportunities for<br />

ec<strong>on</strong>omies <str<strong>on</strong>g>of</str<strong>on</strong>g> scale and scope are here maximized, but also provide <str<strong>on</strong>g>the</str<strong>on</strong>g> possibilities for<br />

c<strong>on</strong>flict and leakage <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual property from <strong>on</strong>e partner <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r. The cooperati<strong>on</strong><br />

between two biotechnology enterprises or between a human biotechnology enterprise and a<br />

pharmaceutical manufacturer would be c<strong>on</strong>sidered a horiz<strong>on</strong>tal alliance. These are strategic<br />

38


in nature, and in general occur between large firms and organisati<strong>on</strong>s that are leaders in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

field. They are comm<strong>on</strong>ly used <strong>to</strong> establish standards, and may <str<strong>on</strong>g>of</str<strong>on</strong>g>ten be seen by regula<strong>to</strong>rs as<br />

anticompetitive, as <str<strong>on</strong>g>the</str<strong>on</strong>g>y involve some degree <str<strong>on</strong>g>of</str<strong>on</strong>g> collusi<strong>on</strong>. They are also comm<strong>on</strong>ly preferred<br />

in research (ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than development).<br />

Vertical cooperati<strong>on</strong> occurs am<strong>on</strong>g enterprises operating in related industries al<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> same<br />

value chain, where <strong>on</strong>e partner produces inputs for <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r. The latter may be a larger<br />

enterprise assembling or sub-assembling products from parts and comp<strong>on</strong>ents acquired from<br />

different suppliers, including SMEs. It may also be a small systems integra<strong>to</strong>r close <strong>to</strong><br />

markets and obtaining equipment from larger suppliers. Vertical collaborati<strong>on</strong>s are less<br />

problematic, as <str<strong>on</strong>g>the</str<strong>on</strong>g> partners possess complementary but not competing capabilities and<br />

opportunities. Their primary (but not <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>ly) motivati<strong>on</strong> is <strong>to</strong>wards reducing costs.<br />

Vertical alliances are especially important within global producti<strong>on</strong> networks and global<br />

value chains, and are especially comm<strong>on</strong> for development (as opposed <strong>to</strong> research). Both<br />

types <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> cooperati<strong>on</strong> depend up<strong>on</strong> having complementary assets with which <strong>to</strong> barter.<br />

Internati<strong>on</strong>al R&D strategies <str<strong>on</strong>g>of</str<strong>on</strong>g> MNEs<br />

In <str<strong>on</strong>g>the</str<strong>on</strong>g> current process <str<strong>on</strong>g>of</str<strong>on</strong>g> globalizati<strong>on</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g> role <str<strong>on</strong>g>of</str<strong>on</strong>g> MNEs needs <strong>to</strong> be well unders<strong>to</strong>od. As is<br />

more thoroughly discussed in a dedicated paper for <str<strong>on</strong>g>the</str<strong>on</strong>g> EG 13 some crude facts emerge as<br />

guides <strong>to</strong> policy:<br />

a) The main c<strong>on</strong>clusi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> early work was that <str<strong>on</strong>g>the</str<strong>on</strong>g> world’s largest R&D spending firms<br />

tend <strong>to</strong> locate a vast proporti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir innovative activities at home, close <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

locati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir headquarters<br />

b) However, <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing levels <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge creati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> EU firms from foreign<br />

locati<strong>on</strong>s may result in a 'hollowing out' <str<strong>on</strong>g>of</str<strong>on</strong>g> nati<strong>on</strong>al R&D. This is regarded as<br />

indicative <str<strong>on</strong>g>of</str<strong>on</strong>g> a weakening <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> nati<strong>on</strong>al innovati<strong>on</strong> system and an erosi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

technological competitiveness.<br />

c) The quantitative growth in internati<strong>on</strong>al R&D has been accompanied by a qualitative<br />

restructuring <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al R&D <strong>to</strong>wards networks <str<strong>on</strong>g>of</str<strong>on</strong>g> corporate-wide centres <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

excellence where MNEs are moving away from a ‘centralised hub’ <strong>to</strong> a multi-hub<br />

‘integrated network’.<br />

d) There are three distinguishing features <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> drive <strong>to</strong>wards increasing<br />

internati<strong>on</strong>alizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D and technology creati<strong>on</strong>:<br />

a. The first is <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing level <str<strong>on</strong>g>of</str<strong>on</strong>g> green-field investments undertaken by large<br />

R&D spending companies;<br />

b. The sec<strong>on</strong>d is <str<strong>on</strong>g>the</str<strong>on</strong>g> fact that such investments are now undertaken in an<br />

increasing number <str<strong>on</strong>g>of</str<strong>on</strong>g> countries, including fast developing ec<strong>on</strong>omies such as<br />

India and China;<br />

c. The third feature highlighted is that such investments <str<strong>on</strong>g>of</str<strong>on</strong>g>ten go bey<strong>on</strong>d local<br />

adaptati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> nati<strong>on</strong>ally produced technology.<br />

13 See Vandana Ujjual: Advances in <str<strong>on</strong>g>the</str<strong>on</strong>g> understanding <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Internati<strong>on</strong>al R&D Strategies <str<strong>on</strong>g>of</str<strong>on</strong>g> MNEs.<br />

Unpublished paper, SPRU, Bright<strong>on</strong>, UK.<br />

39


e) Internati<strong>on</strong>al outreach <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D is <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> key strategic decisi<strong>on</strong>s that almost every<br />

large R&D spending firm has <strong>to</strong> make and increasingly such firms are implementing<br />

corporate-wide strategies for achieving this at <str<strong>on</strong>g>the</str<strong>on</strong>g> business unit and functi<strong>on</strong>al level.<br />

An industry view <strong>on</strong> policy support<br />

During <str<strong>on</strong>g>the</str<strong>on</strong>g> work <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EG, a dedicated workshop with representatives from industry and<br />

European Technology Platforms was c<strong>on</strong>ducted (please see a summary in annex 4) 14 . The<br />

main c<strong>on</strong>clusi<strong>on</strong>s coming out <str<strong>on</strong>g>of</str<strong>on</strong>g> this workshop point <strong>to</strong> key policy implicati<strong>on</strong>s:<br />

a) The companies were keen <strong>to</strong> emphasise that <str<strong>on</strong>g>the</str<strong>on</strong>g> first thing <strong>to</strong> do in support <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> EU industry and <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA is <strong>to</strong> c<strong>on</strong>tinue <strong>to</strong> operate a str<strong>on</strong>g (but<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> course administratively simplified) Framework Programme. One aspect <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

investing in <strong>STI</strong> in Europe is <strong>to</strong> attract FDI and <strong>to</strong> c<strong>on</strong>tinue <strong>to</strong> make it attractive for<br />

EU-based firms <strong>to</strong> remain in place.<br />

b) Reciprocity in access <strong>to</strong> programmes was seen as important. There is lack <str<strong>on</strong>g>of</str<strong>on</strong>g> a clear<br />

distincti<strong>on</strong> between policy <strong>to</strong> support development in poor countries and <strong>STI</strong><br />

cooperati<strong>on</strong> with developed <strong>on</strong>es. In <str<strong>on</strong>g>the</str<strong>on</strong>g> sec<strong>on</strong>d case, <str<strong>on</strong>g>the</str<strong>on</strong>g> EU should <strong>on</strong>ly support<br />

cooperati<strong>on</strong> with countries that allow EU organisati<strong>on</strong>s <strong>to</strong> participate in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

programmes <strong>on</strong> a similar basis. The EU should devote efforts <strong>to</strong> persuading o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs <strong>to</strong><br />

open <str<strong>on</strong>g>the</str<strong>on</strong>g>ir programmes as this would make internati<strong>on</strong>al cooperati<strong>on</strong> easier.<br />

c) Internati<strong>on</strong>al cooperati<strong>on</strong> plays an important role in c<strong>on</strong>verging efforts, reducing risk<br />

and setting standards. This is valuable and needs support well bey<strong>on</strong>d Europe.<br />

d) Researcher mobility schemes operating bey<strong>on</strong>d Europe should be streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ned.<br />

e) Investment by <str<strong>on</strong>g>the</str<strong>on</strong>g> EU not <strong>on</strong>ly in R&D but also in pilots and dem<strong>on</strong>strati<strong>on</strong>s is<br />

necessary. They have benefits both for technological development and for<br />

standardisati<strong>on</strong>.<br />

f) The EU should lead projects aiming <strong>to</strong> set global standards and norms. This is an<br />

opportunity <strong>to</strong> take <str<strong>on</strong>g>the</str<strong>on</strong>g> initiative and have a decisive influence <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> shape <str<strong>on</strong>g>of</str<strong>on</strong>g> such<br />

standards.<br />

g) The EU could also take <str<strong>on</strong>g>the</str<strong>on</strong>g> lead in projects addressing some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> grand challenges,<br />

where a global effort is beneficial for every<strong>on</strong>e. This is especially useful in<br />

‘horiz<strong>on</strong>tal’ issues where IPR is not a major c<strong>on</strong>cern. More broadly, EU internati<strong>on</strong>al<br />

projects should have clear and transparent IPR and exploitati<strong>on</strong> rights. The EU<br />

should work <strong>to</strong>wards more harm<strong>on</strong>ised internati<strong>on</strong>al rules and practices in relati<strong>on</strong> <strong>to</strong><br />

IPR.<br />

h) The EU efforts <strong>to</strong>wards innovative procurement should be mirrored in internati<strong>on</strong>al<br />

activities – encouraging o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs <strong>to</strong> open <str<strong>on</strong>g>the</str<strong>on</strong>g>ir innovative procurement programmes also<br />

<strong>to</strong> EU firms.<br />

i) The EU should pay attenti<strong>on</strong> <strong>to</strong> traditi<strong>on</strong>al trade and industry policy aspects such as<br />

reducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> trade barriers and encouraging entry.<br />

The global c<strong>on</strong>text makes good and transparent framework c<strong>on</strong>diti<strong>on</strong>s important. In fact, with<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> increasing globalizati<strong>on</strong>, a global “<strong>STI</strong> comm<strong>on</strong>s” should be supported by rules,<br />

14 To cover SMEs a small survey was c<strong>on</strong>ducted, see annex 5.<br />

40


egulati<strong>on</strong>s and values that make up a level playing field. The EG <str<strong>on</strong>g>the</str<strong>on</strong>g>refore also supports <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

recommendati<strong>on</strong>s coming from recent work <strong>on</strong> knowledge transfer identifying obstacles and<br />

bottlenecks for internati<strong>on</strong>al cooperati<strong>on</strong> (Kaiser et al 2011).<br />

Reducing transacti<strong>on</strong> costs for SMEs<br />

Various views hold that <str<strong>on</strong>g>the</str<strong>on</strong>g>re are high barriers <strong>to</strong> participati<strong>on</strong> in e.g. <str<strong>on</strong>g>the</str<strong>on</strong>g> European FP due<br />

inter alia <strong>to</strong> high transacti<strong>on</strong> costs for potential partners from developing countries (similar <strong>to</strong><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> challenges faced by EU SMEs) in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> applicati<strong>on</strong>, informati<strong>on</strong> ga<str<strong>on</strong>g>the</str<strong>on</strong>g>ring, reporting<br />

etc; <str<strong>on</strong>g>the</str<strong>on</strong>g> need <strong>to</strong> rely <strong>on</strong> nati<strong>on</strong>al level support from <str<strong>on</strong>g>the</str<strong>on</strong>g>ir home countries, which may have<br />

different priorities and nati<strong>on</strong>al champi<strong>on</strong>s/objectives <str<strong>on</strong>g>the</str<strong>on</strong>g>y wish <strong>to</strong> prioritise. Given that<br />

R&D time frames operate <strong>on</strong> a relatively small window – especially development activities<br />

closer <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> market, and in fast-moving sec<strong>to</strong>rs – such delays can make <str<strong>on</strong>g>the</str<strong>on</strong>g> purpose <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

collaborati<strong>on</strong> redundant. Transacti<strong>on</strong> costs include:<br />

1. Costs <str<strong>on</strong>g>of</str<strong>on</strong>g> identifying and establishing membership <str<strong>on</strong>g>of</str<strong>on</strong>g> innovati<strong>on</strong> network/GPN (Global<br />

Producti<strong>on</strong> Networks)/cluster<br />

a. Identifying specific new opportunities for collaborati<strong>on</strong>.<br />

b. Negotiati<strong>on</strong> costs within <str<strong>on</strong>g>the</str<strong>on</strong>g> alliance (legal issues, etc).<br />

c. IPR issues require well-defined c<strong>on</strong>sortia agreements regarding<br />

commercializati<strong>on</strong>.<br />

d. Identifying and acquiring membership <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> innovati<strong>on</strong> network.<br />

2. Costs associated with applying for EC /MS resources<br />

a. Preparati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> applicati<strong>on</strong>s.<br />

b. Participati<strong>on</strong> costs/project management costs.<br />

c. <str<strong>on</strong>g>the</str<strong>on</strong>g> reporting, m<strong>on</strong>i<strong>to</strong>ring and evaluati<strong>on</strong> processes required for each project by<br />

each c<strong>on</strong>tributing d<strong>on</strong>or.<br />

SMEs cannot afford <strong>to</strong> spend resources <strong>on</strong> l<strong>on</strong>g-term research projects, because short-term<br />

imperatives mean that resources simply are not <str<strong>on</strong>g>the</str<strong>on</strong>g>re <strong>to</strong> invest in <str<strong>on</strong>g>the</str<strong>on</strong>g>se areas. Resources (time,<br />

m<strong>on</strong>ey) <strong>to</strong> address short-term goals reduce <str<strong>on</strong>g>the</str<strong>on</strong>g> ability <strong>to</strong> draw <strong>on</strong> resources for l<strong>on</strong>g-term<br />

goals. Specific instruments may be:<br />

1. Developing a structure that allows for <str<strong>on</strong>g>the</str<strong>on</strong>g> independence from research programmes<br />

(i.e. largely “bot<strong>to</strong>m-up”). One opti<strong>on</strong> is <str<strong>on</strong>g>the</str<strong>on</strong>g> establishment <str<strong>on</strong>g>of</str<strong>on</strong>g> specialised PROs which<br />

will act as Centres for knowledge transfers built around communities <str<strong>on</strong>g>of</str<strong>on</strong>g> practice.<br />

These centres will build str<strong>on</strong>g partnerships with industry, nati<strong>on</strong>al labora<strong>to</strong>ries, and<br />

internati<strong>on</strong>al centres <str<strong>on</strong>g>of</str<strong>on</strong>g> excellence. Ano<str<strong>on</strong>g>the</str<strong>on</strong>g>r well-established opti<strong>on</strong> is regi<strong>on</strong>al,<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>matic-based clusters. Here, complementary <str<strong>on</strong>g>of</str<strong>on</strong>g>ferings <str<strong>on</strong>g>of</str<strong>on</strong>g> geographically close<br />

SMEs allow for better positi<strong>on</strong>ing at n<strong>on</strong>-EU GVCs (Global Value Chains). Clusters<br />

complement <str<strong>on</strong>g>the</str<strong>on</strong>g> supply chain capabilities <str<strong>on</strong>g>of</str<strong>on</strong>g> MNEs and allow for more strength <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

SMEs <str<strong>on</strong>g>the</str<strong>on</strong>g>mselves.<br />

2. Establishing ‘brokering’ organisati<strong>on</strong>s by industries. Identify <str<strong>on</strong>g>the</str<strong>on</strong>g> relevant knowledge<br />

producers and knowledge users and bring <str<strong>on</strong>g>the</str<strong>on</strong>g>m <strong>to</strong>ge<str<strong>on</strong>g>the</str<strong>on</strong>g>r in a comprehensive and<br />

communicati<strong>on</strong>-rich network. Epistemic communities – researchers who share a<br />

similar approach or a similar positi<strong>on</strong> <strong>on</strong> an issue and maintain c<strong>on</strong>tact with each<br />

41


o<str<strong>on</strong>g>the</str<strong>on</strong>g>r across <str<strong>on</strong>g>the</str<strong>on</strong>g>ir various locati<strong>on</strong>s and fields - create new channels for informati<strong>on</strong><br />

and discussing new perspectives. This is a role that is perfectly designed for industryspecific<br />

PROs.<br />

3. Absorb transacti<strong>on</strong> costs which make partnering with n<strong>on</strong>-EU partners costly.<br />

Specific recommendati<strong>on</strong>s:<br />

The additi<strong>on</strong>al survey <strong>on</strong> SMEs c<strong>on</strong>ducted as part <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EGs work (see annex 5) highlighted<br />

several recommendati<strong>on</strong>s in line with <str<strong>on</strong>g>the</str<strong>on</strong>g> above principle discussi<strong>on</strong>:<br />

• SMEs need mediati<strong>on</strong> for finding n<strong>on</strong>-EU partners. This mediati<strong>on</strong> should be sec<strong>to</strong>rspecific,<br />

facilitating <str<strong>on</strong>g>the</str<strong>on</strong>g> communicati<strong>on</strong> between potential partners, <str<strong>on</strong>g>the</str<strong>on</strong>g> exchange <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

know-how, as well as <str<strong>on</strong>g>the</str<strong>on</strong>g> access <strong>to</strong> informati<strong>on</strong>. This could be achieved through<br />

improving <str<strong>on</strong>g>the</str<strong>on</strong>g> services <str<strong>on</strong>g>of</str<strong>on</strong>g> Enterprise Europe Network by making <str<strong>on</strong>g>the</str<strong>on</strong>g> way <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

c<strong>on</strong>tacting companies more efficient and by improving <str<strong>on</strong>g>the</str<strong>on</strong>g> match-making services <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> Network for identifying relevant partners for internati<strong>on</strong>al <strong>STI</strong> collaborati<strong>on</strong> (prescreening).<br />

Improved, qualified assistance for project applicants, e.g. at EEN nodes,<br />

should be available. Ano<str<strong>on</strong>g>the</str<strong>on</strong>g>r possible opti<strong>on</strong> is networking <str<strong>on</strong>g>of</str<strong>on</strong>g> networks -<br />

collaborati<strong>on</strong> with o<str<strong>on</strong>g>the</str<strong>on</strong>g>r n<strong>on</strong>-European networks similar <strong>to</strong> EEN. The initial focus<br />

should be <strong>on</strong> mapping such networks outside Europe, <str<strong>on</strong>g>the</str<strong>on</strong>g>ir coverage and mandate and<br />

identifying opportunities for collaborati<strong>on</strong>. Some examples are <str<strong>on</strong>g>the</str<strong>on</strong>g> networks<br />

supported by <str<strong>on</strong>g>the</str<strong>on</strong>g> World Bank, and <str<strong>on</strong>g>the</str<strong>on</strong>g> regi<strong>on</strong>al networks <str<strong>on</strong>g>of</str<strong>on</strong>g> UNIDO.<br />

• Building pilot infrastructures in n<strong>on</strong>-European markets in order <strong>to</strong> better understand<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>ir specific requirements. Some efforts <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU level should be focused <strong>on</strong><br />

collecting appropriate informati<strong>on</strong> and statistics about <str<strong>on</strong>g>the</str<strong>on</strong>g> different industries and <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

different markets.<br />

• Informati<strong>on</strong> about <str<strong>on</strong>g>the</str<strong>on</strong>g> respective n<strong>on</strong>-European internati<strong>on</strong>al cooperati<strong>on</strong> programmes<br />

should be available.<br />

• Reducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> red tape when applying for <strong>STI</strong> cooperati<strong>on</strong> with partners from foreign<br />

countries would be beneficial. Overhead for funded internati<strong>on</strong>al cooperati<strong>on</strong> is even<br />

higher than for EU cooperati<strong>on</strong>, so that <str<strong>on</strong>g>the</str<strong>on</strong>g> cost-benefit-relati<strong>on</strong>ship <str<strong>on</strong>g>of</str<strong>on</strong>g>ten is not in<br />

favour <str<strong>on</strong>g>of</str<strong>on</strong>g> a proposal/participati<strong>on</strong>. This should be c<strong>on</strong>sidered in <str<strong>on</strong>g>the</str<strong>on</strong>g> funding schemes<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EC for SMEs. Current bureaucracy is <strong>to</strong>o complex, especially for SMEs. The<br />

barrier <strong>to</strong> understand <str<strong>on</strong>g>the</str<strong>on</strong>g> requirements and <str<strong>on</strong>g>the</str<strong>on</strong>g> processes are <strong>to</strong>o high <strong>to</strong> interest more<br />

SMEs in participating in internati<strong>on</strong>al <strong>STI</strong>. Therefore, ei<str<strong>on</strong>g>the</str<strong>on</strong>g>r <str<strong>on</strong>g>the</str<strong>on</strong>g> bureaucracy for<br />

SMEs is reduced and simplified, or <str<strong>on</strong>g>the</str<strong>on</strong>g> provided support at <str<strong>on</strong>g>the</str<strong>on</strong>g> proposal phase for<br />

SMEs is improved <strong>to</strong> accelerate interest in <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al EC programmes.<br />

• A promising approach <strong>to</strong> supporting internati<strong>on</strong>al <strong>STI</strong> partnerships would lie in<br />

supporting/establishing global Networks <str<strong>on</strong>g>of</str<strong>on</strong>g> Excellence in several technological fields<br />

where <str<strong>on</strong>g>the</str<strong>on</strong>g> most important players in this field come <strong>to</strong>ge<str<strong>on</strong>g>the</str<strong>on</strong>g>r and build trust.<br />

42


Towards a strategic approach<br />

A strategic approach <strong>to</strong> internati<strong>on</strong>al cooperati<strong>on</strong> that includes a focus <strong>on</strong> industry and<br />

innovati<strong>on</strong> needs <strong>to</strong> be based <strong>on</strong> a balance between two c<strong>on</strong>siderati<strong>on</strong>s:<br />

• How <strong>to</strong> support and streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n internati<strong>on</strong>al cooperati<strong>on</strong> through R&D related<br />

resources <strong>on</strong> firm- or cluster level:<br />

o Ensure that Europe becomes attractive as a regi<strong>on</strong> for lead markets, pilots and<br />

dem<strong>on</strong>strati<strong>on</strong>, infrastructures for testing and technology verificati<strong>on</strong>, and that<br />

Europe take a lead in technology platforms and standardisati<strong>on</strong> through<br />

cooperati<strong>on</strong> with stakeholders, all with a view <strong>to</strong> reduce uncertainty for<br />

industrial innovati<strong>on</strong>.<br />

o Stimulate mobility <str<strong>on</strong>g>of</str<strong>on</strong>g> researchers and students and access <strong>to</strong> talent and<br />

research.<br />

o Ensure that <str<strong>on</strong>g>the</str<strong>on</strong>g> business support presence <str<strong>on</strong>g>of</str<strong>on</strong>g> EU and MS in 3 rd countries is<br />

coherent <strong>to</strong> provide relevant and pr<str<strong>on</strong>g>of</str<strong>on</strong>g>essi<strong>on</strong>al innovati<strong>on</strong> support <strong>to</strong> European<br />

firms;<br />

o A str<strong>on</strong>ger coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> nati<strong>on</strong>al acti<strong>on</strong>s at EU level; Joint priority setting<br />

and pooling <str<strong>on</strong>g>of</str<strong>on</strong>g> resources; public authorities <strong>to</strong> provide a clear resp<strong>on</strong>se <strong>to</strong><br />

industry initiatives (e.g. Strategic Research Agendas) and easy access for<br />

SMEs <strong>to</strong> internati<strong>on</strong>al R& I.<br />

o An EU strategy should avoid a <strong>to</strong>o str<strong>on</strong>g pre-selecti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> countries for<br />

internati<strong>on</strong>al cooperati<strong>on</strong>. Industry typically differentiates between <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

partners <strong>on</strong> strategic research vs. development and engages in different<br />

countries accordingly. An EU strategy needs <strong>to</strong> be flexible <strong>to</strong> accommodate<br />

this varied approach <strong>to</strong> internati<strong>on</strong>al investments and cooperati<strong>on</strong> in R&D.<br />

• How <strong>to</strong> develop and implement framework c<strong>on</strong>diti<strong>on</strong>s globally that ensure level<br />

playing fields:<br />

o The EU should lead projects aiming <strong>to</strong> set global standards and norms. This is<br />

an opportunity <strong>to</strong> take <str<strong>on</strong>g>the</str<strong>on</strong>g> initiative and have a decisive influence <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> shape<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> such standards. The EU could also take <str<strong>on</strong>g>the</str<strong>on</strong>g> lead in projects addressing<br />

some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> grand challenges, where a global effort is beneficial for every<strong>on</strong>e.<br />

This is especially useful in ‘horiz<strong>on</strong>tal’ issues where IPR is not a major<br />

c<strong>on</strong>cern. More broadly, EU internati<strong>on</strong>al projects should have clear and<br />

transparent IPR and exploitati<strong>on</strong> rights. The EU should work <strong>to</strong>wards more<br />

harm<strong>on</strong>ised internati<strong>on</strong>al rules and practices in relati<strong>on</strong> <strong>to</strong> IPR.<br />

o The EU should pay attenti<strong>on</strong> <strong>to</strong> traditi<strong>on</strong>al trade and industry policy aspects<br />

such as reducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> trade barriers and encouraging entry.<br />

o Ensure comm<strong>on</strong> rules in areas such as IPR, procurement and access <strong>to</strong> 3 rd<br />

countries’ procurement programmes, licensing.<br />

o Creating a str<strong>on</strong>g European voice <strong>to</strong> influence str<strong>on</strong>g internati<strong>on</strong>al ac<strong>to</strong>rs <strong>on</strong><br />

regula<strong>to</strong>ry matters.<br />

o Help create str<strong>on</strong>g internati<strong>on</strong>al incentives <strong>to</strong> innovati<strong>on</strong> like performance<br />

regulati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> products and technologies.<br />

43


The output <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> science system is both in <str<strong>on</strong>g>the</str<strong>on</strong>g> form <str<strong>on</strong>g>of</str<strong>on</strong>g> publicati<strong>on</strong>s and patents, although<br />

publicati<strong>on</strong>s prevail in quantity. Over <str<strong>on</strong>g>the</str<strong>on</strong>g> last two decades though, universities and PROs<br />

have developed <str<strong>on</strong>g>the</str<strong>on</strong>g> competencies and instruments <strong>to</strong> deal with this dual output<br />

simultaneously. This has led <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> IPR practices that are well developed and<br />

articulated, even at <str<strong>on</strong>g>the</str<strong>on</strong>g> early stages <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific discovery and publicati<strong>on</strong>. Even as<br />

technology is under development, <str<strong>on</strong>g>the</str<strong>on</strong>g> Technology Transfer Offices that have emerged at<br />

universities and PROs know very well how <strong>to</strong> deal with IP at <str<strong>on</strong>g>the</str<strong>on</strong>g> discovery fr<strong>on</strong>tier. This<br />

emerging practice should be fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r developed in line with <str<strong>on</strong>g>the</str<strong>on</strong>g> guidelines for IP management<br />

produced by <str<strong>on</strong>g>the</str<strong>on</strong>g> Knowledge Transfer Working <str<strong>on</strong>g>Group</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> ERAC 15 which specifically c<strong>on</strong>cern<br />

research cooperati<strong>on</strong> agreements with partners bey<strong>on</strong>d Europe. The EG str<strong>on</strong>gly supports<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>se guidelines as a key comp<strong>on</strong>ent in a EU level strategy for internati<strong>on</strong>al cooperati<strong>on</strong>.<br />

15 European Research Area Guidelines <strong>on</strong> Intellectual Property (IP) Management in Internati<strong>on</strong>al Research<br />

Collaborati<strong>on</strong> Agreements between European and N<strong>on</strong>-European Partners. Knowledge Transfer Working <str<strong>on</strong>g>Group</str<strong>on</strong>g><br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> ERAC, June 2012.<br />

44


Exploit variable geometry<br />

Objectives for <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> policies<br />

Basically two different sets <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D internati<strong>on</strong>alisati<strong>on</strong> objectives can be distinguished: an<br />

intrinsic <strong>on</strong>e, which put goals in<strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> centre <str<strong>on</strong>g>of</str<strong>on</strong>g> public S&T policy that directly aim <strong>to</strong><br />

substantiate S&T (e.g. through enabling R&D cooperati<strong>on</strong> am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> best researchers<br />

globally or <strong>to</strong> find joint soluti<strong>on</strong>s for large-scale R&D infrastructures which cannot be<br />

financed by a country <strong>on</strong> its own); and an extrinsic <strong>on</strong>e, which ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r focuses <strong>on</strong> goals that are<br />

meant <strong>to</strong> support o<str<strong>on</strong>g>the</str<strong>on</strong>g>r policies (e.g. facilitati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> access <strong>to</strong> foreign markets through<br />

standard-settings or research for development <strong>to</strong> assist technical development cooperati<strong>on</strong>).<br />

In 2008 <str<strong>on</strong>g>the</str<strong>on</strong>g> CREST 16 working group <strong>on</strong> internati<strong>on</strong>alisati<strong>on</strong> identified am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> European<br />

Uni<strong>on</strong> Member States <str<strong>on</strong>g>the</str<strong>on</strong>g> following objectives that drive R&D internati<strong>on</strong>alisati<strong>on</strong> from an<br />

S&T policy perspective 17 :<br />

• quality accelerati<strong>on</strong> and excellence<br />

• market and competiti<strong>on</strong><br />

• resource acquisiti<strong>on</strong><br />

• cost optimisati<strong>on</strong><br />

• global or regi<strong>on</strong>al development<br />

• science diplomacy<br />

Different rati<strong>on</strong>ales are guiding <str<strong>on</strong>g>the</str<strong>on</strong>g>se objectives: <str<strong>on</strong>g>the</str<strong>on</strong>g> rati<strong>on</strong>ale behind <str<strong>on</strong>g>the</str<strong>on</strong>g> quality accelerati<strong>on</strong><br />

and excellence objective is primarily an intrinsic <strong>on</strong>e that assumes that internati<strong>on</strong>al R&D<br />

cooperati<strong>on</strong> improves <str<strong>on</strong>g>the</str<strong>on</strong>g> domestic science base, leading <strong>to</strong> faster and improved scientific<br />

progress as well as enhanced scientific productivity and is also supportive for <str<strong>on</strong>g>the</str<strong>on</strong>g> pr<str<strong>on</strong>g>of</str<strong>on</strong>g>essi<strong>on</strong>al<br />

advancement <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> involved researchers (e.g. through joint publicati<strong>on</strong>s in acknowledged<br />

internati<strong>on</strong>al journals). Behind this assumpti<strong>on</strong> stands <str<strong>on</strong>g>the</str<strong>on</strong>g> idea that <strong>on</strong>ly <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘best’<br />

(instituti<strong>on</strong>s and/or researchers) succeed also in internati<strong>on</strong>al competitive procedures 18 . The<br />

rati<strong>on</strong>ale behind <str<strong>on</strong>g>the</str<strong>on</strong>g> extrinsic market and competiti<strong>on</strong> objective is <strong>to</strong> support <str<strong>on</strong>g>the</str<strong>on</strong>g> market entry<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> domestically produced technologies/innovati<strong>on</strong>s abroad as well as <strong>to</strong> support <str<strong>on</strong>g>the</str<strong>on</strong>g> access <strong>to</strong><br />

and a quick uptake <str<strong>on</strong>g>of</str<strong>on</strong>g> technologies produced abroad within <str<strong>on</strong>g>the</str<strong>on</strong>g> domestic ec<strong>on</strong>omy. Here<br />

absorpti<strong>on</strong> capacities and <str<strong>on</strong>g>the</str<strong>on</strong>g> availability <str<strong>on</strong>g>of</str<strong>on</strong>g> efficient spill-over mechanisms are <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

importance. The rati<strong>on</strong>ale behind <str<strong>on</strong>g>the</str<strong>on</strong>g> resource acquisiti<strong>on</strong> objective overlaps partly with <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

two major objectives menti<strong>on</strong>ed before. The access <strong>to</strong> informati<strong>on</strong>, knowledge, technology<br />

and expertise as well as <strong>to</strong> singular equipment/facilities and materials are in <str<strong>on</strong>g>the</str<strong>on</strong>g> focus. But<br />

16 CREST (since 26 May 2010 renamed in<strong>to</strong> ERAC: European Research Area Committee) is a strategic policy<br />

advisory body whose functi<strong>on</strong> is <strong>to</strong> assist <str<strong>on</strong>g>the</str<strong>on</strong>g> European Commissi<strong>on</strong> and <str<strong>on</strong>g>the</str<strong>on</strong>g> Council <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong> in<br />

performing <str<strong>on</strong>g>the</str<strong>on</strong>g> tasks incumbent <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>se instituti<strong>on</strong>s in <str<strong>on</strong>g>the</str<strong>on</strong>g> sphere <str<strong>on</strong>g>of</str<strong>on</strong>g> research and technological development.<br />

17 These were c<strong>on</strong>firmed by Boekholt et al. (2009), who included in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir comparative study also policy<br />

examples from n<strong>on</strong>-EU countries.<br />

18 This assumpti<strong>on</strong> can, however, be challenged. A deliberati<strong>on</strong> <strong>on</strong> this is provided by Schuch (2011).<br />

45


esource acquisiti<strong>on</strong> is not limited <strong>to</strong> different codified and tacit dimensi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> technology<br />

transfer but extends <strong>to</strong> brain gain, gaining <str<strong>on</strong>g>of</str<strong>on</strong>g> solvent students (for universities) and<br />

increasingly also gaining research funds from abroad or from multilateral or internati<strong>on</strong>al<br />

sources. The cost optimisati<strong>on</strong> objective from a public S&T policy focus does not primarily<br />

mean <strong>to</strong> use cost arbitrages (e.g. lower wages in a foreign country) as this might be a rati<strong>on</strong>al<br />

argument <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> corporate sec<strong>to</strong>r, but ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r focuses <strong>on</strong> cost sharing approaches <strong>to</strong> create<br />

critical mass in a certain science arena, e.g. <strong>to</strong> establish large scale research infrastructures<br />

and it also includes <str<strong>on</strong>g>the</str<strong>on</strong>g> rati<strong>on</strong>ale <str<strong>on</strong>g>of</str<strong>on</strong>g> risk sharing. The assumpti<strong>on</strong> behind <str<strong>on</strong>g>the</str<strong>on</strong>g> global or<br />

regi<strong>on</strong>al development objective is that many risks have no fr<strong>on</strong>tiers (e.g. infectious diseases<br />

or climate change) or cannot be solved without internati<strong>on</strong>al cooperati<strong>on</strong> and solidarity (e.g.<br />

Millennium Development Goals) and, thus, have <strong>to</strong> be tackled through internati<strong>on</strong>al R&D<br />

collaborati<strong>on</strong> (e.g. research for development). Also <str<strong>on</strong>g>the</str<strong>on</strong>g> science diplomacy objective <str<strong>on</strong>g>of</str<strong>on</strong>g>ten<br />

refers <strong>to</strong> global challenges and <strong>to</strong> development cooperati<strong>on</strong> agendas. Fundamentally, it has<br />

two main rati<strong>on</strong>ales: firstly <strong>to</strong> support through R&D cooperati<strong>on</strong> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r external policy<br />

dimensi<strong>on</strong>s in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> science for diplomacy (e.g. n<strong>on</strong>-proliferati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> mass destructi<strong>on</strong><br />

weap<strong>on</strong>s through keeping former weap<strong>on</strong> researchers busy with civilian R&D projects) and,<br />

sec<strong>on</strong>dly, <strong>to</strong> promote <str<strong>on</strong>g>the</str<strong>on</strong>g> own science base abroad in support <str<strong>on</strong>g>of</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r objectives already<br />

menti<strong>on</strong>ed above (e.g. <strong>to</strong> attract ‘brains’ or <strong>to</strong> promote a general quality trademark like “made<br />

in ….”).<br />

EC-Member States Coordinati<strong>on</strong> for internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong><br />

As regards <str<strong>on</strong>g>the</str<strong>on</strong>g> European level, <str<strong>on</strong>g>the</str<strong>on</strong>g> former CREST working group made a comprehensive<br />

attempt <strong>to</strong> analyse public S&T policies <str<strong>on</strong>g>of</str<strong>on</strong>g> 21 European countries 19 <strong>to</strong>wards R&D<br />

internati<strong>on</strong>alisati<strong>on</strong> by placing R&D and innovati<strong>on</strong> policy in an ac<strong>to</strong>r’s role (S<strong>on</strong>nenburg et<br />

al. 2008). This study clearly revealed that in most countries, which participated in this<br />

working group, <str<strong>on</strong>g>the</str<strong>on</strong>g> traditi<strong>on</strong>al roles <str<strong>on</strong>g>of</str<strong>on</strong>g> S&T policy for R&D internati<strong>on</strong>alisati<strong>on</strong>, which can<br />

be described as ei<str<strong>on</strong>g>the</str<strong>on</strong>g>r ‘enabling’ or ‘preventing’ have been gradually challenged. The<br />

enabling functi<strong>on</strong> comprises <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> stimulating incentives or support<br />

programmes such as cross-border R&D programmes and/or <str<strong>on</strong>g>the</str<strong>on</strong>g> openness <str<strong>on</strong>g>of</str<strong>on</strong>g> nati<strong>on</strong>al<br />

programmes and projects (Edler et al. 2002), while <str<strong>on</strong>g>the</str<strong>on</strong>g> preventing functi<strong>on</strong> primarily<br />

c<strong>on</strong>cerns <str<strong>on</strong>g>the</str<strong>on</strong>g> protecti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual property at internati<strong>on</strong>al scale. Above all, however, <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

main task <str<strong>on</strong>g>of</str<strong>on</strong>g> public S&T policy <strong>to</strong>wards internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D traditi<strong>on</strong>ally was (and<br />

still is) <strong>to</strong> keep <str<strong>on</strong>g>the</str<strong>on</strong>g> own house clean, i.e. <strong>to</strong> be an attractive place for c<strong>on</strong>ducting R&D and,<br />

thus, for attracting R&D inflows from abroad <strong>to</strong>o (Verbeek and Shapira 2009).<br />

Examples for a more pro-active understanding are <str<strong>on</strong>g>the</str<strong>on</strong>g> introducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> incentives <strong>to</strong> attract<br />

inward corporate and instituti<strong>on</strong>al R&D, <strong>to</strong> participate in cross-border research programmes<br />

(<str<strong>on</strong>g>of</str<strong>on</strong>g>ten triggered by EC activities), <strong>to</strong> invest in joint R&D labs abroad, <strong>to</strong> support <str<strong>on</strong>g>the</str<strong>on</strong>g> mobility<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> researchers and <strong>to</strong> intensify <str<strong>on</strong>g>the</str<strong>on</strong>g> coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D internati<strong>on</strong>alisati<strong>on</strong> policies am<strong>on</strong>g<br />

EU Member States and countries associated <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU RTD Framework Programme <strong>to</strong>wards<br />

19 Austria, Belgium, Czech Republic, Denmark, Germany, Greece, Finland, France, Ireland, Island, The Ne<str<strong>on</strong>g>the</str<strong>on</strong>g>rlands,<br />

Norway, Poland, Portugal, Romania, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom.<br />

46


third countries, typically with <str<strong>on</strong>g>the</str<strong>on</strong>g> support <str<strong>on</strong>g>of</str<strong>on</strong>g> and in divisi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> labour with <str<strong>on</strong>g>the</str<strong>on</strong>g> European<br />

Commissi<strong>on</strong>. In 2008 SFIC, <str<strong>on</strong>g>the</str<strong>on</strong>g> Strategy Forum for Internati<strong>on</strong>al S&T Cooperati<strong>on</strong>, which<br />

has been recommended by <str<strong>on</strong>g>the</str<strong>on</strong>g> CREST Working <str<strong>on</strong>g>Group</str<strong>on</strong>g>, was established with a remit <strong>to</strong><br />

develop high-level co-ordinati<strong>on</strong>.<br />

The basic rati<strong>on</strong>ale for pr<strong>on</strong>ounced coordinati<strong>on</strong> and collaborati<strong>on</strong> efforts is <str<strong>on</strong>g>the</str<strong>on</strong>g> insight, that<br />

scattered nati<strong>on</strong>al <strong>STI</strong> undertakings will in many cases not deliver effective soluti<strong>on</strong>s in a<br />

reas<strong>on</strong>ably short time, while internati<strong>on</strong>al co-operati<strong>on</strong> can lead <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> bundling <str<strong>on</strong>g>of</str<strong>on</strong>g> financial<br />

and intellectual resources, thus exploiting ec<strong>on</strong>omies <str<strong>on</strong>g>of</str<strong>on</strong>g> scale and scope (e.g. Henders<strong>on</strong> and<br />

Cockburn 1996). In this sense, internati<strong>on</strong>al cooperati<strong>on</strong> is more and not less necessary in<br />

times <str<strong>on</strong>g>of</str<strong>on</strong>g> tight public budgets. However, <str<strong>on</strong>g>the</str<strong>on</strong>g>re are signals that internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong><br />

activities at Member States level have been frozen or even reduced due <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> necessity <strong>to</strong><br />

c<strong>on</strong>solidate public budgets. An evidence-based assessment <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> scope and scale <str<strong>on</strong>g>of</str<strong>on</strong>g> Member<br />

States internati<strong>on</strong>al <strong>STI</strong> activities is limited by <str<strong>on</strong>g>the</str<strong>on</strong>g> lack <str<strong>on</strong>g>of</str<strong>on</strong>g> data available in a standardised<br />

manner <strong>on</strong> how much public m<strong>on</strong>ey is allocated for internati<strong>on</strong>al <strong>STI</strong> endeavours at nati<strong>on</strong>al<br />

level. Estimati<strong>on</strong>s vary within <str<strong>on</strong>g>the</str<strong>on</strong>g> lower <strong>on</strong>e digit percent range.<br />

In order <strong>to</strong> resp<strong>on</strong>d <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> variety <str<strong>on</strong>g>of</str<strong>on</strong>g> legitimate R&D internati<strong>on</strong>alisati<strong>on</strong> objectives and <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

global challenges menti<strong>on</strong>ed above, <str<strong>on</strong>g>the</str<strong>on</strong>g> process <str<strong>on</strong>g>of</str<strong>on</strong>g> coordinati<strong>on</strong>, which brings different<br />

elements <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al oriented <strong>STI</strong> system in<strong>to</strong> a more “harm<strong>on</strong>ious” and/or efficient<br />

relati<strong>on</strong>ship, must be accelerated and transformed in<strong>to</strong> collaborative acti<strong>on</strong>s, where joint work<br />

is carried out <strong>to</strong> achieve comm<strong>on</strong> goals, <strong>to</strong> pool expertise and resources. In additi<strong>on</strong>,<br />

integrati<strong>on</strong> efforts should be taken <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> strategic agenda, which would imply a shift <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

competencies in order <strong>to</strong> combine activities or structures so that <str<strong>on</strong>g>the</str<strong>on</strong>g>y form a new whole (see<br />

Edler 2010). Examples <str<strong>on</strong>g>of</str<strong>on</strong>g> this could be a centralised implementati<strong>on</strong> agency for internati<strong>on</strong>al<br />

ERA-NETs or an integrated approach for <str<strong>on</strong>g>the</str<strong>on</strong>g> establishment <str<strong>on</strong>g>of</str<strong>on</strong>g> INCO-houses in third<br />

countries.<br />

In order <strong>to</strong> foster internati<strong>on</strong>al R&D cooperati<strong>on</strong> between <str<strong>on</strong>g>the</str<strong>on</strong>g> EU, its Member States and<br />

countries associated <strong>to</strong> HORIZON 2020 with internati<strong>on</strong>al partner countries for <str<strong>on</strong>g>the</str<strong>on</strong>g> sake <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

mutual benefit and progress, <str<strong>on</strong>g>the</str<strong>on</strong>g> partnership between <str<strong>on</strong>g>the</str<strong>on</strong>g> EU and <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States must be<br />

fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r promoted<br />

• by cutting back existing informati<strong>on</strong> asymmetries<br />

• by developing joint activities with critical mass based <strong>on</strong> variable geometry<br />

• and by promoting a str<strong>on</strong>ger percepti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Europe as a whole at <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al<br />

level, not just as a sum <str<strong>on</strong>g>of</str<strong>on</strong>g> single comp<strong>on</strong>ents but with value added.<br />

It should be noted, that <str<strong>on</strong>g>the</str<strong>on</strong>g> promoti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> partnership is not meant <strong>to</strong> replace individual efforts<br />

(by <str<strong>on</strong>g>the</str<strong>on</strong>g> EC nor by <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States), but <strong>to</strong> establish activities with European value added<br />

and traceable impact <strong>to</strong> attain <str<strong>on</strong>g>the</str<strong>on</strong>g> basic objectives menti<strong>on</strong>ed above.<br />

47


Recommendati<strong>on</strong>s for promoting partnerships<br />

The EG recommends starting <str<strong>on</strong>g>the</str<strong>on</strong>g> external policy dialogue and its follow-ups based <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> priorities<br />

and challenges identified. Country choices will result from such deliberati<strong>on</strong>s, but should not be <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

starting-point.<br />

In order <strong>to</strong> promote an enhanced partnership between <str<strong>on</strong>g>the</str<strong>on</strong>g> EU and Member States <strong>to</strong> address<br />

challenges and <str<strong>on</strong>g>the</str<strong>on</strong>g>matic priorities, <str<strong>on</strong>g>the</str<strong>on</strong>g> focus is <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> following ac<strong>to</strong>r levels and core<br />

functi<strong>on</strong>s:<br />

1) SFIC – functi<strong>on</strong>: policy coordinati<strong>on</strong><br />

2) MS/EC plus 3 rd country partner regi<strong>on</strong>s - functi<strong>on</strong>: policy dialogue and collaborative<br />

structural/<str<strong>on</strong>g>the</str<strong>on</strong>g>matic pilot activities<br />

3) EC/MS plus 3 rd countries with S&T agreement – functi<strong>on</strong>: collaborative roadmap<br />

implementati<strong>on</strong><br />

4) MS/EC plus 3 rd countries – functi<strong>on</strong>: joint internati<strong>on</strong>al research funding<br />

5) R&D organisati<strong>on</strong>s – functi<strong>on</strong>: generic support for addressing global challenges<br />

6) MS/EC – functi<strong>on</strong>: establishing European Lead Initiatives<br />

7) EC/MS<br />

1) Support <str<strong>on</strong>g>the</str<strong>on</strong>g> internal RTDI internati<strong>on</strong>alisati<strong>on</strong> policy coordinati<strong>on</strong> am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> MS and<br />

EC and at <str<strong>on</strong>g>the</str<strong>on</strong>g> same time unburden SFIC in its core tasks c<strong>on</strong>cerning priority setting and<br />

harm<strong>on</strong>ising framework c<strong>on</strong>diti<strong>on</strong>s for joint internati<strong>on</strong>al <strong>STI</strong> efforts, through<br />

a) enhanced secretarial support,<br />

b) an upgraded dedicated budget for expert workshops, promoti<strong>on</strong> activities and<br />

accompanying research (e.g. regarding S&T internati<strong>on</strong>alisati<strong>on</strong> indica<strong>to</strong>rs)<br />

c) development <str<strong>on</strong>g>of</str<strong>on</strong>g> a user-friendly knowledge management system with web2.0<br />

features.<br />

At <str<strong>on</strong>g>the</str<strong>on</strong>g> governance level, SFIC should ensure a truly high-level representati<strong>on</strong>. Moreover,<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> governance structure should be fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r developed in<strong>to</strong> a reflective and resp<strong>on</strong>sive<br />

“learning system” tailored <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> needs <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> specific targeted collaborati<strong>on</strong>s, allowing<br />

active and resp<strong>on</strong>sive adaptati<strong>on</strong>. In such an enhanced governance system also<br />

implementati<strong>on</strong> agencies and analytical ‘intelligence providers’ have <strong>to</strong> find <str<strong>on</strong>g>the</str<strong>on</strong>g>ir role and<br />

place for operative exchange and collaborati<strong>on</strong>. SFIC must c<strong>on</strong>tinue <strong>to</strong> establish and<br />

maintain linkages between nati<strong>on</strong>al, regi<strong>on</strong>al and internati<strong>on</strong>al levels <strong>to</strong> help <strong>to</strong> avoid<br />

duplicati<strong>on</strong> and create transparency am<strong>on</strong>g stakeholders.<br />

2) Support <str<strong>on</strong>g>the</str<strong>on</strong>g> external <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> policy dialogue between <str<strong>on</strong>g>the</str<strong>on</strong>g> MS plus<br />

EC (internal variable geometry) and <str<strong>on</strong>g>the</str<strong>on</strong>g> rest <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world (through external variable<br />

geometry) with <str<strong>on</strong>g>the</str<strong>on</strong>g> aim <strong>to</strong> develop and implement a number <str<strong>on</strong>g>of</str<strong>on</strong>g> coordinated pilot<br />

activities<br />

a) through regi<strong>on</strong>al platforms<br />

b) which reach out <strong>to</strong> different fields <str<strong>on</strong>g>of</str<strong>on</strong>g> policy (including ec<strong>on</strong>omic and<br />

development policy; innovati<strong>on</strong> etc.) and <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> targeted research communities<br />

48


c) with a str<strong>on</strong>g jointly accessible and usable analytical back-up functi<strong>on</strong><br />

building <strong>on</strong> already existing knowledge (see secti<strong>on</strong> <strong>on</strong> indica<strong>to</strong>rs)<br />

d) with an ambiti<strong>on</strong> <strong>to</strong> establish coordinated pilot activities, which could be <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

structural or <str<strong>on</strong>g>the</str<strong>on</strong>g>matic nature (e.g. <str<strong>on</strong>g>the</str<strong>on</strong>g>matic working groups <strong>to</strong> coordinate <strong>STI</strong><br />

efforts; promoti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> European research capacities)<br />

e) by including third partner countries case-by-case (variable geometry)<br />

f) with a str<strong>on</strong>g focus <strong>on</strong> global challenges<br />

g) financed by <str<strong>on</strong>g>the</str<strong>on</strong>g> European Commissi<strong>on</strong>.<br />

As regards <str<strong>on</strong>g>the</str<strong>on</strong>g> external policy dialogue support, benefits for MS should be better worked<br />

out and procedures should be developed <strong>to</strong> better resp<strong>on</strong>d <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> needs <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> participants.<br />

The policy dialogue should involve policy makers and policy-delivery systems (not<br />

necessarily as partners but as participants in various activities), analytical intelligence<br />

providers and multiplica<strong>to</strong>rs from <str<strong>on</strong>g>the</str<strong>on</strong>g> EU, <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States and <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al partner<br />

countries. Outreach activities <strong>to</strong> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r stakeholders, measures <strong>to</strong> put <strong>STI</strong> in<strong>to</strong> practice and<br />

support for capacity building for <strong>STI</strong> at a strategic level (e.g. through joint S&T policy<br />

mix peer reviews), both at <str<strong>on</strong>g>the</str<strong>on</strong>g> side <str<strong>on</strong>g>of</str<strong>on</strong>g> EU MS and associated countries and third partner<br />

countries, should be a priority at several stages <str<strong>on</strong>g>of</str<strong>on</strong>g> such projects. Capacity building should<br />

be an element <str<strong>on</strong>g>of</str<strong>on</strong>g> joint efforts <strong>to</strong> address global challenges.<br />

In this c<strong>on</strong>text, <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing attenti<strong>on</strong> by <str<strong>on</strong>g>the</str<strong>on</strong>g> EU <strong>to</strong> address regi<strong>on</strong>s as a level (<strong>to</strong> better<br />

engage groups <str<strong>on</strong>g>of</str<strong>on</strong>g> countries in dialogues and cooperati<strong>on</strong>) deserves a comment. In line<br />

with a key argument in this <str<strong>on</strong>g>Report</str<strong>on</strong>g>, priorities should be based <strong>on</strong> challenges and <str<strong>on</strong>g>the</str<strong>on</strong>g>mes,<br />

while partner countries are seen as channels for implementati<strong>on</strong>. The EG does not see<br />

regi<strong>on</strong>s as channels for implementati<strong>on</strong> in this sense, but ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r as potential mechanisms<br />

for dialogue <strong>to</strong> address framework c<strong>on</strong>diti<strong>on</strong>s and include <strong>STI</strong> in wider political and<br />

diplomacy c<strong>on</strong>cerns. Approaching multiple countries for cooperati<strong>on</strong> within a given<br />

priority should give rise <strong>to</strong> (external) variable geometries with those that share those<br />

priorities.<br />

3) Support <str<strong>on</strong>g>the</str<strong>on</strong>g> implementati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> results <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> external S&T internati<strong>on</strong>alisati<strong>on</strong><br />

policy dialogue between <str<strong>on</strong>g>the</str<strong>on</strong>g> EC plus MS (variable geometry) and partner countries<br />

with whom <str<strong>on</strong>g>the</str<strong>on</strong>g> EC has a S&T agreement with <str<strong>on</strong>g>the</str<strong>on</strong>g> aim <strong>to</strong> implement <str<strong>on</strong>g>the</str<strong>on</strong>g> jointly<br />

developed roadmaps<br />

a) in bilateral settings<br />

b) which facilitate a str<strong>on</strong>ger participati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> excellent researchers in HORIZON<br />

2020 projects AND <str<strong>on</strong>g>the</str<strong>on</strong>g> participati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> excellent researchers from <str<strong>on</strong>g>the</str<strong>on</strong>g> EU in<br />

nati<strong>on</strong>al programmes <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> partner countries through different instruments<br />

(<str<strong>on</strong>g>the</str<strong>on</strong>g>matic workshops, procedural advisory services, promoti<strong>on</strong> activities etc.)<br />

c) in principle across all HORIZON 2020 priorities (but in practice limited by <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>matic or structural priorities agreed and stipulated by <str<strong>on</strong>g>the</str<strong>on</strong>g> S&T agreement<br />

under scrutiny)<br />

49


d) with operati<strong>on</strong>al and intellectual support for implementing structural and<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>matic activities which have been jointly agreed by <str<strong>on</strong>g>the</str<strong>on</strong>g> EC and <str<strong>on</strong>g>the</str<strong>on</strong>g> third<br />

partner country within <str<strong>on</strong>g>the</str<strong>on</strong>g>ir mutually agreed roadmaps<br />

e) promoting European research in <str<strong>on</strong>g>the</str<strong>on</strong>g> partner country and vice-versa<br />

f) financed jointly by <str<strong>on</strong>g>the</str<strong>on</strong>g> European Commissi<strong>on</strong> and <str<strong>on</strong>g>the</str<strong>on</strong>g> partner country with<br />

S&T agreement.<br />

4) Support <str<strong>on</strong>g>the</str<strong>on</strong>g> coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> research funding between <str<strong>on</strong>g>the</str<strong>on</strong>g> MS plus EC (variable<br />

geometry) and selected third partner countries through<br />

a) Internati<strong>on</strong>al co-funding or matching-funding activities (e.g. based <strong>on</strong> ERA-<br />

NETs, JP and twinning instruments)<br />

b) <str<strong>on</strong>g>the</str<strong>on</strong>g>matically addressing – but not necessarily limited <strong>to</strong> –global challenges<br />

c) a leverage effect in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> European value added and critical mass<br />

generati<strong>on</strong><br />

d) mutually agreed pr<str<strong>on</strong>g>of</str<strong>on</strong>g>essi<strong>on</strong>al research programming, funding and evaluati<strong>on</strong><br />

standards<br />

e) financing as a joint effort between <str<strong>on</strong>g>the</str<strong>on</strong>g> EC (coordinati<strong>on</strong>), <str<strong>on</strong>g>the</str<strong>on</strong>g> participating<br />

Member States and countries associated (research funding), as well as <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

participating internati<strong>on</strong>al partner countries (research funding);<br />

f) eventually <str<strong>on</strong>g>of</str<strong>on</strong>g>fering a financial <strong>to</strong>p-up <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EC <strong>to</strong> research funding (e.g. ERA-<br />

NET PLUS) provided that <str<strong>on</strong>g>the</str<strong>on</strong>g> HORIZON 2020 rules for participati<strong>on</strong> and<br />

financial regulati<strong>on</strong>s are – at least <strong>to</strong> a high extent – applied (see separate box<br />

below).<br />

Funding and spending mechanisms should c<strong>on</strong>tain c<strong>on</strong>tingency provisi<strong>on</strong>s and means<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> ensuring funding for multi-annual research projects. Provisi<strong>on</strong>s for accompanying<br />

measures (such as summer schools, <str<strong>on</strong>g>the</str<strong>on</strong>g>matic c<strong>on</strong>ferences, short-term mobility<br />

schemes <strong>to</strong> S&T infrastructures), which also include partners with less financial<br />

commitments, should be encouraged. Knowledge sharing and IP provisi<strong>on</strong>s should be<br />

adapted <strong>to</strong> each phase <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> collaborati<strong>on</strong> cycle.<br />

5) Support a few global strategic partnerships based <strong>on</strong> programmatic research<br />

coordinati<strong>on</strong> and capacity building between excellent R&D organisati<strong>on</strong>s from <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

EU and third partner countries<br />

a) through enhanced ERA-WIDE projects including elements <str<strong>on</strong>g>of</str<strong>on</strong>g> IRSES (subprogramme<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Marie Curie in FP7)<br />

b) with <str<strong>on</strong>g>the</str<strong>on</strong>g>matic or generic enabling functi<strong>on</strong>s for addressing global challenges<br />

(e.g. foresight <strong>on</strong> global challenges, social innovati<strong>on</strong> for global challenges,<br />

financial system’s observa<strong>to</strong>ry etc.)<br />

c) through a high leverage effect in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> intra- and extra-European<br />

networking/outreach<br />

d) especially with partner countries with whom <str<strong>on</strong>g>the</str<strong>on</strong>g> EC has a S&T agreement and<br />

with developing countries, where it is crucial <strong>to</strong> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n <str<strong>on</strong>g>the</str<strong>on</strong>g> instituti<strong>on</strong>al<br />

and pers<strong>on</strong>nel capacities<br />

50


e) funded by <str<strong>on</strong>g>the</str<strong>on</strong>g> EC (except with high-income partner countries, where a joint<br />

funding regime should be applied).<br />

Outreach from <str<strong>on</strong>g>the</str<strong>on</strong>g> research community <strong>to</strong> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r stakeholders should be a priority at<br />

several stages <str<strong>on</strong>g>of</str<strong>on</strong>g> any such project. Knowledge development and capacity building<br />

should be an element <str<strong>on</strong>g>of</str<strong>on</strong>g> joint efforts <strong>to</strong> address global challenges.<br />

Excursus: internati<strong>on</strong>al ERA-NETs<br />

Enhance <str<strong>on</strong>g>the</str<strong>on</strong>g> performance <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al ERA-NETs<br />

Verbeek and Shapira (2009) c<strong>on</strong>sider <str<strong>on</strong>g>the</str<strong>on</strong>g> integrati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> foreign ac<strong>to</strong>rs in<strong>to</strong> (collaborative)<br />

R&D programmes as a channel <strong>to</strong> absorb excellence through cooperati<strong>on</strong>. Since cooperati<strong>on</strong><br />

is based <strong>on</strong> voluntarily participati<strong>on</strong>, a str<strong>on</strong>g win-win-assumpti<strong>on</strong> prevails.<br />

With <str<strong>on</strong>g>the</str<strong>on</strong>g> support <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EC, groupings <str<strong>on</strong>g>of</str<strong>on</strong>g> Member States started <strong>to</strong> build - <strong>on</strong> basis <str<strong>on</strong>g>of</str<strong>on</strong>g> variable<br />

geometries - internati<strong>on</strong>al ERA-NETs as <str<strong>on</strong>g>of</str<strong>on</strong>g> FP6 <strong>to</strong> launch calls for proposals. Despite some<br />

shortcomings, this approach proved <strong>to</strong> be promising and should be c<strong>on</strong>tinued. It is, however,<br />

recommended <strong>to</strong> invest more efforts and resources, both by <str<strong>on</strong>g>the</str<strong>on</strong>g> EC, <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States and<br />

3 rd partner countries, <strong>to</strong> make this activity more sustainable and attractive and less pr<strong>on</strong>e <strong>to</strong><br />

ad-hocery.<br />

Thus, <str<strong>on</strong>g>the</str<strong>on</strong>g> expert group suggests<br />

• <strong>to</strong> c<strong>on</strong>tinue with <str<strong>on</strong>g>the</str<strong>on</strong>g> instrument <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al ERA-NETs under HORIZON 2020, but<br />

<strong>to</strong> grant a minimum durati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> 5 years by requesting <str<strong>on</strong>g>the</str<strong>on</strong>g> established internati<strong>on</strong>al ERA-<br />

NET c<strong>on</strong>sortia <strong>to</strong> launch regular calls for inclusi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> new partners before <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>cepti<strong>on</strong><br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> new calls for proposals;<br />

• <strong>to</strong> set as a principle that – by referring <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> subsidiarity principle - <str<strong>on</strong>g>the</str<strong>on</strong>g> coordinati<strong>on</strong> costs<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al ERA-NETs should be financed by <str<strong>on</strong>g>the</str<strong>on</strong>g> EC (eventually co-financed by<br />

some [post-]industrial third partner countries as regards flanking measures such as<br />

brokerage events etc.) and that <str<strong>on</strong>g>the</str<strong>on</strong>g> costs for projects funded under call for proposals<br />

launched by <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al ERA-NETs should be borne in essence by <str<strong>on</strong>g>the</str<strong>on</strong>g> participating<br />

countries;<br />

• if, however, <str<strong>on</strong>g>the</str<strong>on</strong>g> partners <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al ERA-NETs agree <strong>to</strong> adhere <str<strong>on</strong>g>the</str<strong>on</strong>g> HORIZON 2020<br />

rules for participati<strong>on</strong> and financial regulati<strong>on</strong>s, <str<strong>on</strong>g>the</str<strong>on</strong>g> EC should <strong>to</strong>p-up <str<strong>on</strong>g>the</str<strong>on</strong>g> call budgets<br />

with 50% (if <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a str<strong>on</strong>g alignment) respectively 20% (if <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a lighter alignment)<br />

(ERA-NET PLUS mechanism). Alignment criteria should be defined by <str<strong>on</strong>g>the</str<strong>on</strong>g> EC.<br />

6) Support internati<strong>on</strong>ally oriented European Lead Initiatives in <str<strong>on</strong>g>the</str<strong>on</strong>g>matic areas<br />

a) through scaling up existing research activities through enhanced coordinati<strong>on</strong><br />

b) based up<strong>on</strong> best practice <str<strong>on</strong>g>of</str<strong>on</strong>g> certain Member States identified by SFIC<br />

c) enhanced through mutual opening-up <str<strong>on</strong>g>of</str<strong>on</strong>g> research funding programmes <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

o<str<strong>on</strong>g>the</str<strong>on</strong>g>r Member States based <strong>on</strong> variable geometry<br />

d) including <str<strong>on</strong>g>the</str<strong>on</strong>g> establishment <str<strong>on</strong>g>of</str<strong>on</strong>g> a platform and <str<strong>on</strong>g>of</str<strong>on</strong>g> clustering activities<br />

51


e) with str<strong>on</strong>g overseas promoti<strong>on</strong> under <str<strong>on</strong>g>the</str<strong>on</strong>g> label <str<strong>on</strong>g>of</str<strong>on</strong>g> a European Lead Initiative<br />

f) financed jointly by <str<strong>on</strong>g>the</str<strong>on</strong>g> MS and <str<strong>on</strong>g>the</str<strong>on</strong>g> EC<br />

7) Establishment <str<strong>on</strong>g>of</str<strong>on</strong>g> feasibility studies and pilot activities <strong>to</strong> initiate several o<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

unilateral and/or (pilot) joint activities with Member States such as<br />

a) European Weeks <str<strong>on</strong>g>of</str<strong>on</strong>g> Science, Technology and Innovati<strong>on</strong><br />

b) Technology scouting activities<br />

c) Foreign liais<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g>fices<br />

d) Internati<strong>on</strong>al IPR c<strong>on</strong>sultancy<br />

e) Joint labs<br />

f) Negotiated access c<strong>on</strong>diti<strong>on</strong>s <strong>to</strong> foreign research infrastructures<br />

g) Diaspora activities<br />

h) European Summer Schools<br />

i) Funded by <str<strong>on</strong>g>the</str<strong>on</strong>g> EC and participating Member States (variable geometry).<br />

8) Besides <str<strong>on</strong>g>the</str<strong>on</strong>g> points 1-7 menti<strong>on</strong>ed above, which are specifically addressing <str<strong>on</strong>g>the</str<strong>on</strong>g> policy<br />

dialogue and its substantiati<strong>on</strong> and targeting, <str<strong>on</strong>g>the</str<strong>on</strong>g> entire H2020 funding portfolio should be<br />

used <strong>to</strong>o <strong>to</strong> stimulate internati<strong>on</strong>al RTDI cooperati<strong>on</strong> between researchers from academia<br />

and industry. However, internati<strong>on</strong>al RTDI cooperati<strong>on</strong> in <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>matic directi<strong>on</strong>s/lines <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

H2020 should be designed, explained and implemented in a more strategic manner and<br />

less ad hoc, scattered and under-critical than in FP7, enabling more sustainable and<br />

substantial RTDI results.<br />

52


The need for an evidence- and analysis-based<br />

strategy<br />

Promoting indica<strong>to</strong>rs and informati<strong>on</strong><br />

The EG sees informati<strong>on</strong> and data as a key resource <strong>to</strong> design and support defined elements<br />

and objectives in a strategy. Hence informati<strong>on</strong> and data, and its sharing, is not an end in<br />

itself, but a means <strong>to</strong> an end. For <str<strong>on</strong>g>the</str<strong>on</strong>g> design and implementati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> an EU internati<strong>on</strong>alisati<strong>on</strong><br />

strategy as outlined above, systematic data and analysis must specifically support (1) priority<br />

setting – as any strategic effort must make choices – and (2) <str<strong>on</strong>g>the</str<strong>on</strong>g> choice <str<strong>on</strong>g>of</str<strong>on</strong>g> partner countries<br />

and regi<strong>on</strong>s for each <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> priority areas (countries follow priorities, not <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r way<br />

round). It thus (3) underpins negotiati<strong>on</strong>s within ERA (between MS and <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong>) and<br />

with potential external partners and by doing so helps <strong>to</strong> create effective partnerships. It will<br />

also develop a new focus <strong>on</strong> (4) supporting internati<strong>on</strong>al innovative activities. This secti<strong>on</strong><br />

discusses <str<strong>on</strong>g>the</str<strong>on</strong>g> need and c<strong>on</strong>cepts for capturing data and informati<strong>on</strong> and for sharing it, with<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> ends <strong>to</strong> support internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> at EU level.<br />

The nature and origin <str<strong>on</strong>g>of</str<strong>on</strong>g> relevant data and informati<strong>on</strong> is heterogeneous. Informati<strong>on</strong> is ei<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

mainly based <strong>on</strong> standardised data linked <strong>to</strong> clearly defined indica<strong>to</strong>rs or it is more qualitative<br />

and idiosyncratic 20 . Underlying data can ei<str<strong>on</strong>g>the</str<strong>on</strong>g>r be collected centrally or it can be collected decentrally.<br />

Finally, data and informati<strong>on</strong> can ei<str<strong>on</strong>g>the</str<strong>on</strong>g>r be shared and provided for all or it can be<br />

d<strong>on</strong>e for specific, idiosyncratic purposes with limited value in sharing. The table below<br />

summarises <str<strong>on</strong>g>the</str<strong>on</strong>g> different situati<strong>on</strong>s and highlights <str<strong>on</strong>g>the</str<strong>on</strong>g> basic principles for data collecti<strong>on</strong> and<br />

informati<strong>on</strong> sharing.<br />

Indica<strong>to</strong>rs<br />

The basic rati<strong>on</strong>ale<br />

Indica<strong>to</strong>rs must support <str<strong>on</strong>g>the</str<strong>on</strong>g> three stated and agreed overall objectives <str<strong>on</strong>g>of</str<strong>on</strong>g> an EU<br />

internati<strong>on</strong>alisati<strong>on</strong> strategy for <strong>STI</strong>: streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n <strong>STI</strong> competitiveness, tackle global challenges<br />

and support external policies. Against this background, and in line with <str<strong>on</strong>g>the</str<strong>on</strong>g> main message <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

our report, <str<strong>on</strong>g>the</str<strong>on</strong>g> starting point for all development and use <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs must be <str<strong>on</strong>g>the</str<strong>on</strong>g> need for<br />

indica<strong>to</strong>r support for a European level <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> strategy. The starting<br />

20 A short principle clarificati<strong>on</strong> as <strong>to</strong> what we mean by informati<strong>on</strong>, data and indica<strong>to</strong>rs: Informati<strong>on</strong> is needed <strong>to</strong> make<br />

decisi<strong>on</strong>s. Informati<strong>on</strong> is based <strong>on</strong> data and indica<strong>to</strong>rs and interpretati<strong>on</strong>. Data are values <str<strong>on</strong>g>of</str<strong>on</strong>g> defined variables,<br />

quantitative or qualitative. In itself, data has no meaning, it must be interpreted, it is <str<strong>on</strong>g>the</str<strong>on</strong>g> raw material for indica<strong>to</strong>rs and<br />

informati<strong>on</strong>. Indica<strong>to</strong>rs are measures that refer <strong>to</strong> a clearly defined and measureable parameter and signify a specific<br />

phenomen<strong>on</strong> bey<strong>on</strong>d <str<strong>on</strong>g>the</str<strong>on</strong>g> parameter that is measured. Indica<strong>to</strong>rs are necessary <strong>to</strong> qualify and quantify a certain<br />

phenomen<strong>on</strong>, most <str<strong>on</strong>g>of</str<strong>on</strong>g>ten <strong>on</strong>e indica<strong>to</strong>r is not enough <strong>to</strong> do so, and indica<strong>to</strong>rs need <strong>to</strong> be interpreted with care (e.g. copublicati<strong>on</strong><br />

as <strong>on</strong>e indica<strong>to</strong>r for <str<strong>on</strong>g>the</str<strong>on</strong>g> level <str<strong>on</strong>g>of</str<strong>on</strong>g> cooperati<strong>on</strong>, and it means different things in different scientific areas or<br />

geographical regi<strong>on</strong>s). Informati<strong>on</strong> is data that is c<strong>on</strong>textualised, with data brought in<strong>to</strong> relati<strong>on</strong>s and interpreted<br />

following certain interpretative frames, informati<strong>on</strong> carries meaning. Indica<strong>to</strong>rs support <str<strong>on</strong>g>the</str<strong>on</strong>g> translati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> simple data<br />

in<strong>to</strong> informati<strong>on</strong>, but in itself are not enough. It is informati<strong>on</strong> that is <str<strong>on</strong>g>the</str<strong>on</strong>g> basis for acti<strong>on</strong> (Dasgupta and David 1992, 9),<br />

not data or indica<strong>to</strong>r itself.<br />

53


questi<strong>on</strong>s thus ought <strong>to</strong> be: what kind <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>r and data does a European approach <strong>to</strong><br />

internati<strong>on</strong>al <strong>STI</strong> need? Indica<strong>to</strong>r development is <str<strong>on</strong>g>the</str<strong>on</strong>g>refore not mainly about aggregating data<br />

obtained at Member State level. Ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r, <str<strong>on</strong>g>the</str<strong>on</strong>g> need at EU level determines what we need <strong>to</strong><br />

collect data for. The data collecti<strong>on</strong> itself can – and should – <str<strong>on</strong>g>of</str<strong>on</strong>g> course be d<strong>on</strong>e in a way that<br />

realises synergies with Member State activities and vice versa and it should avoid duplicati<strong>on</strong><br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> work. Thus, EU level indica<strong>to</strong>r development will have <strong>to</strong> take s<strong>to</strong>ck <str<strong>on</strong>g>of</str<strong>on</strong>g> what is being d<strong>on</strong>e<br />

at nati<strong>on</strong>al level and mechanisms should be in place that allow a sharing <str<strong>on</strong>g>of</str<strong>on</strong>g> data and<br />

informati<strong>on</strong> (see secti<strong>on</strong> below) and allowing for a basic level <str<strong>on</strong>g>of</str<strong>on</strong>g> comparability. Fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r, <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

indica<strong>to</strong>r system must be lean; following <str<strong>on</strong>g>the</str<strong>on</strong>g> principle that <strong>on</strong>ly those data are collected that<br />

are really needed for decisi<strong>on</strong> making.<br />

Table 2: Matrix for informati<strong>on</strong> collecti<strong>on</strong> and sharing<br />

Central<br />

collecti<strong>on</strong> and<br />

provisi<strong>on</strong><br />

De-central<br />

collecti<strong>on</strong><br />

Standardised, indica<strong>to</strong>r based<br />

Commissi<strong>on</strong>, Eurostat <strong>to</strong> collect data for<br />

a set <str<strong>on</strong>g>of</str<strong>on</strong>g> agreed indica<strong>to</strong>rs through central<br />

instruments (and where appropriate in<br />

cooperati<strong>on</strong> with OECD)<br />

MS collect data through nati<strong>on</strong>al<br />

agencies and <str<strong>on</strong>g>of</str<strong>on</strong>g>fices, and for an agreed<br />

set <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs send data <strong>to</strong> a EU<br />

organisati<strong>on</strong> <strong>to</strong> provide standardised<br />

data (can be d<strong>on</strong>e through SFIC and<br />

SFIC data subgroup).<br />

Idiosyncratic, policy practice,<br />

c<strong>on</strong>textual<br />

Commissi<strong>on</strong> collects “s<str<strong>on</strong>g>of</str<strong>on</strong>g>t”<br />

informati<strong>on</strong> and commissi<strong>on</strong>s studies<br />

where it is needed specific <strong>to</strong> its own<br />

strategies. Informati<strong>on</strong> and analysis<br />

open <strong>to</strong> all MS<br />

MS collect s<str<strong>on</strong>g>of</str<strong>on</strong>g>t informati<strong>on</strong> and share<br />

those parts where <str<strong>on</strong>g>the</str<strong>on</strong>g>re is comm<strong>on</strong><br />

agreement that sharing is in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

overall EU interest (d<strong>on</strong>e through<br />

SFIC).<br />

The discussi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs and processing needs <strong>to</strong> answer three key questi<strong>on</strong>s:<br />

1) What do we need indica<strong>to</strong>rs for at European level (functi<strong>on</strong>s), and which indica<strong>to</strong>rs<br />

are best suited <strong>to</strong> fulfil those selected functi<strong>on</strong>s (functi<strong>on</strong>al fit) 21 ?<br />

2) Who should define <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs and collect <str<strong>on</strong>g>the</str<strong>on</strong>g> data? Who uses <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs<br />

(ac<strong>to</strong>rs)?<br />

3) How are data collected, processed and shared (process)? What is needed <strong>on</strong> a regular<br />

and permanent basis, what capacities are needed for ad hoc initiatives?<br />

Which indica<strong>to</strong>rs are needed? Functi<strong>on</strong>s and levels <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs<br />

Indica<strong>to</strong>rs are important <strong>to</strong>ols for decisi<strong>on</strong> making in <strong>STI</strong> policy and <strong>STI</strong> strategy <str<strong>on</strong>g>of</str<strong>on</strong>g> research<br />

organisati<strong>on</strong>s and firms. There is a whole range <str<strong>on</strong>g>of</str<strong>on</strong>g> related but distinct functi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs.<br />

Four basic functi<strong>on</strong>s must be differentiated:<br />

21<br />

This will have <strong>to</strong> include questi<strong>on</strong>s regarding <str<strong>on</strong>g>the</str<strong>on</strong>g> limitati<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs.<br />

54


1) Understanding <str<strong>on</strong>g>the</str<strong>on</strong>g> status quo in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU’s <strong>STI</strong> pr<str<strong>on</strong>g>of</str<strong>on</strong>g>ile and <strong>STI</strong><br />

internati<strong>on</strong>alisati<strong>on</strong> activities: this helps <strong>to</strong> define <str<strong>on</strong>g>the</str<strong>on</strong>g> needs as starting point for <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

strategy (own competencies, gaps, needs as seen by various ac<strong>to</strong>rs within EU)<br />

2) Formulating targets, benchmarks <strong>to</strong> reach: this helps <strong>to</strong> define goals, <strong>to</strong> communicate<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> purpose <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al activities and <strong>to</strong> measure achievements later <strong>on</strong> (link <strong>to</strong><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>matic priorities <str<strong>on</strong>g>of</str<strong>on</strong>g> H2020). The targets must follow from <str<strong>on</strong>g>the</str<strong>on</strong>g> overall goals <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>alisati<strong>on</strong> strategies (in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> societal challenges and bottlenecks <strong>to</strong> be<br />

addressed and opportunities <strong>to</strong> be captured).<br />

3) Understand global bottlenecks (e.g. access <strong>to</strong> markets and infrastructure, legal<br />

obstacles <strong>to</strong> cooperati<strong>on</strong> etc.) and opportunities (<strong>STI</strong> pr<str<strong>on</strong>g>of</str<strong>on</strong>g>iles, “hot spots” abroad in<br />

light <str<strong>on</strong>g>of</str<strong>on</strong>g> rapidly changing global landscape): this helps <strong>to</strong> link <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>matic priorities<br />

defined <strong>to</strong> c<strong>on</strong>crete choices in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific and technological fields<br />

and in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> partner countries/regi<strong>on</strong>s (country follows priority) and it enables<br />

effective negotiati<strong>on</strong>s with partners.<br />

4) M<strong>on</strong>i<strong>to</strong>ring development and measuring <str<strong>on</strong>g>the</str<strong>on</strong>g> impact <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al activities and<br />

related public support <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

a. overall goals <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU <strong>STI</strong> policy strategy (in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> competitiveness,<br />

c<strong>on</strong>tributi<strong>on</strong> <strong>to</strong> tackle grand challenges and external policy support) and<br />

b. <str<strong>on</strong>g>the</str<strong>on</strong>g> stakeholders involved.<br />

The following figure is a graphical representati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> those four functi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs for <strong>STI</strong><br />

internati<strong>on</strong>alisati<strong>on</strong>.<br />

For strategic development, all four functi<strong>on</strong>s are important. However, an indica<strong>to</strong>r system for<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> future development <str<strong>on</strong>g>of</str<strong>on</strong>g> EU strategies in <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> should focus <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

bottlenecks within <str<strong>on</strong>g>the</str<strong>on</strong>g> status quo analysis, <strong>on</strong> opportunity structures <strong>to</strong> capture untapped areas<br />

for researchers and firms and, finally, <str<strong>on</strong>g>the</str<strong>on</strong>g> measurement <str<strong>on</strong>g>of</str<strong>on</strong>g> effects in order <strong>to</strong> m<strong>on</strong>i<strong>to</strong>r <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

support given and re-adjust <str<strong>on</strong>g>the</str<strong>on</strong>g> strategy as needed.<br />

The indica<strong>to</strong>rs we suggest in this report should focus <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> usefulness for <str<strong>on</strong>g>the</str<strong>on</strong>g> support <str<strong>on</strong>g>of</str<strong>on</strong>g> EU<br />

level policy strategy. However, in order <strong>to</strong> do so, indica<strong>to</strong>rs must also be able <strong>to</strong> capture<br />

internati<strong>on</strong>al opportunities, activities and internati<strong>on</strong>alisati<strong>on</strong> effects for different ac<strong>to</strong>r groups<br />

and at various levels: individual scientists (cooperati<strong>on</strong>, mobility, recogniti<strong>on</strong>), research<br />

organisati<strong>on</strong>s and firms (cooperati<strong>on</strong>, re-locati<strong>on</strong>, transfer), systems (EU level, country level).<br />

The latter also includes indica<strong>to</strong>rs <strong>on</strong> policy making itself (framework c<strong>on</strong>diti<strong>on</strong>s, support<br />

mechanisms and funding opportunities etc.).<br />

In c<strong>on</strong>sequence <str<strong>on</strong>g>of</str<strong>on</strong>g> this multi-functi<strong>on</strong>, multi ac<strong>to</strong>r framework, <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a number <str<strong>on</strong>g>of</str<strong>on</strong>g> potential<br />

indica<strong>to</strong>rs that could support <str<strong>on</strong>g>the</str<strong>on</strong>g> strategy process within <str<strong>on</strong>g>the</str<strong>on</strong>g> framework outlined is endless.<br />

We recommend<br />

• <strong>to</strong> limit a European system <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> minimum required <strong>to</strong> define priorities,<br />

design activities, negotiate with partners and measure success;<br />

55


• <strong>to</strong> build up <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>r system gradually, starting with those that are indispensible<br />

for decisi<strong>on</strong> making at EU level and which are readily available (quick wins);<br />

• <strong>to</strong> have a str<strong>on</strong>ger focus <strong>on</strong> innovati<strong>on</strong> related indica<strong>to</strong>rs than we had in <str<strong>on</strong>g>the</str<strong>on</strong>g> past - in<br />

line with a str<strong>on</strong>ger emphasis <strong>on</strong> innovati<strong>on</strong> and internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> firms’ <strong>STI</strong><br />

activities.<br />

Figure 5: Uses <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>r in policy making<br />

Indica<strong>to</strong>rs I<br />

Within <str<strong>on</strong>g>the</str<strong>on</strong>g> policy<br />

Indica<strong>to</strong>r II<br />

What is our <strong>STI</strong> positi<strong>on</strong>?<br />

Sec<strong>to</strong>ral policy<br />

developments?<br />

Drivers: why are<br />

internati<strong>on</strong>alisati<strong>on</strong><br />

policies set up?<br />

Indica<strong>to</strong>rs<br />

Attached <strong>to</strong> goals &<br />

targets<br />

What have<br />

we achieved?<br />

Objectives for<br />

internati<strong>on</strong>alisati<strong>on</strong><br />

policies<br />

Design Internat.<br />

policies + mechanisms<br />

Definiti<strong>on</strong> success<br />

and targets<br />

Indica<strong>to</strong>rs for<br />

measuring impact<br />

and success<br />

Implementati<strong>on</strong><br />

Strategic intelligence <strong>on</strong><br />

policies and<br />

<strong>STI</strong> capacities elsewhere<br />

Source: Edler/Flanagan 2011; Boekholt et al 2009<br />

One final clarificati<strong>on</strong> is needed: For many indica<strong>to</strong>rs it would be desirable <strong>to</strong> have both <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

intra- and extra-European dimensi<strong>on</strong> <strong>to</strong> understand <str<strong>on</strong>g>the</str<strong>on</strong>g> relative importance <str<strong>on</strong>g>of</str<strong>on</strong>g> n<strong>on</strong>-EU vs.<br />

intra-EU activities. While we believe that it is crucial <strong>to</strong> understand <str<strong>on</strong>g>the</str<strong>on</strong>g> level <str<strong>on</strong>g>of</str<strong>on</strong>g> cross border<br />

and trans-nati<strong>on</strong>al activities within Europe (as is d<strong>on</strong>e in <str<strong>on</strong>g>the</str<strong>on</strong>g> emerging ERA indica<strong>to</strong>r<br />

framework), an EU strategy for internati<strong>on</strong>alisati<strong>on</strong> must focus in additi<strong>on</strong> <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> extra-EU<br />

dimensi<strong>on</strong> and be linked in with <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA indica<strong>to</strong>r framework.<br />

Key indica<strong>to</strong>rs for a European internati<strong>on</strong>alisati<strong>on</strong> strategy22<br />

In this secti<strong>on</strong> we list selected indica<strong>to</strong>rs al<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> various ac<strong>to</strong>r groups and levels which <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

group thinks are <str<strong>on</strong>g>of</str<strong>on</strong>g> vital importance for a mid- and l<strong>on</strong>g-term <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong><br />

strategy. For each set <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs we will indicate <str<strong>on</strong>g>the</str<strong>on</strong>g> priority in order <strong>to</strong> signal where <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

EG thinks acti<strong>on</strong> should start.<br />

Individual Scientists<br />

22<br />

The compilati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs draws <strong>on</strong> Edler/Flanagan 2009 and 2011 and Schuch 2011<br />

56


Scientific collaborati<strong>on</strong>: (priority medium, lots <str<strong>on</strong>g>of</str<strong>on</strong>g> data available already, but important <strong>to</strong><br />

understand status quo <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al activities)<br />

• Co-Publicati<strong>on</strong> and co-inventi<strong>on</strong>s (applicati<strong>on</strong>s, granted) <str<strong>on</strong>g>of</str<strong>on</strong>g> EU and n<strong>on</strong> EU partners<br />

authors (absolute numbers, relative shares, differentiated for knowledge areas,<br />

analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> partner countries). 23<br />

• Citati<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> extra-EU collaborati<strong>on</strong>s (vs. intra-EU or n<strong>on</strong>-collaborative papers),<br />

development over time<br />

Financing: (priority low) Publicati<strong>on</strong>s from projects funded by n<strong>on</strong> EU funding sources 24<br />

The data for those indica<strong>to</strong>rs should be compiled and analysed <strong>on</strong> a regular basis through inhouse<br />

capacities (DG Research or JRC IPTS) or outsourced <strong>to</strong> a regular data provider.<br />

Mobility: (priority high as competiti<strong>on</strong> or talent is a major challenge)<br />

Indica<strong>to</strong>rs should capture mobility (intended for limited durati<strong>on</strong>) and migrati<strong>on</strong> (in principle<br />

open by nature) <str<strong>on</strong>g>of</str<strong>on</strong>g> public and private researchers. Given <str<strong>on</strong>g>the</str<strong>on</strong>g> importance <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> availability <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

talent in <str<strong>on</strong>g>the</str<strong>on</strong>g> decades <strong>to</strong> come, <str<strong>on</strong>g>the</str<strong>on</strong>g>re should be a focus <strong>on</strong> PhD and early stage career<br />

researchers, inward, outward. Data should enable country and field specific analysis.<br />

Indica<strong>to</strong>rs <strong>on</strong> mobility should build <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> work d<strong>on</strong>e in <str<strong>on</strong>g>the</str<strong>on</strong>g> EU funded project IISER<br />

(Integrated Informati<strong>on</strong> System <strong>on</strong> European Researchers 25 ). The IISER indica<strong>to</strong>r set covers<br />

researcher s<strong>to</strong>cks (general and early stage), research careers and researcher mobility (intra-<br />

EU, in<strong>to</strong> and out <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU).<br />

As <str<strong>on</strong>g>the</str<strong>on</strong>g> instruments are in place at EU level for most <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> data, data for those indica<strong>to</strong>rs<br />

should be compiled and analysed in a European wide database, building up<strong>on</strong> existing<br />

activities.<br />

Research Organisati<strong>on</strong> (medium priority)<br />

Data for research organisati<strong>on</strong> (PRO and Universities) is very scattered and n<strong>on</strong>-systematic<br />

across Europe. Every ambiti<strong>on</strong> must take this in<strong>to</strong> account. We thus recommend starting with<br />

a simple list <str<strong>on</strong>g>of</str<strong>on</strong>g> key indica<strong>to</strong>rs <strong>to</strong> understand dynamics and effects <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al activities<br />

and relati<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> organisati<strong>on</strong>s. 26<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> projects with n<strong>on</strong> EU partners<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> project and licencing income coming from n<strong>on</strong> EU sources<br />

• Number, locati<strong>on</strong> and size/importance <str<strong>on</strong>g>of</str<strong>on</strong>g> labs in n<strong>on</strong>-EU countries<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> employed research staff coming from n<strong>on</strong> EU countries<br />

23<br />

24<br />

25<br />

26<br />

An analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> numbers and trends should be accompanied by a selected analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> patent values, i.e. linked<br />

<strong>to</strong> licensing income.<br />

Can be analysed via Web <str<strong>on</strong>g>of</str<strong>on</strong>g> Science, as this data is available now <strong>on</strong> a regular basis.<br />

More informati<strong>on</strong> <strong>on</strong> this project can be found at: http://ipts.jrc.ec.europa.eu/activities/research-andinnovati<strong>on</strong>/iiser.cfm<br />

This list does not c<strong>on</strong>tain as yet so called strategic “positi<strong>on</strong>ing indica<strong>to</strong>rs” (Lepori et al. 2008, Barré 2006)<br />

which indicate <str<strong>on</strong>g>the</str<strong>on</strong>g> positi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> organisati<strong>on</strong>s within <str<strong>on</strong>g>the</str<strong>on</strong>g>ir system and vis-à-vis o<str<strong>on</strong>g>the</str<strong>on</strong>g>r organisati<strong>on</strong>s (such as <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

existence <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> strategies etc.).<br />

57


• Qualitative assessment <str<strong>on</strong>g>of</str<strong>on</strong>g> trends through leading research managers (countries,<br />

importance <str<strong>on</strong>g>of</str<strong>on</strong>g> industry as partners)<br />

There is no reliable reporting system across Europe in place <strong>to</strong> compile this data. The data for<br />

those indica<strong>to</strong>rs could be compiled through a simple electr<strong>on</strong>ic annual m<strong>on</strong>i<strong>to</strong>ring survey with<br />

organisati<strong>on</strong>s across Europe; it could also be linked <strong>to</strong> existing endeavours <strong>to</strong> measure<br />

research activities <str<strong>on</strong>g>of</str<strong>on</strong>g> organisati<strong>on</strong>s.<br />

Firms and innovati<strong>on</strong> activities (medium <strong>to</strong> high priority as innovati<strong>on</strong> internati<strong>on</strong>alisati<strong>on</strong><br />

is a new focus)<br />

While internati<strong>on</strong>al R&D <str<strong>on</strong>g>of</str<strong>on</strong>g> firms has been a hot <strong>to</strong>pic in academic research, and while a few<br />

countries have a very elaborate annual reporting system <strong>on</strong> industrial R&D (such as<br />

Germany), uniform and pan-European indica<strong>to</strong>rs for activities and opportunities <str<strong>on</strong>g>of</str<strong>on</strong>g> firms are<br />

scarce. Therefore, <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs we suggest here are moderate <strong>to</strong> start with, but this report<br />

suggests building up more thorough indica<strong>to</strong>rs and data for innovati<strong>on</strong> activities. Those are<br />

important <strong>to</strong> understand weaknesses and strength <str<strong>on</strong>g>of</str<strong>on</strong>g> European as a locati<strong>on</strong> and European<br />

based firms as innovati<strong>on</strong> ac<strong>to</strong>rs and <strong>to</strong> see developments over time.<br />

We build <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> assumpti<strong>on</strong> that a new, specialised pan-European survey system for firms is<br />

not practicable. However, next <strong>to</strong> existing databases (e.g. patents, foreign investments<br />

(statistical <str<strong>on</strong>g>of</str<strong>on</strong>g>fices)) <str<strong>on</strong>g>the</str<strong>on</strong>g> regular CIS survey should be expanded <strong>to</strong> include some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

variables below.<br />

• Bottleneck and need survey mobilising existing channels (at nati<strong>on</strong>al level, see below)<br />

(we suggest <strong>to</strong> give this line <str<strong>on</strong>g>of</str<strong>on</strong>g> analysis highest priority)<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> business R&D (share <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D expenditure) performed by n<strong>on</strong> EU MNEs<br />

(nati<strong>on</strong>al statistical <str<strong>on</strong>g>of</str<strong>on</strong>g>fices) within European countries<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> affiliates under foreign (n<strong>on</strong>-European) c<strong>on</strong>trol in <str<strong>on</strong>g>the</str<strong>on</strong>g> business sec<strong>to</strong>r<br />

(nati<strong>on</strong>al statistical <str<strong>on</strong>g>of</str<strong>on</strong>g>fices) within European Member States<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D <str<strong>on</strong>g>of</str<strong>on</strong>g> affiliates outside Europe as percentage <str<strong>on</strong>g>of</str<strong>on</strong>g> expenditure in Europe<br />

(CIS)<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D workers <str<strong>on</strong>g>of</str<strong>on</strong>g> European based companies located outside EU (CIS),<br />

compared <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> share <str<strong>on</strong>g>of</str<strong>on</strong>g> overall staff located outside Europe.<br />

• Number <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D labs <str<strong>on</strong>g>of</str<strong>on</strong>g> European companies outside Europe (locati<strong>on</strong>s), (CIS)<br />

• Geographical origin <str<strong>on</strong>g>of</str<strong>on</strong>g> external source for innovati<strong>on</strong>: differentiati<strong>on</strong> for EU and n<strong>on</strong><br />

EU sources (CIS)<br />

• Number / share <str<strong>on</strong>g>of</str<strong>on</strong>g> technological collaborati<strong>on</strong>s with n<strong>on</strong> EU partners (alliances and<br />

project specific, firms and public organisati<strong>on</strong>s a partners) (CIS)<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> patents with co-inven<strong>to</strong>r from n<strong>on</strong> EU countries (country and technology<br />

area analysis) (regular m<strong>on</strong>i<strong>to</strong>ring, EU, service provider)<br />

• Internati<strong>on</strong>al licensing income (share from n<strong>on</strong> EU income) and technological balance<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> payment<br />

58


• Internati<strong>on</strong>al acquisiti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> firms in technology intensive areas<br />

The indica<strong>to</strong>rs so far are traditi<strong>on</strong>al indica<strong>to</strong>rs that capture important dimensi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

internati<strong>on</strong>alisati<strong>on</strong>. One caveat <str<strong>on</strong>g>of</str<strong>on</strong>g> this list is that <str<strong>on</strong>g>the</str<strong>on</strong>g>y do not reflect <str<strong>on</strong>g>the</str<strong>on</strong>g> breadth <str<strong>on</strong>g>of</str<strong>on</strong>g> innovati<strong>on</strong><br />

activities, and <str<strong>on</strong>g>the</str<strong>on</strong>g>y do represent innovati<strong>on</strong> activities differently for different sec<strong>to</strong>rs. As <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>al innovati<strong>on</strong> dimensi<strong>on</strong> is becoming more important, we suggest <strong>to</strong> explore and<br />

develop new types <str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs. This explorati<strong>on</strong> should receive high priority as it promises<br />

<strong>to</strong> add value <strong>to</strong> understanding new trends and relevant dimensi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> innovati<strong>on</strong><br />

internati<strong>on</strong>alisati<strong>on</strong>. Examples <str<strong>on</strong>g>of</str<strong>on</strong>g> those indica<strong>to</strong>rs <strong>to</strong> be developed are:<br />

• De fac<strong>to</strong> standards, an indicati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> technological leadership, determining <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

producti<strong>on</strong> and diffusi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> innovati<strong>on</strong>. Those de fac<strong>to</strong> standards are hard <strong>to</strong> capture<br />

systematically, analytical work could be d<strong>on</strong>e by <str<strong>on</strong>g>the</str<strong>on</strong>g> EU <strong>to</strong> establish processes <strong>to</strong><br />

capture <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> de fac<strong>to</strong> standards.<br />

• Level <str<strong>on</strong>g>of</str<strong>on</strong>g> involvement and leadership in standardisati<strong>on</strong> bodies, such as number <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

chairs in standardisati<strong>on</strong> bodies coming from different countries. 27 This measure<br />

indicates leadership and involvement at internati<strong>on</strong>al scale.<br />

Existing caveats for innovati<strong>on</strong> measurement: We need <strong>to</strong> stress that this report focuses <strong>on</strong><br />

key <strong>STI</strong> indica<strong>to</strong>rs. The discussi<strong>on</strong> here does not encompass two important dimensi<strong>on</strong>s that,<br />

for a holistic development <str<strong>on</strong>g>of</str<strong>on</strong>g> an <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> strategy, should be c<strong>on</strong>sidered in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

future (medium priority):<br />

• <str<strong>on</strong>g>the</str<strong>on</strong>g> scope and relative strength <str<strong>on</strong>g>of</str<strong>on</strong>g> producti<strong>on</strong> and value added in different areas. An<br />

overall strategy that also focuses <strong>on</strong> innovati<strong>on</strong> must take producti<strong>on</strong> and<br />

competitiveness indica<strong>to</strong>rs in<strong>to</strong> account. We suggest <strong>to</strong> link indica<strong>to</strong>r work <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

valuable work <strong>on</strong> key enabling technologies (KET) 28 , i.e. <strong>to</strong> link patent and<br />

publicati<strong>on</strong>s analysis with analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> market share <str<strong>on</strong>g>of</str<strong>on</strong>g> certain innovative products or<br />

technologies – depending <strong>on</strong> strategic interests.<br />

• <str<strong>on</strong>g>the</str<strong>on</strong>g> demand c<strong>on</strong>diti<strong>on</strong>s for innovati<strong>on</strong>, i.e. <str<strong>on</strong>g>the</str<strong>on</strong>g> readiness <str<strong>on</strong>g>of</str<strong>on</strong>g> markets <strong>to</strong> trigger and<br />

absorb innovati<strong>on</strong>s. The more favourable demand for innovati<strong>on</strong> is in an area, <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

more likely it is that innovati<strong>on</strong> generati<strong>on</strong> and spill over innovati<strong>on</strong>s (complementary<br />

services and products) will also happen in this area. Especially in ICT and internet<br />

based products and services forefr<strong>on</strong>t demand and co-development <str<strong>on</strong>g>of</str<strong>on</strong>g> innovati<strong>on</strong>s are<br />

closely linked. Thus, data <strong>on</strong> market entry and diffusi<strong>on</strong> patterns should be made<br />

available <strong>to</strong> understand geographical differences in diffusi<strong>on</strong> and understand where<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> test markets for innovati<strong>on</strong>s are in different areas. This is crucial for any<br />

internati<strong>on</strong>al activity that is market oriented.<br />

Funding, policy and framework c<strong>on</strong>diti<strong>on</strong>s within EU and in selected compara<strong>to</strong>r<br />

countries / regi<strong>on</strong>s<br />

27<br />

28<br />

The group is grateful <strong>to</strong> Pr<str<strong>on</strong>g>of</str<strong>on</strong>g>. Knut Blind, Berlin, for this suggesti<strong>on</strong>.<br />

See http://ec.europa.eu/enterprise/sec<strong>to</strong>rs/ict/key_technologies/kets_high_level_group_en.htm<br />

59


The development <str<strong>on</strong>g>of</str<strong>on</strong>g> a strategy at EU level must be built <strong>on</strong> a sound knowledge <str<strong>on</strong>g>of</str<strong>on</strong>g> existing<br />

funding patterns and policy driven initiatives, at nati<strong>on</strong>al and EU level. This analysis is not<br />

solely indica<strong>to</strong>rs based, but as for indica<strong>to</strong>rs, <str<strong>on</strong>g>the</str<strong>on</strong>g> following are suggested:<br />

Funding (medium priority):<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> public R&D programme and Research Council spent <strong>on</strong> n<strong>on</strong> EU partners, if<br />

possible for fields (indica<strong>to</strong>r need: a systematic overview does not yet exist)<br />

• Funding income for firms and research organisati<strong>on</strong>s from n<strong>on</strong> EU sources (if<br />

possible for sec<strong>to</strong>rs and fields)<br />

• Share <str<strong>on</strong>g>of</str<strong>on</strong>g> and opportunities in funding programmes open <strong>to</strong> n<strong>on</strong> EU participati<strong>on</strong>,<br />

including all instruments set up at EU level (JPI, ERA-NET calls etc.)<br />

A European status quo analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific and technological strengths and a European<br />

aggregati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> data captured for <str<strong>on</strong>g>the</str<strong>on</strong>g> dimensi<strong>on</strong>s above should be enabled by <str<strong>on</strong>g>the</str<strong>on</strong>g>se kinds<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> indica<strong>to</strong>rs (where data comes from nati<strong>on</strong>al sources) (high priority)<br />

Hot spot analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> n<strong>on</strong> EU countries (high priority): Understanding <str<strong>on</strong>g>of</str<strong>on</strong>g> opportunities and<br />

threats for a European <strong>STI</strong> strategic should include a system <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific and technological<br />

field specific analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> hot spots outside <str<strong>on</strong>g>the</str<strong>on</strong>g> EU <strong>to</strong> help <strong>to</strong> identify excellent individuals and<br />

organisati<strong>on</strong>s / firms as well as a system <strong>to</strong> understand <str<strong>on</strong>g>the</str<strong>on</strong>g> public spending patterns for those<br />

selected areas (in order <strong>to</strong> detect future strengths and future cooperati<strong>on</strong> possibilities). This<br />

hot spot analysis should get high priority, but, as stated above, must focus <strong>on</strong> those areas that<br />

have been identified as priorities for internati<strong>on</strong>al activities ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than start with country<br />

priorities.<br />

Informati<strong>on</strong> and data sharing<br />

Basic principles<br />

The sharing <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> and data follows out <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> needs at EU level. Ideally, <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

mechanisms developed will also help Member States in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir internati<strong>on</strong>alisati<strong>on</strong> activities,<br />

informati<strong>on</strong> sharing will thus be a two way street, but <str<strong>on</strong>g>the</str<strong>on</strong>g> focus is: how can partners share<br />

informati<strong>on</strong> in a way that makes EU level policy more effective and efficient and in doing so<br />

also supports MS activities?<br />

Data and informati<strong>on</strong> can be shared that has been collected centrally or that is distributed.<br />

The latter c<strong>on</strong>cerns informati<strong>on</strong> and data that are generated and collected in a dispersed<br />

fashi<strong>on</strong> without a central coordinati<strong>on</strong>, but that may, for aggregate benefits at European level,<br />

be shared. It is obvious that <str<strong>on</strong>g>the</str<strong>on</strong>g>re will be much more informati<strong>on</strong> available <strong>on</strong> nati<strong>on</strong>al level,<br />

at Commissi<strong>on</strong> level, am<strong>on</strong>g R&D organisati<strong>on</strong>s etc, than should or could be shared am<strong>on</strong>g<br />

principle policy makers at European level. Hence, a key principle for informati<strong>on</strong> sharing will<br />

be that it should be purpose led.<br />

Data ga<str<strong>on</strong>g>the</str<strong>on</strong>g>ring and sharing for <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs suggested<br />

In terms <str<strong>on</strong>g>of</str<strong>on</strong>g> data for <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs <str<strong>on</strong>g>the</str<strong>on</strong>g> following principles are suggested:<br />

60


• a collaborati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> DG Commissi<strong>on</strong> services (DG Research, JRC IPTS), EUROSTAT<br />

(through adjusting regular reporting by nati<strong>on</strong>al <str<strong>on</strong>g>of</str<strong>on</strong>g>fices, through support <str<strong>on</strong>g>of</str<strong>on</strong>g> patent and<br />

publicati<strong>on</strong> analysis) and Member States activities that are reported through<br />

appropriate channels such as SFIC (see above, secti<strong>on</strong> <strong>on</strong> EC – MS coordinati<strong>on</strong>).<br />

• An adjustment <str<strong>on</strong>g>of</str<strong>on</strong>g> analytical <strong>to</strong>ols <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> pressing need <str<strong>on</strong>g>of</str<strong>on</strong>g> improved internati<strong>on</strong>alisati<strong>on</strong><br />

(such as enlargement and adaptati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> CIS survey)<br />

The European Commissi<strong>on</strong> should have <str<strong>on</strong>g>the</str<strong>on</strong>g> main resp<strong>on</strong>sibility<br />

• <strong>to</strong> build up capacity for bottleneck and opportunity analysis in areas where <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a<br />

broader need (not specific for individual firms) (high priority)<br />

• <strong>to</strong> capture internati<strong>on</strong>al activities across all EU (co-)funded instruments and<br />

• <strong>to</strong> influence EU level and financed instruments <strong>to</strong> better capture internati<strong>on</strong>al<br />

activities (eg. CIS) (high priority)<br />

• <strong>to</strong> actively support and coordinate data capture <str<strong>on</strong>g>of</str<strong>on</strong>g> Member States for EU purposes<br />

(high priority)<br />

• <strong>to</strong> set up a regular EU level specific publicati<strong>on</strong> and patent analysis (medium priority)<br />

Co-ordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Member States activities cannot be a command and c<strong>on</strong>trol fashi<strong>on</strong>. Ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

we str<strong>on</strong>gly recommend that SFIC is mandated with establishing an indica<strong>to</strong>r and data subgroup<br />

that is linked <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> key data ga<str<strong>on</strong>g>the</str<strong>on</strong>g>ring units in <str<strong>on</strong>g>the</str<strong>on</strong>g> various Member States and<br />

establishes a flow <str<strong>on</strong>g>of</str<strong>on</strong>g> data. As <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>r needs as outlined in this report are limited <strong>to</strong> basic<br />

requirements, for most <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs data already should exist and updated <strong>on</strong> a regular<br />

basis.<br />

SFIC and <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> should also collaborate <strong>to</strong> develop joint guidelines and standards<br />

for “positi<strong>on</strong>ing indica<strong>to</strong>rs”, e.g. indica<strong>to</strong>rs that capture <str<strong>on</strong>g>the</str<strong>on</strong>g> strategic and operati<strong>on</strong>al activities<br />

and relative positi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> organisati<strong>on</strong>s in <str<strong>on</strong>g>the</str<strong>on</strong>g> global <strong>STI</strong> system. 29<br />

As regards <str<strong>on</strong>g>the</str<strong>on</strong>g> data collecti<strong>on</strong> process for those indica<strong>to</strong>rs, <str<strong>on</strong>g>the</str<strong>on</strong>g>re are two basic ways forward:<br />

1) use and enlarge existing survey (CIS and S&T[Frascati]-surveys)<br />

2) make a separate standardised inquiry (which has – next <strong>to</strong> some disadvantages – also<br />

<strong>on</strong>e basic advantage: S&T policy makers and also agencies can be directly addressed,<br />

which is not <str<strong>on</strong>g>the</str<strong>on</strong>g> case in <str<strong>on</strong>g>the</str<strong>on</strong>g> CIS and S&T-surveys; agencies and ministries can<br />

provide data about internati<strong>on</strong>al participati<strong>on</strong> in nati<strong>on</strong>al programmes;<br />

intergovernmental S&T programmes; share <str<strong>on</strong>g>of</str<strong>on</strong>g> nati<strong>on</strong>al funding going abroad etc.)<br />

We also need <strong>to</strong> stress that a European approach needs <strong>to</strong> rest <strong>on</strong> two pillars: a standing list <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

indica<strong>to</strong>rs for which regular data should be compiled, and <str<strong>on</strong>g>the</str<strong>on</strong>g> possibility <strong>to</strong> perform ad hoc<br />

studies <strong>to</strong> underpin a specific technological or country related strategy. Relevant capacity, inhouse<br />

or through c<strong>on</strong>tracts with external service providers, should be at <str<strong>on</strong>g>the</str<strong>on</strong>g> disposal <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

EU Commissi<strong>on</strong> DG Research and Innovati<strong>on</strong>.<br />

29<br />

In Boekholt et al (2009) http://ec.europa.eu/research/iscp/pdf/drivers_sti.pdf <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a l<strong>on</strong>g table (p. 43 <strong>to</strong><br />

46) with ideas regarding divisi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> labour.<br />

61


Informati<strong>on</strong> sharing <strong>to</strong> support <str<strong>on</strong>g>the</str<strong>on</strong>g> “policy cycle” in <strong>STI</strong> collaborati<strong>on</strong><br />

Principles<br />

Next <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs discussed above, <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a need for sharing more qualitative, policy<br />

related informati<strong>on</strong> <strong>to</strong> support <str<strong>on</strong>g>the</str<strong>on</strong>g> “policy-cycle” <str<strong>on</strong>g>of</str<strong>on</strong>g> specific <strong>STI</strong> collaborati<strong>on</strong>s. Of course,<br />

while <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>rs captured above will support this cycle model, we focus <strong>on</strong> c<strong>on</strong>textualised<br />

and policy related informati<strong>on</strong> here <strong>to</strong> illustrate <str<strong>on</strong>g>the</str<strong>on</strong>g> need for additi<strong>on</strong>al informati<strong>on</strong> and<br />

principles for informati<strong>on</strong> sharing al<strong>on</strong>g a simplified cycle model, in this c<strong>on</strong>text seen as: 30<br />

• Agenda and priority setting<br />

• Partnering<br />

• Implementati<strong>on</strong><br />

• Evaluati<strong>on</strong> and m<strong>on</strong>i<strong>to</strong>ring<br />

Sharing distributed informati<strong>on</strong> am<strong>on</strong>g European partners will support partnerships and<br />

priority setting, as well as activities that are launched by partners in each case. Such<br />

informati<strong>on</strong> is widespread am<strong>on</strong>g partners, and it should be based <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> need <strong>to</strong> c<strong>on</strong>tain<br />

transacti<strong>on</strong> costs for those involved and avoid costs related <strong>to</strong> generic, n<strong>on</strong>-purpose<br />

informati<strong>on</strong> sharing. As with indica<strong>to</strong>rs, informati<strong>on</strong> sharing needs <strong>to</strong> be lean and built <strong>on</strong> a<br />

need <strong>to</strong> know basis <strong>to</strong> avoid informati<strong>on</strong> overload and overloading partners <strong>to</strong> a degree that<br />

undermines <str<strong>on</strong>g>the</str<strong>on</strong>g> key motivati<strong>on</strong>s for informati<strong>on</strong> sharing in <str<strong>on</strong>g>the</str<strong>on</strong>g> first place, priority setting and<br />

partnering.<br />

Agenda and priority setting<br />

This c<strong>on</strong>cerns <str<strong>on</strong>g>the</str<strong>on</strong>g> early stage <str<strong>on</strong>g>of</str<strong>on</strong>g> a given activity where <str<strong>on</strong>g>the</str<strong>on</strong>g> “net” needs <strong>to</strong> be cast more<br />

broadly. Informati<strong>on</strong> that have a bearing <strong>on</strong> setting strategic agendas and <str<strong>on</strong>g>the</str<strong>on</strong>g>nce priorities<br />

should c<strong>on</strong>tain <str<strong>on</strong>g>the</str<strong>on</strong>g> quality <str<strong>on</strong>g>of</str<strong>on</strong>g> being able <strong>to</strong> help discriminate between strategic opti<strong>on</strong>s and<br />

differentiate between scenarios <str<strong>on</strong>g>of</str<strong>on</strong>g> costs and benefits <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>se opti<strong>on</strong>s. Informati<strong>on</strong> sharing in<br />

this c<strong>on</strong>text will include:<br />

• Informati<strong>on</strong> related <strong>to</strong> global challenges, e.g. climate change, energy balances and<br />

c<strong>on</strong>sumpti<strong>on</strong>, food security and health issues. The informati<strong>on</strong> should c<strong>on</strong>tain <strong>STI</strong>related<br />

items <strong>to</strong> ensure that it is internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong> <strong>to</strong> help meet <str<strong>on</strong>g>the</str<strong>on</strong>g>se<br />

challenges that are generated and shared. Partners in EU-level <strong>STI</strong> cooperati<strong>on</strong> should<br />

make relevant nati<strong>on</strong>al or o<str<strong>on</strong>g>the</str<strong>on</strong>g>rwise distributed informati<strong>on</strong> available <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

respective web-sites.<br />

• Science Counsellors (or equivalent) in priority countries should share <str<strong>on</strong>g>the</str<strong>on</strong>g>ir respective<br />

informati<strong>on</strong> <strong>on</strong> strategic issues, percepti<strong>on</strong>s and analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> a given country’s <strong>STI</strong><br />

agenda, key challenges that warrant <strong>STI</strong> policies and strategies. Science Counsellors<br />

should also engage in cooperati<strong>on</strong> <strong>to</strong> achieve c<strong>on</strong>certed reporting <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir principles,<br />

including <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong>.<br />

30 See e.g. «Innovati<strong>on</strong> Governance», OECD 2005, Paris.<br />

62


• Informati<strong>on</strong> <strong>on</strong> nati<strong>on</strong>al priorities or initiatives for internati<strong>on</strong>al cooperati<strong>on</strong> that may<br />

benefit from a broader European cooperati<strong>on</strong> <strong>to</strong> achieve stated objectives.<br />

• Sharing forward-looking informati<strong>on</strong> such as trends, market developments, strategic<br />

intelligence developed at nati<strong>on</strong>al level.<br />

• Sharing informati<strong>on</strong> am<strong>on</strong>g sec<strong>to</strong>rial ministries/DGs where internati<strong>on</strong>al cooperati<strong>on</strong><br />

in <strong>STI</strong> may c<strong>on</strong>tribute <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir respective objectives.<br />

Partnering<br />

Partnering involves both <str<strong>on</strong>g>the</str<strong>on</strong>g> generati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> European partners, <str<strong>on</strong>g>of</str<strong>on</strong>g>ten in a variable geometry, as<br />

well as potential foreign partners in a multilateral setting or external variable geometry.<br />

Informati<strong>on</strong> sharing follows <str<strong>on</strong>g>the</str<strong>on</strong>g> needs arising from <str<strong>on</strong>g>the</str<strong>on</strong>g> processes <str<strong>on</strong>g>of</str<strong>on</strong>g> deciding <strong>on</strong> joint acti<strong>on</strong>s<br />

after priority setting has been achieved (this is <strong>to</strong> be seen in c<strong>on</strong>juncti<strong>on</strong> with <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

recommendati<strong>on</strong>s given in <str<strong>on</strong>g>the</str<strong>on</strong>g> secti<strong>on</strong> above <strong>on</strong> recommendati<strong>on</strong>s <strong>on</strong> partnerships):<br />

• Informati<strong>on</strong> <strong>on</strong> current programmes and initiatives in <str<strong>on</strong>g>the</str<strong>on</strong>g> relevant areas<br />

(<str<strong>on</strong>g>the</str<strong>on</strong>g>matic/geographic) with a view <strong>to</strong> produce a map <str<strong>on</strong>g>of</str<strong>on</strong>g> existing efforts and help<br />

define what specific value could be added from joining efforts (this relates <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> need<br />

for global country policy and financing analyses outlined above).<br />

• More in-depth informati<strong>on</strong> (including evaluati<strong>on</strong> reports) <strong>on</strong> best/good practice<br />

cooperative programmes that may serve as “lead initiatives” <strong>on</strong> which <strong>to</strong> expand<br />

cooperati<strong>on</strong> through e.g. mutual opening <str<strong>on</strong>g>of</str<strong>on</strong>g> bilateral programmes.<br />

• Detailed informati<strong>on</strong> by potential partner(s), including <strong>on</strong> programme management,<br />

procedures, preferred opti<strong>on</strong>s for cooperati<strong>on</strong>.<br />

• Sharing informati<strong>on</strong> <strong>on</strong> potential modalities for cooperati<strong>on</strong>, including novel<br />

multilateral platforms.<br />

Implementati<strong>on</strong>, evaluati<strong>on</strong> and m<strong>on</strong>i<strong>to</strong>ring<br />

The implementati<strong>on</strong> phase <str<strong>on</strong>g>of</str<strong>on</strong>g> cooperative acti<strong>on</strong>s will be different from <str<strong>on</strong>g>the</str<strong>on</strong>g> two preceding it.<br />

First, this phase has similarities <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> indica<strong>to</strong>r secti<strong>on</strong> above in that <str<strong>on</strong>g>the</str<strong>on</strong>g>re is at this point a<br />

need for generating informati<strong>on</strong> from a joint basis, albeit in this case <strong>on</strong> a programme level.<br />

Fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r, <str<strong>on</strong>g>the</str<strong>on</strong>g> informati<strong>on</strong> sharing logic will be reversed, so that informati<strong>on</strong> generated from<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> joint programme implementati<strong>on</strong> should be redistributed <strong>to</strong> nati<strong>on</strong>al counterparts or o<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

ac<strong>to</strong>rs or stakeholders involved.<br />

• A key <strong>to</strong>ol in implementati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> joint acti<strong>on</strong>s will be strategic research agendas<br />

(SRA). These include <str<strong>on</strong>g>the</str<strong>on</strong>g> rati<strong>on</strong>ale, objectives and c<strong>on</strong>tents <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> acti<strong>on</strong> in questi<strong>on</strong>.<br />

Hence, it provides key steering informati<strong>on</strong> for those involved, and should also be<br />

distributed <strong>to</strong> ac<strong>to</strong>rs and stakeholders related <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> specific acti<strong>on</strong>.<br />

• For each significant acti<strong>on</strong> a set <str<strong>on</strong>g>of</str<strong>on</strong>g> dedicated indica<strong>to</strong>rs should be developed <strong>to</strong> be<br />

used in m<strong>on</strong>i<strong>to</strong>ring and managing <str<strong>on</strong>g>the</str<strong>on</strong>g> programme/acti<strong>on</strong> with informati<strong>on</strong> accessible<br />

for involved ac<strong>to</strong>rs.<br />

63


• Ex ante and ex post evaluati<strong>on</strong>s should be carried out and distributed <strong>to</strong> all involved as<br />

well as a broader community <str<strong>on</strong>g>of</str<strong>on</strong>g> identified stakeholders.<br />

• Foresight studies and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r informati<strong>on</strong> <strong>on</strong> future developments in key <strong>STI</strong> fields and<br />

countries/regi<strong>on</strong>s should be made easily available.<br />

Modalities and practices <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> sharing<br />

The complexity <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong>, not least am<strong>on</strong>g MS with different traditi<strong>on</strong>s,<br />

vested interests, strategic objectives and <strong>STI</strong> systems, makes it crucial that <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong><br />

takes a visible lead in defining a policy for informati<strong>on</strong> sharing. The fragmentati<strong>on</strong> and<br />

disparities make a key ac<strong>to</strong>r highly necessary, <strong>on</strong>e that can provide momentum and synergies<br />

as a gravitati<strong>on</strong> point in <str<strong>on</strong>g>the</str<strong>on</strong>g> cooperative landscape. The Commissi<strong>on</strong> with its Framework<br />

Programme (H2020) as a key resource is <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>ly partner in Europe who can do that.<br />

A strategy for internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong> should differentiate between active and<br />

passive modalities depending <strong>on</strong> purpose. It goes without saying that a great bulk <str<strong>on</strong>g>of</str<strong>on</strong>g> data and<br />

informati<strong>on</strong> <strong>to</strong> be shared will be made available <strong>on</strong> web-sites am<strong>on</strong>g stakeholders and<br />

participants/partners. Such informati<strong>on</strong> should be produced according <strong>to</strong> comm<strong>on</strong> guidelines<br />

<strong>to</strong> ease accessibility and use. Fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r, <str<strong>on</strong>g>the</str<strong>on</strong>g>re will be “living documents” such as strategic<br />

research agendas that are regularly revised and updated. A more active approach will be<br />

dedicated workshops <strong>to</strong> share informati<strong>on</strong> and less<strong>on</strong>s during <str<strong>on</strong>g>the</str<strong>on</strong>g> build-up <str<strong>on</strong>g>of</str<strong>on</strong>g> a strategic<br />

acti<strong>on</strong> that helps stimulating a comm<strong>on</strong> informati<strong>on</strong> and knowledge base. This includes <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Strategic Forum for Internati<strong>on</strong>al <strong>STI</strong> Cooperati<strong>on</strong> (SFIC), which, supported by a data subgroup,<br />

serves as <str<strong>on</strong>g>the</str<strong>on</strong>g> most important forum where such informati<strong>on</strong> can be presented,<br />

priorities defined, and partners selected.<br />

64


C<strong>on</strong>clusi<strong>on</strong>s and key policy recommendati<strong>on</strong>s<br />

Pulling all elements <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> present analysis <strong>to</strong>ge<str<strong>on</strong>g>the</str<strong>on</strong>g>r, it is clear that Europe finds itself at a<br />

crossroads: Fundamental changes in <str<strong>on</strong>g>the</str<strong>on</strong>g> global research and innovati<strong>on</strong> landscape are taking<br />

place. The increasingly pressing global challenges urgently require a strategic and forward<br />

looking resp<strong>on</strong>se at EU level. Hence, <str<strong>on</strong>g>the</str<strong>on</strong>g> overall recommendati<strong>on</strong> is <strong>to</strong> develop<br />

1) A strategy with a focus <strong>on</strong> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning European attractiveness as internati<strong>on</strong>al<br />

research and innovati<strong>on</strong> hub and partner in order <strong>to</strong> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n European<br />

competitiveness and prosperity<br />

Europe needs <strong>to</strong> get at <str<strong>on</strong>g>the</str<strong>on</strong>g> forefr<strong>on</strong>t <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al collaborati<strong>on</strong> in <strong>STI</strong> by making it <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

place <strong>to</strong> be for internati<strong>on</strong>al researchers and n<strong>on</strong>-EU MNEs. Sec<strong>on</strong>dly, <str<strong>on</strong>g>the</str<strong>on</strong>g> EU must provide<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>ir stakeholders an infrastructure <strong>to</strong> expand <strong>to</strong> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r regi<strong>on</strong>s in<strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> world and help<br />

universities, SMEs in particular <strong>to</strong> reach out <strong>to</strong> those markets in selected <str<strong>on</strong>g>the</str<strong>on</strong>g>mes addressing<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> grand challenges <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> next decades.<br />

Only few countries have so far developed an integrated policy strategy. In <str<strong>on</strong>g>the</str<strong>on</strong>g> US and <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

UK <str<strong>on</strong>g>the</str<strong>on</strong>g> overarching, strategic orientati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> policy is <strong>to</strong> support world-class excellence in<br />

science with <str<strong>on</strong>g>the</str<strong>on</strong>g> aim <str<strong>on</strong>g>of</str<strong>on</strong>g> generating attractiveness for R&D activities by MNEs. The<br />

emergence <str<strong>on</strong>g>of</str<strong>on</strong>g> China <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> global S&T scene is backed by elements <str<strong>on</strong>g>of</str<strong>on</strong>g> an integrated policy<br />

strategy, albeit with str<strong>on</strong>g elements <str<strong>on</strong>g>of</str<strong>on</strong>g> a planned ec<strong>on</strong>omy c<strong>on</strong>text.<br />

Currently <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a dominance <str<strong>on</strong>g>of</str<strong>on</strong>g> geographical prioritizati<strong>on</strong> through picking countries. This<br />

has been especially evident in SFIC. This should change:<br />

2) Theme- and problem-oriented prioritizati<strong>on</strong> is needed ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than geographic; Grand<br />

Challenges as a clear prioritizati<strong>on</strong> <strong>to</strong>ol <strong>to</strong> be mainstreamed also in <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al<br />

dimensi<strong>on</strong>. Prioritizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al collaborati<strong>on</strong> should follow closely <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

priorities <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU’s core research and innovati<strong>on</strong> programmes, while <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

geographical approach should be <str<strong>on</strong>g>the</str<strong>on</strong>g> core <str<strong>on</strong>g>of</str<strong>on</strong>g> an implementati<strong>on</strong> strategy.<br />

This also implies that<br />

3) The internati<strong>on</strong>al perspective needs <strong>to</strong> be more fully integrated in<strong>to</strong> ’regular’<br />

programmes at EU level<br />

All EU programmes (old and new instruments) should be required <strong>to</strong> have an internati<strong>on</strong>al<br />

dimensi<strong>on</strong>, e.g. through benchmarking and m<strong>on</strong>i<strong>to</strong>ring, identificati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> relevant partners –<br />

and competi<strong>to</strong>rs– outside Europe and activities for streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning cooperati<strong>on</strong> with n<strong>on</strong>-EU<br />

partners and/or activities aimed at increasing proximity <strong>to</strong> relevant markets and users outside<br />

Europe. This requires <str<strong>on</strong>g>the</str<strong>on</strong>g> ability <str<strong>on</strong>g>of</str<strong>on</strong>g> evalua<strong>to</strong>rs and evaluati<strong>on</strong> criteria <strong>to</strong> valuate and evaluate<br />

internati<strong>on</strong>al partners and collaborati<strong>on</strong>s; criteria should be based <strong>on</strong> complementarities and<br />

critical assets for R&D projects.<br />

65


The EU Framework Programmes are seen as <str<strong>on</strong>g>the</str<strong>on</strong>g> key vehicle <strong>to</strong> foster effective internati<strong>on</strong>al<br />

cooperati<strong>on</strong>:<br />

4) Make <str<strong>on</strong>g>the</str<strong>on</strong>g> Horiz<strong>on</strong> 2020 truly open and attractive <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> best and brightest in <str<strong>on</strong>g>the</str<strong>on</strong>g> world<br />

allowing European ac<strong>to</strong>rs <strong>to</strong> work with <str<strong>on</strong>g>the</str<strong>on</strong>g> best brains wherever <str<strong>on</strong>g>the</str<strong>on</strong>g>y are.<br />

Internati<strong>on</strong>al cooperati<strong>on</strong> in <strong>STI</strong> is impeded by numerous bottlenecks:<br />

5) Streng<str<strong>on</strong>g>the</str<strong>on</strong>g>n framework c<strong>on</strong>diti<strong>on</strong>s for and removal <str<strong>on</strong>g>of</str<strong>on</strong>g> barriers <strong>to</strong> internati<strong>on</strong>al<br />

cooperati<strong>on</strong>.<br />

This c<strong>on</strong>cerns in particular issues like mobility, standards, IPR, opening nati<strong>on</strong>al research<br />

programmes, simplificati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Framework Programme, increasing <str<strong>on</strong>g>the</str<strong>on</strong>g> competitiveness <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

European universities, realizing <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA as a prerequisite <strong>to</strong> an effective internati<strong>on</strong>al<br />

dimensi<strong>on</strong>.<br />

6) Design targeted initiatives for streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning cooperati<strong>on</strong> in selected (prioritized)<br />

areas: <str<strong>on</strong>g>the</str<strong>on</strong>g>se can be multilateral, bilateral, and unilateral. The key criteria should be<br />

achieving benefits for European stakeholders.<br />

The EU should become a str<strong>on</strong>ger internati<strong>on</strong>al ac<strong>to</strong>r in internati<strong>on</strong>al science and technology<br />

fora and in taking <str<strong>on</strong>g>the</str<strong>on</strong>g> initiative in internati<strong>on</strong>al science, technology and innovati<strong>on</strong><br />

collaborati<strong>on</strong>s through such targeted initiatives.<br />

7) A str<strong>on</strong>g focus <strong>on</strong> firms and innovati<strong>on</strong> is needed. This has not been properly<br />

addressed before and it requires a new/different approach; <str<strong>on</strong>g>the</str<strong>on</strong>g>re are fundamental<br />

differences in drivers <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong> between academia and industry and<br />

between research and innovati<strong>on</strong>. Acti<strong>on</strong>s should e.g. be taken al<strong>on</strong>g several lines:<br />

• Make Europe <str<strong>on</strong>g>the</str<strong>on</strong>g> global lead market for innovati<strong>on</strong>s <strong>to</strong> be deployed. Provide <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

leading Research and Innovati<strong>on</strong> infrastructures for pilots and early adopters.<br />

• Leverage Europe’s diversity in language and jurisdicti<strong>on</strong> <strong>to</strong> allow for true<br />

internati<strong>on</strong>al products and soluti<strong>on</strong>s <strong>to</strong> be developed that can easily be sold<br />

globally.<br />

• Domestic clusters <str<strong>on</strong>g>of</str<strong>on</strong>g> S&T excellence are an important attrac<strong>to</strong>r for innovative<br />

companies, R&D institutes and R&D workers from abroad. A str<strong>on</strong>g and vibrant<br />

academic and industrial research base, efficient protecti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual property<br />

rights and a well-trained workforce are major determinants for MNE investment in<br />

R&D, but will also promote <str<strong>on</strong>g>the</str<strong>on</strong>g> growth <str<strong>on</strong>g>of</str<strong>on</strong>g> domestic enterprises. Hence, such<br />

policy measures should be aimed simultaneously at creating favourable c<strong>on</strong>diti<strong>on</strong>s<br />

for domestic and foreign-owned domiciled enterprises.<br />

• In order <strong>to</strong> benefit from <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D, ec<strong>on</strong>omies should<br />

optimize <str<strong>on</strong>g>the</str<strong>on</strong>g>ir absorptive capacity and networking with multinati<strong>on</strong>al firms.<br />

Am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> fac<strong>to</strong>rs that improve absorptive capacity, two stand out, viz. a high<br />

66


educati<strong>on</strong>al level <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> local labour force and a well-developed technological<br />

capacity <str<strong>on</strong>g>of</str<strong>on</strong>g> domestic firms.<br />

• Stimulating <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> excellence in local Science & Technology<br />

capacities and providing an innovati<strong>on</strong> friendly envir<strong>on</strong>ment is key <strong>to</strong> any policy<br />

<strong>to</strong>wards R&D internati<strong>on</strong>alisati<strong>on</strong>.<br />

Many countries have not fully recognised <str<strong>on</strong>g>the</str<strong>on</strong>g> implicati<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> current internati<strong>on</strong>alisati<strong>on</strong><br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong>. In part this is because <str<strong>on</strong>g>the</str<strong>on</strong>g> full implicati<strong>on</strong>s are not yet clear, and this is certainly an<br />

area in which fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r research and analysis is required. The increasing mobility <str<strong>on</strong>g>of</str<strong>on</strong>g> financial<br />

resources for <strong>STI</strong> is accompanied by <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing mobility <str<strong>on</strong>g>of</str<strong>on</strong>g> highly skilled scientists and<br />

engineers. This has implicati<strong>on</strong>s not <strong>on</strong>ly for educati<strong>on</strong> policies, but also for a wide range <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

policy arenas – tax policies, regula<strong>to</strong>ry frameworks and standards setting, am<strong>on</strong>g o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs.<br />

Although many <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> instruments needed are already in place in most nati<strong>on</strong>al and supra<br />

nati<strong>on</strong>al policy levels, <str<strong>on</strong>g>the</str<strong>on</strong>g>y need <strong>to</strong> be mobilized better <strong>to</strong> fit in<strong>to</strong> a coherent, systemic policy<br />

approach <strong>to</strong> face <str<strong>on</strong>g>the</str<strong>on</strong>g> challenges <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D.<br />

An ambitious strategy for internati<strong>on</strong>al cooperati<strong>on</strong> will need <strong>to</strong> leverage <str<strong>on</strong>g>the</str<strong>on</strong>g> resources and<br />

initiatives in <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States. The Commissi<strong>on</strong> should c<strong>on</strong>tribute <strong>to</strong> making <str<strong>on</strong>g>the</str<strong>on</strong>g> Strategic<br />

Forum for Internati<strong>on</strong>al S&T Cooperati<strong>on</strong> (SFIC) a truly high-level and effective body with a<br />

capability <strong>to</strong> engage strategically in this policy field.<br />

8) Variable geometry should be exploited <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> full, with flexible arrangements (within<br />

EU and with countries outside EU) including multilateral platforms for strategic<br />

cooperati<strong>on</strong>. Variable geometry initiatives should also build <strong>on</strong> lead initiatives by<br />

individual Member States that expands <str<strong>on</strong>g>the</str<strong>on</strong>g>ir successful bilateral programmes or<br />

activities <strong>to</strong> several European partners.<br />

A credible and effective strategy <strong>on</strong> internati<strong>on</strong>al cooperati<strong>on</strong> needs <strong>to</strong> build <strong>on</strong> reliable<br />

informati<strong>on</strong> made available <strong>to</strong> key prioritizati<strong>on</strong> processes. There is a need for more<br />

structured informati<strong>on</strong> resources:<br />

9) All initiatives must be based <strong>on</strong> more evidence- or analysis-based decisi<strong>on</strong>-making,<br />

including forward looking analysis <strong>to</strong> inform decisi<strong>on</strong> making about likely trends and<br />

future changes and systematic exchange <str<strong>on</strong>g>of</str<strong>on</strong>g> experiences.<br />

67


References<br />

Barré, R (2006): Towards a European <strong>STI</strong> Indica<strong>to</strong>rs Platform (E<strong>STI</strong>P). Positi<strong>on</strong> paper,<br />

presented and discussed at <str<strong>on</strong>g>the</str<strong>on</strong>g> sec<strong>on</strong>d PRIME annual c<strong>on</strong>ference, Paris, February 2006<br />

Boekholt, P., Cunningham, P., Edler, J., Flanagan, K. (2009): Drivers <str<strong>on</strong>g>of</str<strong>on</strong>g> Internati<strong>on</strong>al<br />

Collaborati<strong>on</strong> in Research. Syn<str<strong>on</strong>g>the</str<strong>on</strong>g>sis <str<strong>on</strong>g>Report</str<strong>on</strong>g> <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU Commissi<strong>on</strong>. Technopolis and<br />

Manchester Institute <str<strong>on</strong>g>of</str<strong>on</strong>g> Innovati<strong>on</strong> Research, April 2009.<br />

Criscuolo, P., B. Verspagen (2008), 'Does it matter where patent citati<strong>on</strong>s come from?<br />

Inven<strong>to</strong>r versus examiner citati<strong>on</strong>s in European patents'. Research Policy 37(10) 1892-1908.<br />

Dasgupta, Partha, and Paul A. David. (1992): Toward a new ec<strong>on</strong>omics <str<strong>on</strong>g>of</str<strong>on</strong>g> science. Research<br />

Policy 23 (5), pp. 487-521Edler, Jakob; Flanagan; Kier<strong>on</strong> (2009) Drivers <str<strong>on</strong>g>of</str<strong>on</strong>g> policies for <strong>STI</strong><br />

collaborati<strong>on</strong> and related indica<strong>to</strong>rs. Literature Review (report <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU Commissi<strong>on</strong>),<br />

Manchester, Brussel<br />

Edler, J. (2010): Internati<strong>on</strong>al Policy Coordinati<strong>on</strong> for Collaborati<strong>on</strong> in S&T, Manchester<br />

Business School Research paper No. 590, Manchester Institute <str<strong>on</strong>g>of</str<strong>on</strong>g> Innovati<strong>on</strong> Research,<br />

University <str<strong>on</strong>g>of</str<strong>on</strong>g> Manchester.<br />

Edler, J., Flanagan F. (2011): Indica<strong>to</strong>r needs for <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> science policies,<br />

Research Evaluati<strong>on</strong>, 20(1), 7-17<br />

Edler, J., Meyer-Krahmer, F. and Reger, G. (2002): Changes in <str<strong>on</strong>g>the</str<strong>on</strong>g> Strategic Mangement <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Technology – Results <str<strong>on</strong>g>of</str<strong>on</strong>g> a Global Benchmarking Study. R&D Management, 32/2, 149-164.<br />

Georgieva, T. (2012): Research Infrastructure MEGAPROJECTS (RIMPs) management in<br />

an ecosystem perspective; Organizati<strong>on</strong>, Technology and Management in C<strong>on</strong>structi<strong>on</strong><br />

(submitted).<br />

Henders<strong>on</strong>, R. and Cockburn, I. (1996): Scale, Scope, and Spillovers: Determinants <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Research Productivity in <str<strong>on</strong>g>the</str<strong>on</strong>g> Pharmaceutical Industry, RAND Journal <str<strong>on</strong>g>of</str<strong>on</strong>g> Ec<strong>on</strong>omics, Spring,<br />

27/1), pp. 32-59.<br />

Kaiser L. (2010): The Threat <str<strong>on</strong>g>of</str<strong>on</strong>g> Patent Infringement in IT-Business Operati<strong>on</strong>s. In: ICMIT<br />

Management <str<strong>on</strong>g>of</str<strong>on</strong>g> Innovati<strong>on</strong> and Technology. 2010 IEEE Internati<strong>on</strong>al C<strong>on</strong>ference. E-ISBN<br />

978-1-4224-6566-8, p. 226-231.<br />

68


Kaiser L., Ganea P., Gibs<strong>on</strong> J., and Tang P. (2011): Internati<strong>on</strong>al Knowledge Transfer.<br />

Investigati<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> European Practices. Study <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EC <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> <strong>on</strong> Internati<strong>on</strong>al<br />

Knowledge Transfer. Brussels 2011, p. 18-21<br />

Lepori, B; Barré R.; Filliatreau, G. (2008) : New perspectives and challenges for <str<strong>on</strong>g>the</str<strong>on</strong>g> design<br />

and producti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> indica<strong>to</strong>rs, in: Research Evaluati<strong>on</strong>, 17(1), March 2008, pages 33–44<br />

OECD (2012): Internati<strong>on</strong>al Co-operati<strong>on</strong> in Science, Technology and Innovati<strong>on</strong>: Meeting<br />

Global Challenges through Better Governance. Steering <str<strong>on</strong>g>Group</str<strong>on</strong>g> <strong>on</strong> Governance <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Internati<strong>on</strong>al Co-operati<strong>on</strong> <strong>on</strong> Science, Technology and Innovati<strong>on</strong> for Global Challenges.<br />

OECD: Paris.<br />

OECD (2011): Better Innovati<strong>on</strong> Policies for Better Lives – Summary <str<strong>on</strong>g>of</str<strong>on</strong>g> Key Ideas. OECD:<br />

Paris.<br />

OECD (2008): Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Business R&D: Evidence, Impact and Implicati<strong>on</strong>s.<br />

Paris: OECD.<br />

OECD (2008): <str<strong>on</strong>g>Report</str<strong>on</strong>g> <strong>on</strong> Roadmapping <str<strong>on</strong>g>of</str<strong>on</strong>g> Large Research Infrastructures. Global Science<br />

Forum, OECD.<br />

Narula, R., G.D. Santangelo (2009), 'Locati<strong>on</strong>, collocati<strong>on</strong> and R&D alliances in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

European ICT industry'. Research Policy, 38(2) 393-403.<br />

Narula, R. (2003), Globalizati<strong>on</strong> and technology. Interdependence, innovati<strong>on</strong> systems and<br />

industrial policy. Polity Press, Cambridge.<br />

Narula, R. (1999) 'Explaining Strategic R&D Alliances by European Firms', Journal <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Comm<strong>on</strong> Market Studies, vol 37, No 4, pp. 711-23.<br />

Narula, R. (2001) 'Strategic Partnering by EU firms: A Rejoinder', Journal <str<strong>on</strong>g>of</str<strong>on</strong>g> Comm<strong>on</strong><br />

Market Studies, vol 39, pp. 159-64.<br />

S<strong>on</strong>nenburg J., Nill, J., Schuch, K., Schwaag-Serger, S., Teirlinck, P. and Van der Zwan, A.<br />

(2008): Policy approaches <strong>to</strong>wards S&T Cooperati<strong>on</strong> with Third Countries. Analytical <str<strong>on</strong>g>Report</str<strong>on</strong>g><br />

<strong>on</strong> behalf <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> CREST Working <str<strong>on</strong>g>Group</str<strong>on</strong>g> <strong>on</strong> R&D Internati<strong>on</strong>alisati<strong>on</strong>. Brussels.<br />

Stamm, A., Figueroa, A. and Scorda<strong>to</strong>, L. (2012): Adressing Global Challenges thorugh<br />

Collaborati<strong>on</strong> in Science, Technology and Innovati<strong>on</strong>. In: OECD (2012): Internati<strong>on</strong>al Cooperati<strong>on</strong><br />

in Science, Technology and Innovati<strong>on</strong>: Meeting Global Challenges through Better<br />

Governance. Steering <str<strong>on</strong>g>Group</str<strong>on</strong>g> <strong>on</strong> Governance <str<strong>on</strong>g>of</str<strong>on</strong>g> Internati<strong>on</strong>al Co-operati<strong>on</strong> <strong>on</strong> Science,<br />

Technology and Innovati<strong>on</strong> for Global Challenges. OECD: Paris, pp. 11-27.<br />

69


Schuch, K. (2011): Indika<strong>to</strong>ren zur Messung der Internati<strong>on</strong>alisierung v<strong>on</strong> Wissenschaft und<br />

Forschung (Indica<strong>to</strong>rs <strong>to</strong> Measure Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Science and Research). Final <str<strong>on</strong>g>Report</str<strong>on</strong>g><br />

prepared for <str<strong>on</strong>g>the</str<strong>on</strong>g> Austrian Ministry <str<strong>on</strong>g>of</str<strong>on</strong>g> Science and Research. Wien.<br />

Vandana Ujjual: Advances in <str<strong>on</strong>g>the</str<strong>on</strong>g> understanding <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Internati<strong>on</strong>al R&D Strategies <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

MNEs. Unpublished paper, SPRU, Bright<strong>on</strong>, UK<br />

Verbeek, A. and Shapira, P. (2009): Analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D Internati<strong>on</strong>al Funding Flows and <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

Impact <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> Research System in Selected Member States. RINDICATE report by IDEA<br />

C<strong>on</strong>sult, NIFUSTEP and University <str<strong>on</strong>g>of</str<strong>on</strong>g> Manchester <strong>on</strong> behalf <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Commissi<strong>on</strong>.<br />

Brussels, December 2009.<br />

Schuch, K. (2011): Indika<strong>to</strong>ren zur Messung der Internati<strong>on</strong>alisierung v<strong>on</strong> Wissenschaft und<br />

Forschung. Ergebnisbericht; Vienna<br />

70


Annex 1: Mandate <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g><br />

(extract)<br />

MANDATE OF THE EXPERT GROUP<br />

3.1 Phase I: Support <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> ERA Framework and Commissi<strong>on</strong><br />

Communicati<strong>on</strong> <strong>on</strong> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong><br />

Phase I: The <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> <strong>on</strong> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> will help <strong>to</strong> provide support <strong>to</strong><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA Framework, ensuring coherence with<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> external dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> future Horiz<strong>on</strong> 2020 European research and innovati<strong>on</strong><br />

programme. The expert group will equally c<strong>on</strong>tribute <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r development <str<strong>on</strong>g>of</str<strong>on</strong>g> a more<br />

strategic EU internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> policy and <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> forthcoming Commissi<strong>on</strong><br />

Communicati<strong>on</strong> <strong>on</strong> this issue.<br />

The provisi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> advice and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r inputs <strong>on</strong> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> in support <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

c<strong>on</strong>cepti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>se 2 policy documents will c<strong>on</strong>stitute <str<strong>on</strong>g>the</str<strong>on</strong>g> first phase <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> work <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

<str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g>. Provisi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> such advice will cover support <strong>to</strong> both <str<strong>on</strong>g>the</str<strong>on</strong>g> drafting <str<strong>on</strong>g>of</str<strong>on</strong>g> policy<br />

documents and any subsequent discussi<strong>on</strong> with <str<strong>on</strong>g>the</str<strong>on</strong>g> Member States (represented in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

Council Research Working <str<strong>on</strong>g>Group</str<strong>on</strong>g>) and European Parliament, as required.<br />

3.2 Phase II: Support <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> implementati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> EU internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> policy<br />

Phase II: In <str<strong>on</strong>g>the</str<strong>on</strong>g> sec<strong>on</strong>d phase <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> work <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g>, members will carry out a<br />

comprehensive analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> key issues affecting <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> coherent and effective<br />

<strong>STI</strong> cooperati<strong>on</strong> with o<str<strong>on</strong>g>the</str<strong>on</strong>g>r regi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world. A n<strong>on</strong>-exhaustive list <str<strong>on</strong>g>of</str<strong>on</strong>g> key issues is<br />

provided in secti<strong>on</strong> 3.3 below.<br />

Starting from a review <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> main drivers (including increased globalizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> science,<br />

technology and innovati<strong>on</strong> activities; emergence <str<strong>on</strong>g>of</str<strong>on</strong>g> new <strong>STI</strong> powers, need for global <strong>STI</strong><br />

cooperati<strong>on</strong> <strong>to</strong> address key societal challenges which require a large-scale effort; and, need <strong>to</strong><br />

access knowledge globally <strong>to</strong> remain competitive) and <str<strong>on</strong>g>the</str<strong>on</strong>g> objective <str<strong>on</strong>g>of</str<strong>on</strong>g> engaging more<br />

actively and strategically in internati<strong>on</strong>al cooperati<strong>on</strong>, work should focus <strong>on</strong> providing a<br />

clear, substantiated narrative for each <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> issues. This should include <str<strong>on</strong>g>the</str<strong>on</strong>g> nature and extent<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> problem, <str<strong>on</strong>g>the</str<strong>on</strong>g> research ac<strong>to</strong>rs (public and private) c<strong>on</strong>cerned, as well as <str<strong>on</strong>g>the</str<strong>on</strong>g> impact <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> problem for researchers, instituti<strong>on</strong>s, and Member States.<br />

In additi<strong>on</strong> <strong>to</strong> problem analysis, <str<strong>on</strong>g>the</str<strong>on</strong>g> group should also identify examples <str<strong>on</strong>g>of</str<strong>on</strong>g> good practice<br />

where a particular issue has been successfully addressed by <strong>on</strong>e or more countries or<br />

instituti<strong>on</strong>s. Evidence should be provided for a wide range <str<strong>on</strong>g>of</str<strong>on</strong>g> Member States, be it at<br />

instituti<strong>on</strong>al, nati<strong>on</strong>al or internati<strong>on</strong>al level. Cross-country comparis<strong>on</strong>s should be presented,<br />

where appropriate.<br />

71


Work should take account <str<strong>on</strong>g>of</str<strong>on</strong>g> existing study reports (including internal Commissi<strong>on</strong> study<br />

reports and those <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> SFIC), <str<strong>on</strong>g>the</str<strong>on</strong>g> prepara<strong>to</strong>ry analysis already undertaken within DG<br />

Research and Innovati<strong>on</strong> (including <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>going work <strong>to</strong> establish a more strategic approach<br />

for EU <strong>STI</strong> cooperati<strong>on</strong> with third countries) as well as <str<strong>on</strong>g>the</str<strong>on</strong>g> issues addressed in <str<strong>on</strong>g>the</str<strong>on</strong>g> 2011<br />

public c<strong>on</strong>sultati<strong>on</strong> <strong>on</strong> ERA.<br />

On <str<strong>on</strong>g>the</str<strong>on</strong>g> basis <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> problem analysis and taking account <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> policy objectives, <str<strong>on</strong>g>the</str<strong>on</strong>g> group<br />

should develop recommendati<strong>on</strong>s for EU policy acti<strong>on</strong>, which could be <str<strong>on</strong>g>of</str<strong>on</strong>g> a binding nature or<br />

in <str<strong>on</strong>g>the</str<strong>on</strong>g> form <str<strong>on</strong>g>of</str<strong>on</strong>g> recommendati<strong>on</strong>s or guidelines. The group should explain clearly how <str<strong>on</strong>g>the</str<strong>on</strong>g>y<br />

would c<strong>on</strong>tribute <strong>to</strong> enhancing <str<strong>on</strong>g>the</str<strong>on</strong>g> coherence and efficiency <str<strong>on</strong>g>of</str<strong>on</strong>g> EU internati<strong>on</strong>al <strong>STI</strong><br />

cooperati<strong>on</strong> with o<str<strong>on</strong>g>the</str<strong>on</strong>g>r regi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world.<br />

Where appropriate, <str<strong>on</strong>g>the</str<strong>on</strong>g> group should <str<strong>on</strong>g>the</str<strong>on</strong>g>n assess <str<strong>on</strong>g>the</str<strong>on</strong>g> effectiveness <str<strong>on</strong>g>of</str<strong>on</strong>g> policy opti<strong>on</strong>s, including<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>ir potential impact, before putting forward recommendati<strong>on</strong>s. Where <str<strong>on</strong>g>the</str<strong>on</strong>g> preferred opti<strong>on</strong><br />

entails EU acti<strong>on</strong>, evidence should be provided justifying <str<strong>on</strong>g>the</str<strong>on</strong>g> grounds for such acti<strong>on</strong>. In<br />

doing so <str<strong>on</strong>g>the</str<strong>on</strong>g> group should address precisely <str<strong>on</strong>g>the</str<strong>on</strong>g> respective roles <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU and Member States<br />

including complementarities and synergies.<br />

3.3 Issues and Questi<strong>on</strong>s <strong>to</strong> be addressed in Phase II <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> work <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g><br />

The expert group will be free <strong>to</strong> develop c<strong>on</strong>siderati<strong>on</strong>s which <str<strong>on</strong>g>the</str<strong>on</strong>g>y feel are important for<br />

internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> in <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>text <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Research Area but should cover:<br />

3.3.1 Sharing <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> between MS and between MS and <str<strong>on</strong>g>the</str<strong>on</strong>g> EU <strong>on</strong> internati<strong>on</strong>al<br />

cooperati<strong>on</strong> strategies, plans and acti<strong>on</strong>s, development <str<strong>on</strong>g>of</str<strong>on</strong>g> comm<strong>on</strong> informati<strong>on</strong> system<br />

<strong>on</strong> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> policy development, challenges and approaches for<br />

cooperati<strong>on</strong> with key partner countries.<br />

C<strong>on</strong>siderati<strong>on</strong> should include:<br />

- <str<strong>on</strong>g>the</str<strong>on</strong>g> type <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> which should be shared and its availability and how <strong>to</strong><br />

address c<strong>on</strong>cerns about <str<strong>on</strong>g>the</str<strong>on</strong>g> sensitive or restricted nature <str<strong>on</strong>g>of</str<strong>on</strong>g> such informati<strong>on</strong>;<br />

- how such informati<strong>on</strong> should be provided including <str<strong>on</strong>g>the</str<strong>on</strong>g> assessment <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

need/appropriateness <str<strong>on</strong>g>of</str<strong>on</strong>g> introducing legally binding obligati<strong>on</strong>s <strong>on</strong> MS and/or <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

sufficiency <str<strong>on</strong>g>of</str<strong>on</strong>g> voluntary guidelines, etc.<br />

- developing a coordinated approach <strong>to</strong> m<strong>on</strong>i<strong>to</strong>ring and analysing <strong>STI</strong> policy<br />

development; strengths and weaknesses <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> capacities; and, opportunities which<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g>fer mutual benefit in 3 rd countries (including making <str<strong>on</strong>g>the</str<strong>on</strong>g> best use <str<strong>on</strong>g>of</str<strong>on</strong>g> available<br />

resources), <str<strong>on</strong>g>the</str<strong>on</strong>g> role <str<strong>on</strong>g>of</str<strong>on</strong>g> networking and coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> science counsellors (EU &<br />

MS); involving big research organisati<strong>on</strong>s (e.g. Fraunh<str<strong>on</strong>g>of</str<strong>on</strong>g>er; Max Planck, CNRS) and<br />

o<str<strong>on</strong>g>the</str<strong>on</strong>g>r potential informati<strong>on</strong> sources.<br />

3.3.2 Promoting greater partnership between EU and MS <strong>on</strong> internati<strong>on</strong>al cooperati<strong>on</strong><br />

strategies, plans and acti<strong>on</strong>s.<br />

72


C<strong>on</strong>siderati<strong>on</strong> should include:<br />

- defining <str<strong>on</strong>g>the</str<strong>on</strong>g> objectives, principles and modalities <str<strong>on</strong>g>of</str<strong>on</strong>g> a comm<strong>on</strong> EU–MS strategic<br />

approach and priorities <strong>to</strong> underpin EU-MS coordinati<strong>on</strong> and joint EU-MS<br />

internati<strong>on</strong>al acti<strong>on</strong>s;<br />

- assessment <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> costs (political, ec<strong>on</strong>omic, financial and scientific) associated with<br />

not increasing European policy coherence in internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>;<br />

- <str<strong>on</strong>g>the</str<strong>on</strong>g> possibility <str<strong>on</strong>g>of</str<strong>on</strong>g> streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning <str<strong>on</strong>g>the</str<strong>on</strong>g> role <str<strong>on</strong>g>of</str<strong>on</strong>g> SFIC as a platform for developing and<br />

implementing a comm<strong>on</strong> EU-MS strategic approach;<br />

- balancing cooperati<strong>on</strong> and competiti<strong>on</strong> objectives between EU Member States in<br />

relati<strong>on</strong> <strong>to</strong> 3 rd countries;<br />

- opportunities and benefits <str<strong>on</strong>g>of</str<strong>on</strong>g> a coordinated approach <strong>to</strong> framework c<strong>on</strong>diti<strong>on</strong>s for<br />

internati<strong>on</strong>al <strong>STI</strong> including with respect <strong>to</strong> removing market barriers, acti<strong>on</strong> <strong>to</strong><br />

facilitate standardisati<strong>on</strong> and acti<strong>on</strong> <strong>to</strong> promote access <strong>to</strong> public procurement.<br />

3.3.3. Developing a comm<strong>on</strong> approach <strong>to</strong> priority determinati<strong>on</strong> for internati<strong>on</strong>al <strong>STI</strong><br />

cooperati<strong>on</strong>.<br />

C<strong>on</strong>siderati<strong>on</strong> should include:<br />

- methodological approach (i.e. principles and criteria for developing comm<strong>on</strong><br />

priorities in internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>, including criteria for <str<strong>on</strong>g>the</str<strong>on</strong>g>matic and<br />

geographical targeting;<br />

- developing a comm<strong>on</strong> approach <strong>to</strong> criteria <strong>to</strong> differentiate between potential<br />

strategic partners, or groups <str<strong>on</strong>g>of</str<strong>on</strong>g> countries, when developing strategic bilateral<br />

partnerships and <str<strong>on</strong>g>the</str<strong>on</strong>g> promoti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> cooperati<strong>on</strong> at regi<strong>on</strong>al level (i.e. what do we want<br />

<strong>to</strong> achieve and by what means <str<strong>on</strong>g>of</str<strong>on</strong>g> acti<strong>on</strong>?);<br />

- balancing cooperati<strong>on</strong> and competiti<strong>on</strong> objectives vis-à-vis 3 rd countries in<br />

internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>; and,<br />

- <str<strong>on</strong>g>the</str<strong>on</strong>g> need <strong>to</strong> adopt different approaches <strong>to</strong> cooperati<strong>on</strong> for activities which are closer<br />

<strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> market or are innovati<strong>on</strong> related.<br />

3.3.4 Developing <str<strong>on</strong>g>the</str<strong>on</strong>g> support <strong>to</strong> and involvement <str<strong>on</strong>g>of</str<strong>on</strong>g> industry in EU internati<strong>on</strong>al <strong>STI</strong><br />

cooperati<strong>on</strong> policy<br />

C<strong>on</strong>siderati<strong>on</strong> should include:<br />

- assessment <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> availability <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> c<strong>on</strong>cerning industrial investment in<br />

internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong> (including internati<strong>on</strong>al scoreboards);<br />

- understanding <str<strong>on</strong>g>the</str<strong>on</strong>g> drivers for industrial internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>;<br />

- <str<strong>on</strong>g>the</str<strong>on</strong>g> fac<strong>to</strong>rs determining industry's choice <str<strong>on</strong>g>of</str<strong>on</strong>g> locati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir R&D investments as<br />

compared <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> fac<strong>to</strong>rs leading industry <strong>to</strong> enter in<strong>to</strong> cooperative R&D relati<strong>on</strong>ships<br />

with entities in third countries;<br />

- comparis<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> pattern <str<strong>on</strong>g>of</str<strong>on</strong>g> industrial investment in internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong><br />

with that <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU and MS public sec<strong>to</strong>r;<br />

73


- development <str<strong>on</strong>g>of</str<strong>on</strong>g> principles and objectives for promoting European industry interest<br />

in involvement in public/private internati<strong>on</strong>al cooperati<strong>on</strong> initiatives;<br />

- assessment <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> desirability, potential mechanisms and effective incentives <strong>to</strong><br />

promote industrial involvement in EU-MS joint initiatives for internati<strong>on</strong>al <strong>STI</strong><br />

cooperati<strong>on</strong>;<br />

This acti<strong>on</strong> should involve c<strong>on</strong>sultati<strong>on</strong> with industrial groupings and individual companies,<br />

possibly through <str<strong>on</strong>g>the</str<strong>on</strong>g> organisati<strong>on</strong> (by <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong> Services) <str<strong>on</strong>g>of</str<strong>on</strong>g> a specific c<strong>on</strong>sultati<strong>on</strong><br />

event focused <strong>on</strong> selected technology platforms.<br />

3.3.5 Additi<strong>on</strong>al <strong>to</strong>pics<br />

The <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> Chairpers<strong>on</strong> will also be free <strong>to</strong> propose additi<strong>on</strong>al or alternative <strong>to</strong>pics for<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> group <strong>to</strong> study/provide advice <strong>on</strong> subject <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> agreement <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong><br />

representative(s).<br />

74


Annex 2: Dimensi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> strategic priority<br />

setting<br />

Emerging<br />

fields/global<br />

challenges<br />

(mix <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>to</strong>p-down<br />

and bot<strong>to</strong>m-up)<br />

Primary research in<br />

emergence <str<strong>on</strong>g>of</str<strong>on</strong>g> new<br />

fields and/or paradigm<br />

shifts in existing fields<br />

and significant impact<br />

<strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> fr<strong>on</strong>tiers <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong>,<br />

and in educati<strong>on</strong>.<br />

Short-term<br />

1-2 years<br />

Medium<br />

term<br />

2-5 years<br />

L<strong>on</strong>g-term<br />

5-15 years<br />

• Focus <strong>on</strong> basic research<br />

• Capacity building and infrastructure<br />

• Investments in multi-user research facilities<br />

• Primary participants:<br />

S&T organisati<strong>on</strong>s universities, PROs<br />

• Outputs: publicati<strong>on</strong>s, patents<br />

• No geographic limitati<strong>on</strong>s<br />

Global challenges are<br />

primarily research<br />

intensive in nature.<br />

<strong>STI</strong> <strong>to</strong> address global<br />

challenges is largely<br />

embedded in<br />

internati<strong>on</strong>al research<br />

efforts, which are<br />

mainly driven by<br />

nati<strong>on</strong> states.<br />

Infrastructural<br />

challenges<br />

Capacity building<br />

and retenti<strong>on</strong><br />

(primarily <strong>to</strong>pdown)<br />

Horiz<strong>on</strong>tal acti<strong>on</strong>s<br />

(primarily <strong>to</strong>pdown)<br />

Challenge driven research is less attractive for firms, especially where<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> intenti<strong>on</strong> is <strong>to</strong> generate public goods. Key ac<strong>to</strong>rs from <str<strong>on</strong>g>the</str<strong>on</strong>g> private<br />

sec<strong>to</strong>r will <strong>on</strong>ly invest resources and take risks <str<strong>on</strong>g>of</str<strong>on</strong>g> project failure if<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>y can expect a reas<strong>on</strong>able return in <str<strong>on</strong>g>the</str<strong>on</strong>g> case <str<strong>on</strong>g>of</str<strong>on</strong>g> success. On <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

o<str<strong>on</strong>g>the</str<strong>on</strong>g>r hand, swift diffusi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> new products and processes is crucial <strong>to</strong><br />

have a significant impact <strong>on</strong> global challenges. Diffusi<strong>on</strong> may be<br />

hampered if prices for innovati<strong>on</strong>s are <strong>to</strong>o high and <str<strong>on</strong>g>the</str<strong>on</strong>g>re are no<br />

funding mechanisms <strong>to</strong> make <str<strong>on</strong>g>the</str<strong>on</strong>g>m broadly available.<br />

Leadership in <str<strong>on</strong>g>the</str<strong>on</strong>g>se sec<strong>to</strong>rs is yet <strong>to</strong> be determined, because it is still<br />

nascent, and limited <strong>to</strong> l<strong>on</strong>g term basic-research.<br />

Focus is <strong>on</strong> reducing brain-drain from Europe, <str<strong>on</strong>g>of</str<strong>on</strong>g> scientists, engineers and<br />

entrepreneurs by making available opportunities and c<strong>on</strong>diti<strong>on</strong>s for researchers and<br />

scientists and entrepreneurs <strong>to</strong> return <strong>to</strong> EU after training abroad<br />

Retenti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> n<strong>on</strong>-EU citizens with advanced degrees from European instituti<strong>on</strong>s<br />

ERA and MS policies <strong>to</strong> be supplemented by EU policies<br />

EU <strong>to</strong> work with counterpart funding agencies in o<str<strong>on</strong>g>the</str<strong>on</strong>g>r countries <strong>to</strong> lower barriers <strong>to</strong><br />

collaborati<strong>on</strong> for scientists, engineers, and students, and encourage jointly funded, and<br />

multilateral projects, and address IPR issues<br />

75


KETs (key enabling<br />

technologies)<br />

Primarily bot<strong>to</strong>mup)<br />

Where <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>mes<br />

reflect existing research<br />

competencies and<br />

capacities and<br />

maintaining or<br />

catching-up<br />

competiveness in<br />

crucial, specific<br />

technological areas,<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>re should be a much<br />

str<strong>on</strong>ger bot<strong>to</strong>m-up<br />

approach, because <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

short life cycles means<br />

that time-<strong>to</strong>-market is<br />

important. The priority<br />

should be <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

technological<br />

competences <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

partners, as judged by<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> EU partners, ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

than geographical or<br />

nati<strong>on</strong>al level issues.<br />

Generic technology<br />

and<br />

interdisciplinary<br />

standard-setting<br />

Focus <strong>on</strong><br />

development and<br />

product/processes<br />

that are close-<strong>to</strong>market<br />

Interacti<strong>on</strong> between<br />

cus<strong>to</strong>mer-suppliers<br />

<strong>on</strong> development and<br />

market-adaptati<strong>on</strong><br />

innovati<strong>on</strong> project<br />

Establishment <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

voluntary<br />

standard-setting,<br />

driven by firms -<br />

focus is <strong>on</strong><br />

Cus<strong>to</strong>mer-supplier<br />

networks:Internal<br />

(GPN, MNE, or<br />

keiretsu) standards<br />

Also extends <strong>to</strong><br />

helping EU firms<br />

meet standards set by<br />

n<strong>on</strong>-EU firms.<br />

Focus is <strong>on</strong> applied research<br />

Establishment <str<strong>on</strong>g>of</str<strong>on</strong>g> EU based Centres for knowledge transfers<br />

built around communities <str<strong>on</strong>g>of</str<strong>on</strong>g> practice.<br />

These centres build str<strong>on</strong>g partnerships with industry, nati<strong>on</strong>al<br />

labora<strong>to</strong>ries, and internati<strong>on</strong>al centres <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Excellence<br />

Objective is <strong>to</strong> promote complex interacti<strong>on</strong>s between<br />

researchers and users. The more sustained and intense <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

interacti<strong>on</strong> between researchers and users, <str<strong>on</strong>g>the</str<strong>on</strong>g> more likely <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

research results will be used.<br />

Sec<strong>on</strong>dary objective is SME-driven: SMEs cannot afford <strong>to</strong><br />

spend resources <strong>on</strong> l<strong>on</strong>g-term research projects, because<br />

short-term imperatives mean that resources simply are not<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>re <strong>to</strong> invest in <str<strong>on</strong>g>the</str<strong>on</strong>g>se areas. Resources (time, m<strong>on</strong>ey, and so<br />

<strong>on</strong>) <strong>to</strong> address short-term goals reduce <str<strong>on</strong>g>the</str<strong>on</strong>g> ability <strong>to</strong> draw <strong>on</strong><br />

resources for l<strong>on</strong>g-term goals.<br />

Focus is <strong>on</strong> global producti<strong>on</strong> networks and global value<br />

chains, where joint innovati<strong>on</strong> activity is core <strong>to</strong> l<strong>on</strong>ger-term<br />

participati<strong>on</strong> in GPN or GVC<br />

Focus is <strong>on</strong><br />

1. EU SMEs acting as suppliers <strong>to</strong> n<strong>on</strong>-EU GPNs<br />

2. N<strong>on</strong>-EU suppliers <strong>to</strong> EU-centred GPNs and GVCs<br />

Objective is <strong>to</strong> reduce transacti<strong>on</strong> costs<br />

bot<strong>to</strong>m-<br />

Primarily<br />

up)<br />

Precompetitive<br />

voluntary<br />

standards<br />

setting in<br />

nascent<br />

sec<strong>to</strong>rs<br />

76


Annex 3: Trends, Drivers and Impact from<br />

Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> 31<br />

Trends in <str<strong>on</strong>g>the</str<strong>on</strong>g> Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Science<br />

The US and <str<strong>on</strong>g>the</str<strong>on</strong>g> EU have for decades led <str<strong>on</strong>g>the</str<strong>on</strong>g> world in producti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific knowledge in<br />

both quantity and quality terms. However, in quantity terms, both <str<strong>on</strong>g>the</str<strong>on</strong>g> US and <str<strong>on</strong>g>the</str<strong>on</strong>g> EU, and<br />

o<str<strong>on</strong>g>the</str<strong>on</strong>g>r developed nati<strong>on</strong>s have started <strong>to</strong> lose ground <strong>to</strong> Asia, particularly China. China has<br />

doubled its output since 2004 and now publishes more than any o<str<strong>on</strong>g>the</str<strong>on</strong>g>r country apart from <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

US. Publicati<strong>on</strong> frequency has also risen in o<str<strong>on</strong>g>the</str<strong>on</strong>g>r emerging nati<strong>on</strong>s such as Brazil, South<br />

Korea and Turkey.<br />

China's growth is particularly impressive in targeted disciplines, notably engineering,<br />

chemistry and physics. China is focusing its knowledge base building up in key technologies<br />

such as material sciences. China and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r Asian countries are for now <strong>on</strong>ly very modestly<br />

making inroads in<strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>to</strong>p quality segments. However, in specific fields, engineering being<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> prime example, <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>to</strong>p segment is also c<strong>on</strong>tested. China and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r Asian countries are<br />

already having a significant impact <strong>on</strong> this discipline, and <str<strong>on</strong>g>the</str<strong>on</strong>g> gap between China/Asia and <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

EU/US is closing fast. Tsinghua and Beijing Universities are <str<strong>on</strong>g>the</str<strong>on</strong>g> chief targets <strong>to</strong> become<br />

world's <strong>to</strong>p universities. Both are already listed am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>to</strong>p 200 in <str<strong>on</strong>g>the</str<strong>on</strong>g> Shanghai Ranking <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

Research Universities.<br />

Figure 1 Publicati<strong>on</strong>s in <str<strong>on</strong>g>the</str<strong>on</strong>g> Web <str<strong>on</strong>g>of</str<strong>on</strong>g> Science, 1986-2009<br />

Source: Thoms<strong>on</strong> Reuters Web <str<strong>on</strong>g>of</str<strong>on</strong>g> Science; cited from evaluati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> NSFC<br />

31 By Reinhilde Veugelers, see also Veugelers (2010) Bruegel Policy C<strong>on</strong>tributi<strong>on</strong> and <str<strong>on</strong>g>the</str<strong>on</strong>g> references cited<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>rein.<br />

77


Figure 2 Relative Impacts <str<strong>on</strong>g>of</str<strong>on</strong>g> Nati<strong>on</strong>al Publicati<strong>on</strong> Relative <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> World, 1986-2009<br />

Source: Thoms<strong>on</strong> Reuters Web <str<strong>on</strong>g>of</str<strong>on</strong>g> Science<br />

The rise in <str<strong>on</strong>g>the</str<strong>on</strong>g> scientific output <str<strong>on</strong>g>of</str<strong>on</strong>g> Asia and particularly China, correlates with substantial<br />

investments by <str<strong>on</strong>g>the</str<strong>on</strong>g>se countries in building up <str<strong>on</strong>g>the</str<strong>on</strong>g>ir scientific and technological capacities.<br />

South Korean R&D spending has increased steeply, and China’s R&D/GDP ratio has more<br />

than doubled in <str<strong>on</strong>g>the</str<strong>on</strong>g> last decade.<br />

Figure 3 Growth <str<strong>on</strong>g>of</str<strong>on</strong>g> Research and Development (GERD) in China, 1990-2009<br />

Source: China Statistical Yearbook <strong>on</strong> Science and Technology (1992-2010), Nati<strong>on</strong>al<br />

Bureau <str<strong>on</strong>g>of</str<strong>on</strong>g> Statistics and Ministry <str<strong>on</strong>g>of</str<strong>on</strong>g> Science and Technology<br />

China has more than doubled its research workforce. It now has as about as many researchers<br />

in its workforce as <str<strong>on</strong>g>the</str<strong>on</strong>g> EU and US: about 1.4 milli<strong>on</strong>. US universities import much <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

scientific talent from abroad, particularly from Asia, and are <str<strong>on</strong>g>the</str<strong>on</strong>g>refore particularly worried<br />

about c<strong>on</strong>tinuing <strong>to</strong> be able <strong>to</strong> fill <str<strong>on</strong>g>the</str<strong>on</strong>g>ir labora<strong>to</strong>ries with imported brains. This c<strong>on</strong>cern,<br />

78


however, is not so far justified by <str<strong>on</strong>g>the</str<strong>on</strong>g> data. On <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>trary, <str<strong>on</strong>g>the</str<strong>on</strong>g> evidence shows that <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>al mobility <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific talent is increasing. China’s share <str<strong>on</strong>g>of</str<strong>on</strong>g> PhD degrees awarded<br />

by US instituti<strong>on</strong>s <strong>to</strong> foreigners c<strong>on</strong>tinues <strong>to</strong> grow, being almost <strong>on</strong>e third <str<strong>on</strong>g>of</str<strong>on</strong>g> all 'foreign' PhDs<br />

in <str<strong>on</strong>g>the</str<strong>on</strong>g> US in 2007.<br />

The imperfect evidence available for Europe shows that <str<strong>on</strong>g>the</str<strong>on</strong>g> PhD student populati<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> EU<br />

countries have fewer foreigners compared <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> US, and <str<strong>on</strong>g>the</str<strong>on</strong>g> origins <str<strong>on</strong>g>of</str<strong>on</strong>g> foreign PhD students<br />

are different, with a less str<strong>on</strong>g Asian presence and geographic, cultural and political links<br />

being more important. Does <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing rise <str<strong>on</strong>g>of</str<strong>on</strong>g> n<strong>on</strong>-traditi<strong>on</strong>al science countries manifest<br />

itself in changing patterns <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al scientific collaborati<strong>on</strong>? A first important<br />

observati<strong>on</strong> is an overall increase in internati<strong>on</strong>al scientific collaborati<strong>on</strong>s. Never<str<strong>on</strong>g>the</str<strong>on</strong>g>less,<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>re is a marked inertia in <str<strong>on</strong>g>the</str<strong>on</strong>g> choices <str<strong>on</strong>g>of</str<strong>on</strong>g> partners. Internati<strong>on</strong>al co-operati<strong>on</strong> networks are<br />

sticky and <strong>on</strong>ly gradually change. They are heavily correlated with human capital flows,<br />

geographic proximity and sensitive <strong>to</strong> policy-support.<br />

Intra-EU collaborati<strong>on</strong> has substantially increased over time, suggesting progress has been<br />

made in building <str<strong>on</strong>g>the</str<strong>on</strong>g> integrated European Research Area (ERA). But this has happened at <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

cost <str<strong>on</strong>g>of</str<strong>on</strong>g> diversi<strong>on</strong> from extra-EU collaborati<strong>on</strong>. The emerging scientific powerhouses,<br />

particularly China, are still relatively under-represented as partners for <str<strong>on</strong>g>the</str<strong>on</strong>g> West. China’s<br />

collaborati<strong>on</strong> is mostly with o<str<strong>on</strong>g>the</str<strong>on</strong>g>r Asian ec<strong>on</strong>omies. Its collaborati<strong>on</strong> with <str<strong>on</strong>g>the</str<strong>on</strong>g> US has<br />

increased over time <strong>on</strong> par with <str<strong>on</strong>g>the</str<strong>on</strong>g> growth <str<strong>on</strong>g>of</str<strong>on</strong>g> its own scientific power. The EU’s<br />

collaborati<strong>on</strong> with China remains at a far lower level than it could be, c<strong>on</strong>sidering <str<strong>on</strong>g>the</str<strong>on</strong>g> growth<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> China’s scientific power.<br />

Impact from Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Science<br />

In <str<strong>on</strong>g>the</str<strong>on</strong>g> open US science model, foreign born are a critical source <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> US S&E workforce.<br />

Not <strong>on</strong>ly do <str<strong>on</strong>g>the</str<strong>on</strong>g>y c<strong>on</strong>tribute disproporti<strong>on</strong>ately <strong>to</strong> U.S. <strong>to</strong>p science, <str<strong>on</strong>g>the</str<strong>on</strong>g>re is also evidence that<br />

foreigners are increasingly resp<strong>on</strong>sible for US patents and US technology and engineering<br />

start-ups. They are also important sources <strong>to</strong> establish internati<strong>on</strong>al networks for recruitment,<br />

collaborati<strong>on</strong>, and ideas development. Foreign talent is thus vital for US science and<br />

innovati<strong>on</strong> capacity. This is why <str<strong>on</strong>g>the</str<strong>on</strong>g> US fears <str<strong>on</strong>g>the</str<strong>on</strong>g> power <str<strong>on</strong>g>of</str<strong>on</strong>g> its S&T machine will diminish if<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> pool <str<strong>on</strong>g>of</str<strong>on</strong>g> mobile foreign talent entering <str<strong>on</strong>g>the</str<strong>on</strong>g> US dries up. There is no clear evidence so far <strong>to</strong><br />

justify this fear. For <str<strong>on</strong>g>the</str<strong>on</strong>g> moment, <str<strong>on</strong>g>the</str<strong>on</strong>g> rise <str<strong>on</strong>g>of</str<strong>on</strong>g> Asia’s own capacity <strong>to</strong> produce S&E degrees<br />

does not seem <strong>to</strong> disc<strong>on</strong>nect <str<strong>on</strong>g>the</str<strong>on</strong>g> US from <str<strong>on</strong>g>the</str<strong>on</strong>g> pool <str<strong>on</strong>g>of</str<strong>on</strong>g> potential Asian candidates <strong>to</strong> recruit<br />

from, <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>trary.<br />

A virtuous circle thus seems <strong>to</strong> emerge: <str<strong>on</strong>g>the</str<strong>on</strong>g> US's <strong>to</strong>p positi<strong>on</strong> in science is based <strong>on</strong> its<br />

openness <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> best foreign talents, who stay l<strong>on</strong>g enough <strong>to</strong> make a c<strong>on</strong>tributi<strong>on</strong> <strong>to</strong> quality<br />

science, and this <strong>to</strong>p positi<strong>on</strong> keeps <strong>on</strong> attracting <str<strong>on</strong>g>the</str<strong>on</strong>g> best foreign talent. The increasing<br />

globalizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> science allows <str<strong>on</strong>g>the</str<strong>on</strong>g> US open model <strong>to</strong> benefit from a larger and better<br />

developed global pool <strong>to</strong> recruit from and interact with.<br />

The EU science has not managed <strong>to</strong> establish such a virtuous open model. But <str<strong>on</strong>g>the</str<strong>on</strong>g> impact<br />

extends bey<strong>on</strong>d science in<strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> R&D and innovati<strong>on</strong> patterns <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> corporate sec<strong>to</strong>r. The<br />

79


S&T rise <str<strong>on</strong>g>of</str<strong>on</strong>g> Asia has translated in<strong>to</strong> Asia becoming an increasingly attractive locati<strong>on</strong> for<br />

multinati<strong>on</strong>al companies' research activities.<br />

Internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D and innovati<strong>on</strong>s by firms<br />

Since <str<strong>on</strong>g>the</str<strong>on</strong>g> sec<strong>on</strong>d part <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> nineties, R&D expenditure by foreign-c<strong>on</strong>trolled affiliates has<br />

grown faster than <str<strong>on</strong>g>the</str<strong>on</strong>g>ir turnover in <str<strong>on</strong>g>the</str<strong>on</strong>g> OECD area, illustrating that R&D is <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> most<br />

dynamic elements in <str<strong>on</strong>g>the</str<strong>on</strong>g> globalisati<strong>on</strong> process <str<strong>on</strong>g>of</str<strong>on</strong>g> large multinati<strong>on</strong>als (OECD 2009, DB<br />

2010).<br />

The sec<strong>to</strong>r with <str<strong>on</strong>g>the</str<strong>on</strong>g> most internati<strong>on</strong>alized R&D is pharmaceuticals. The EU business sec<strong>to</strong>r<br />

is <str<strong>on</strong>g>the</str<strong>on</strong>g> most internati<strong>on</strong>alised <strong>on</strong> R&D spending. Most <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> EU outward R&D-FDI is<br />

destined for <str<strong>on</strong>g>the</str<strong>on</strong>g> US and vice versa. However, if <str<strong>on</strong>g>the</str<strong>on</strong>g> EU has l<strong>on</strong>g been <str<strong>on</strong>g>the</str<strong>on</strong>g> major host for US<br />

foreign research and vice versa, <str<strong>on</strong>g>the</str<strong>on</strong>g> emerging markets and most notably China, are currently<br />

attracting also an increasing share <str<strong>on</strong>g>of</str<strong>on</strong>g> overseas outlays by MNEs. Survey evidence <strong>on</strong><br />

intenti<strong>on</strong>s for R&D investments c<strong>on</strong>firms <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing importance <str<strong>on</strong>g>of</str<strong>on</strong>g> emerging markets<br />

(UNCTAD 2005, EUI 2004, McKinsey (2006)).<br />

With <str<strong>on</strong>g>the</str<strong>on</strong>g> share <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D activities by MNEs located abroad <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> rise, and with R&D<br />

expenditures from foreign c<strong>on</strong>trolled firms increasing much faster than those from firms<br />

under nati<strong>on</strong>al c<strong>on</strong>trol, foreign c<strong>on</strong>trolled R&D becomes an increasingly more important part<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> R&D landscape in many recipient countries. This holds particularly for small countries,<br />

but not exclusively. For instance in <str<strong>on</strong>g>the</str<strong>on</strong>g> UK, it is thanks <strong>to</strong> R&D investment by foreign<br />

affiliates that overall business-sec<strong>to</strong>r R&D c<strong>on</strong>tinues <strong>to</strong> grow.<br />

Internati<strong>on</strong>al collaborati<strong>on</strong> in R&D: a phenomen<strong>on</strong> <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> rise?<br />

A trend in <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D is <str<strong>on</strong>g>the</str<strong>on</strong>g> rising number <str<strong>on</strong>g>of</str<strong>on</strong>g> cooperati<strong>on</strong> agreements or<br />

alliances since <str<strong>on</strong>g>the</str<strong>on</strong>g> 1980’s between partners residing in different countries (e.g. Hagedoorn<br />

and Schakenraad, 1990, 1993; Duysters and Hagedoorn, 1996). The increasing similarity <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

technologies across sec<strong>to</strong>rs and cross-fertilisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> technology between sec<strong>to</strong>rs, coupled<br />

with <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing costs and risks associated with innovati<strong>on</strong>, has led firms <strong>to</strong> c<strong>on</strong>sider<br />

internati<strong>on</strong>al R&D alliances as a first-best opti<strong>on</strong> in many circumstances.<br />

Through R&D cooperati<strong>on</strong>s and strategic alliances, leading internati<strong>on</strong>al technological<br />

enterprises have created new soluti<strong>on</strong>s that allow for <str<strong>on</strong>g>the</str<strong>on</strong>g> rapid and flexible networking <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

instituti<strong>on</strong>ally or regi<strong>on</strong>ally scattered centres <str<strong>on</strong>g>of</str<strong>on</strong>g> competence. The formati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> research joint<br />

ventures enables companies <strong>to</strong> pool resources and risk, exploit research synergies and reduce<br />

research duplicati<strong>on</strong>. It creates investment ‘opti<strong>on</strong>s’ in emerging technology fields (C<strong>on</strong>trac<strong>to</strong>r<br />

and Lorange, 1988; Hagedoorn et al., 2000).<br />

Companies are increasingly carrying out joint R&D projects with <str<strong>on</strong>g>the</str<strong>on</strong>g> best possible partners,<br />

who can be o<str<strong>on</strong>g>the</str<strong>on</strong>g>r firms or science partners. This search for best partners is d<strong>on</strong>e at a global<br />

scale. From a traditi<strong>on</strong>al transacti<strong>on</strong> cost ec<strong>on</strong>omics perspective (Williams<strong>on</strong>, 1996) <strong>on</strong>e<br />

would expect that companies are somewhat hesitant <strong>to</strong> enter in<strong>to</strong> R&D partnerships with<br />

foreign companies due <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> lack <str<strong>on</strong>g>of</str<strong>on</strong>g> c<strong>on</strong>trol over l<strong>on</strong>g-distance, lack <str<strong>on</strong>g>of</str<strong>on</strong>g> trust between<br />

80


companies from different countries and <str<strong>on</strong>g>the</str<strong>on</strong>g> high asset specificity <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D. However, as<br />

increased internati<strong>on</strong>al competiti<strong>on</strong> has led many companies <strong>to</strong> follow a strategy <str<strong>on</strong>g>of</str<strong>on</strong>g> gradual<br />

internati<strong>on</strong>alisati<strong>on</strong>, <strong>on</strong>e can assume that this experience gradually also opens <str<strong>on</strong>g>the</str<strong>on</strong>g> way <strong>to</strong> n<strong>on</strong>domestic<br />

R&D partnerships (Hagedoorn and Narula, 1996).<br />

The evidence shows that since <str<strong>on</strong>g>the</str<strong>on</strong>g> 80s <str<strong>on</strong>g>the</str<strong>on</strong>g> number <str<strong>on</strong>g>of</str<strong>on</strong>g> newly established internati<strong>on</strong>al strategic<br />

technology alliances has increased c<strong>on</strong>siderably (Hagendoorn 2001), in line with <str<strong>on</strong>g>the</str<strong>on</strong>g> general<br />

boost in technology alliance activities. In relative terms, <strong>on</strong>e could expect that, in <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>text<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> overall importance <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> <strong>to</strong> companies and <str<strong>on</strong>g>the</str<strong>on</strong>g>ir partnerships, <str<strong>on</strong>g>the</str<strong>on</strong>g> share<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al R&D partnerships in <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>to</strong>tal number <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D partnerships should also have<br />

increased during <str<strong>on</strong>g>the</str<strong>on</strong>g> last four decades. However, <str<strong>on</strong>g>the</str<strong>on</strong>g> past forty years indicate a somewhat<br />

irregular and slightly downward trend in <str<strong>on</strong>g>the</str<strong>on</strong>g> share <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al R&D partnerships.<br />

Changing innovative strategies <str<strong>on</strong>g>of</str<strong>on</strong>g> transnati<strong>on</strong>al companies<br />

Given <str<strong>on</strong>g>the</str<strong>on</strong>g> prominence <str<strong>on</strong>g>of</str<strong>on</strong>g> large technology intensive multinati<strong>on</strong>al firms in <strong>STI</strong> capacity<br />

building, it is important <strong>to</strong> understand <str<strong>on</strong>g>the</str<strong>on</strong>g> changing motives <str<strong>on</strong>g>of</str<strong>on</strong>g> firms <strong>to</strong> source and exploit<br />

technology abroad within <str<strong>on</strong>g>the</str<strong>on</strong>g> process <str<strong>on</strong>g>of</str<strong>on</strong>g> increasing globalisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong>, as described in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

previous secti<strong>on</strong>.<br />

His<strong>to</strong>rically, multinati<strong>on</strong>als (essentially US multinati<strong>on</strong>als) tended <strong>to</strong> keep R&D in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

‘home’ country. This meant <str<strong>on</strong>g>the</str<strong>on</strong>g>y could manage <str<strong>on</strong>g>the</str<strong>on</strong>g> risks <str<strong>on</strong>g>of</str<strong>on</strong>g> innovati<strong>on</strong> and de-bug new<br />

products and processes with <str<strong>on</strong>g>the</str<strong>on</strong>g> minimum <str<strong>on</strong>g>of</str<strong>on</strong>g> transacti<strong>on</strong> costs (Vern<strong>on</strong> 1966) and (ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r<br />

incidentally) it also limited <str<strong>on</strong>g>the</str<strong>on</strong>g> extent <strong>to</strong> which <str<strong>on</strong>g>the</str<strong>on</strong>g>y could suffer knowledge ‘leakage’ in<br />

distant markets. They would <str<strong>on</strong>g>the</str<strong>on</strong>g>n successively ‘roll out’ new products and processes <strong>to</strong> plants<br />

abroad, doing <strong>on</strong>ly R&D for local adaptati<strong>on</strong> at a distance. Later writers call this ‘home base<br />

exploiting’: <str<strong>on</strong>g>the</str<strong>on</strong>g> idea being that <str<strong>on</strong>g>the</str<strong>on</strong>g> foreign R&D builds <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> positi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> home country.<br />

While most R&D abroad was associated with market-related motives (integrati<strong>on</strong> with foreign<br />

producti<strong>on</strong>, resp<strong>on</strong>siveness <strong>to</strong> local demand and regulati<strong>on</strong>s), <str<strong>on</strong>g>the</str<strong>on</strong>g> increase in foreign R&D<br />

activities that emerged from <str<strong>on</strong>g>the</str<strong>on</strong>g> early 90s, could not solely be explained by demand related<br />

motives. The new evidence ga<str<strong>on</strong>g>the</str<strong>on</strong>g>red shows that MNEs are establishing foreign R&D<br />

facilities, driven increasingly more by supply related motives; in an attempt <strong>to</strong> tap in<strong>to</strong><br />

knowledge and technology sources in centres <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific excellence located worldwide.<br />

These decentralized R&D activities have been defined as “home-base augmenting” (HBA)<br />

(Kuemmerle, 1996) or “asset-seeking” R&D activity (Dunning and Narula, 1995), as opposed<br />

<strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> more traditi<strong>on</strong>al “home-base exploiting (HBE) or asset-exploiting strategies. This<br />

correlates with a shift <strong>to</strong>wards MNE subsidiaries that are R&D active, not just in incremental,<br />

adaptive innovati<strong>on</strong>s, based <strong>on</strong> development activities, but also in drastic innovati<strong>on</strong>s,<br />

creating basic generic know-how, where <str<strong>on</strong>g>the</str<strong>on</strong>g> subsidiary is as active as headquarters in external<br />

linkages.<br />

In this new perspective, supply related motives, related <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> presence <str<strong>on</strong>g>of</str<strong>on</strong>g> scientific and<br />

technological skills, become more important as locati<strong>on</strong> fac<strong>to</strong>rs. Locati<strong>on</strong> decisi<strong>on</strong>s for this<br />

81


type <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D facility are based not <strong>on</strong>ly <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> technological infrastructure <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> host<br />

country, but also <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> presence <str<strong>on</strong>g>of</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r firms and instituti<strong>on</strong>s, which may create<br />

externalities that investing firms could absorb. When <str<strong>on</strong>g>the</str<strong>on</strong>g> purpose <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D is <strong>to</strong> try and gain<br />

access <strong>to</strong> localised knowledge, firms will establish centers in proximity <strong>to</strong> universities or<br />

nati<strong>on</strong>al labora<strong>to</strong>ries. When instead <str<strong>on</strong>g>the</str<strong>on</strong>g>y are supporting manufacturing and marketing<br />

activities R&D sites <str<strong>on</strong>g>the</str<strong>on</strong>g>y will be located near a lead market or in a cluster <str<strong>on</strong>g>of</str<strong>on</strong>g> competi<strong>to</strong>rs.<br />

The cost <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D labour has been much discussed as a reas<strong>on</strong> for multinati<strong>on</strong>als <strong>to</strong> ‘<str<strong>on</strong>g>of</str<strong>on</strong>g>fshore’<br />

R&D but it appears that in developing markets <str<strong>on</strong>g>the</str<strong>on</strong>g> price <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D labour quickly rises <strong>to</strong>wards<br />

world levels. Western firms report not <strong>on</strong>ly lower labour costs and <str<strong>on</strong>g>the</str<strong>on</strong>g> importance <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

growth potential <str<strong>on</strong>g>of</str<strong>on</strong>g> Asian markets, but also, and equally important, <str<strong>on</strong>g>the</str<strong>on</strong>g> quality <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D<br />

resources and <str<strong>on</strong>g>the</str<strong>on</strong>g> proximity <strong>to</strong> universities and institutes (Thursby and Thursby, 2006). The<br />

rise <str<strong>on</strong>g>of</str<strong>on</strong>g> Asia’s indigenous scientific capacity is <str<strong>on</strong>g>the</str<strong>on</strong>g>refore increasingly turning in<strong>to</strong> a fac<strong>to</strong>r <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

attractiveness for locating corporate R&D labs abroad.<br />

Some types <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D are more likely than o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs <strong>to</strong> be <str<strong>on</strong>g>of</str<strong>on</strong>g>fshored – for example, clinical trials<br />

seem <strong>to</strong> resp<strong>on</strong>d <strong>to</strong> cost levels (and probably also <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> laxity <str<strong>on</strong>g>of</str<strong>on</strong>g> regula<strong>to</strong>ry protecti<strong>on</strong> for<br />

patients). But it seems that <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘leverage’ <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D over huge amounts <str<strong>on</strong>g>of</str<strong>on</strong>g> producti<strong>on</strong> is so high<br />

that companies can <str<strong>on</strong>g>of</str<strong>on</strong>g>ten afford not <strong>to</strong> worry much about its relative cost. This will change as<br />

emerging ec<strong>on</strong>omies <str<strong>on</strong>g>of</str<strong>on</strong>g>fer greater amounts <str<strong>on</strong>g>of</str<strong>on</strong>g> well-qualified and experienced R&D workers,<br />

so EU policy needs <strong>to</strong> be robust against this change. The rate <str<strong>on</strong>g>of</str<strong>on</strong>g> growth in <str<strong>on</strong>g>the</str<strong>on</strong>g> Chinese<br />

research base is an important signal here.<br />

Impact <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> growing internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D and innovati<strong>on</strong>s by firms<br />

The previous secti<strong>on</strong>s have made <str<strong>on</strong>g>the</str<strong>on</strong>g> case that increasing cross-border flows <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D are a<br />

major trend and feature <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world ec<strong>on</strong>omy. In many ec<strong>on</strong>omies significant shares <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

domestic R&D are performed by affiliates <str<strong>on</strong>g>of</str<strong>on</strong>g> foreign firms. Likewise, firms are performing<br />

increasing amounts <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D outside <str<strong>on</strong>g>the</str<strong>on</strong>g>ir home base. An important emerging dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>se trends is a change in extra Triad relati<strong>on</strong>s. R&D and innovati<strong>on</strong> activity are moving <strong>to</strong> a<br />

number <str<strong>on</strong>g>of</str<strong>on</strong>g> rapidly developing ec<strong>on</strong>omies. The transiti<strong>on</strong> is not just in <str<strong>on</strong>g>the</str<strong>on</strong>g> changing scale <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D and its destinati<strong>on</strong>s, but also in its drivers. In <str<strong>on</strong>g>the</str<strong>on</strong>g> past, firms<br />

undertaking FDI tended <strong>to</strong> keep <str<strong>on</strong>g>the</str<strong>on</strong>g>ir major technology-creati<strong>on</strong> activities in or close <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

home bases. Nowadays, firms are relocating R&D <strong>to</strong> benefit from knowledge capabilities that<br />

are distributed across countries, ei<str<strong>on</strong>g>the</str<strong>on</strong>g>r in partner companies or in public sec<strong>to</strong>r knowledge<br />

infrastructures. How will all this impact countries?<br />

The trend <strong>to</strong>ward increasing internati<strong>on</strong>alizati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D and <str<strong>on</strong>g>the</str<strong>on</strong>g> growing role <str<strong>on</strong>g>of</str<strong>on</strong>g> technology<br />

sourcing motives for internati<strong>on</strong>alizing R&D would predict more potential danger <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> host<br />

ec<strong>on</strong>omy from loss over domestic innovative capacity. But at <str<strong>on</strong>g>the</str<strong>on</strong>g> same time, it also creates<br />

more scope for potential benefits since more technology transfers <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> host locati<strong>on</strong>s are<br />

likely <strong>to</strong> occur, first because <str<strong>on</strong>g>the</str<strong>on</strong>g> host locati<strong>on</strong>s being selected by a MNE in a technology<br />

sourcing strategy will have a str<strong>on</strong>ger technology capability and thus are more likely <strong>to</strong> have<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> capacity <strong>to</strong> absorb internati<strong>on</strong>al technology. In additi<strong>on</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g>y are interesting clusters for<br />

exchange <str<strong>on</strong>g>of</str<strong>on</strong>g> know-how in quid-pro-quo networking arrangements. However, if str<strong>on</strong>g<br />

82


competi<strong>to</strong>rs are located in <str<strong>on</strong>g>the</str<strong>on</strong>g>se local clusters, MNEs will be more c<strong>on</strong>cerned <strong>to</strong> protect <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

core know-how <strong>to</strong> safeguard <str<strong>on</strong>g>the</str<strong>on</strong>g>ir competitive positi<strong>on</strong>.<br />

When multinati<strong>on</strong>al firms are technology leaders and affiliates are located in countries with an<br />

insufficiently developed intellectual property rights protecti<strong>on</strong> regime, maintaining c<strong>on</strong>trol<br />

over core technologies is a key issue, discouraging firms from localizing R&D abroad or<br />

inciting MNEs <strong>to</strong> prevent know-how leakage <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> local envir<strong>on</strong>ment. Foreign R&D labs are<br />

restricted in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir technology activities, as <str<strong>on</strong>g>the</str<strong>on</strong>g> parent maintains c<strong>on</strong>trol over key<br />

complementary technologies. Multinati<strong>on</strong>al firms adapt <str<strong>on</strong>g>the</str<strong>on</strong>g> type <str<strong>on</strong>g>of</str<strong>on</strong>g> activities located abroad in<br />

resp<strong>on</strong>se <strong>to</strong> intellectual property rights c<strong>on</strong>cerns, with knowledge intensive and higher value<br />

added activities reserved for countries with str<strong>on</strong>ger IPR regimes.<br />

In general, it is fair <strong>to</strong> c<strong>on</strong>clude that <str<strong>on</strong>g>the</str<strong>on</strong>g> results <str<strong>on</strong>g>of</str<strong>on</strong>g> technology transfers <strong>to</strong> host ec<strong>on</strong>omies are<br />

not str<strong>on</strong>g and robust, partly if <str<strong>on</strong>g>the</str<strong>on</strong>g>re is poor absorptive capacity and a weak technological<br />

positi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> host ec<strong>on</strong>omy and in weak appropriati<strong>on</strong> regimes, where <str<strong>on</strong>g>the</str<strong>on</strong>g> MNE will protect<br />

its core knowledge from spilling over. Compared <strong>to</strong> intra-industry spillovers, <str<strong>on</strong>g>the</str<strong>on</strong>g> potential for<br />

vertical (inter-industry) spillovers is much larger, as multinati<strong>on</strong>al firms will be more willing<br />

<strong>to</strong> upgrade and transfer knowledge <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir local suppliers and cus<strong>to</strong>mers in <str<strong>on</strong>g>the</str<strong>on</strong>g> value chain.<br />

Countries that are net sources <str<strong>on</strong>g>of</str<strong>on</strong>g> foreign R&D investment are worried that <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D may substitute for R&D undertaken at home. A c<strong>on</strong>sequence <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

outward R&D-FDI could be <str<strong>on</strong>g>the</str<strong>on</strong>g> reducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge intensive activities in <str<strong>on</strong>g>the</str<strong>on</strong>g> home<br />

country if MNEs decide <strong>to</strong> relocate advanced producti<strong>on</strong> stages from home <strong>to</strong> countries with a<br />

higher-skilled labour supply or with a better knowledge infrastructure. Fur<str<strong>on</strong>g>the</str<strong>on</strong>g>rmore <str<strong>on</strong>g>the</str<strong>on</strong>g> home<br />

country as a whole may lose c<strong>on</strong>trol over a key technology and with it a strategic positi<strong>on</strong> in<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al market. R&D capacities above a certain size are powerful in generating<br />

externalities in <str<strong>on</strong>g>the</str<strong>on</strong>g> form <str<strong>on</strong>g>of</str<strong>on</strong>g> thickening markets for innovati<strong>on</strong> that will benefit <str<strong>on</strong>g>the</str<strong>on</strong>g> whole<br />

system. Delocalisati<strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>refore deprives <str<strong>on</strong>g>the</str<strong>on</strong>g> home country <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>se externalities (Foray<br />

(2006)).<br />

But at <str<strong>on</strong>g>the</str<strong>on</strong>g> same time, foreign R&D activities <str<strong>on</strong>g>of</str<strong>on</strong>g> MNEs may provide access <strong>to</strong> foreign<br />

technologies and <str<strong>on</strong>g>the</str<strong>on</strong>g>y can <str<strong>on</strong>g>the</str<strong>on</strong>g>refore represent a channel for transferring knowledge back <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

home country. The knowledge accumulated abroad AND transferred within <str<strong>on</strong>g>the</str<strong>on</strong>g> multinati<strong>on</strong>al<br />

organizati<strong>on</strong> from <str<strong>on</strong>g>the</str<strong>on</strong>g> subsidiary back <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> parent, may leak outside <str<strong>on</strong>g>the</str<strong>on</strong>g> MNE’s boundaries<br />

<strong>to</strong> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r home country firms and instituti<strong>on</strong>s. Most <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>se spillover channels work better if<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> MNEs involved are locally embedded in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir home market, and if home country firms<br />

have <str<strong>on</strong>g>the</str<strong>on</strong>g> necessary absorptive capacity. Empirical evidence for <str<strong>on</strong>g>the</str<strong>on</strong>g> UK shows that positive<br />

effects are much more likely <strong>to</strong> be found when <str<strong>on</strong>g>the</str<strong>on</strong>g> R&D-FDI is motivated by technology<br />

sourcing.<br />

83


Annex 4: INCO <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> Industry<br />

Workshop, Brussels 17 April 2012: Summary<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> Issues Raised<br />

This note summarises inputs from representatives <str<strong>on</strong>g>of</str<strong>on</strong>g> industry and European Technology<br />

Platforms at a meeting with some members <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> at DG-Research. It does not<br />

represent a comprehensive record <str<strong>on</strong>g>of</str<strong>on</strong>g> what was presented and discussed but includes some<br />

interpretati<strong>on</strong> and is intended <strong>to</strong> capture <str<strong>on</strong>g>the</str<strong>on</strong>g> major issues <str<strong>on</strong>g>of</str<strong>on</strong>g> relevance <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> work <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

<str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g>. The companies represented were in biotechnology, aerospace, engineering and<br />

electr<strong>on</strong>ics, power generati<strong>on</strong> and transmissi<strong>on</strong>, telecommunicati<strong>on</strong>s services, forests and<br />

paper, c<strong>on</strong>structi<strong>on</strong> and water. Most <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> attendees were from large organisati<strong>on</strong>s; additi<strong>on</strong>al<br />

account should be taken <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> perspectives <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>alising SMEs.<br />

The Business Envir<strong>on</strong>ment<br />

The companies represented all work in global industries. The locati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> major demand has<br />

shifted from <str<strong>on</strong>g>the</str<strong>on</strong>g> Triad <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘emerging’ ec<strong>on</strong>omies in many cases – both for capital<br />

equipment (power stati<strong>on</strong>s, planes) and for some c<strong>on</strong>sumer goods and services (mobile<br />

teleph<strong>on</strong>y). This implies a radical shift in how we think about industry and policy in Europe.<br />

For example, <str<strong>on</strong>g>the</str<strong>on</strong>g> major aircraft market in <str<strong>on</strong>g>the</str<strong>on</strong>g> world is now Asia, not <str<strong>on</strong>g>the</str<strong>on</strong>g> USA or Europe.<br />

There is a str<strong>on</strong>g need for companies <strong>to</strong> operate internati<strong>on</strong>ally in order <strong>to</strong> anticipate market<br />

needs, create local value chains at an early stage <strong>to</strong> support future business and shape future<br />

supply chains, benefit from <str<strong>on</strong>g>the</str<strong>on</strong>g> global talent pool.<br />

The state and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r cus<strong>to</strong>mers are powerful in such markets, so market access is partly<br />

negotiated. In some industries, <str<strong>on</strong>g>the</str<strong>on</strong>g>re is a need <strong>to</strong> do local sourcing, producti<strong>on</strong> or R&D. In<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> process, some knowledge and advantage are lost <strong>to</strong> o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs. In engineering, ‘co-makership’<br />

– where companies in <str<strong>on</strong>g>the</str<strong>on</strong>g> supply chain take growing resp<strong>on</strong>sibility for <str<strong>on</strong>g>the</str<strong>on</strong>g> design as well as<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> manufacture <str<strong>on</strong>g>of</str<strong>on</strong>g> sub-systems and comp<strong>on</strong>ents – c<strong>on</strong>tinues <strong>to</strong> become more important. This<br />

means <str<strong>on</strong>g>the</str<strong>on</strong>g>re is <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>e hand greater interdependence <str<strong>on</strong>g>of</str<strong>on</strong>g> systems manufacturers with <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

suppliers in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir ‘home’ countries; <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r hand greater dependence <strong>on</strong> suppliers in<br />

emerging markets. These relati<strong>on</strong>ships may start as ‘shotgun weddings’ but can become<br />

sources <str<strong>on</strong>g>of</str<strong>on</strong>g> competitive advantage by shifting parts <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> supply chain from high- <strong>to</strong> lowercost<br />

regi<strong>on</strong>s. At least in some industries, technology sourcing is becoming increasingly<br />

global.<br />

84


This engineering pattern is, however, not universal. Some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> industries represented were<br />

more science-based and process-orientated, having less scope for sharing technology with<br />

o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs in <str<strong>on</strong>g>the</str<strong>on</strong>g> supply chain, as inputs tend <strong>to</strong> be raw materials ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than sub-systems.<br />

Some face important problems <str<strong>on</strong>g>of</str<strong>on</strong>g> access <strong>to</strong> raw materials, such as wood biomass for <str<strong>on</strong>g>the</str<strong>on</strong>g> pulp<br />

and paper industry. This can affect <str<strong>on</strong>g>the</str<strong>on</strong>g> locati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> producti<strong>on</strong>. All will be affected by rising<br />

real energy prices and <str<strong>on</strong>g>the</str<strong>on</strong>g> costs associated with mitigating climate change. More broadly, all<br />

were exposed <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> implicati<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘challenges’ (climate, energy, ageing – <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

infrastructure as well as people, etc) both because <str<strong>on</strong>g>the</str<strong>on</strong>g>se affect product and process innovati<strong>on</strong><br />

and because <str<strong>on</strong>g>the</str<strong>on</strong>g>y shape markets (including labour markets).<br />

While policy discussi<strong>on</strong>s focus <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> BRICs, especially China, this is a less meaningful<br />

category <strong>to</strong> industry, which is interested in internati<strong>on</strong>alisati<strong>on</strong> with respect <strong>to</strong> whatever<br />

markets it serves. There are o<str<strong>on</strong>g>the</str<strong>on</strong>g>r markets – for example <str<strong>on</strong>g>the</str<strong>on</strong>g> rest <str<strong>on</strong>g>of</str<strong>on</strong>g> Latin America and<br />

increasingly Africa – that need <strong>to</strong> be taken in<strong>to</strong> account.<br />

A c<strong>on</strong>cern that appeared in some industries was that European development and c<strong>on</strong>structi<strong>on</strong><br />

times are very l<strong>on</strong>g compared with best practice in some newly industrialising countries.<br />

Locati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D<br />

So far, <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al pattern <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D has not shifted very far from <str<strong>on</strong>g>the</str<strong>on</strong>g> Triad. China is<br />

important for some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European companies, but at this time <str<strong>on</strong>g>the</str<strong>on</strong>g>y tend <strong>to</strong> be doing fairly<br />

low-level development and localisati<strong>on</strong> ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than cutting-edge product and process<br />

development <str<strong>on</strong>g>the</str<strong>on</strong>g>re. China, whe<str<strong>on</strong>g>the</str<strong>on</strong>g>r formally or informally, has <str<strong>on</strong>g>the</str<strong>on</strong>g> muscle <strong>to</strong> force major<br />

foreign suppliers <strong>to</strong> do R&D locally, even if it is hard for it <strong>to</strong> c<strong>on</strong>trol what type <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D <str<strong>on</strong>g>the</str<strong>on</strong>g>y<br />

do. So <str<strong>on</strong>g>the</str<strong>on</strong>g> locati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> R&D is partly driven by <str<strong>on</strong>g>the</str<strong>on</strong>g> need <strong>to</strong> do R&D in order <strong>to</strong> get market<br />

access.<br />

It seems reas<strong>on</strong>able <strong>to</strong> expect that over time <str<strong>on</strong>g>the</str<strong>on</strong>g> R&D that foreign companies do in China will<br />

become more sophisticated. India is way behind China in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> foreign companies doing<br />

local R&D while Brazil tends <strong>to</strong> be ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r autarchic in R&D terms. But this will not always<br />

be <str<strong>on</strong>g>the</str<strong>on</strong>g> case. At varying rates in different industries, R&D by both local and internati<strong>on</strong>al<br />

firms will increase not <strong>on</strong>ly in <str<strong>on</strong>g>the</str<strong>on</strong>g> BRICs but also in o<str<strong>on</strong>g>the</str<strong>on</strong>g>r locati<strong>on</strong>s such as South Africa, and<br />

potentially <strong>on</strong>e or two o<str<strong>on</strong>g>the</str<strong>on</strong>g>r African locati<strong>on</strong>s. Policy will need <strong>to</strong> anticipate this change.<br />

Where necessary, it will be useful <strong>to</strong> build scientific links ahead <str<strong>on</strong>g>of</str<strong>on</strong>g> this happening.<br />

Multinati<strong>on</strong>als <str<strong>on</strong>g>of</str<strong>on</strong>g>ten do small amounts <str<strong>on</strong>g>of</str<strong>on</strong>g> ‘m<strong>on</strong>i<strong>to</strong>ring’ or ‘scouting’ R&D in demanding<br />

markets <strong>to</strong> understand potential demand as well as R&D that is physically near <strong>to</strong> excellent<br />

research organisati<strong>on</strong>s with which <str<strong>on</strong>g>the</str<strong>on</strong>g>y see value in cooperating.<br />

Research Cooperati<strong>on</strong><br />

The Framework Programme is important for most <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> companies present. However, it is<br />

slow moving and c<strong>on</strong>sensus based. It is not very effective at inducing disruptive change.<br />

85


The companies are generally interested in cooperating with excellent research groups in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

field. The criteri<strong>on</strong> is primarily excellence ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than geography, so while in <str<strong>on</strong>g>the</str<strong>on</strong>g> short term<br />

that cooperati<strong>on</strong> will be focused <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> USA and Europe, over time it will stretch<br />

geographically out <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> rest <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> world. One science-based company was especially<br />

vigorous in seeking out ideas and technology worldwide. Often this resulted in licensing<br />

ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than a deep cooperati<strong>on</strong>. It is based more <strong>on</strong> buying informati<strong>on</strong> than <strong>on</strong> establishing<br />

lasting relati<strong>on</strong>ships. O<str<strong>on</strong>g>the</str<strong>on</strong>g>r co-operati<strong>on</strong>s are l<strong>on</strong>ger lasting.<br />

Different cooperati<strong>on</strong> partners were chosen for different reas<strong>on</strong>s, which might be access <strong>to</strong><br />

science, standardisati<strong>on</strong>, access <strong>to</strong> technology, supplier development, technology testing or<br />

pilot development.<br />

Access <strong>to</strong> IPR was in many cases a reas<strong>on</strong> for cooperating but IPR could also be a reas<strong>on</strong> not<br />

<strong>to</strong> co-operate, in particular where potential partners could not be trusted, where <str<strong>on</strong>g>the</str<strong>on</strong>g> terms <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> cooperati<strong>on</strong> would not let <str<strong>on</strong>g>the</str<strong>on</strong>g> firm adequately protect background knowledge from its<br />

partners or where <str<strong>on</strong>g>the</str<strong>on</strong>g>re was a risk that a university would claim rights – a problem especially<br />

in <str<strong>on</strong>g>the</str<strong>on</strong>g> USA under <str<strong>on</strong>g>the</str<strong>on</strong>g> Bayh-Dole Act.<br />

Firm size helped determine <str<strong>on</strong>g>the</str<strong>on</strong>g> kind <str<strong>on</strong>g>of</str<strong>on</strong>g> co-operati<strong>on</strong>s that were possible. While large firms<br />

could take a strategic and l<strong>on</strong>g-term view <str<strong>on</strong>g>of</str<strong>on</strong>g> benefits, smaller <strong>on</strong>es needed co-operati<strong>on</strong> <strong>to</strong><br />

produce results <str<strong>on</strong>g>of</str<strong>on</strong>g> more immediate, shorter-term relevance.<br />

Research cooperati<strong>on</strong> would become easier if <str<strong>on</strong>g>the</str<strong>on</strong>g>re was greater researcher mobility <strong>to</strong> build<br />

pers<strong>on</strong>al linkages.<br />

Policy Implicati<strong>on</strong>s<br />

The companies were keen <strong>to</strong> emphasise that <str<strong>on</strong>g>the</str<strong>on</strong>g> first thing <strong>to</strong> do in support <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> EU industry and <str<strong>on</strong>g>the</str<strong>on</strong>g> ERA is <strong>to</strong> c<strong>on</strong>tinue <strong>to</strong> operate a str<strong>on</strong>g (but <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

course administratively simplified) Framework Programme. <strong>STI</strong> funds should primarily go <strong>to</strong><br />

EU companies, ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than funding n<strong>on</strong>-Europe-based firms <strong>to</strong> compete with <str<strong>on</strong>g>the</str<strong>on</strong>g> EU. One<br />

aspect <str<strong>on</strong>g>of</str<strong>on</strong>g> investing in <strong>STI</strong> in Europe is <strong>to</strong> attract FDI and <strong>to</strong> c<strong>on</strong>tinue <strong>to</strong> make it attractive for<br />

EU-based firms <strong>to</strong> remain in place.<br />

Reciprocity in access <strong>to</strong> programmes was seen as important. There is lack <str<strong>on</strong>g>of</str<strong>on</strong>g> a clear<br />

distincti<strong>on</strong> between policy <strong>to</strong> support development in poor countries and <strong>STI</strong> cooperati<strong>on</strong> with<br />

developed <strong>on</strong>es. In <str<strong>on</strong>g>the</str<strong>on</strong>g> sec<strong>on</strong>d case, <str<strong>on</strong>g>the</str<strong>on</strong>g> EU should <strong>on</strong>ly support cooperati<strong>on</strong> with countries<br />

that allow EU organisati<strong>on</strong>s <strong>to</strong> participate in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir programmes <strong>on</strong> a similar basis. The EU<br />

should devote efforts <strong>to</strong> persuading o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs <strong>to</strong> open <str<strong>on</strong>g>the</str<strong>on</strong>g>ir programmes as this would make<br />

internati<strong>on</strong>al cooperati<strong>on</strong> easier.<br />

Internati<strong>on</strong>al cooperati<strong>on</strong> plays an important role in c<strong>on</strong>verging efforts, reducing risk and<br />

setting standards. This is valuable and needs support well bey<strong>on</strong>d Europe.<br />

86


Researcher mobility schemes operating bey<strong>on</strong>d Europe should be streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ned.<br />

In line with <str<strong>on</strong>g>the</str<strong>on</strong>g> KETs discussi<strong>on</strong>, companies wanted <strong>to</strong> see investment by <str<strong>on</strong>g>the</str<strong>on</strong>g> EU not <strong>on</strong>ly in<br />

R&D but also in pilots and dem<strong>on</strong>strati<strong>on</strong>s. These have benefits both for technological<br />

development and for standardisati<strong>on</strong>.<br />

The EU should lead projects aiming <strong>to</strong> set global standards and norms. This is an opportunity<br />

<strong>to</strong> take <str<strong>on</strong>g>the</str<strong>on</strong>g> initiative and have a decisive influence <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> shape <str<strong>on</strong>g>of</str<strong>on</strong>g> such standards. The EU<br />

could also take <str<strong>on</strong>g>the</str<strong>on</strong>g> lead in projects addressing some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> grand challenges, where a global<br />

effort is beneficial for every<strong>on</strong>e. This is especially useful in ‘horiz<strong>on</strong>tal’ issues where IPR is<br />

not a major c<strong>on</strong>cern. More broadly, EU internati<strong>on</strong>al projects should have clear and<br />

transparent IPR and exploitati<strong>on</strong> rights. The EU should work <strong>to</strong>wards more harm<strong>on</strong>ised<br />

internati<strong>on</strong>al rules and practices in relati<strong>on</strong> <strong>to</strong> IPR.<br />

The EU efforts <strong>to</strong>wards innovative procurement should be mirrored in internati<strong>on</strong>al activities<br />

– encouraging o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs <strong>to</strong> open <str<strong>on</strong>g>the</str<strong>on</strong>g>ir innovative procurement programmes also <strong>to</strong> EU firms.<br />

In additi<strong>on</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g> EU should pay attenti<strong>on</strong> <strong>to</strong> traditi<strong>on</strong>al trade and industry policy aspects such<br />

as reducti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> trade barriers and encouraging entry.<br />

87


Annex 5: Outcomes <str<strong>on</strong>g>of</str<strong>on</strong>g> a survey <strong>on</strong> SMEs<br />

SME Inputs <strong>on</strong> how Future EU Research and Innovati<strong>on</strong> Policy should Support Global<br />

Cooperati<strong>on</strong> in Industrial Research<br />

Following <str<strong>on</strong>g>the</str<strong>on</strong>g> industry workshop (<strong>on</strong> 17 April 2012, in Brussels) <str<strong>on</strong>g>the</str<strong>on</strong>g> EG members agreed that<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> input <strong>on</strong> behalf <str<strong>on</strong>g>of</str<strong>on</strong>g> SMEs is important and an additi<strong>on</strong>al effort should be undertaken in this<br />

regard. Thus, 10 SMEs from <str<strong>on</strong>g>the</str<strong>on</strong>g> ICT sec<strong>to</strong>r from Germany and 14 SMEs from Bulgaria (half<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>m from <str<strong>on</strong>g>the</str<strong>on</strong>g> ICT sec<strong>to</strong>r and <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r half from various industries) were interviewed via<br />

e-mail, <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> ph<strong>on</strong>e and face-<strong>to</strong>-face. All interviewed companies have well-established<br />

internati<strong>on</strong>al activities. These interviews were organised as a complementary activity <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

INCO <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> Industry Workshop.<br />

The SMEs were asked <str<strong>on</strong>g>the</str<strong>on</strong>g> following questi<strong>on</strong>s:<br />

1. What are <str<strong>on</strong>g>the</str<strong>on</strong>g> trends and underlying drivers (both technological and commercial) which<br />

push industry <strong>to</strong> internati<strong>on</strong>alise <strong>STI</strong> activities?<br />

2. Which fac<strong>to</strong>rs determining <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>STI</strong> strategy (cooperati<strong>on</strong>, joint venture, investment,<br />

acquisiti<strong>on</strong>, etc.) and specific geographic targeting?<br />

3. What is <str<strong>on</strong>g>the</str<strong>on</strong>g> relati<strong>on</strong>ship between private investment and public interventi<strong>on</strong> and<br />

assistance?<br />

4. How <str<strong>on</strong>g>the</str<strong>on</strong>g> EU and o<str<strong>on</strong>g>the</str<strong>on</strong>g>r public authorities could best support <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al <strong>STI</strong><br />

cooperati<strong>on</strong> activities <str<strong>on</strong>g>of</str<strong>on</strong>g> companies and how it might be best focussed?<br />

The empirical evidence from Bulgaria and Germany supports <str<strong>on</strong>g>the</str<strong>on</strong>g> general understanding<br />

related <strong>to</strong> SME internati<strong>on</strong>alisati<strong>on</strong> and innovati<strong>on</strong>:<br />

• The market is leading as a driving force for internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> activities, while<br />

technological fac<strong>to</strong>rs appear <strong>to</strong> be ‘sec<strong>on</strong>dary’. The commercial drivers are <str<strong>on</strong>g>the</str<strong>on</strong>g> most<br />

important <strong>on</strong>es for companies <strong>to</strong> internati<strong>on</strong>alise <str<strong>on</strong>g>the</str<strong>on</strong>g>ir activities - firms seek <strong>to</strong> fill in<br />

market niches and find new markets for new products. An important aspect <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

internati<strong>on</strong>alisati<strong>on</strong> is <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘localisati<strong>on</strong>’ <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> market and <str<strong>on</strong>g>the</str<strong>on</strong>g> local realities. In this<br />

regard several companies stress <str<strong>on</strong>g>the</str<strong>on</strong>g> importance <str<strong>on</strong>g>of</str<strong>on</strong>g> having local partners and<br />

c<strong>on</strong>sultancy expertise <strong>on</strong>-site.<br />

• Locati<strong>on</strong> advantages resulting from being embed in clusters is <str<strong>on</strong>g>of</str<strong>on</strong>g> utmost important for<br />

SMEs <strong>to</strong> generate ideas, avail assistance and ga<str<strong>on</strong>g>the</str<strong>on</strong>g>r informati<strong>on</strong> <strong>on</strong> internati<strong>on</strong>al<br />

partners. This suggests that <str<strong>on</strong>g>the</str<strong>on</strong>g> cluster locati<strong>on</strong> helps <str<strong>on</strong>g>the</str<strong>on</strong>g> SMEs <strong>to</strong> overcome <str<strong>on</strong>g>the</str<strong>on</strong>g>ir lack<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> experience and resources <strong>to</strong> some extent in facilitating strategic networking<br />

prospects.<br />

• Access <strong>to</strong> funding is highly important. SMEs with funding are more able <strong>to</strong> engage in<br />

internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>. It basically c<strong>on</strong>firms past literature which suggests that<br />

88


SME are usually c<strong>on</strong>stricted due <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> limited resources available <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>m <strong>to</strong> pursue<br />

such internati<strong>on</strong>al collaborati<strong>on</strong>s.<br />

• The size <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> company is also seen as a fac<strong>to</strong>r for going internati<strong>on</strong>al and for<br />

internati<strong>on</strong>al <strong>STI</strong> collaborati<strong>on</strong>. Larger companies are <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>es working with foreign<br />

partners and developing innovati<strong>on</strong>s. The small <strong>on</strong>es need some mediati<strong>on</strong> for finding<br />

n<strong>on</strong>-EU partners. This mediati<strong>on</strong> should be sec<strong>to</strong>r-specific, facilitating <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

communicati<strong>on</strong> between potential partners, <str<strong>on</strong>g>the</str<strong>on</strong>g> exchange <str<strong>on</strong>g>of</str<strong>on</strong>g> know-how, as well as <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

access <strong>to</strong> informati<strong>on</strong>.<br />

• The c<strong>on</strong>vergence <str<strong>on</strong>g>of</str<strong>on</strong>g> different technologies is c<strong>on</strong>sidered an important driver <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

internati<strong>on</strong>alisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong> activities <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> companies. As various independently<br />

developed technologies begin <strong>to</strong> c<strong>on</strong>verge, <str<strong>on</strong>g>the</str<strong>on</strong>g> companies that produce <str<strong>on</strong>g>the</str<strong>on</strong>g>m begin <strong>to</strong><br />

work <strong>to</strong>ge<str<strong>on</strong>g>the</str<strong>on</strong>g>r <strong>to</strong> bring new and innovative products <strong>to</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> market.<br />

• Public support is <str<strong>on</strong>g>of</str<strong>on</strong>g>ten <str<strong>on</strong>g>the</str<strong>on</strong>g> initial reas<strong>on</strong> for establishing new c<strong>on</strong>tacts with<br />

internati<strong>on</strong>al partners, which in <str<strong>on</strong>g>the</str<strong>on</strong>g> end can also lead <strong>to</strong> lasting partnerships, also in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

sales domain.<br />

• A lack <str<strong>on</strong>g>of</str<strong>on</strong>g> adequate public support hinders <strong>STI</strong> internati<strong>on</strong>alisati<strong>on</strong> due <strong>to</strong> high risks<br />

taken; thus initial public assistance could encourage fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r private investments. The<br />

current mechanisms <str<strong>on</strong>g>of</str<strong>on</strong>g> public interventi<strong>on</strong> and assistance are <strong>to</strong>o l<strong>on</strong>g-term and<br />

exhaustive for being a real help in tackling <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>STI</strong> challenges at hand.<br />

• SMEs are mainly engaged in "innovati<strong>on</strong>“ part <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>STI</strong> collaborati<strong>on</strong>, suggesting a<br />

more exploitative strategy and ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r limited explorati<strong>on</strong> strategy, which is <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

"Science“ and "Technology“ part <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>STI</strong>. The extent and intensity <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>STI</strong><br />

collaborati<strong>on</strong> however can depend <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> market that <str<strong>on</strong>g>the</str<strong>on</strong>g> SME is serving as well as<br />

business <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> SME is involved in.<br />

• Since <str<strong>on</strong>g>the</str<strong>on</strong>g> sample does not allow us <strong>to</strong> analyse <str<strong>on</strong>g>the</str<strong>on</strong>g> sec<strong>to</strong>r specific influences, we cannot<br />

show how certain technology-intensive SMEs find it more important <strong>to</strong> pursue<br />

Technology-led internati<strong>on</strong>al cooperati<strong>on</strong>. However, we can c<strong>on</strong>firm that <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> whole<br />

Science-led internati<strong>on</strong>al cooperati<strong>on</strong>, where SMEs are engaged in research c<strong>on</strong>sortia<br />

dealing with new technology, applicati<strong>on</strong> etc. is mostly absent.<br />

• The interviews seem <strong>to</strong> c<strong>on</strong>firm <str<strong>on</strong>g>the</str<strong>on</strong>g> relevance <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> opportunities created for SMEs as<br />

a result <str<strong>on</strong>g>of</str<strong>on</strong>g> finding <str<strong>on</strong>g>the</str<strong>on</strong>g> strategic partner for internati<strong>on</strong>al cooperati<strong>on</strong>. In certain cases, it<br />

is <str<strong>on</strong>g>the</str<strong>on</strong>g> academic partner for developing new technology, innovati<strong>on</strong> etc, , while for<br />

o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs it is <str<strong>on</strong>g>the</str<strong>on</strong>g> R&D c<strong>on</strong>sortia and FP7 projects which create opportunities for<br />

funding, markets etc.<br />

• The dynamic envir<strong>on</strong>ment for enabling such sharing <str<strong>on</strong>g>of</str<strong>on</strong>g> informati<strong>on</strong> and opportunities<br />

regarding internati<strong>on</strong>al partners is critical for SMEs. Proximity <strong>to</strong> such sources seems<br />

<strong>to</strong> facilitate this.<br />

89


European Commissi<strong>on</strong><br />

EUR 25508 - Science, Technology and Innovati<strong>on</strong> in Europe - <str<strong>on</strong>g>Report</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> <strong>on</strong> Internati<strong>on</strong>al <strong>STI</strong><br />

Cooperati<strong>on</strong> <strong>to</strong> a EU Strategy for Internati<strong>on</strong>al Cooperati<strong>on</strong> <strong>on</strong> <strong>STI</strong><br />

Luxembourg: Publicati<strong>on</strong>s Office <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong><br />

2012 — 92 pp — 17,6 x 25 cm<br />

ISBN 978-92-79-26411-5<br />

doi 10.2777/18000


How <strong>to</strong> obtain EU publicati<strong>on</strong>s<br />

Free publicati<strong>on</strong>s:<br />

• via EU Bookshop (http://bookshop.europa.eu);<br />

• at <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong>’s representati<strong>on</strong>s or delegati<strong>on</strong>s. You can obtain <str<strong>on</strong>g>the</str<strong>on</strong>g>ir c<strong>on</strong>tact details <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> Internet<br />

(http://ec.europa.eu) or by sending a fax <strong>to</strong> +352 2929-42758.<br />

Priced publicati<strong>on</strong>s:<br />

• via EU Bookshop (http://bookshop.europa.eu).<br />

Priced subscripti<strong>on</strong>s (e.g. annual series <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Official Journal <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong><br />

and reports <str<strong>on</strong>g>of</str<strong>on</strong>g> cases before <str<strong>on</strong>g>the</str<strong>on</strong>g> Court <str<strong>on</strong>g>of</str<strong>on</strong>g> Justice <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong>):<br />

• via <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> sales agents <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Publicati<strong>on</strong>s Office <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Uni<strong>on</strong><br />

(http://publicati<strong>on</strong>s.europa.eu/o<str<strong>on</strong>g>the</str<strong>on</strong>g>rs/agents/index_en.htm).


KI-NA-25-508-EN-C<br />

In support <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> preparati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Commissi<strong>on</strong><br />

Communicati<strong>on</strong> “Enhancing and focussing EU internati<strong>on</strong>al<br />

cooperati<strong>on</strong> in research and innovati<strong>on</strong>: A Strategic<br />

Approach”, a high level expert group was established under<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> Chairmanship <str<strong>on</strong>g>of</str<strong>on</strong>g> Dr Sylvia Schwaag Serger.<br />

The <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g>’s remit was <strong>to</strong> provide advice and<br />

recommendati<strong>on</strong>s, including <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> internati<strong>on</strong>al<br />

dimensi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> European Research Area, <strong>to</strong> facilitate<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> development and implementati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> a more strategic<br />

approach <strong>to</strong> internati<strong>on</strong>al <strong>STI</strong> cooperati<strong>on</strong>.<br />

The <str<strong>on</strong>g>Expert</str<strong>on</strong>g> <str<strong>on</strong>g>Group</str<strong>on</strong>g> str<strong>on</strong>gly supported a more strategic<br />

orientati<strong>on</strong> and <str<strong>on</strong>g>of</str<strong>on</strong>g>fered key policy recommendati<strong>on</strong>s <strong>on</strong> a<br />

broad range <str<strong>on</strong>g>of</str<strong>on</strong>g> issues including: prioritisati<strong>on</strong>, supporting<br />

openness, streng<str<strong>on</strong>g>the</str<strong>on</strong>g>ning framework c<strong>on</strong>diti<strong>on</strong>s, encouraging<br />

industrial participati<strong>on</strong>, exploiting “variable geometry”,<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> importance <str<strong>on</strong>g>of</str<strong>on</strong>g> evidence based policy and greater<br />

integrati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> internati<strong>on</strong>al cooperati<strong>on</strong> in European<br />

activities<br />

Studies and reports<br />

doi: 10.2777/18000

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!