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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ Many of the problems cited by the expert group are unfortunately not rectifiable without a change in the underlying rules and regulations, including the very complex financial regulations. Those can only be resolved by decisive action from the European Council and the European Parliament. This is not addressed by the SET-Plan. In addition to the bureaucratic pressures, the expert group also hints at a possibly excessive interference from a large number of policy goals which are political in nature, from equal opportunities, to participation of SMEs, sustainable development, etc. While those are important, they seem to have to a certain extent deflected attention from the actual need to reach the goals of FP programmes. There is a risk that policy and bureaucratic criteria become so central in the requirement of projects that the actual quality of those in terms of objectives and results become overshadowed. The right balance between keeping overall principles of EU operations and the needs for effective R&D investments needs to be ensured. Lack of participation of the Private Sector One of the main problems of Europe’s R&D is the lack of participation of the public sector. In terms of finance, the share of public finance in R&D is not particularly lower than in the main competitors, such as the USA or Japan. How to get the private sector more engaged in R&D is a question which will need further analysis. [Aghion et al. 2009] consider that without doubt the green energy sector requires a particularly high share of public support due to its intrinsic characteristics, but funding is not the only need. First of all there is some mounting evidence that decisions of companies to invests in R&D depend on a number of regulatory and taxation conditions which in a number member states seem to be discouraging private R&D [Núñez Ferrer, 2009]. The expert group evaluation of the R&D Framework programme indicates that the structures are not encouraging the participation of private companies. The experience of the Joint Technology Initiatives (JTIs) in the FP7 programmes shows that the public private partnerships, although seen as a very promising and powerful tool by the European Commission (see above, point 3.3.3 and 3.3.4) are complex and difficult to develop into an innovation driver. Corporations complain about the very inflexible nature of the JTIs and a number of institutional structures which are discouraging the innovation process rather than encouraging it. In a report presenting the views on EU R&D by several leading corporations, the bureaucracy, regulations and financial rules are repeatedly pinpointed as real barriers for meaningful progress. 31 Given that the private sector has to be the motor for the practical development, testing and diffusion of new technologies, their concerns need to be addressed. Another serious stumbling block are the rules for intellectual property, which imply an obligation to cooperate in a manner which is contrary to the interests of the corporations and their business practices [Rietschel and Arnold, 2008]. The EU projects require companies to share the projects own foreground results and also side results. Access to background information may in some cases have to be granted. This is a very strong disincentive for participation where the rewards of the research are lost to competitors and process information for other products is also revealed. The final intellectual property of the result is held by default in joint ownership, which allows for one co-owner to license the final product by paying compensation for the other owners. 31 Jan van den Biesen in a contribution to “From CAP to competitiveness” by Nyberg C. and S. Berglund, Report by the Confederation of Swedish Enterprises of 2009 IP/A/ITRE/ST/2009-11 & 12 94 PE 440.278PDF Image | Policy Department Renewable Technologies
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