$Unique_ID{COW00558} $Pretitle{405} $Title{United Kingdom Research and Development} $Subtitle{} $Author{Embassy of the United Kingdom, Washington DC} $Affiliation{Embassy of the United Kingdom, Washington DC} $Subject{research community programme european development member projects fund industrial states} $Date{1990} $Log{} Country: United Kingdom Book: Britain in the European Community Author: Embassy of the United Kingdom, Washington DC Affiliation: Embassy of the United Kingdom, Washington DC Date: 1990 Research and Development Although each member state maintains its own national research and development (R & D) effort, each state cannot on its own meet the challenge of the large markets of Japan and the United States in science and technology. Collaborative research at the European level is therefore increasingly important. Community programmes are designed to improve Europe's technology base and to assist firms in exploiting the internal market. Programmes, whose size, scope and resources are approved by ministers, are either shared with industry or carried out in the Community's Joint Research Centre, comprising four separate laboratories staffed by scientists from member states. The British Government actively encourages British companies and organisations to participate in collaborative R & D with European partners in order to maximise economies of scale and to provide access to new technologies and skills which are necessary if British industry is to maintain its competitiveness in European and world markets. British organisations have secured just over 20 per cent of the total funding available under the industrial framework programmes and participate in between 50 per cent and 80 per cent of the projects. Framework Programme Community R & D is governed by framework programmes setting out objectives, defining priorities and fixing the overall levels of funding. Under the 1987-91 programme, the most important activity is industrial technology covering information technology (IT), telecommunications, and manufacturing and materials. Other subjects covered are energy, health, the environment and agriculture. All Community projects focus on long-term pre-competitive collaborative R & D and complement other European programmes such as Eureka. A new framework programme for 1990-94 has recently been agreed. The focus of the industrial programmes is on research to develop common standards, including more work on information and communications technologies. Specific areas covered will include microelectronics and information processing systems, the application of information technology to industrial engineering, the development of reliable and secure communications networks, and strengthening of the scientific technological base of European manufacturing industry. Of particular importance is the management of natural resources. Research activities will be directed towards identifying pollution sources and their effects on the environment and will contribute to the preparation of quality, safety and technical standards. Research will also be undertaken on the prevention of natural and technological hazards. The long-term objective of the parts of the Community programme is to contribute to the development of Europe's potential for understanding and using the properties and structures of living matter. The main aim of the energy programme is to concentrate on conservation, renewable resources and reduction of adverse effects on the environment, for example, the reduction of gases responsible for the greenhouse effect. Research will continue on nuclear reactor safety with greater emphasis on radioactive waste management, decommissioning operations and control of fissile materials. Radiation protection research will cover radiation from natural and medical sources and new technologies to assess quickly the radiological consequences of nuclear accidents. Research will be maintained on the Joint European Torus (JET) nuclear fusion project at Culham (Oxfordshire)(see p 34). An important part of the 1990-94 programme will concentrate on the training and exchange between member states of research staff in order to pave the way for a genuinely European scientific and technical community. The planned increase in the mobility of research staff will enable more of them to spend time working in high-level scientific and technical establishments in other member states; emphasis will be placed on training young people embarking on careers in research and technological development. In addition, public and private sector laboratories and research teams will be brought together in collaborative projects. Information Technology The Community's ESPRIT (European Strategic Programme for Research and Development in Information Technology) programme aims to strengthen the development, manufacture and use of information technology products. Community support is available for up to 50 per cent of project costs. ESPRIT I (1984-88) received Community funding of some 460 million Pounds. The second phase, ESPRIT II (1988-92) has been allocated just over 1,000 million Pounds which, with matching contributions from industrial partners and other contractors, is intended to support projects in microelectronics, information processing systems and other applied technology. Some 145 British firms participated in 204 projects in the first phase of ESPRIT and British organisations are involved in 134 of the 181 projects approved so far for the second phase. Telecommunications In 1987 the Council of Ministers adopted the programme for Research and Development in Advanced Communications Technologies in Europe (RACE), which is scheduled to run until 1992. The aims to establish a Community-wide integrated broadband communications system able to transmit all types of telecommunications signals, and to establish a strong Community manufacturing industry in these systems. The development of common standards is a key element in this programme. Work is carried out by industry, academic institutions and telecommunications operators, and some 367 million Pounds has been allocated. The Community and participating countries finance projects jointly, usually on a 50:50 basis. Britain is participating in 81 of the 91 contracts established under the programme. BRITE/EURAM Research and development in industrial and materials technologies is supported by the BRITE/EURAM (Basic Research in Industrial Technologies for Europe/European Research in Advanced Materials) programme. Running from 1989 to 1992, it has a budget of about 333 million Pounds. Industrial companies, higher education establishments and research and technology organisations are eligible to participate. Community support is available for up to 50 per cent of project costs. British firms are participating in 96 of the 163 projects selected in 1989. SPRINT SPRINT (Strategic Programme for Innovation and Technology Transfer) is a five-year (1989-93) technology transfer programme aimed at improving the competitiveness of European industry, particularly small- and medium-sized enterprises. The aim is to ensure that technology and aids to innovation can be shared across national boundaries. Rather than provide support to firms directly, it operates through intermediaries or organizations which help industry to innovate. SPRINT is not part of the Community framework programme. Other Programmes Other Community schemes include the Biotechnology Research for Innovation, Development and Growth in Europe (BRIDGE) programme, which has a budget of 62 million Pounds. The Community has allocated about 40 million Pounds to the next phase of its research programme in biotechnology running from 1990 to 1993, and aims to promote the development of modern biotechnology to improve European competitiveness in agriculture and industry. Two complementary programmes - Food Linked Agro-Industrial Research (FLAIR) and European Collaborative Linkage of Agriculture and Industry through Research (ECLAIR) - form part of the Community's broader programme to promote useful applications of developments in life sciences and biotechnology. ECLAIR, running for five years from 1989, is concerned with agro-industrial technologies and is open to industrial and agricultural enterprises and to research institutes and universities. FLAIR, a four-and-a-half year programme which began in 1989, concentrates on the food sector, in particular on processing, distribution and consumption. The budget for both programmes is about 70 million Pounds. The JOULE programme, which is receiving some 80 million Pounds between 1989 and 1992, funds research into non-nuclear energy. The Research Action Programme on materials is designed to increase the Community's level of self-sufficiency in raw materials. All the member states plus seven other European countries participate in the Co-operation on Science and Technology (COST) programme which is administered by the European Commission and supports projects ranging from meteorology and oceanography to food technology and medical research. The Forecasting and Assessment in Science and Technology (FAST) programme analyses scientific and technological change to identify new priorities for a common research and development policy. Eureka The 12 member states, together with Austria, Finland, Iceland, Norway, Sweden, Switzerland, Turkey and the European Commission, participate in the EUREKA initiative, designed to improve European performance in the production of high-technology goods and services for world markets. Projects involve co-operation between participants in more than one country in areas such as telecommunications, information technology, robotics, advanced manufacturing, biotechnology and lasers. EUREKA complements and is separate from the Community framework programmes; projects are concerned more with the exploitation of R & D and are proposed and run by industrial firms and research institutes. Governments supply some funding in appropriate cases and also help by providing information and ensuring open access to markets. Industrial Restructuring The Community's structural funds, administered by the Commission, are intended to support the conversion and restructuring of industry and agriculture in the Community's less-developed and declining regions. There are three funds - the European Social Fund, the European Regional Development Fund and the Guidance Section of the European Agricultural Guidance and Guarantee Fund. The Social Fund supports training and employment measures for long-term unemployed and young people. Infrastructure projects and support for industry, particularly small- and medium-sized enterprises, are financed by the Regional Development Fund. The Guidance Fund supports agricultural restructuring and some rural development measures. Adopted in June 1988, Community regulations reforming the Funds came into effect in January 1989. These involved an increase in funding from about 5,000 million Pounds in 1987 to about 9,000 million Pounds in 1992, the bulk of the increase going to the less-developed regions. The reforms have led to a move away from the financing of individual projects towards a strategic multi-annual programme approach. There are five priority objectives - promotion of economic development in poorer regions; converting regions seriously affected by industrial decline; combating long-term unemployment; facilitating the occupational integration of young people; and, as part of the reform of agricultural policy, promoting development in rural areas. The bases for financial assistance from the Funds are the regional plans submitted to the Commission by member states and Community measures adopted from them. Decisions on allocation are taken by the Commission in agreement with member states and regional authorities. European Social Fund The Social Fund provides assistance to oganisations running schemes for vocational training and job creation. Public authorities must provide at least as much finance as the Fund. Individual companies can apply to the Fund but they must obtain some funding from a public authority. In 1989 Britain received just over 18 per cent of Fund allocations. The categories of people helped by the Fund include those unemployed for more than 12 months and over the age of 25, those being trained under national vocational education systems, young people leaving school without any training, disabled people seeking jobs, and migrant workers requiring training. European Regional Development Fund The Regional Development Fund is designed to correct regional economic imbalances through projects covering basic industrial infrastructure, transport, telecommunications, and science and research facilities. Support is also given to industry for the building of workshops and the provision of business advice schemes. In some instances the Fund's resources are also directed towards inner city areas in order to restore derelict industrial sites. New productive investment to create jobs lost in declining industries is also financed to a certain extent. In 1989 Britain received 11 per cent of the Fund's allocations. Agricultural Guidance Fund The Agricultural Guidance Fund seeks to improve roads used for agriculture, to provide electricity and drinking water for farms, to conserve rural open spaces, diversify agricultural production and develop forestry. European Investment Bank The European Investment Bank provides medium- and long-term loans at attractive interest rates for public and private capital investment projects designed to further the economic development of the Community's less-favoured regions and to improve communications between member states. Types of project assisted include the construction or improvement of roads, railways and rolling stock, airports, ports and ferry terminals; telecommunications; water and sewerage facilities; building of industrial estates; and capital expenditure on institutions of higher education. Britain received 14.2 per cent of the Bank's lending within the Community in 1989. Each member state subscribes to the Bank's capital, the British share in 1989 being 19 per cent. It raises the bulk of its funds by borrowing on international and domestic capital markets and lends on a non-profit-making basis. The Bank also manages the New Community Instrument lending programme under which loans are centred on projects involving small- and medium-sized undertakings; the replacement of oil by other sources of energy; and infrastructure associated with the development of productive activities. Other Industrial Restructuring Some traditional industries such as steel and shipbuilding have suffered from excess capacity caused by competitive industries in the newly industrialised countries. As with the structural funds, the aim of Community policy is to help create new jobs and promote retraining. The RESIDER programme, approved in 1988, aims to assist the development of new economic activities in regions affected by the restructuring of the steel industry. It supports improvements in industrial infrastructure and the environment and encourages the growth of small- and medium-sized undertakings through business advisory services, improved access to capital and the promotion of innovation. RESIDER projects are funded jointly by the Community and the member state concerned. A RESIDER programme is currently operating in the steel-producing areas of South Yorkshire and Humberside. Similar schemes assist shipbuilding and coalmining areas. Agriculture and Fisheries Agriculture The stated aims of the Community's agricultural policy, as set out in the Treaty of Rome, are to increase agricultural productivity, to ensure a fair standard of living for farmers, to stabilise the agricultural market, to guarantee regular supplies of food, and to provide these supplies at a reasonable price. Decisions on the level of price support are taken annually by the Council of Ministers on the basis of proposals presented by the European Commission. For many commodities the price support mechanism consists of a minimum intervention price at which agencies of the member states will purchase production, and levies made on imports to maintain internal market prices. Schemes exist for subsidised sales to consumers within the Community, where this can be done without disrupting internal markets. The export of surpluses is made possible by the provision of export refunds to enable Community exporters to sell on world markets at the going price. The support prices, as well as rates of export refunds and other aids, are set in European Currency Units and are converted into the currencies of the member states at fixed rates of exchange (commonly called `green rates') which do not vary automatically in line with changes in market exchange rates. The green rates can thus be out of line with the market rate of exchange between each currency and the ECU, giving rise to different real support price levels in the different member states. Monetary compensatory amounts, based on the percentage difference between the green and market rates of each currency, are applied to prevent distortions in trade. They operate as import subsidies and export levies for countries whose currencies' market rates are below the green rates, and as import levies and export subsidies in the opposite case. For many years the British Government sought to reduce the costs of the Community's agricultural policy, which rose from about 9,000 million Pounds in 1984 to about 19,000 million Pounds in 1987, with over half the Community's total budget spent on the storage and disposal of agricultural surpluses. A special summit of the European Council in February 1988 agreed upon several far-reaching measures to curb spending on agriculture, including `stabilisers', a `set-aside' scheme, and tight limits on agricultural spending. Expenditure on agriculture is about 60 per cent of the Community budget, compared with 70 per cent in 1987. Although detailed arrangements vary from one agricultural commodity to another, stabilisers involve an automatic cut in the price guaranteed by the Community for a particular commodity if agreed production levels are exceeded. In cereals, for example, where the annual production level for the four years from 1988 is set at 160 million tonnes, a price cut of 3 per cent a year is imposed if that level is exceeded. To complement the stabiliser arrangements and further reduce over-production, other schemes are being introduced, which give support to farmers who take agricultural land out of production or use less intensive methods of production. The cost of the annual price fixing settlements in 1988, 1989 and 1990 was met within the binding limits established by the Council. As a result of these reforms, intervention stocks have been substantially reduced; butter stocks have practically disappeared, beef stocks are down by 85 per cent and cereal stocks by 44 per cent from their highest level. There are virtually no milk powder surpluses. Market support arrangements are financed by the guarantee section of the European Agricultural Guidance and Guarantee Fund. Fisheries The British fishing industry operates within the framework of the Community's Common Fisheries Policy (CFP), which was agreed in January 1983 and provides for the rational conservation and management of fishery resources. Total Allowable Catches are set each year, their levels based on independent scientific advice, and are then allocated between member states, taking account of traditional fishing patterns and provisions granting member states access to each other's waters. The first 6 miles of territorial waters are reserved for the member state concerned; there is limited access between 6 and 12 miles for other member states that have traditionally fished there; and outside 12 miles all member states enjoy access, subject to certain treaty provisions governing Spanish and Portuguese accession to the Community. Fishing activities are also regulated by a number of technical conservation measures, including limits on the minimum sizes of fish caught, minimum mesh sizes for fishing nets and areas closed to fishing. Each member state is responsible for ensuring that its fishermen abide by the various regulations, and they are monitored in turn by the Community's Inspectorate. The Community's fishing industry is also subject to a common market organisation whose primary aims are to encourage the rational marketing of fish products and to implement common marketing standards; to ensure market stability by adjusting supply to market requirements; and to guarantee, as far as possible, a fair income to producers. Some financial compensation is available in certain circumstances when the market is weak. The Community operates a common external tariff for fish and fish products, although some preferences are afforded to certain third countries under agreements such as the Lome Convention (see p 42) and bilateral arrangements. Intra-Community trade is tariff-free. Special arrangements apply at present to Spain and Portugal under the terms of their accession to the Community: they will not apply the Community's external tariff until 1993, and tariffs which are now levied on some tuna and sardine exports to the rest of the Community are being dismantled. Fishery relations between the Community and third countries are governed by framework agreements of between two and ten years' duration. Of particular importance to Britain are the reciprocal agreements with Norway, Sweden and the Faroe Islands, in which each party grants the other quotas within its waters. There are also `surplus' agreements, by which the Community pays for access to surplus fish in the waters of a third country. The Community also funds a Fisheries Research Programme, which is due to run until 1992. The Programme awards contracts to projects involving research centres or institutes in two or more member states. The European Commission also makes bursaries available for specific research and is looking at ways of gathering and disseminating information from national research programmes.