14.12.20061K. Lautso

K. Lautso:K. Lautso:

Research and Development – Research and Development – effectiveness through international co-effectiveness through international co-

operationoperation

Financing for Research and DevelopmentFinancing for Research and DevelopmentEIB EFCA SeminarEIB EFCA Seminar

BrusselsBrussels14.12.200614.12.2006

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Structure Structure

BackgroundBackground The Consultants’ role in publicly funded R&DThe Consultants’ role in publicly funded R&D FP 7 – an opportunityFP 7 – an opportunity FP 7 – improved conditionsFP 7 – improved conditions Problems (1) – co-ordinationProblems (1) – co-ordination Problems (2) – societal nature of research problemsProblems (2) – societal nature of research problems Problems (3) – National co-fundingProblems (3) – National co-funding What is the added value for public co-funders in What is the added value for public co-funders in

funding international research?funding international research? What is the added value for research(ers) What is the added value for research(ers) ConclusionsConclusions

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BackBackggroundround

WSP LT Consultants is a Finnish consultancy specialised WSP LT Consultants is a Finnish consultancy specialised in transport, environment and infrastructurein transport, environment and infrastructure research, research, planning and designplanning and design.. 1 12525 employees employees.. PPart of WSP Group art of WSP Group since 2002. since 2002.

More than 20More than 20 EC funded research projects EC funded research projects as co- as co-ordinator or partnerordinator or partner since 1994 since 1994 for for– DG TRENDG TREN– DG ResearchDG Research– JRCJRC– IEEIEE– ECAECA

Success rate 25-67%, average 37%Success rate 25-67%, average 37%

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EU R ETita lia

M EC SA STASA

R esource Analysis

Buck Ecorys

N TU

PTVN estear

T IS

C YBER N ETIX

N EW R AILU niversity o f N ew C astle ITO R G

C ERTU

C ETE de I’O uest

M E&P

U niversity o f Leeds

IR PU D

STR ATEC

IN EC O

U C L

BU C K N EA

M ulticonsu lt W SP Sw eden LT

C D V

Tetrap lan

R D IR D T

AFT-IFT IM

P lano

System a

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IS IS

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The Consultants’ role in The Consultants’ role in publicly funded R&Dpublicly funded R&D

The dThe driving forceriving force for participation for participation: research : research needs emerge from everyday consultancyneeds emerge from everyday consultancy workwork - research results produce added - research results produce added value to everyday commercial projectsvalue to everyday commercial projects

Resources forResources for self-financed self-financed own R&D are own R&D are small small

=> interest => interest for for publicly funded researchpublicly funded research existsexists although the research does not fully although the research does not fully respond to own research needsrespond to own research needs

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FP 7 – an opportunityFP 7 – an opportunity

FP 7 2007 – 2013FP 7 2007 – 2013 Total EC funding (in EUR million) 50521*Total EC funding (in EUR million) 50521* out of which of special interest to EFCA members:out of which of special interest to EFCA members:

ICTICT 91109110EnergyEnergy 23002300EnvironmentEnvironment 19001900TransportTransport 41804180TotalTotal 17490 ~ 2500/a17490 ~ 2500/a**Council’s agreement of July 2006Council’s agreement of July 2006

Comparisons: Comparisons: – Total R&D in EU-25: 200 billion/a (Japan, China 100, USA 250)Total R&D in EU-25: 200 billion/a (Japan, China 100, USA 250)– The Finnish GNP share of EC transport research funding would The Finnish GNP share of EC transport research funding would

be 6M€/a, the MINTC’s R&D budget is 7-9 M€/abe 6M€/a, the MINTC’s R&D budget is 7-9 M€/a

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FP 7 – Improved conditionsFP 7 – Improved conditions

EIB participation (EIB participation (Risk-sharing Finance FacilityRisk-sharing Finance Facility))

More power to the co-ordinatorMore power to the co-ordinator Better conditions for SMEsBetter conditions for SMEs Improved bureaucracyImproved bureaucracy

Overall: Payment, quarantee, IPR Overall: Payment, quarantee, IPR etc. conditions are fairetc. conditions are fair

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Problems (1) – co-Problems (1) – co-ordinationordination

Most of the costs of preparing the proposal are on the co-Most of the costs of preparing the proposal are on the co-ordinatorordinator

Management activities do not add to the substance Management activities do not add to the substance knowledgeknowledge

The tools of the co-ordinator in problem situations are The tools of the co-ordinator in problem situations are weak but responsibilities are heavyweak but responsibilities are heavy

Management of big consortia, together with many formal Management of big consortia, together with many formal requirements, becomes extremely difficultrequirements, becomes extremely difficult

Result (1): Lack of interest for co-ordination activitiesResult (1): Lack of interest for co-ordination activities Result (2): Together with the overhead calculation rules EC Result (2): Together with the overhead calculation rules EC

funded research may turn out to be a non-competitive funded research may turn out to be a non-competitive alternative for some research organisations - the best alternative for some research organisations - the best resources are not attracted. This is not beneficial for the resources are not attracted. This is not beneficial for the funding agencies nor for the European Research Strategy. funding agencies nor for the European Research Strategy.

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Problems (2) – societal Problems (2) – societal nature of research nature of research

problemsproblems Results of societal research problems, such asResults of societal research problems, such as

– policy researchpolicy research– environmental issuesenvironmental issues– etc.etc.

are difficult to commercialiseare difficult to commercialise The problem owner and the end user of these results is The problem owner and the end user of these results is

societysociety It should not be assumed that individual companies It should not be assumed that individual companies

would co-finance this type of research, although they would co-finance this type of research, although they are in excellent position to do the research are in excellent position to do the research

=> public funding is needed to cover 100% of the costs => public funding is needed to cover 100% of the costs

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Problems (3) – National Problems (3) – National fundingfunding

Difficult to have firm Difficult to have firm funding funding commitmentscommitments from national authoritiesfrom national authorities in advance or at all in advance or at all

Problem for all parties: Out of ten negotiated Problem for all parties: Out of ten negotiated projects only three are successfulprojects only three are successful

=>=> Clear indication, well in advance, on what Clear indication, well in advance, on what projects could be nationally funded is essential projects could be nationally funded is essential and neededand needed

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What is the added value for public What is the added value for public organisations inorganisations in funding EC funding EC

research?research?

Benefit = VR x E x RBenefit = VR x E x RNN, where, whereVR= Volume of Research (€)VR= Volume of Research (€)

E = Efficiency factorE = Efficiency factorRN= Response to the specified research needRN= Response to the specified research need

Case (1), nationally funded research; Case (2), EC co-funded researchCase (1), nationally funded research; Case (2), EC co-funded research

VR(1) = 1,0VR(1) = 1,0VR(2) = 6 x 2 =12 (6 partners, 50% EC funding)VR(2) = 6 x 2 =12 (6 partners, 50% EC funding)E(1) = 1,0E(1) = 1,0E(2) = 0,8E(2) = 0,8RN(1) = 1,0RN(1) = 1,0RN(2) = 0,4RN(2) = 0,4

Benefit(1)=1.0 Benefit(2)=4,0 Benefit(1)=1.0 Benefit(2)=4,0 Benefit(1)=Benefit(2) if RN = 0,1Benefit(1)=Benefit(2) if RN = 0,1RN can and should be affected by public organiasationsRN can and should be affected by public organiasations

Quality(2)>Quality(1)Quality(2)>Quality(1)

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What is the added value for public What is the added value for public organisations inorganisations in funding EC funding EC

research?research?

scale: research that would be impossible to be scale: research that would be impossible to be funded on national basis is made possible funded on national basis is made possible through international co-operation and fundingthrough international co-operation and funding

Overlapping work avoidedOverlapping work avoided Multidisciplinary approaches and mix of Multidisciplinary approaches and mix of

cultures arecultures are more more likely to lead to new likely to lead to new approaches and approaches and innovative innovative resultsresults

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What is the added value What is the added value for research(ers)for research(ers)

Multidisciplinary approaches Multidisciplinary approaches and mix of cultures are and mix of cultures are more more likely to lead to new likely to lead to new approaches andapproaches and innovative innovative resultsresults

Long programmes improve the Long programmes improve the security and possibilities for security and possibilities for specialisation for the specialisation for the researchersresearchers

Somewhat flexible base work Somewhat flexible base work load smoothens the overall loadload smoothens the overall load

transfer of methodstransfer of methods and tools and tools, , benchmarking, networksbenchmarking, networks

EU R ETita lia

M EC SA STASA

R esource Analysis

Buck Ecorys

N TU

PTVN estear

T IS

C YBER N ETIX

N EW R AILU niversity o f N ew C astle ITO R G

C ERTU

C ETE de I’O uest

M E&P

U niversity o f Leeds

IR PU D

STR ATEC

IN EC O

U C L

BU C K N EA

M ulticonsu lt W SP Sw eden LT

C D V

Tetrap lan

R D IR D T

AFT-IFT IM

P lano

System a

Transm anTU W

IS IS

IL IM

TRT

TU A

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ConclusionsConclusions There is a clear interest for consultants to participate in There is a clear interest for consultants to participate in

publicly funded R&D programmes for several reasons publicly funded R&D programmes for several reasons (change of knowledge, methodologies networks etc.) (change of knowledge, methodologies networks etc.)

Because of the vicinity of (needs for) practical Because of the vicinity of (needs for) practical applications the consultants are in a good position to do applications the consultants are in a good position to do the R&D work efficientlythe R&D work efficiently

The major problem is in finding national co-funding in The major problem is in finding national co-funding in international projectsinternational projects

Funding international R&D projects may offer national Funding international R&D projects may offer national co-funding organisations remarkable potential benefits co-funding organisations remarkable potential benefits and more efficient use of public money than investing and more efficient use of public money than investing the same money in national R&D projects the same money in national R&D projects

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Thank you for your attention!Thank you for your attention!