Alongside other commercial and non-commercial activities, an internationally competitive manufacturing base will be an important contributor to ensure that the citizens of Europe enjoy an improving quality of life. Technology is of one of the important factors in achieving competitive advantage in industry, and good research is needed to improve and develop the specific technologies used by industry. For the individual enterprise, technology can be used as a weapon in the competitive battle; it should be viewed alongside cost, product performance, productivity, quality, design, etc. Improvements in quality, productivity, etc. often result from generic technologies applied by all companies (including small ones) some of which suppliers of equipment and machinery to the company actually selling the final product. There are two major levels of research activity:basic science contributes to the expansion of knowledge, including new technical disciplines; applied research leads to an ability to develop products w

hich can be sold to customers. Different industrial sectors have differing needs for these two levels of research activity. Public authorities have different roles at each level, but the emphasis must be for industry to be close to the market, and for the Community and the national governments to be distant from the market. In order to define the role the Community has to play in supporting industry through research and technological development (RTD), it will be crucially important to start from the market place and to avoid programmes designed primarly to help the supplier. In principle, the Community should avoid supporting near market product development or other activities more properly undertaken by companies themselves without public intervention. A clear distinction needs to be made between projects aimed at improving social conditions and industrially driven projects. Both are legitimate targets for Community support, but the different objectives of each type of project need to be made clear from th

e outset. A strong scientific research base is essential both to develop the flow of ideas which could feed into products and processes and to ensure that Europe has a sufficient supply of qualified scientists and engineers. Much basic research is funded nationally, apart from major transnational activities in the "big sciences". In this respect a better European coordination of basic science programmes is called for. Moreover, the Community should launch within the 4th Framework Programme, as a complement to national efforts, specific initiatives on fundamental research relevant to major industrial and scientific needs. The Community has also a useful role in improving interactions between learned societies and national academies of science and engineering in the Member States. There is a need to improve the level of qualifications among most parts of the Community workforce. All RTD programmes should contain an element of education and training considering the high importance of this area for industry. The

exchange of students between the European countries should be encouraged. All Community programmes must be seen as part of an integrated set of activities, including setting a favourable operating environment for companies. The Community should devote attention to the needs of small and medium sized enterprises (SMEs) and in particular develop the CREFT scheme whose present restrictions may need review. In order that Europe can maintain and expand its market shares in the manufacturing industry, it is necessary that the corresponding traditional industries should modernize, particularly by incorporating generic technologies and new organizational techniques. This modernisation, frequently based on RTD work and technical innovations, will enable them to reduce production costs, to improve product quality, to shorten deadlines and to increase added value. The development of any new technology from which a sustained flow of products will arise, is inevitably a long term process. Timescales of over ten years fr

om the beginnings of an idea to a product in the market palce are not uncommon. In evaluating the effect of its programmes and other initiatives the Community must bear in mind these timescales. Advances are needed in understanding man's impact on the environment and these will be best achieved by improving the understanding of the fundamentals and the total system effects rather than simply by encouraging low quality multidisciplinary scientific work. Much environmental legislation has little basis in science, which can increase the divorce already existing between industry and administration on this subject. The Community needs to put in place programmes which will help in assessing the scientific evidence and economic trade-off and improve the quality of legislation. Social acceptance of technological change in firms and outside is another important aspect. There must be adequate preparation for the workforce in a factory before introduction of new technology that will affect working conditions. Society m

ust be informed that industrial research is undertaken in order to improve the standard of living, without harmful consequence. The changing geopolitical scene offers challenges and opportunities. The effect of the change in balance of RTD in the defence field must be examined. On the other hand, the particular immediate needs of the countries of Central and Eastern europe are to be recognised, in particular in the field of mamagement, training and exchange of people. The Treaty of Mastricht provides for coordination of RTD policy with industrial policy. In more general terms, the coordination of RTD policy with that of all of the other Community policies must be improved. The first programmes have been largely positive in bringing together between different countries scientists and industrial researchers and of a paramount importance in developing fundamental research on technological disciplines in Universities. An effective Community RTD is one based on continuity. A consequence of "stop-go" in funding i

s a recipe for ineffective RTD and wasted resources. Therefore it would be good if the Community could agree in due time on an adequate budget for the second half of the third Framework Programme and in particular for the fourth Framework Programme, in order to ensure continuation of the successful Community RTD policy. At the same time it whould be good if the Community could set faster procedures to fix its programmes as well as to set contracts with its "customers".

Yves Farge

Vice-President R&D Pechiney

Chairman of IRDAC