“Three Cycle System in the Framework of Bologna Process”, Summer School, Yerevan, Armenia, 2008

1. “Three Cycle System in the Framework of Bologna Process”,Summer School, Yerevan, Armenia, 2008 European Commission initiative in the creation European Research Area: European Technology and Inovation Institute Algirdas Vaclovas Valiulis, Bologna expert, Lithuania

2. Background The Lisbon Strategy, also known as the Lisbon Agenda or Lisbon Process, is an action and development plan for the European Union. It was set out by the European Council in Lisbon in March 2000. Its aim is to make the EU "the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment by 2010" set against the background of productivity in the EU being below that of the US.

3. Innovation is "Europe's Achilles' heel" The real difference between the two sides of the Atlanticis the money. Where the USA spends over €300 billion a year on Research and Development, European countries are lagging behind, led by Germany with €60 billion and France with €40 billion. Only the concentration on a limited number of strategic innovation themes and the bundling of existing excellence into critical masses may convert the current brain drain to a brain gain and promote global economic competitiveness. The European Institute of Innovation and Technology should therefore focus on improving the EU's innovation capacity "to renew Europe".

4. Mission and main features • Innovation is the key to growth, competitiveness and thus social well-being in the 21st century. • The European Institute of Innovation and Technology (EIT) is a new initiative which aims to become a flagship for excellence in European innovation in order to face the challenges of globalisation. • The EIT is a proxy for filling this innovation gap in Europe.

5. Mission and main features Although Europe already has excellent education and research institutions, their representatives are often isolated from the business world and do not obtain together the "critical mass" necessary for innovation. The European Institute of Innovation and Technology is the first European initiative to integrate fully the three sides of the "Knowledge Triangle“: • Higher Education, • Research, • Business-Innovation. The European Institute of Innovation and Technology: transforming innovative ideas into reality.

6. Mission and main features In February 2005, President Barroso put forward the idea of establishing a European Institute of Technology (EIT) as a contribution to the mid-term review of the Lisbon Strategy for Growth and Jobs. The European Commission carried out an extensive public consultation (2005-2006) with European stakeholders, Member States and the general public on what the mission, added value, structure and priorities of the EIT should be.

7. Milestones • April 2007: A report drafted by the United Nations University (UNU) at the request of the European Parliament, states that the currently proposed EIT is not feasible; • May 2007: The Parliament's Culture and Industry Committees held a joint public hearing on EIT;  • July 2007:  Industry and Research Committee (the Parliament's leading committee) adopted its report;  • Sep 2007: The Commission proposed a revision of the EU's long-term budget to finance the establishment of EIT. • Nov. 2007: Council reached political agreement on a compromise text. The Council and Parliament also reached an agreement on the 2008 budget, in which some €300 million is now earmarker for EIT.

8. Milestones • Jan. 2008: Council adopted a common position on EIT;  • Feb. 2008: The Commission appointed a committee to identify members of the EIT governing board; • March 2008: Parliament's final vote and adoption in plenary of the Council's common position; • May 2008: Council to decide on the seat of the EIT. Official candidates are Budapest, Wroclaw, Sant Cugat del Valles near Barcelona and Vienna-Bratislava; • Summer 2008: Members of the EIT governing board expected to be appointed; • 2008: EIT could be established.  • 2009: First Knowledge and Innovation Community could be set up and begin activities.

9. Frequently Asked Questions Why did the Commission propose a new institute? • This was a response to the difficulties the EU has been encountering for some time in translating its knowledge outcomes into commercial opportunities – the so-called "innovation gap". • This innovation gap could be reduced by improving the way the actors involved - business, higher education institutions and research institutions – work together. • Excellence in terms of innovation is currently not just dispersed physically over the Union, but fragmented because the various teams concerned are not working in an integrated way.

10. How will the EIT look?

11. What will be the nature of the Knowledge and Innovation Communities (KICs)? The KIC’s are joint ventures of partner organisations, which share a strategy and common objectives and pool their resources to achieve them. Each Knowledge and Innovation Community will have the autonomy to define its own legal status, internal organisation, the nature of the partner organisations and the planned activities.

12. Who will appoint the members of the Governing Board? The Governing Board will comprise 19 members belonging to two different groups: • 15 members, representing a balance between business,research and academia. • The Members will be appointed by the European Commission for a 6-year non-renewable term on the basis of proposals from an Identification Committee. • One third of these members will be replaced every two years. • 4 members, representing personnel, students and doctoral candidates will be elected by staff and students for a 3-year term of office.

13. Who will appoint the members of the Governing Board? • Identification Committee will be composed of 4 independent high level experts appointed by the European Commission. The four Committee members are : • Prof. Günter Stock, President of the Berlin-Brandenburg's Academy of Sciences, Germany (Chairman of the Committee) ; • Dr. Miklos Boda, Advisor to the Rector at the Budapest University of Technology and Economics, Hungary ; • Dr. Cecilia Schelin-Seidegård, Chair of the Royal Institute of Technology, Sweden ; • Prof. Ronan Stéphan, President of the Technological University of Compiegne (UTC), France.

14. Where will the EIT be located? The decision on the location of the EIT itself will be taken at a later stage, by the Member States and the European Parliament. The decision concerning the seat of the EIT is expected to be taken at political level by the European Council and European Parliamentno later than 12 months after the adoption of the Regulation establishing the EIT. It is possible that the decision may be taken as early as June 2008. On 21st January 2008, a common position on a draft Regulation for the establishment of a European Institute of Innovation and Technology (EIT) was adopted in the Council.

15. Where will the EIT be located? The following candidates have already voiced their interest to host the EIT-headquarters • Poland (Wrocław), • Hungary (Budapest), • Austria / Slovakia ("twin cities" Bratislava - Vienna), • Spain (Sant Cugat del Vallès in Catalonia), • Germany (Aachen, Karlsruhe and Nürnberg).

16. Frequently Asked Questions To address these challenges, the EIT proposed by the Commission should: • Pool existing physical and human resources; • Work in new, emerging trans- and inter-disciplinary fields through a virtuous integration of innovation, research and education activities at the highest international level; • Promote a new governance modeloperating in the knowledge triangle;

17. Frequently Asked Questions Is this proposal the European Commission’s own idea? President Barroso launched this idea in February 2005. The Commission’s proposal draws extensively on the outcomes of the consultation involving experts, the Member States, business sectors, the public and European stakeholders.

18. Frequently Asked Questions What would be the added-value of an EIT? The EIT will bring added value in three ways: It will integrate the three sides of the knowledge triangle (higher education, research and innovation). No existing EU-level activities tackle all three sides of the knowledge triangle. It will represent a concentration of excellent human and physical resources; It will offer the private sector a new relationship with education and research, which should foster the commercial and societal exploitation of innovation and knowledge outcomes.

19. Frequently Asked Questions Is there a legal basis to establish the EIT? The Treaty establishing the European Community provides the legal basis for the EIT. The European Community must encourage an environment favourable to initiative and fostering better exploitation of the industrial potential of policies of innovation, research and technological development.

20. Frequently Asked Questions Will the EIT deliver degrees and diplomas? • The EIT as such would not award diplomas, as legally only universities can do so. An 'EIT label' on university diplomas is,however, planned. • Degrees should be awarded from among the partners within KICs - or possibly by the KIC as a whole. To build a global EIT reputation, the quality of the degree courses, as well as their compatibility and recognition will be an important element in the selection of KICs.

21. Frequently Asked Questions Will the EIT deliver degrees and diplomas? • The EIT will encourage partner institutions to award joint degrees and diplomas. • The EIT will actively promote the process of recognition of EIT degrees by the Member States, as this should increase the attractiveness of the EIT both inside and outside the EU and facilitate the mobility of students and researchers.

22. What will be the role of business in the EIT? And SMEs? • The involvement of the business sector in the EIT will be crucial for its success. • Business expertise will be fully represented in the Governing Board. • Business will be an integral partner in the “Knowledge and Innovation Communities” to ensure useful outcomes, efficient development and commercial use of the knowledge outcomes. • Small and medium-sized enterprises will naturally be invited to become a partner organisation of a KIC, like any other private company. • SMEs often lack the critical mass to participate in top-class excellence-driven initiatives. For this reason, the EIT will seek to disseminate the best practices of the work carried out by KICs to non-partner organisations, especially small and medium-sized enterprises.

23. Funding is still a "black box" The overall budget for the EIT is estimated at €2.367 billion Euros for the first six years from 2008 to 2013. The €308 million represent a minimum needed for the launch of a credible EIT. €1.5 billion of the estimated overall amount will come from other EU programmes such as the Seventh Framework Programme or regional and structural funds. There is "duplicated financing" because the €1.25 billion will be taken from structural and regional funds used for an EU project which would then not be available for any regional projects. The KICs would have to be able to attract money themselves. Since the amounts that may come from the various sources cannot be stated with precision now, the exact arrangements for the funding of the EIT and the KICs will naturally evolve over time.

24. Next Steps 2008 • Ongoing : selection of the members of the EIT's first Governing Board by an ad-hoc Identification Committee. • End April : EIT Regulation will enter into force. • By end June : Appointment of the Governing Board.Possible European Council decision on the location of the EIT’s headquarters. • Autumn 2008 : First meeting of the Governing Board. 2009 • By end 2009 : selection and launch of the first Knowledge and Innovation Communities (KICs). (Within a period of eighteen months from the nomination of the Governing Board). 2011 • By the 30th June:submission of a draft Strategic Innovation Agenda (SIA) by the EIT Governing Board to the Commission. • By end 2011 : submission of the draft SIA by the Commission to the Council and European Parliament.

25. Thank You for attention and patience