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REACTING AGAINST THE MARGINALISATION OF EUROPE AND FRANCE AS REGARDS INFORMATION AND COMMUNICATION TECHNOLOGIES

The United States undeniably reigns supreme in the field of information and communication technologies (ICTs). The research and development (R&D) effort announced by the American President Mr Bush will widen the present gap.

The ICTs field ranks as the United States' second priority, after the fight against terrorism. In Europe, on the other hand, the share of ICTs in the public and private research effort is clearly declining: close to 18% (29 billion euros per year) as against nearly 35% (93 billion euros per year) in the United States and 34% (49 billion euros per year) in Japan. In France, the funding of R&D devoted to ICTs stands at around 5.6 billion euros per year, i.e. 19%, of which the public share of 1.7 billion euros per year represents only 30%.

As for public fundings, the French research effort has been reduced drastically by the almost total disappearance of the France Télécom study credits for companies. Yet the growth of credits devoted to ICTs in the common research and development budget (BCRD), where they represent only 9% (0.8 billion euros), has remained globally insufficient. Furthermore, the considerable reduction in recent years of the Ministry of Defence's support for research has particularly affected the activities engaged in by manufacturers.

Given the difference in the research and development effort between the Old and the New Continent, European countries including France must react immediately, otherwise in a few years they could be completely marginalised and reduced to menial tasks in a technological field which will play a high profile role in the economic activities, industrial competitiveness and service jobs of the first decades of the century.

Information and communication technologies are not only a driving force of economic activity but also their generic aspects make their mastery necessary for research and innovation in any other sector. In this respect they are strategic in the civil and defence fields, for they are crucial to our non-dependence, in the same way as nuclear and space-access technologies in the past.


A HUGE LEAP FORWARD REQUIRED BY THE NATIONAL BUDGET EFFORT FOR INFORMATION AND COMMUNICATION TECHNOLOGIES

The situation is so serious that public funding for research and development (R&D) devoted to information and communication technologies (ICTs) needs to make a huge leap forward. The usual budgetary reasoning in terms of increase percentages to a base budget is unsuitable. The State must deploy the necessary resources and instruments following arbitration at the highest governmental level.

A doubling of the present public credits (Ministries of Research, Defence and Industry) allocated to ICTs and their applications would form a reasonable aim, which would lead to an aggregate public share for R&D devoted to ICTs over 5 years of approximately 17 billion euros. This would nevertheless remain lower than the private R&D investment, and with the latter would represent no more than 0.5% of GDP.

Given the challenges involved, this amount is to be placed in perspective:
* first, with the great effort made by the ICT industry, which alone represents, in France, more than a quarter of all the private R&D expenditure and nearly 4% of the turnover of this industry. This effort by French industry is on a par with the international effort and double the European Union average. Affected by the crisis, for the past two years however it has been stagnating or even declining;
* second, with the aim-adopted at the Lisbon European Council in April 2002-of 3% of GDP to be devoted to R&D in all sectors by 2010.

Further, special attention should be paid to the regulatory and tax measures which are to be coherent with those of our international partners. At least two measures should be rapidly introduced: a revision of and the removal of the cap on the research tax credit and exemption from local business tax related to research investments.

Such an effort does not exceed France's financial possibilities provided the measures are aimed at the sole ICT sector, which has special strategic importance.

  • These R&D investments guarantee France's and Europe's future power of attraction. We have already nearly completely lost the battle in the field of the production of manufactured goods; we cannot allow ourselves to also lose the brain battle.

  • The projects funded should as a priority concern fields that are a direct responsibility of the public authorities: domestic security and defence, e-administration and regionalisation, education, health and the environment, because of the intrinsic importance of these topics and because they participate in the take-up by the French of ICTs and cannot be disputed by international trade rules.

  • These projects should serve as a lever in allowing experimentation with innovative technologies with industrial and commercial uses. It is therefore advisable that they result from multiannual programmes ensuring coherence and synergy between industry and public laboratories.

They should fit into a process entailing the mastery of critical technologies and should be structured around major topics such as: large system architecture, infrastructure softwares, data storage and merging, network security, network semantics and intelligence, micro and nanosensors, interactions between people and systems, etc. These topics cannot be defined precisely until consultation between the major French and European players and agencies.

They should be based on the management structure described in the Board's recommendation of 8 March 2002, comprising representatives of private and public bodies, ensuring a genuine public/private partnership, with its own legal personality and high-performance assessment instruments, empowered to negotiate with our European partners and following-up the work by the French representatives at international standardisation bodies.

This national effort should be completed by the opening of direct negotiations with our main European partners in order to rapidly set up coordinated long-term concrete actions requiring a broader framework than France on its own. This type of cooperation is essential to defend the position of European industry in international competition.

It should be able to be based on existing national or international cooperative R&D programmes such as EURÊKA (MEDEA+ as regards components and ITEA for software), or programmes to be promoted where telecommunications are concerned. The CELTIC (Cooperation for European sustained Leadership in Telecommunications) project implemented in France by Alcaltel, France Télécom and Thomson Multimedia should be promoted and encouraged by the public authorities.

Similarly, this effort, spearheaded by the European Research Area, should be supported financially as part of the European Union Framework Research and Development Programme.

 
 
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