COMMIS$ION OF
THE
EUROPEAN
COMMUNITIES
...,,,n
r
cou(f5)
524finaL vol.
Iv
'
1;
Brusrels,
2J0ctober
1976.i:.?F?l ' :t-'" il .. .:
':,*::{
l''
.ir
,
UNIYERSITY OF PITTSBURGH
LIBRARTES
FEB 2
5
1977SERIALS UNII
-I
,.".-i
.COMMUNITYPOLICY
FON TIA EIECTNONIC COIIIPONUNT INDUSTRY
(Communication from
the
Commissionto
the
Couneil)votuM0
rv
I
'
00MML1I{ICATI0N 0F T}IS CoMMIS$IoNr0
r}m
couvclrCOMMUNITT POIIC.T FOR rHE AIECTROIm6 COrrrPOtrsX{T IlflUSTRy
1.
IIiIIRODUCTIONIn
document COII(lS)
q6]-rthe Cornmiesion presented"a
first brief
amalysisof
the
interdependenceof
electronic
components,particularly
IntegratedCi"rcuite
(I.C.
)
ar,d d.ata-proceesingind.ustries,
whichindicated
a need.for
tho
developmentof
a
Er:ropeanconrpetitive
capability in
the IC
gector'
The
fast
grorth
of
Large ScaleIntegration
(l,Sl)ar,l its
influenceparticularly
ondistributed.
inte'1ligence r,ras und.erlined. aswell
asthe'
heary
reliance
of
SuropeandigitaL
equipmentind.ustries
on American ICmanufacturers
i
the
latter
bringing
a
risk that
the
European DPindustry
may
la€ technologically
behind. competitors.Since
thie
d.ocument was publiched.,the analysis
has beencarried
further
andthe
Commission hasheld
meetingswith
SeniorOfficials
andrepresentatives
of
componentindustries
from },lemberStateg,
onthe
ewrent
situation
and.the
future of
the
SuropeanIC
ind.ustrfo
I't
has becomeclear
thatn
thoughthe
computerindustry
is for
the
momentthe largest
single
userr the
situation of
the
EwopeanIC
ind"ustryie
goingto
a^ffect amr.rah
wider
spectrrxnof
the
European econor{yrThe
analysis
arrd.practical.
conclusione which have been ppovisionall.ydraw:
are
spelt.out in
the following
paragraphs.Clearll
these proposals mustbe subject
to
modifica.tion
in the light of
eubsequent d.iscussionswith
industry
and Governnents.2.
TI{E SIECTROMC COIIPONMIT' I}T'USTRYElectronic
components canbe
d.efined. asan
electronic
equipmentlthey
includ.e athe
srnallest
complete unibswid.e range
of
products
frsm*2-.
resiEtors
and.capecitors,
'bo CRT tubes and" high3-yintegrated
micro
circuits"
The
industry
which makes these prod.ucts has beencharacterised by
twornajor phaseo
of
technological innovation
and advance d.uringthe
last
twenty$ea,f,sr
1
The
invontion
of
the
transistor
and.of
soli.d
state technolory
offered.
away
to
overcomethe
nain
problems which had sofar
heavily
restricted.
theemployment
of
vacuum tubes andrelays (eg.
hi4lhvoltagesr
high
powerconsumption, mecharical
fragility,
weight
and.size);
the
electronic
ind"ustrythen fourd.
a large
nuroberof
ner
applicatione"
fhe
introd.uction
of
the
integrated
circuit
(IC)
whi.ch nad.eavailable
complete
seLf
containedfunctional
r:nits,
represented.a
further
najor
progress
in
terrnsof
Lowercostsper fr:nction,
lorver power consumptiontfaster
operating speed.s,higher
reliabil"ity
and.miniaturj-zation.
Theever-growing d.ensity
of
integration
on these d.evicest which catrt now group thousands of,circuits
ona
tiny
chipo
has contribu*ecltherefore
to
a'ner,rer uid.er
tliffusion of
electronic applications
in
almoetall
sectors of
the
econorny.'
1r \The
totaL
world
marketfor
electronic
components grewfrom
6850 }fg4t-,'
irr
1965to
L456Ain
19?3 arrdis
erpected.to
reach
tl959} IvIUAin
rgBO;the share of
integrated.circuit
d"evicesrose
from
1..9per cent of
the
total
narket
in
1965to
I3-.! per cent
in
19?3 (and. an estj.mated.tg.z
f" it,
1980), wherea.e
their
cost per
unit
d.roppod by_severalordere
of magnitude.
! Tiretotal"
componentindustry
is
thus
comparable iy1 economio scaLeto
the
hatt,-processing
ind.ustryl rqhile
the
falling
coet
anrl ei:ze .of
IC
d.evicesie
blinging
explosive
expansionof their
appLicatione.3.
EIJR0PE' S IIf'USIIRIAL PO!III0I{fhe
relative
position
of
the
Ewopean semi-cond.uctorindustries
vis-i-vis
their
Anerican and Japan€secompetitors
is
shownin
TableI.
0n
the
world. sc6r1e.,only
Phi.Lipais
arnongsttbr
leednrs
in
torns
of
stzel
the
second. S.arges* Etropean oomponent marrufao*ureris
only
ln
Loth pIace"I{oreover,
the
more ad.vancedthe technolory, the
weakerthe relative
Er:ropea;r
pogition.
The Er:ropean componentindustry
iu
welL-placed andsatisfies
the bulk
of
European d.emand.in the
sector
of
passive eomponentstwhere d.eman6 exceed.s prod.uction
only
by
4f,
(T.aUl-es2
a^nd3).
But
its
position
in the
sectors
of
semi-cond.uctordiscrete
devices
(2+/"-of
rtemand.satiefied
fryl*port") .rra*in{"sr"t"a "i.""iis ( 44 f") is
dranatically
-4-TASLE
}
Egtimated.
turnover
of
leading
na,nufact:g:ers-of
semiconductgllcomngngnle
i4
milLigns
ql
.Lr}..197.3i
Unite4 StateP
Texas
Motorola
FairchiLd
RCA
National"
Semi-cond.uctors lTT 0.8. SIGNBNCS Oeneral Inetruments Euroog
Phillps
(I{)Siemene (SR)
scs
(r)
aEc (rR) sEscom{
(r)
PlesseyFerranti
JapanIlitachi
Toehiba $m 470 354 223 r.31 115 92 Bt 77 77 L62 108 100$owoe
i
Prograrnm Elektr^onische Ba\rslemente 19?4-?8Eundeerepublik
-
fi,.g.
1[a3ru
eGomponent
production
in
enlarged EEC(?4)
(ilIUA)Semicond.gctors Integrated
circuits
Passive ComponentsBelgiunr
'
Denmark
0.7?France
248Italy
65The
Netherlande
92197 346
Total
EEC
981.77 28O.732
7.\
9727
439
,92,
.94
405
!?81 Lg35 U.K. German;r Irelancl
,57
22 17 B: 92gg3lgg
I
Macklntoshlearbook
of
tfest
ErrropeanEleqtronice t.Dats
-
L976.'
TAltEJ,Comoo:rent market
in
enlarged. EEC(19?4\
(MUA)$emicond.uctorg
Integrated.circuits
Passive ComponentsBelgiunr
58,2L '262 L26 L5 5 97 49 32 L25
L7'
99 4B 455 112 r20 481 681.
DenmarkFbanoe
Italy
U.K.
Germanqr
freland"
The
Netherland.s
. 7843
45L
Tota1
EEC
L299 498 20r6-6-4r
TIIE NEED FOR A SUROPE.f,IS CAPASITITT U.{ INITEffiATED CIROUITSYet
the
poesessionof
an up-to-d.ateoapability
in
the designl
developmentand manufactwe
of
integrated
circuits,
together
with the
skills
andtools
to
apply then.,ig crltical to
the
European econorny :-
Integrated.circutt
dqviceeare elrea{y
keytools of
the
maJor advancedtechnolory
industries,
data-procesaing and. te.l ecomnrneications, and arerapidly
becomingessential
to
a widening rangeof
other user
ind.uetriegravionics,
instrumantation,
television,
radio,
clock
andwatch, toys
qnd
all
types
of
controLdevices,
in
the ind.ustrial,
autonotive
anil
otherfields.
-
Thie
trend
qndin
particular
the
useof
LSI
is
changingthe
conceptof
equipment and. eystem d.esignwith
the
d"esignerof
advancedcomponents pLaying
a
mor6 and morelrportant
andcond.itioning
role.
-
Ehis
situation requires
an'ever
aloser eollaboration
betweenthe
trCnanufadturer and.
the user,
which d.enand.sthe
presencain
Europeof
astrong
anclconpetitive
locaL
i:rdustry
with
highly
d.evelopccLdesign
andmanufaotw
ing
oapabi 1ityr
5.
,CSALLmIGIES FACINCTm
EUROpEAI{ I}rDUSmrtlhat sre the
reasonafor
the
treakrresgggof
the
Er.rropeanindustry,
particularly
in
thc
most advanoed,seotor
of
lntegrated.circuits
?-
The Ewopean marketis stilL
t'oofragnented,
courpared.with
that
of
the
lJnited. States(*)
A
recent us
Departrnentof
connercd/eport
onthe
indwtry
concruded.I
Departmentof
Commeroe Slobe1rarket
suryey-
ELeotronlo oonponente-
ootr
L9?4ll
il
trBhe discrepancy between
foreign
and. Amerlcantechnolory
in
the highly
complexdevices,
notabi-yICrs,
arises
partly
fromthe paucity
of
R & Dfr:nd.s
for
basic
researobcumently available
to
foreign
componentfirms.
Another major
factor
is
the
sma,l-lsize
of 'tnarketsfor
high
technolorycomponents
in
other
courtries,
comparedto
the
United
Statesr This
natcesit
less
feasible
economiballyfor
foreign
manufacturersto
tool
upfor
new
technologr
marketlinee.
Furthermore,foreign
prod.ucergusually
make major investrnentsin
advanced. conponentry prod.uctiononly
after
a
U.S.originator
has marketed.a
new prod.uct and proved.its
commercial success.tlIn short,
the size
and advanced.character
of
the
UoS. mari<et; togetherwith
the
d.iversified,
ev€n divided.character
of
the
Europoan market,mea;1s
that
prod.uctstend
to
be
d"evelopedfirst in
the
United. Statest and.then
to
be marketed.in
Errope onc€ economiesof
sea.leare
alreadJrbetng achieved. and.
prices faL1ing.
Erropea.n manufactr.rrereof
standard.a.d.vanced. corponente
thus
tend
to
conelate
i.nto
the
marketat
anecono-nically
d.lsadvantageoustime.
-
TheUnited States
industry
ha.sa
weLl esta,blishedtechnical
leadership(aprox.
2year
gapin
advanced. prod.uctlines
in
L974) and though themarket share
of
certain
European rnanufactrrereis
substantial
whenall
types
of
cornponentsare
consid.ered,in
the
field
of
digital
integrated.circuits,
&nericanmanufactuers
d.ominatethe
European and world. Ecene1n terms
of
narket
shsre
(8A/t
of
conponentsto
the
European DP narket/'r \
in
L974\r/).
According
to
the
U.Sr Departmentof
Commerce,the
d.emand.for
more advancedcornponents
will
oontinue
to
outspacelocal. production
in
Europe ae weLlae
in
other couirtries. llhie
fact is
brought
homeby the,,follotvin8
pred.ictions
of
European prod.notion and'narket
for
IC
\^/.
Total
production
in
weeternr'rorld
L974t
18oo I'rucforecasted
for
19BO
:
3600 lrucfl
g3g!9.-4
PRODUCTIOl{
usa
JAPAI{
EIJROPE
OTHM,Sr974
1980
62
f,
24/"
t4
f,64 f, 25 f" Lo la r- al
T43LE 5
col{$ttMlllfroN
usa
JAPA$
EUROPE
OTHERSL974
19B0
48 /" 42 Irt
25 f" 26 f,
8f"
26 /"
4f"
6/,
-
EuroFis
conmerclataericlt for rc
elone
is
expectedto
grow from zoo M usy'
in
]:974*o
?4ou
usf
in
1980.In this
sector, as
in
other
sectors
of
ad.va.nced.technolog,
a
najor
impetusha.s come from Government progranmes
in
the
U.S.
and Japan r-
Aurerican Fed.eral Ooverr:ment fund.ing oontinuesto
provid.e arormd JOf"
ot
the
R & D erpend.i'tureof
major U$ cor:nponent manufacturersas
it
has d.onefor
the
Last
15fe&rsr
USof,ficial
supportfor
R & Din
the
ooniponentinduetry
is
said
to
be
some jOO M USF
* y"* (r).
-
In
Japanthe three
majornEtional
computer manufac'burers have joined.with
the
telecommunica,tionginduetry
(ilational"
lfelephone and Telegraph PublicCerrp.l
together
rith
llippon
E].ectria
andHitachi)
*o
d.evelopvery
LargBscale
integration
to
conrpeteagainst
IBI{ts
fowth
generation +onputerarA
foqr year
plan
to
support VL$I(Very
LargeScale
Integration)
hasreoent\r
been approved.I
fndlustry and. pub!.ioauthorities
wilL
between 1975anil 19?9 spend
about t'
3:O Mincluding
Bone/
aOOX[of
publ-lc noneyTheee orud.e
f{nancial
facte,
honever,are
not
enoughto
explain the
fimarnicpostureanrdguooeesoftheAmericarr1arrd'.inthefuturepoesib\rthe
Ja.panese integratecL
oirouit
lndustriee.
The essence
of
both these
ohal-lenges wasthe
es'bablishmentof
ambitlouelational
goalefor
the
total
eleotronio
equipaent industrtrr; and.the
creation,
in
conseguenco,of
a
large
advanced. and d.ernand.ing marketfor integratecl
.cirouitg"
In
the
caseof
the
llnlteel
$tates, the
goals wereeet
bythe
spaceprog?am,
with
lts
pressing d.ema,nd.efor
miniaturisationr
and.by
d.efence :market whioh
together
werelarger,
in
the
L!6Os,than
the
entire
Europea.nmarket
for
eleotronic
equiprent. In
the
csseof
Japal, the
newnarket
goalsset
for
the
VIfiI
prog3anmeare
to
match and.beat
the
systerns :'equirementsof
whatis
lalownor
thought
aboutl3lfits
new rtFutureSeriesf
of
computers,and.
to
provid.e new adv&nced. componentsto
meetthe
requireme'itsof
future
generatlonsof
eleotronio
teleoornmuni.cations ewitching.Iirorletlge
aoquired. from tr'ed.eral Ooverrrment fundecl R &I)
is
mad.e wid.eiyavailable
to
the
tJSlndustty
&sa
wholewithin
an envi"ronment r'vhichconstitutes,
ln
a
sensel & oommon marketin
peopLe and. id.easl peoplenove
freelf
andfreguent\r
from oompargrto
oonparqr.Final\r
thero
hasemerged.
that
speciel
IJSinduetrial
bl-end. between Large arrd.powerful
cornpanie*(whtch have
the
reaorr.ro€sto
naintain
a
worldwidsnarket
preeencelmassive
n
& D a.nd" artvancecl. Large scaLe procluotion)a.nda
rangeof
initlally
sna13.,fast
growingentrepreneurial
ooncemsthat
bave pioneerednew markets a,nd. products and.
rapid.ly
grormto
beoomelarge thenselvos.
Abundan:;*
10-Agressirre busines.s
ekil.Ls,
innovative
marketlng teohniquss end. extensivecnstornor eppLications assiatance and prod.uct
tailoring
are
still
consideredof
vital
importanceto
sustain
leadershlp.As
for
Japar:1in
a
totally
different
climate, the
eetting
of
bold
arrbitiorrsl.ongterm
goals,
whiohare then
eupportedby
coLlaboration
betweenindustr;r
and Gonernrnent
jointly ls
a,Lsoa potent force.
In
integrated"circuits,
both
the llnltecl
States
and .fapanin
short
havs ad.opted vigorousqffensive
etrategies.
6*
EUROPE'S RESPoI{sEEuropef
s
leeponseto
these chal.lenges haa beenessentiall-y
defensive,partly
beoanlseof
unfavourablefeatures
of
the
Furopean environment.A nunber
of
Ewopean Covernments have recognisetlthe
keynatr:re
of
theelectronio
component andin
particular
integrated.circui*
ind.ustries
and.substantial
sumsof
public
money have beeninvested.
In
1974,the
Fed.eralRepublic
of
Oermanyinitiated
a
firre-year
pl.anfor
the
support
of
thecourponent
industry cooting
some B0 1IUAowr
the
five
f€a.rso Bhe Fbench Governrnent has been apend.i.ng sumsof
simil-ar
magnitudethrough
a variety
of
progra:na,including
thoeein
the
d.efencefie.[d.
TheBritigh
Governmenthae been
investing
gome6
I{
UAper
year
in
n
& Din
the
ind.uetry.
Othersubstantial
e4pend.ttr:rosare
mad.ein
the
dofenco and. teLecommr.micationsgectors
of
other
Member States.These
public
fr:nd.arhowever,are
fra.gnented. betweena
variety of
national
prog"emnes, andthe
requirements and. marketsthey are
d.esigned.to
satisfy
vary
from cor:ntryto
country.
Europea.ninrlustry
is
thus
encouragedto
t
trDevelopmentln
the
data
procssslng seotorreLetlon
to
the
norLd,sltuatlontr
ChapterIn
the
Corunwdty
in
v-$5.
ti,
spread resouroeE
in
efforts
to
meet a'variety
of
suboptimalmarkets'
Public procurenent power, when usedto
eupportnational ind'ustriest
ie
also
adiscouragernent
to
other
Conrnrurityfirns'
Er:rope, moreover, sees
Little
of
the mobility
between companies whichis
eucha
striking
featurs
of
'the
US scene. Language,other
bagiers,
amd anore
s€cretive
buslnessolimate
timit
the
movementof
people and lnowhow'In
an unfavourabl"e environmentr and.lacking
the
supportof
abundantrisk
capital;
there
are few signs
of
n€winnovative
entrepreneursr The ma.jorcomponent manufacturers
in
Eqrope tencl'to
bethe
large
electric
andelectronic
manufecturers whohaw
seenthe
necessity
of
being
in
this
businesg
but
find.
it
hard.to
makeprofits
in
suoh an envlrormerrtrAs integrated.
circuits
impact on an ever*widening rangpof
user industriest
the
need.to
have acceasto
the
most advanced. teetrnologies Srows more r:r5pnt"In
cOnsequence many Europeas mapufactqrers harre soughtlicensing
or
othersmarrgements
with
conpaniesin
the
US&. Such amangementet hoyevert callonly
brlng
tfuebest
results if
tho
Er:ropeal conpanies concerned alrearly have an advanced.capability
andbargainin$
powerrWhi.le
the largest
E'ropean compsniee (see Ta,ble).)
larrethe
scale
to
matchin
some measure,the
R & D snd marketsefforts of
maior u$concernst
otherCommunity enterPrises, do
$otr
And.
yet,
the
Errropean ind.ustry does possessthe technical
ability'bo
compotoat
norld.levet,
whiLeput
together
the
European market andthe
resourcesof
Europeanindustry
and oo.vernmentare lsrge
enoughto
generate artA.
?.. com'rmnTr AcTroI{
Is it
poesible'for the
Ewopean Comrnr:nity'to
overcomethese
graveneakregses, and
to
uratch and beatthe fornidable
challenge
fromthe
USand Japan
in
the
different
cLimateof
Suropo?
0n1yif
the
funda,mental hand.icapein
the
environraent and. marketof
the
Europeanind.ustry
areremoved.;
if
the
ind,ust4pitself
can respontlby
n.colla,boratiw
effort
in
those aress nhereJoint
activlties
are
poesible,
andif
Oovernnentecen Bupport these
activltiea
by
coord.inatingcnpooling
their
nrpport.
In
the
beLief,that
the
politlcal
and.ind.ustrial
rill
cxists
to
dothisl
the
Cornrnieoiorr prolloFes !Itla.rketg
1)
Lo,ngterm
:To
establish,
together
with
a
fewllnitecl
but
critieal
sectors
of
the equipment ind.ustry(aata
proceesing, telecommunicati.onsl d.efence),advanced technolory.goaLe
(for
the
mid.l980e,l,
based ontheir
requi-remenbs and
on
the -bestFossible
eoientifio
andindustrial
eetimateof
the
technological
potential of
the IC induetry.
ii)
Meaium SernlTo seek
to
bring
theseusel
g?oupstogether
r+itha
vier
to joint
apecification
of
advanced. components anqpossibly,
joint
procurenent.This
activity
canboth
help
to
create
a
Larger
and.more homogpn€ous market
for
the
European conponent ind.uetry and.benefit
usersby
creating
eond.itionsfor
a, European secondor
firet
Fource
of
competitive
supply.A
etart
ha,a alrea.c[r been nade onexploring
poesibiltties
for
pooledrequirenents
in
the periinformatic gector.
In
the
data-processingsector ss
& wholepublic
procurem€nt cauconstitute a
usef-ul nucleusfor
deflning
future
requirements and. imposing ata,ndarde, buch ae thosealready
egreedby
the
6SCGrContacts
are
being d.ewlopodrith
the
telecommunicatione admlnistratlonrsIn
ths
vier.rof
the
Comnission,the
defencenarket
andits
requirementsare
criticaL to
the
succeseof
a
Suropean compo':eentpoticy
and many I'iamber$tates
alrea{y
recognieethe
vitaL
importanceof
fOsto
d.efence equipmentindustrieer
It is
hoped.that
thls
ind.ugtrial
matter
can be handledin
apragmatlc and
praotioa'l way;
-
-3r
Industrial
collqboratlon
qnd.conpetitio4
,\ r
1/
lon€$ermTo rneet
the
ambitious
longtermgoale eet
by
equipment manufactr.rrersr major European component manr:facturergwill
need.to
create a
common advanced.technologr
capability
in
neriodE areas.11/
Industry,
in
short,
will
needto
workout
together
a
joint
technological
d.evelopment progra.mne analogous
to
that
established.in
Japs?r. andable to
draw on resources comparableto
those
of
USkey
indust"i""
(1).
Public laboratories
night
eleo be
involved.The European ind.ustry has
already
e:cpreseedwillingness
andinterest
in
exploring
sucha collaborative
prograrnmer which wouldinevitebly
involvesome
division
of
effort
betweenthe
maJor conpaniesin
the
industry
anda
firm
agreement betweenthe
cqnpanies concernedto
exchange hnowhow'The longterm
character
of
the nork
should nakethie
possibler
elespite thecompetition between
the
conpa.niee onshorter
termprod.uct
development.Public
supportfor
a
longtern
progranmsof
this
kind
shouLd beoonditional
on sucha
rationaligation
arrd.sharing
of
effort.
Medium ferm
In
the short
to
.mediunterm,
it ls
nelther
d.esirablenor possible
that
all
companies should.
conbine,
*o
ratlonalise
products,
a,ndtheir
marketing. Eqrope need.s morethan
onenaJorl0
.
manufacturerto
competdin
world.marketa, and.
industrial
collabor.ation
need.eto
bebullt
onexploiting
andcleveloplng
the
rnarketetrengths
of
the d.ifferent
component manufacturersin
Europe. I{onethslese,exa$inatlon
of,the structure
of
the
Europe&nf0,.
_14-in'iuetry
has shol.rnthat
few companies havethe size
to
mor:nta
reeearchsn'i devel.opurent
effort
coveringtho
entire
rangeof
products,
andthat
manyare
operatingat
a
lose
becauseof
the
combined.impactl
not
onLyof
1ow costforeign
competition,
but
of
an excessively wid.e prod.uct range corrbined l.rithinadequate econonies
of
ecale.
It is
not posslble
for
ind.ustryto
await
thefruits
of
a
longtern
joint
progtarmeof
cooperationbefore
taking
etepsto
overcome theee wealrresses on
the
ind.ustrial
sid.eoIt is
natruaL and properthat
individual
companies ehould seekpart
of
thesolution
in
relations with
American companies, which can provid.e themwith
ad'uanced. technologr and market'ing
skills.
But
there
is
clearly
scope also:For
bilateral
commerclal andindustri-al
agreements between European componentoorrpaniesl
for
exarnpleto
rationalise
marketlng and developmentof
particular
prod.uctsor
nateriale,
to
d.evelopor
specify
the
de'velopmentof
particular
prcd.uction antltesting
machinery,to
acquire
jointl;y
cortain
Americanrievelopments and
to
develop themfurther.
Such agreehents could" form thebasis
for
more ambitiouslater
ind.ustrial
comhinations andcould
facilltate
'bh,r movement
of
people and. id.easthat
iB
ind.ispensableto
the
longtermin relation to
agreementsfor
long
and mediumtern
cooperation which
haejust
beenraised, it
muetbe
specified
that
euch agreementsmust
take
into
account
the
requirementa
of
the
?ul-es on"competition
of
the Treaty
(Art.
8.r 186)
.
The Commission emphaeisoanevertheleee
that a
etrengthening
of
iEurope structure6-".9e-tr-l*E t!nnfgy.e"-_.th-g,eg!-qq.!*gompe_!lL{91
in
the
tlorl.cl marketr
S.
yubli.c
ljupporti)
LongtermA
basic
technolory prog"anmeto
neetthe
kind.of
goals
set out
wtd.erB.
i)
above can
only be
achievedif it ie
given
continuous and. ma.ssivepolltical
and
flnarrcial.
support.Japants
VISI
progranme euggeetethe
kind.of
orders
of
magnitudeof
flnanclal
resourceathat
are
involved
and.which,
in
a
European progtrsnme, would haveto
be provid.ed. fromthe
comblned resourcesof
industry
andpubllc
authoritiesti
A maJor
flnancial
oontributlon
fromlndustriaL
companiesis
necessaryto
comnltthen
fully to
the
suocessof
the
progranmer:'t
:i
*
I
e-!
Fubl"to
oontrlbution are
aLso neoessar1r becauseindustry
alone
is
not
at
present generatingeuffioient
prof,lts
to
finanoo
J.ongtermhigh
risk
R & l)on
a
soaleto
eneuresucoese. fhe
ratlo of
publio
to
fnduetrial"
investmentin
any suchloqgtern
prog"arnmenayr
horrover, varTr fromcountry
to
country, giventhat
in
oneoountry
(eay Eolla"nd.)the
potentlal
lndustrial
resourcenavailable
(firifips)
may be nuchgreater
than those
avail-abLe fromthe
pubLicseotor rrhereae
in
othere
(F"y
ttt"
UK and. tr'}anoe)the
oppostte rnay be theG&B€ r
For
sucha
common progrp'nmeto
be successfufall
partners
muet make aoontribution
surpassinge
oerbaln mininum threshold.ln
terrnsof
either
skills
and. ac6rired. Iiceow-how
or
finanoe.
fn
the
absenoeof
suoha
majoreffort
byall
partners, the
risk
andoost
of
the
aommitmentto
share }resn-how and.effort fullyr
wilL
not
be
aoceptabJ.e,partiouJ.ar\r
for
the
morepowerfu3-a^nd' ad.vanoed.
lnrtners.
Duringtho
ooming months,in
whichthe detaiLs of
a
common prograrnmewill
be expLored.rith
ind.ustry
and governments,all
partners
will
therefore
haveto
take
firnd.amentalpolitioal.
economio and.technioal decisions,
to
conmitthe
neosssarTr resourcesof
share knqw_irow end.reeults.
At
thle
stagethe
CommlssLon oonsidersthat it
would. beprenature
to
make d.etail.ed. proposale onthe
forrn of,public
oupportfor
suoh
a
progranmesbut oertain faotorg are elres$r
apparent.$ome
national
funding
is
essentiaJ.to
oonmlt and invoLvepolitically
thefull
intsrest of
key MernberStates,
and.to
neet
the
oonoerrrgof
MemberStates
wrthout
a
strorrg
oonponentlndustrlr
who wouLdfind
l0O S Communityfunding unaooeptable.
In
the
view
of
the
Commiseion; a,n eLenentof
0ommunit.y fund.ingisr
horever,arso necessa.rTrr
to
guara.nteeto
all"
partlolparrts
that
oormnitmentsto
rationaliso
and.pocl
efforts
are
fulfilled.r
The
forn
of
sucha
euppoi.t wiLL haveto
beindustry,
ldemberStates
andthe
ConnissLond.eoid.ed. when disoussiotrs between
are
more ad.vaJrced..ir)
mgg*um-rerrnTo support and enooura€€
bllatera1
commeroiat andind"ustriel
aesooiationsbetween Comnunity cornpanies,
it in
propoeed.to
usethe
Communlty prerni-uin,l
-L6
-whiohp
f,or
the
tlme beingr &rs
limi'lecl'to
the tlata
processingapplioati.ons
seotorl
andthe
eligibllity
oriterJ-a
r*esot
out
ln
ithe Annex
to
the drafb
Counoi.L Decision ona
nultiannual
programmefor
the
d.aha proceseingeectorr
Budgetarytndioations ar€
sot tlut
in
Annex
C-2.
:
' If
ilisouseionswith the glootronio
compon€ntsinduetry
andusers
suggeat
i'i'
a
rid.er applloatlon
of
the
Community premiun sohemeto oomponentsr
t
intendeil