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Brussels, 14 December 2005

OPINION of the European Economic and Social Committee on the Communication from the Commission - Consultation document on state aid for innovation final
Full text of Opinion in MS Word file on ESC website

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General comments The Committee welcomes the Commission proposal to identify the relationship which exists, and which can be improved, between state aid and innovation in Europe. It is clear that the insufficient competitiveness of the EU in comparison with other actors in world trade derives to a large extent from a weak innovation process; this weakness is made more acute by globalisation processes. The Committee is also pleased that the issues linking state aid to innovation are the subject of a public consultation capable of enlisting the opinion of those most directly concerned on this delicate subject. The questions included in the communications are wide-ranging, well formulated and cover most of the issues which can arise from market failures and the possibility of simplifying the procedures. The short time available and the lack of study group discussion do not allow the rapporteur to go into the detail of the individual questions or give a fully argued answer to each of them. The Committee is aware of the fact that state aid for innovation does not on its own constitute a solution to the problem of the EU's competitiveness. Many Community documents and a number of Committee opinions have shown the limits to the European Union's action: insufficient level of technological and other innovation;

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