European Union governments are to consider proposals to boost the region’s research and development (R&D) activity by creating a rival to the Massachusetts Institute of Technology.

The programme was first mooted last year as part of i2010, the restatement of the 2000 Lisbon Agenda to turn the European Union into the most competitive knowledge economy in the world.

Following public consultation, European Commission president Jose Manuel Barroso published a detailed model of the proposed European Institute of Technology last week. A central governing board will co-ordinate the agenda, and research will be carried out in ‘knowledge communities’ across Europe.

Jan Figel, European Commissioner for education, said: ‘If Europe is to remain competitive we must ensure that we improve the relationship between education, research and innovation.

‘It is a common perception that in Europe this relationship does not work as well as it could.

‘The region consistently falls short in turning R&D results into commercial opportunities, innovations and jobs,’ he said.

According to figures published by the European Information Technology Observatory (EITO) last week, IT accounts for 25 per cent of Europe’s R&D investment. This compares with 35 per cent of R&D investment in the US.

Member state governments need to practice what they preach if Europe’s figures are to improve, says Jeremy Beale, head of ebusiness at the Confederation of British Industry.

‘At a rhetorical level European governments say they recognise that the region needs a higher level of R&D,’ he said.

‘But they seem signally incapable of achieving it because they still pursue protectionist policies and fight for national champions rather than economic efficiency.’

R&D investment is crucial to economic growth, said European Commissioner for information society and media Viviane Reding at the EITO report launch.

‘Research matters for growth, and it matters if we want Europe to continue enjoying industrial and technological leadership,’ said Reding.

‘Economies that invest in research benefit the most, and those that rely on knowledge developed elsewhere are ultimately left behind.

‘The productivity gains that IT will deliver are the motor of economic sustainability,’ she said.

The European IT market represented 6.5 per cent of gross domestic product in 2005, and 35 per cent of the worldwide market, says the EITO report.

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