Today, the EU leads the world in many technologies, but faces increasing challenges not only from traditional competitors such as the United States and Japan, but also from emerging economies like China, India and Brazil.

“The next seven years will not only see a bigger, bolder framework programme for research. They will also see an increasing dependence on research as Europe continues to build a knowledge society,” said Commissioner Janez Potocnik during the launch event for the EU’s 7th Framework Programme for Research and Technology in January 2007. Without dynamic scientific progress, it is hard to imagine European economic growth and job-creation, much less new and innovative products and services that will make European businesses competitive in an open, globalised economy, as envisioned in the Lisbon strategy.

The European Union has recently geared up its efforts to support innovation in Europe. The EU’s newest scientific agency, the European Research Council , was launched in early 2007 to fund cutting-edge research into new technology that keeps Europe competitive. The Research Council has a budget of €7.5 billion until 2013. Its 22-strong panel of renowned scientists will direct funds for researchers and scientists based in Europe, for investigator-driven projects in science and technology, social sciences and humanities. The ERC wants especially to encourage creativity, risk-taking and young scientific talents.

 The EU’s 7th Framework Programme for research and technological development runs from 2007 to 2013. The “FP7”, as it is called, is designed specifically to contribute to EU’s growth and competitiveness – its approach to research is centered on innovation and knowledge for growth.

During the seven-year period the FP7 will funnel over €50 billion to European research and innovation. The broad objectives of the FP7 have been grouped into four categories: Cooperation, Ideas, People and Capacities, corresponding to four major objectives of European research policy:

1. Cooperation (€32.4 bn)aims to gain or consolidate leadership in key science and technology areas by supporting cooperation between universities, industry, research centres and public authorities throughout the EU and with the rest of the world. Transnational cooperation is seen as the key element in all research activities.

The programme is sub-divided into ten themes:

• Health
• Food, agriculture, fisheries, biotechnology
• Information and communication technologies
• Nanosciences
• Energy
• Environment (including climate change)
• Transport (including aeronautics)
• Socio-economic sciences and the humanities
• Space
• Security

In addition, fusion energy research, nuclear fission and radiation protection are covered by the Euratom Framework Programme.

2. Ideas (€7.5 bn)aim to strengthen the excellence of the EU's science base by fostering competition between individual research teams at European level. Launched in 2007, the autonomous European Research Council (ERC) supports “frontier research” carried out by research teams, either individually or in partnership, competing at European level, in all scientific and technological fields, including engineering, socio-economic sciences and the humanities.

3. People (€4.7 bn)aims to reinforce career prospects, both transnational and inter-sectoral mobility and training of Europe's researchers. The programme's activities support individual researchers, building on the positive experiences of the existing “Marie Curie” actions programme. The mobility of researchers between university and industry is also encouraged.

4. Capacities (€4.1 bn)aims at developing research capacity, so that the European science community has the best possible research infrastructure at hand. Activities are supported in six broad areas: research infrastructures, research for and by small and medium-size enterprises, regional cooperation, stimulating the research potential in the EU’s “convergence” regions, bringing science and society closer and improving international cooperation.

In September 2010, Commissioner Máire Geoghegan Quinn unveiled a €6.4 billion package for 'smart growth and jobs', with the broader aims "to advance scientific boundaries, increase European competitiveness and help solve societal challenges such as climate change, energy and food security, health and an ageing population". The investment aims to create over 165,000 jobs in Europe and to fund mobility grants for 7,000 highly qualified researchers, with €1.2 billion earmarked for research into Information and Communication Technology.