One minute you will and the director of
the European Union Center of Excellence.

That's here and it is really one day

a lecture by his distinguished
guests Dr John is the US.

It's like just a few minutes.

Tell you a little bit about projects that
we have a good European Union Center of

which I'm happy to say that in many
ways this is that John it is it is

a precursor to some of the events that we
have projects research projects that we

have going you know the new European Union
Center the excellence here attack and

I can tell you that professor said John.

Actually before I did we had
the privilege of my successors

at the former senator's posting
here one entire semester under

canvas in one thousand nine hundred nine
and he was here on campus and delivered

the course like Technology Policy in
to students here at Georgia Tech.

So he is somewhat a veteran.

I know you don't read his bio but

let me just point out a few interesting
facts about his fascinating career and

how it fits so nicely with
the goals of the New Year's and

the European Union Center
here is really focused on why

research it was nice tiny yesterday

to be a member of the audience in
the symposium celebrating seventy

five years of Applied Research here it
was to Ted It was a great opportunity for

him to see what's been going on
in this field like research and

also underscore that book the night
school that I was telling college and

the European Union Center is making
efforts to do more interdisciplinary.

Reserves because the campus that many of
our partners in the engineering science

field and we see doctors and
John is this is it with us.

Hopefully is the beginning
of a legend ship that will

take the form of perhaps his universities
which is the Asian adopt a consortium.

In other symposia conferences.

We have so

we hope this is just the first of many
returned the other hand again welcome.

Lalo especially as a sideline as a noted
you've probably read the brief bio

that we distributed and I'd just like to
say a couple of words about his background

by way of introducing him in the talk that
he's going to give today Research and

Technology Policy and your opinion is
truly remarkable in that he has crossed

the academic industry feels
a bit public servants.

He served as a civil servant
the European Commission fourteen years.

Head in the past and he was able
to work with at the intersection

he will of Research and
Technology Policy and does real policy so

that he also had a career
working with I.B.M. and

he's currently on the back of
the University of Bologna and

also as a visiting professor at business
school Brussels and he has a wealth and

a wide ranging set of skills and
experiences and breadth of knowledge that

is quite unusual for someone who's
written to President Charles I just this.

This is a very important book which
I hope you can pick up a flyer and

your interest will be piqued by his his
discussion this morning as it's titled

research policy headed this you're getting
into an old home for the knowledge base.

This is a very important book that
is especially geared to students but

also practitioners and whole singing about
the important role that competition or

investment in research pays off for
competitive.

Or of your Also I think also or
all society days

very aggressive and so it's very timely
that he's here to speak to us as well as

the product of the integrated
experience crossing

the European Union Commission and
also industry

and research laboratory that is as well as
in the classroom really thrilled to have

with us today and I'll just say
one final thing by the podium.

Many of you may not appreciate
the fact that so many U.S.

companies invest heavily in European
markets where the transatlantic

economy in the strong linkage that exists
across the Atlantic between countries and

companies but just one statistic I think
will in the size help is that we study

each other's economies and approaches and
work toward collaborative approaches to

achieve greater prosperity in
this trans-Atlantic globally U.S.

companies two thousand six
point six billion dollars.

There R. and D. budget just destine and

this represented total sixty
five percent of the entire R.

and D. budgets for us and
really it went to Europe.

So it's very important I think for
policymakers and

students of the global economy to pay
attention to just how significant these

ties are at all levels and
the role recently that universities gold

research plays in continuing this very
important dynamic you know relationship.

So without further ado I like to invite
Professor Jonathan to thank you all.

Thank you very much because for
the introduction.

In fact you are quite right that
there is a strong connection

between the United States and Europe and
that has very much increase in the past

ten years I was about twelve years
ago I was in Pittsburgh working for

one year there and they watched
the rain during the winter of ninety

eight at the point in time when the
European Council decided which countries

would qualify for the monetary union and

they pose a real change in the attitude
that the American business community heads

towards Europe because we head at
the International Studies Center in

in Pittsburgh and
request in the weeks coming following this

council decision many requests to speak
about what Europe was and what was

this new currency that
will be introduced and

some distinguished people say Europe.

I know that is coming back but

it is more than that in fact it is
also fast trains it is Air Bus It is

as we will see it is also high tech and

saw it is indeed important that we
get to know each other better and

that we build together a better world that
Europe perhaps will not be any longer.

The leader in the world has
been in the past centuries but

the role to play in defending

some values that we try to share
with more countries around

Europe in our in the enlarging process.

Now today I'm speaking about research and
technology policy and.

Research policy research policy is

one of the most important items
in the European Union budget

and it is one of the largest single

expenditure items in
the European Union budget

in ninety nine we have
forty five percent of

the pie of the budget that go
to sustainable development.

This is too much like but
once you can see this

red dot forty five percent is sustainable
growth and in sustainable growth there is

research innovation informant and
regional development programs so

research is indeed very
important because we will prove

in this presentation that research
is not only important for

increasing their competitiveness of
the productive system in Europe but

it is very important for building Europe
itself because it is a way to bring

the citizens and the enterprises together

we are not as almost genius
as the United States and

you have centuries of cohesion behind you.

We are very young as a political unity and

we need instruments to overcome
the difficulties of our diversity

which includes language diversity but also
cultural and business practices diversity

of the sixty billion that the blue
part of the pie that I just showed.

Over seven billion the European Commission
contribution to research for

competitiveness and seven point one
billion is only in a sense half of what

is invested in research for competitors
because these are shared cost programs and

the other half is going to be built
by the participating enterprises.

So that is a lot of money and means many
many hundreds of thousands of people

working together on this
project that is meant for

getting to the same T.V. and

technology culture community
across the member states and

it is a very important break in
the construction of the European Union

results and development together
with education and innovation

are meant to build the knowledge
trial which is the instruments

that would allow you to month again its
economic dynamism and the social model.

This is a very very large

project also in terms of finance and

the parts of the the three components
of this triangle this are very

interlinked to each other because
education is feeding research

which in turn is improving the quality
of our teaching in the universities.

And that is tightly related to
innovation in the enterprise and

in return improves
the education process itself.

So these three parts
of the knowledge Frank

are very much related to
each other the research by.

Very expensive and
it's funded it's a way to

help with the enterprises to overcome
the difficulties of working together

from different countries because they
don't speak the same language and

they do not have the same organisation of
business practice and so it is extremely

expensive and complex and it will be
easier to do it on your own but it.

We will see that it is much more and
reaching to do it together because of

the complainant than it is and
synergies that can be built

research education and innovation together
with technological infrastructure.

And with lifelong learning
bring to competitiveness

Lifelong Learning is a very important
component of this picture because

our students only build the platform
on which to construct their

professional qualifications
over the whole lifetime and

I tell my students that
they when they look for

a new job they should not ask how much
they make at the end of the year but

how many weeks they have to study and
which are there opportunities for

them to grow professionally because they
will be soon out of business if they do

not work in a place that invests on their
personal and professional development.

So lifelong Lifelong Learning
is one of the key factors for

the implementation of
this great program of

innovation towards competitiveness.

And when we speak about competitiveness
I must tell you that for us.

Europeans competitiveness is
very tough because we have

them to probably fight
our competitiveness so

that it is compatible with the values
that unite the European citizens.

We do not.

To compete with the Chinese importing
the industrial relations that

are characterizing the relationship of
the Chinese worker with he said ploy or

we're not going to reduce the number
of the creation days that

our workforce has not their salary.

So we are in a difficult
difficult position.

If we want to implement
the European rape and end and

comp competitiveness right
preserving the quality of life.

Some people many people would prefer
to leave in Europe rather than in

China they would perhaps
make big business there and

we have a welfare system
with pension schemes and

health care that is better than in many
other regions in the world and that is

very expensive for the enterprise but
because the cost of the raw force is not

only what they get at the end of the month
but also what the enterprise must pay for

the welfare programs and
we respected the workers right.

As I said we do not want
to be important to the work

relations that are in some parts of
Asia that are part of the attractiveness

in quotes of their kind
of their localization and

we are committed to sustainable
the development of preserving

the resources that cannot be repeated.

We protect the environment and

in the end largely in
Europe we want to wait.

The new comers the new countries with
their values their languages and

their practices rather
than I seem a little the.

Of the founding members and finally

we want to use negotiations in
the RE solution of complex both

international political level and
at the level of industrial relations

picture makes our competitiveness very
expensive very difficult a great challenge

competitor is getting market chance
in the international marketplace.

With a view of attaining
sustainable development and

it is linked to economic development and
the creation of wealth

but we ask ourselves where
does wealth come from.

It is interesting to look at how

wealth per person has there up in
Europe in the past two thousand years.

This is a very flat curve for
many centuries for as many as eight

hundred centuries the curve has been flat
at around one thousand euros per person

per year and then it has been climbing and
skyrocketing.

When two discontinuity is
in the fifteen hundreds and

in the eighteen hundreds
the major discontinuity.

Is this is the red dot.

Which is the industrial revolution but
there is an important discontinuity which

is earlier and
that is the time when international trade

became an international travel and
that was also possible

because the invention of printing
was happening at that time and so

Atlas where printed and you and where is
how to all conduct your ships across the.

And also how to harness
the energy of wind and water and

improve your agricultural soap
what we learn from this curve that

the factors of knowledge Think
of the invention of printing

and technology think of the wrapped
invention of the steam engine

together they generate innovation and
grows and this is true

if we look at the development in
the past century and it is true today.

It is even mental today where we are
facing a problem of coping with too much

information that is overflowing us and
information can be

disturbing if it is not structured and
even does not become the knowledge that is

the corporate edge that we have
with a spec to our competitors.

So in the knowledge society
we can generate grants and

general themes of Asian If we combine our

ability to structure
the the information into corporate

knowledge and to take advantage of
technology call infrastructures.

We must be aware that the wealth
distribution in the world is changing and

the fact that we are rich now doesn't
mean that we will be reached.

Tomorrow the wealth distribution
is changing in its size and

it is thirty five times
the amount of wealth J..

Rating in the world in two
centuries has increased

by thirty five times in current dollars.

Not only it is changing
in value in amount but

it is also changing in the distribution.

If we compare the situation at
the end of last century and

at the beginning of the previous century
we see that the pie that tells where

the West was originated
is quite different.

We see on the left that the major part of
the richness was generated in Continental.

We see on the left that
the United States is almost infeasible

how big a change between
these two pictures.

Only two centuries apart.

What will happen in fifty years.

If we had the crystal ball and
we could have another pie for

the share of continental Asia

would be larger than what it appears
at the end of of the last century.

So things are changing and
we must make them change in a way that

preserves the growth of our economies.

It is changing so
the size it is changing it is telling you.

Also the sectors that generate a Wells.

For example high tech is the part of

the international trade that
is changing most rapidly.

And unfortunately for us.

Europeans the change.

They increase in high tech
Cray trade in the past

twenty five years has been much less
than the world average which means that

we are strong on markets that

are much your and
that the most fast growing market.

We are not able to grab it.

Europe stays behind in high tech trade.

Also there are sectors that generate added
value change if you look at many factoring

we are surprised and
scared by this amount of

high tech manufacturing in China China
is not only producing T. shirts

that back in cars put manufacturing
in China than in Germany and

Europe is has a very dangerous
position in this chart and

we should be very worried
about that Europe stays behind

in high tech manufacturing
is there anybody to that.

Yes and I can prove that truck
performance in high tech

can very much improve if you invest in R.
and D. and this is a picture of the ten

which countries in Europe have
a positive high tech trade balance and

they are Germany they write the naval and
Sweden Finland and France.

Then there is also Ireland but Ireland is
a case of its own and should be considered

separate these countries are the very same
that had the best performance in our N.T.

You see the very very same
countries Germany France

the Netherlands Finland Sweden and U.K.
So if you invest in R. and D.

You are placed on the positive side
of the trade balance for high tech.

So not everything is lost for
Europeans if we take the last

lesson that education research and
lifelong learning together with

technological infrastructure
is the secret for success.

What is bad for your part is also the
areas where we invest in R. and D. here.

The rest is just pan Europe compared
to in which sectors we invest in in R.

and D. and Europe is blue and
the United States is game and

we see that the sectors that
are underlined in red which means the part

that is high tech sees their estates
prevailing against small size for Europe.

So it means that we are not the sectors
that prepare a bright future in terms of

getting shares of a growing
market in the high tech sector.

So we say that Europe is a region
with high labor costs and

high social cost and
that means that we cannot compete on price

in order to compete we must target
quality design innovativeness and

their ability to satisfy a market
that is evolving very rapidly.

Quality and competitiveness at this
point in time come from investments in

education lifelong learning technology can
infrastructures research and innovation

and this is where competitiveness come
from as we have shown in a previous slide.

How is the you in your position
in terms of competitiveness.

If we read the international press
if we have the economists we

Europeans are the press because they
write that Europe is sometimes portrayed

as a has been excelling.

Luxury goods fine food wines fashion but
weighted down by too many old industries

and old ideas the Financial Times is
not better in Financial Times also

paper it is not very European union
friendly and they say the E.U.

is fifty years behind the United States
in terms of innovation and they do not

mean that the Europeans are not as
clever as citizens of other regions but

that we are not able to convert
ideas into jobs or products and

prosperity and that is a well known
problem problem that is addressed under

the name of the European paradox
is the technology transfer that is

not well achieved in
the European Union as in the States.

I couldn't believe what I read
on the I didn't want to believe

what I read it and
I looked at the take of a story eighty

the challenge of the century
the pride of the European industry.

And I read on the Financial Times
that Airbus is eclipsing boy.

So I said that that's all
nonsense what they wrote back.

Unfortunately only Shortly
afterwards I could read on for

big planes big problems and they were
explaining that the eighty three eighty

cargo was cancelled and that the A three
eighty passengers was the late and

that there were many other problems with
A three eighty and the Airbus in the sea.

So even this great success was not
brought in the market in the right way.

So what is left cause for

sure no one can manufacture
such a Ferrari.

However on the roads.

You don't see just Ferraris.

You know it so happens that you
see other cars even coming from

countries that you had not heard off
twenty five years ago in terms of

in Basle power.

So what is left fashion for sure you would
dress French or Italian if you want to be

the last fashion bet on the Internet
you see that you can get it

why do this for
as little as twenty eight dollars and

in ninety cents and
I can tell you that my daughter

will spend about twenty
then use that much and

we have learned in hardware that
good enough is better than best and

that is an important lesson
that tells us that there is

the market for quality products but
there is also the market for

budget problems because people
are price conscious these days and

they take a cheap flights instead of

comfortable flights because makes
a difference for their wallet.

But what is perceived as quality in
Europe's top two pair you bet I will say

something about Italy in a word which is

the other board which is
a very tough there and

coveted prize given to the best
performer singing the story in Italy.

The president of the Republic
attributes this prize.

And here we see the president of
the Republic giving the prize to Barilla

which is past.

Benetton which is tax time.

Armani which is fashion savvy
lot spectacles in finance which

is packing by sparkling wines where I had

in all that and in addition you.

You cannot eat too much past
otherwise you become too fat.

So you can only buy
a limited amount of past.

You could buy unlimited amount
of telephones and computers and

video cameras and things so that's very
bad where is where is it is in Asia.

If we look at the presents
that we have received and

exchange last Christmas is our
digital cameras home video.

And if you look on the back to see where
they were manufactured there were many

factors either in Taiwan or in the people
probably of China not in Europe for

sure but the picture is even

worse because also the additional
products are at least I are at risk for

example ceramics or shoes or
textiles or furniture or

even where we in principle
should be positioned very well

because we have saw
great cultural heritage.

All that is at risk because it is not only
the problem that must be high tech but

also those the services that.

The processes that that are used
to manufacture them and

services to maintain them
should be high tech and

if we are strong in precision mechanics
for example we must introduce Activision

intelligence into precision mechanics in
order to take advantage of globalization

and so enable the small enterprise to
serve beyond the reach of their sales.

Otherwise we are wiped
out of the of the market.

So we come to savages for
competitiveness and the friendship and

the snow that you should sign center stage
and so the British have understood and

this is Greg Brown when he was Chancellor
of the shack on the Tory Blair

introducing a budget for
schools we go school education and

research out the basics for for us.

Unfortunately they believe are very late.

If you invest all kinda guy you get
the visible results in the marketplace.

After thirty years.

If you invest in R. and D. in biotech and

you get the invention becoming a product
in the pharmacy after twenty or

thirty years so that means that you
need policymakers that are vision and

that are not dependent on the elections
of the next month of June but

that look beyond that and
that is a very rare cattle of our

political scene in Europe the European
we have seen the French and

the British answer dupion answer to
the challenge is the Lisbon strategy

build in Europe the most competitive
economy in the knowledge based society and

that is advancing research education
lifelong learning infrastructure see no

vision developing policies competitive
environment energy transport

information society under
the umbrella of believe

this is great but it's drawbacks because

we will see that the agenda.

Some weak points.

Center too there has been a gender is
the research policy research policy

is part of the treaties and
it is important not only pro se but

also for the contribution to
the achievement of the political union and

to the implementation of other policies
and the eradication of European values.

It was it was initiated by
Commissioner that he knew

in the mid eighty's with the vision to
bring together the industrialists to build

in that's our policy with them not out of

the offices of the policy
makers of the commission but

rather from the experience and
vision of the industrialists.

And so he brought together the twelve
most important industries in

industries in enterprises in information
in the in communication technology

which go under the name of
the Big twelve and with them.

Conceived a program for
industrial research

to ensure market shares
in a strategic domain

the research that E.G. is build bottom
up from the industry themselves and

their indices united their efforts
to face taken logical challenges.

Why competing in the marketplace and
bringing the market.

In their product lines
independently of their results.

So it is a combination of research policy
and competition policy which has been

a very well conceived program
that the great success.

Starting from the eighty's.

The role of the commission
is to create the context

where the industrialists can
write their development strategy.

The commission is offering
a conference room and some coffee and

nothing else and then it is
the industries that ride the strategy.

So it is their strategy
that belongs to them and

they will implement it because
it is in their interest.

This picture is somehow
incomplete because there

are some cookies coming with
the coffee and these cookies are seven

billion euros a year of the community
contribution to the research program.

The first the research program is a spree
and it was meant to build a technology

base to help all the industries
not only the I.T.

industry into their up standards
very important because

standards enhance
the potential of the European.

In battle world.

And we would reduce the dependency
from the United States and

stimulate cooperation within Europe.

This has been a project going on for
fifteen years that has involved hundreds

of thousands of person years of
transnational are in the and

that has changed the the the scene
in Europe because people

get to know each other and respect.

And then worked together and the secret
of success was the international

structure of the control how that was
first thing this getting to know other

people in other countries they
involvement of actors in the planning so

that it will the be something
that is coming from the top and

first focused on priorities
that are strategic.

Then it is a fact Levie monitored and

the programs like this continually
if they do not believe are and

most importantly the participant in their
control to OK an expert in that part of

the results of the research.

Also if the invention was
made by another partner.

So there is a factor of magnification
of the investment in in our

IN THE because if I am part of
a consortium and I invest ten percent

of the whole cost I have one hundred
percent of the value that is generated

so the started back them up with
the consultation of the Big twelve.

But then it was implemented with
a very much increased level

of consultation we are now many Samson's
of actors are involved in the planning

and that is a different approach than
the Lisbon agenda because that is one

agenda is some how much of
a top down project that

it was conceived like the exploration
of the moon in the United States in

the sixty's and an evocative mission
that might mobilize energy and

consolidate then large in European Union.

But this one agenda
that has its weaknesses

in the lack of involvement
of the stakeholders.

Which results in the lack of feeling of
ownership by any one neither the member

states nor the industry is saying that it
is their own project lack of focus because

of too many policies involved lack of
consideration of the difference between

the eastern and
the West member states in Europe and

most probably lack of rewards and
sanctions if you don't comply.

It's not very serious
problem because there is no

way to intervene from
the European Commission.

Even in the monetary union when there is
the power of sanctions we have seen that

stability pact has been watered down and
so even more will happen.

And this happening with
the Lisbon strategy that

might end up as a recommendation
without power of enforcement.

But anyway the response had to G.

has a merit the merit of having put
research center stage in the planning

of economic development and
to bring to the significant increase

of the financial resources
framework programme.

The European Union has a G.D.P.

in the twenty seven member states of ten
trillion euros which to all sounds and

MILLION go out in the end
seven million is the funding

from the commission the Lisbon strategy
change that into three hundred million.

So three percent but
the problem is that it should come

from private firms and
that is a problem because you can

bring the horse to the river but
not so you can obtain Postal the firms

to invest in research if they do not
perceive that the program is their own.

Now we have been now with twenty five and
more years of our IN THE funded by

the European Union and
we had great achievements of

us beyond numbering the most important
of which are the development

of standard open systems and
interoperability of multi vendors have

enabled small enterprises to enter
into the competition of the I.T.C.

market networking the industrial and

in the research community
building in the alliance and

supporting other European Union policies
and I will expand slightly on that now

speaking about the impact
beyond competitiveness and

the first point is addressing
the past of integration and cohesion.

There are many components
in the twenty seven

thirty member states and
how to bring this puzzle together.

The secret they still get to know and
respect each other because that is

the way to go beyond
the prejudice that have

been built over the centuries and

are indeed policy by
the mobility of scientists and

also students have created the conditions
for being aware that you are proud

of a community that is larger
than your own country but

is something that we have not imagination
we had not learned when we were young and

that we have experienced by
the evolution of the European Union.

The most important contribution
of our in the policy

the internal market
competition policy that is a.

Way to what denies the market and

create a European market out of
the twenty seven markets and

the important steps has been there on the
holding of the national champions policy

is that where protecting the strong
components in each member states and

preventing solutions that would be to
that vantage of the community at large

networking people and businesses and
when I sing stand us in a nutshell

the great achievements in
support of internal market and

large men and large and
also he has been so much supported by and

indeed because we were able to involve
to be members of the Union much earlier.

Then when they would be prepared to
be full members of the union itself

in fact you can establish cultural
scientific and research connections before

you are ready to establish trade
agreements or political agreements.

We can ask countries creating same T.V.
and business links in preparing for

further integration and
promise improvement has been

very much addressed by R. and B.
because the development of open system and

standards we have created the conditions
for the growth of new business in the era

of more buy in there of multimedia in the
content industry that have created jobs by

the millions and

that is a very important achievement and
environment

we started from the very
beginning to work on

computers in manufacturing trying to.

The pollution that is generated
by the process of manufacturing

and we have continued
studying the impact of

the industrial development to
the preservation of the environment and

the helps the environment policy by
supporting the member states and

the union to take informed decisions.

And to preserve the environment and

to create the standards to
comply with this kind of.

Energy.

Are in they have the energy policy
with long term project including for

example projects that will deliver in one
hundred years like the nuclear fusion.

We are working since
fifty years on projects

together with
the United States China Russia India

on a project that could only be done
at this international level but

also in the short term
we prepare the future by

supporting programmes to understand how
to save energy how to use sources and

new energy sources transport.

Transport generating jobs and
generating international trade and

it is very important community policy and
in these two parts the transport

policy by helping develop a safer and
cheaper and

greener system integrating
chips in the road

consumer protection consumer protection
policy improve the health and

the well being of European citizens by
investigating how to better packages.

To our work tables enterprise

enhancing competitiveness are in these

two parts of the enterprise policy in
both manufacturing and service sectors

Information Society information societies
one of the largest areas of investment and

it is much more important
than the share of G.D.P.

that is generated by the US
is because of the ubiquitous

presence of computers and
telecommunications.

And the Information Society research
brings cutting edge science

in all areas of society and
contributes to the growth of the areas

we keep this head and

in the health and the Health Policy
exploring new avenues in curing and

preventing illness and diseases and
there is a vast variety of

research areas that are covered
by the heads program and finally

and in the helps the perception of the
value of community action in the eyes of

the citizens because the scientists
are committed to document

their findings and their results.

So in conclusion.

The results policy is meant to
strengthen competitiveness.

But the results contribute also

to the of other policies and the.

Results are made by changes that affect

the citizens of the people
the researchers they are the citizens

but affect also the enterprises and this

research activity builds
a community which is very diverse

in the twenty seven best States but
it is united these unite across the values

that are the very foundation
of the European Union and so

we can achieve this

paradox of being united and
keep our diversity and consider that

our diversity is our strengths it is not
our weakness because it is what enables us

to go into a globalized world
which is far from being so

in a sense our future is bright
because through the difficulties that

we are encountering corporation we are
prepared for the challenges of the future.

Right.

That very

Hear hear.

We want to do it too much and
we have a headache out of it and

there are too many policies that
wanted to be part of the political and

economic success of Europe in the new
century and so instead of being focused.

It has been complicated by so
many different

policies that it has lost the focus and

has introduced some incompatibilities but
I think that the greatest mistake has been

the fact of not starting the Lisbon
strategy from the bottom

by involving the stakeholders the member
states and the industries and

it has been a program that has been
conceived in the minds of the great

policy makers of the European Commission
while diving head to

the was wise enough to start
from the twelve companies and

you had not seen ever in the same room.

The chief executive of the men's and

Philips they stay apart
from each other but

he brought them together and he has worked
for three years in knocking their head so

that they would accept his plan and
they were selling their plan to the member

states that were very much against
the plan because of the protection of

the national champions
the commission was too proud and

saw that they had learned the lesson that
they could do it all on their own but

that was their mistake and I think that
the Lisbon strategy is weak because

it is a recommendation
without power of enforcement.

VS

one day there

were three

of them right where

it was already

well protection is
a temptation sometimes but

it is a temptation for
the short sighted the policy maker.

If you want to go beyond what you are able
to achieve on your own in your country.

You must accept the wisdom
the knowledge the know how and

the practice that you can gain from

joining efforts with others and
so it is a very expensive and

intellectually also expensive
process to go beyond protection but

that is the the avenue will fall.

Also in these times of crisis
I think that potentially

would be the very long approach to try and
solve the problem

of the front economic crisis that
is addressing the whole world.

So I think that we have
learned to overcome

the protection of the national champions
we have seen that the citizens

have enjoyed better services and
that they can buy better products and

services by the fact that there
is a liberalization in all fields

energy communication transport and so
it is a lesson that we have learnt but

sometimes this comes back and
you have temptations to solve

big problems in the short term with this
approach such as protecting the national

for example of the car industry that there
would be the temptation to protect the car

industry with the measures that only
benefit you are national champions and

that is I think that at the also at
the level of the policy makers in Europe.

This is very well understood that it is
there is no way to go back to provision

the second interesting
point that you raise.

Indeed it is impressive to
see how sometimes the step

forward implies a complete the wiping out

of what has been the source of
wealth creation in the past but

that is the price to pay to innovation and

we must The only be aware that

there are costs that some time
are hidden in this process for

example there are costs
in the preservation of

the environment that may be very
high when you wipe out a whole

family of products or
a whole generation of problems because

you must introduce in your.

In your planning.

Also the cost of the these mantling
of all the old fashioned technology.

You cannot only rely on
the economics of the new solution.

You must take account of the cost

that is inherent with the dismantling
of all the solutions of nuclear power.

If you have the force and you might be
interested in getting all the forms and

generation but the cost goes
economical and they called it all of

the whole thing must be thinking into
account when we approach the this

very important step but
it is likely in the loss of either.