EWI Budget Browser 2007

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2007Combining Economy, Science and Innovation

for a better society

EWI-Budget Browser


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It is with pleasure that I present to you this rst edition o the EWI-Budget Browser, which is the successor

publication to the Science, Technology and Innovation Inormation Guides.

The EWI Department (Economy, Science and Innovation) integrates the Flemish science and innovation

policy with the economic policy. This new entity is one o the 13 policy domains o the Flemish

government, in conormity with the great restructuring project Better Administrative Policy (BBB).

Exactly as in the ormer Science, Technology and Innovation Inormation Guides, you will nd inormation

on gures and unds, explanations, analyses and trends etc. or the Flemish science and innovation policy

in the new EWI-Budget Browser. A new aspect is, o course, that you now also get the same relevant

inormation about the economic policy o the Flemish government. Such inormation is always based on

the expenditure budgets o the Flemish government.

Another important change, which is immediately noticeable, is the new ormat o the EWI-Budget

Browser. You will notice that, despite the addition o the section on the economy, it is clearly thinnerthan the earlier editions. And yet, you thereore do not get less inormation. Quite to the contrary; the

EWI-Budget Browser that you hold in your hands is supplemented with still more detailed inormation

on the website www.ewi-vlaanderen.be/speurgids. There you can quickly call up precise data and

inormation in an easy manner. On www.ewi-vlaanderen.be you will also nd more inormation about

EWI and our other publications: EWI Review, EWI Studies, etc. Do take a look at our website regularly,

so that you will always be up to date on the latest gures and news.

In short, with this Guide and our website, it will be easy to know everything about Economy, Science

and Innovation.

Last but not least, I would like to thank the many contributors who have made this edition possible.

Without their input, this EWI-Budget Browser would not have been realised.

Rudy Aernoudt

Secretary General EWI

F

Foreword


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Foreword

Contents 3

Part1-PositioningotheEWI-BudgetBrowser 5

Part2-EWI:co-operationbetweeneconomy,scienceandinnovation 9

Chapter 2.1 Economic policy 2007 10

2.1.1. General economic policy 10

2.1.2. Economic support policy 11

2.1.3. PMV, LRM and VPM 15

Chapter 2.2 Science and innovation policy 2007 17

2.2.1. The EWI Science policy domain 20

2.2.2. Actual science policy 26

2.2.3. Horizontal science policy 28

2.2.4. Analysis o the science and innovation policy 30

Part3-GovernmentexpendituresorR&D-expansionotheknowledge-basedeconomy 39

Chapter 3.1 Flanders 41

Chapter 3.2 International comparison o government eorts or R&D (GBAORD) 43

Concludingremarks 45

Usedabbreviations 46

Contributors 47

Colophon 48

C

Contents


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deel ewI: samenspel tussen eConomIe, wetensChap en InnovatIe

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part posItIonInG oF the ewI-BudGet Browser


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The great restructuring project o the Flemish government has led to

the creation o thirteen policy domains. Each o these policy domains

has the same main structure: a department, a strategic advisory

committee, management support services (MOD) and agencies

(internal independent agencies called IVAs and external independent

agencies called EVAs).

EWI core department: three client-oriented and twoinormation-oriented units.

Thedepartmenturthermoreconsistsofvethematicunits:

Organisational Control and External Relations, Private and

Governmental Mobility, Budget, Communications and, nally,

Europe, International, Federal and Interregional.

TheEWI-BudgetBrowsershedslightontheeconomicpolicyand

onthescienceandinnovationpolicyotheFlemishgovernment

in2007: which unds have been included in the budget? What are

the accompanying policy accents, planned activities, etc.? What is

VLAO? What is the Hermesonds? What are their activities? Also

the outsiders o the EWI policy domain will be described: The EVAs

ParticipatieMaatschappij Vlaanderen NV (PMV), the Limburgse

Reconversiemaatschappij NV (LRM) and the Vlaamse Participatie-

maatschappij NV (VPM). More inormation about the topics in this

edition can be ound by way o the extended search unction, which

is available on the website www.ewi-vlaanderen.be/speurgids.

In connection with the economic policy o the EWI policy domain

(also see Chapter 2.1), certain unds are managed by the core de-

partment, while others are managed by the IVA Economy Agency.

The science and innovation policy consists o the so-called actual

science policy: the science and innovation policy programmes o

EWI, supplemented with programmes or higher education, which

are situated in the Education and Training policy domain. The hori-

zontal science policy (also see Chapter 2.2) is spread over the other

policy domains (also see Paragraph 2.2.3).

Figure 1: Organigram o the core department o EWI

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0

The Flemish economic policy consists o two parts: a general eco-

nomic policy and an economic support policy. Both policy directions,

which are part o the budget programmes 51.1 and 51.2 o theFlemish expenditures budget, will be shortly covered below.

2.1.1. General economic policy

Strategic objectivesThe primary objectives o the General Economic Policy are:

Pro-actively boosting the development o the Flemish economic

abric in an integrated manner.

Making entrepreneurship more attractive or existing and new

target groups, whereby the prevailing government activities are

permanently re-evaluated and adapted.

Besides this, the General Economic Policy programme has the sub-

sidiary objective o making the business community and consumers

aware o the necessity o striving or quality.

Funds 2007

The total budget, which is available to the General Economic Policy

programme in 2007 (budget programme 51.1), amounts to 25.928

million EUR. The breakdown o these unds is outlined in the table

below. The ocus lies on the grants to VLAO (13.258 million EUR)

and to SERV (6.658 million EUR). A brie explanation o these two

unds is given below.

ecic pic 00

C .

BA Fund Description Unit

(million.EUR)

41.04 13.258 Grant to VLAO Department

41.01 6.658 Grant to SERV Department

11.02 0.004 Compensations to government administrators at VPM, Gimvindus and LRM Department

11.03 0.066 Salaries o the government administrators at VPM, Gimvindus and LRM Department

12.01 0.252 Specic operating costs with regard to the economic policy, including

among other things ees, expenditures or encouraging company investments,

and investments with regard to economic events Economy Agency

12.04 0.097 Expenditures or a variety o interregional economic co-operative associations Economy Agency

12.22 0.806 Expenditures or communications initiatives, with regard to the economic policy Economy Agency

12.23 0.350 Funds or nancing assignments and co-operative agreements with partners

in social entrepreneurship (POMs) Department

12.41 2.165 Specic ICT costs o the IVA Economy Agency: project costs Economy Agency

33.02 1.000 Subsidy to the non-prot organisation Vlaamse jonge ondernemingen

(Young Flemish Enterprises) Economy Agency

33.06 0.372 Subsidies to the non-prot organisation Vlaams Centrum voor Kwaliteitszorg(Flemish Centre or Quality Assurance) Economy Agency

41.06 0.900 Subsidies or certied regional co-operative associations Economy Agency

TOTAL 25.928

Table 1: Funds programme o the

General Economic Policy 2007

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VLAO Flanders Enterprise

The grant or the budgetary year 2007, which is provided by the

Flemish government to VLAO Flanders Enterprise, amounts to

13.258 million EUR. (BA 41.04). 2007 is the rst complete operating

year or this new agency. The objective o VLAO is to provide a

unique point o contact or all companies and entrepreneurs, ena-

bling them to nd answers or their questions. VLAO also assists the

companies and entrepreneurs in an ecient and company-riendly

manner and/or directs them towards the right channels within the

Flemish government.

ESTABLISHMENT

VLAO Flanders Enterprise was established by the decree o 7 May

2004. The mission statement, Implementation o an integrated

inormation centre account management, o VLAO Flanders

Enterprise was approved by the Flemish government in May 2005.

Both o these texts provide the policy ramework or this newagency. The commencement resolution or the establishment o

VLAO was approved by the Flemish government on 16 December

2005. VLAO has become operational since 1 April 2006. VLAO

assumes a number o tasks rom the ormer VIZO, and rom the

Regional Development Societies.

MISSION

The mission o VLAO is dened in the previously mentioned

oundation decree as: Stimulating and acilitating sustainable

entrepreneurship in Flanders, by unctioning as a low-threshold

and broadly-based contact point or candidate entrepreneurs, en-

trepreneurs and companies, in partnership with the socio-economicmideld organisations. The agency is responsible or a pro-active

provision o services to candidate entrepreneurs, entrepreneurs and

companies, so that the basic task package will be permanently and

actively assured.

VLAO is also responsible or promoting designing, and or special

tasks with regard to company management o (candidate) entrepre-

neurs and companies. For the promotion o designing, VLAO has

worked under the name DESIGN VLAANDEREN.

CORETASKS

The tasks o VLAO lie in the execution o policy and include:

Stimulation and promotion o awareness;

Front-line advice and reerral;

Account management;

The establishment and the management o co-operative associa-

tions, including all actors in the area o entrepreneurship in Flanders;

Promotion and designing (DESIGN VLAANDEREN);

Company management or (candidate) entrepreneurs and companies.

More inormation can be ound at www.vlao.be

The Socio-Economic Council o Flanders (SERV)

The Socio-Economic Council o Flanders (SERV) is the consultation

and counselling organisation o the social partners in Flanders. Themembership o SERV consists o 10 representatives o employer

organisations (BB, UNIZO, VCSPO and Voka, the Flemish Economic

Association), and 10 representatives o employee organisations

(ABVV, ACLVB and ACV). SERV is the primary consultation organisa-

tion, where the social partners meet. There they determine their joint

standpoints and ormulate recommendations and advisories. This

representative composition gives SERV a strong social basis.

The grant by the Flemish government to SERV (BA 41.01) amounts

to 6.658 million EUR in 2007.

In conormity with the decrees o 27 June 1985 and o 22 March

1990, SERV has the ollowing tasks:

Counselling: on all important social and economic questions, or

which the Flemish Community or the Flemish Region are compe-

tent, or in which they become involved at their own initiative or

at the request o the Flemish Parliament, the Flemish government,

or a member o the Flemish government (obligatory on every

drat o a decree with a socio-economic impact, and on Flemish

budgetary policy); Preparation o studies: Studies about socio-economic subjects,

including communication to external clients, among other things

in the orm o standpoints and recommendations;

Consultation: The preparation o tripartite consultations with the

Flemish government, within the ramework o VESOC, and the

consultations between the social partners amongst each other;

Development o proessional proles.

SERV ulls its assignments through its specic organisation and with

in-house expertise, which is provided by the Flanders Technology

Foundation (STV) and various other commissions (Flemish Harbour

Commission, Flemish Consultative Commission on Women, Com-mission or Goods Transport, Commission or Metal Processing,

Textile and Clothing Manuacture Commission, Commission or

Welare and Health Care, Woodworking and Construction Commis-

sion, the Study Commission R. Maris).

More inormation is available on www.serv.be

2.1.2. Economic support policy

Mission

The development o the Flemish economic abric in a pro-active and

integrated manner, by boosting entrepreneurship and making it

more attractive or existing and new target groups, whereby the pre-

vailing government approach is permanently evaluated and adapted.

The achievement o an optimal endogenous and exogenous growth

is o primary importance or conducting an integrated economic

policy. For this purpose, it is important that the economic, urban

planning, social and innovative policies are harmonised more closely

with one another, so that a sustainable prosperity and welare can be

realised. The government aspires to conducting a policy that creates

rameworks, within which a variety o actors rom the business world

can dispose over an integrated, sucient area or developing their

initiatives. Innovative and creative initiatives, with broad economicobjectives are stimulated, and the successul growth o such projects

is supported. It is necessary that an adequate communication about

all o these aspects is conducted with the involved groups.

1 As provided or in Article 5, 1, 1 to 3 o the oundation decree.



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Strategic objectives

The mission has been translated into the 3 strategic objectives.

1. Investment support, as a revised instrument or a policy designed

to create the required economic conditions;

2. Strengthening the regional and sub-regional dynamism, while

taking the individual characteristics o each sub-region into account;

3. The promotion o more and better entrepreneurship, or starters,

growing companies and employees.

Funds 2007

The total budget, which is available to the Economic Support Policy

2007 (budget programme 51.2) amounts to 278.356 million euros.

The breakdown o these unds is outlined in the table below. The

ocus lies on the Fund or Subsidiary Economic Support, the so-called

Hermesonds, which is administered by the Economy Agency and

has a budget o 273.177 million EUR. The other BAs all under the

EWI department.

BA Fund Description Unit

(millionEUR)

12.20 0.050 Study on sustainable entrepreneurship Department

33.01 0.124 Subsidies to the Steunpunt Economie (support centre Economy) Department

33.06 4.355 Subsidies or promoting entrepreneurship Department

33.09 0.600 Subsidies or supporting business plan competitions Department50.01 0.050 Subsidies or projects that support and nance fexible mechanisms Department

99.11 273.177 Allocation authorisation or the Fund or Subsidiary Economic Policy Economy Agency

TOTAL 278.356

Table 2: Funds or the Economic Support Policy 2007

Description Fund

(millionEUR)

Policyorcreatingappropriateeconomicconditions

Investment expenditures 188.594Expenditures or the construction o industrial parks and or the reutilisation o industrial sites 12.500

GIS contracts 0.075

Economicpolicyandurbanplanning

Government assignments in unction o a continuation o policy-oriented research and the development

o policy initiatives 0.500

Income transers to companies and nancial institutes (exclusive o exploitation subsidies) 15.581

Centre management and measures or strengthening the commercial centres o inner cities 0.500

Projects within the ramework o region-oriented partnerships and/or the Flemish economic policy with

regard to urban planning 3.300

Stimulatingentrepreneurship

Initiatives or supporting entrepreneurship in education 2.500

Income transers to companies and nancial institutes (exclusive o exploitation subsidies) 44.132

Income transers to private institutes without prot motives 3.000

Otherexpendituresthatftthesocial,economicandregionalpolicyotheFlemishgovernment

Operational expenditures 2.000

Economic governmental initiative 0.495

TOTAL 273.177

Table 3: Policy instruments and unds - Hermes und 2007

BA 99.11 Allocation authorisation or the Fund or Subsidiary

Economic Policy (Hermes und)

With the decree o 21 December 2001, which contains provisions in

accompaniment to the budget 2002, the Fund or Subsidiary Economic

Policy (Hermesonds) was established. This und replaced the previous

Funds or Economic Expansion and Regional Reconversion (FEERRs).

Article 41 9 o this programme decree provides that the Flemish

Government controls the operations and management o the Fund.

It puts the necessary services, equipment, installations and personnel

o its service departments at the disposal o the Fund, and it can, in

conormity with the general principles that are applicable in this matter,

delegate some o its competencies to the ocial in charge, who has

been appointed by it.

Policyinstruments

The budget 2007 contains 273,177 million EUR, by means o an

allocation authorisation (BA 99.11). The policy instruments o this



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authorisation are described in the table below, including correspon-

ding unds or 2007, ordered by the major sectors o the economic

policy domain.

Explanations

Policyorcreatingappropriateeconomicconditions

Investmentexpenditures

InvestmentsupporttoSMEs,inapplicationothedecreewith

regardtotheeconomicsupportpolicy

Given an unchanged policy, 47.575 million EUR has been appro-

priated or new investment support to SMEs. This concerns

primarily investment programmes, which are distributed to compa-

nies through a competitive ormula. Four invitations are launched

within a period o one year, which have a processing time o one

quarter, on the basis o which the administration publicises theresults ater completion. The budget o 47.575 million EUR makes

it possible to launch three invitations, each o 15.858 million EUR.

Environmentalsupport,inapplicationothedecreeconcerning

theeconomicsupportpolicy

The environmental support measure was made stricter during

2006, and as o 2007 it has been transormed into a call system.

A budget o 92.090 million EUR has been appropriated.

Investmentsupporttolargecompanies,inapplicationothe

decreeconcerningtheeconomicsupportpolicy

Strategic support in its current orm was discontinued by the

middle o June. As o 2007, a new measure will be implemented

that will also include support or ad hoc training. A budget o43.929 million EUR has been appropriated (incl. 30.000 million

EUR or new measures).

It must be emphasised that an amount o 30.000 million EUR,

which has been appropriated in the science and innovation policy

(also see Paragraph 2.2) will be used or initiatives that concern

innovation. These concern investments with an R&D character.

The above-mentioned initiative is thereore also a part o the

Horizontal Budget Programme or Science Policy.

Expendituresortheconstructionoindustrialparksandorthe

rehabilitationoindustrialsites

Assuming an unchanging policy, this measure will be unded with an

amount o 12.500 million EUR. In view o the act that the current

measure was discontinued on 31 December 2006, a new system or

industrial terrains and buildings is currently in preparation.

GIScontracts

A budget o 0.075 million EUR is oreseen or GIS contracts in 2007.

Economicpolicyandurbanplanning

Governmentcontracts,inunctionoacontinuationopolicy-

orientedresearchandthedevelopmentopolicyinitiatives

Resources must be provided or study assignments, both in unc-

tion o the development o regionally-oriented visions and institu-tional concepts, which dene search zones or industrial terrains,

as well as more general urban planning/economic studies, or

instance covering rictions between urban planning and VLAREM

legislation that cause hindrances in the acquisition o new loca-

tions, and research into exemptions or small works on industrial

terrains, studies with regard to institutional concepts, development

bottlenecks, environmental eects reporting (MER) etc. A budget

o 0.500 million EUR is oreseen or these measures.

Incometranserstocompaniesandfnancialinstitutes(exclusiveo

exploitationsubsidies)

The European Fund or Regional Development (EFRD) was

established or providing support to productive investments and

inrastructure in certain areas. During the programme period

2002 to 2006, Flanders was able to dispose over a total budget o

approximately 253 million EUR unded by EFRD. These resources

had been appropriated or co-nancing actions, within the rame-

work o approved development programmes.

Financial support rom EFRD does not exceed a maximum o 50%o the total project costs. In addition, it is required that a compara-

ble amount is contributed rom Flemish resources. These costs are

assumed by the Flemish Region, the provinces and municipalities,

as well as the private sector.

O the share that is contributed by the Flemish Region, the

greater part is assumed by the Economy budget. On average,

17 million EUR o unds are appropriated annually. Depending

on the planned priorities and measures, the remaining

co-nancing unds are primarily provided by the domains

tourism (on average 7 million EUR) inrastructure (on average

5 million EUR), and technology and innovation (on average4 million EUR), by the programme Scientic Research with an

Economic Focus (also see Paragraph 2.2) and Environment

(on average 3 million EUR).

On 24 March 2006, the Flemish government decided that a single

operational programme would be established or all o

Flanders during the next EFRD programme period. This programme

concerns the ollowing priorities:

1. Stimulation o the knowledge industry and innovation;

2. Support or entrepreneurship;

3. Improvement o the basic economic actors with regard to

urban planning;

4. Support or urban development.

This programme is currently being worked out. It will be presented

or the approval o the Flemish government beore it is submitted

to the European Commission. Such a submission is a commitment

or co-nancing.

Centremanagementandmeasuresorstrengtheningcommercial

centresininnercities

A budget o 0.500 million EUR is oreseen or 2007.

Projectswithintherameworkoregion-orientedpartnershipsand/

ortheFlemisheconomicpolicyorurbanplanningThe planned budget o 3.300 million EUR is necessary or being

able to carry out the Flemish economic policy with regard to urban

planning, with an emphasis on the stimulation o:



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Tackling outdated industrial zones (reinstallation and revitalisation

projects);

Counteracting obsolescence through the introduction o

management;

Introduction on the market o dicult to realise industrial terrains

(problem-terrains, which are subject to specic study and

processing costs).

An increase in the number o submitted dossiers, in unction o

subsidising advance procedures that are designed to obtain certi-

cation as a browneld, is probable and will thereore necessarily

require an increase in unds.

Furthermore, unds (1.800 million EUR) are also being provided

or the realisation o a programme o greywater recycling. This

amount is based on the original calculation o the rst investment

programme. These unds can, i required, also be used or othereconomic projects in the area o urban planning.

Stimulatingentrepreneurship

Initiativesorsupportingentrepreneurshipineducation

Support or so-called bridge projects was appropriated or the rst

time in 2003, projects which bridge the gap between education

and the business community, whereby the ocus lies on entrepre-

neurial skills and attitudes (not on technology or the inrastructure,

since these are the domain o the Regional Technological Centres

(RTCs). A competition ormula was used or evaluating these

projects: With an available budget o 2.5 million EUR, 17 o the

50 submitted projects were supported. On the basis o an amend-ment, which was approved by the Flemish government or 2006,

a new call or projects was launched, with a total amount o 2.500

million EUR. It is assumed that a similar call will be extended in

2007, or which the same budget will be provided.

Incometranserstocompaniesandfnancialinstitutes(exclusiveo

exploitationsubsidies)

Entrepreneurship portolio

The measure, providing training and consultancy cheques, has

been ollowed up by the BEA measure. BEA stands or Budget

or Economic Advice and is the name or the new integrated

subsidy measure, with which small and medium-sized companies

can purchase training, consultancy, knowledge and mentoring

services, with the support o the Flemish government. This

measure was initiated on 20 May 2006. The budget amounts

to 42.900 million EUR.

Godparent projects

By a resolution o the Flemish government, dated 5 September

2003, a new system was created or so-called Godparent

projects, whereby the minister responsible or economic policy

can launch two calls per year. To be able to support new

initiatives, 3.000 million EUR have been allocated or 2007.

In 2006, 31 projects were approved.

Otherexpendituresthatftthesocial,economicandregionalpolicy

otheFlemishgovernment

Operationalexpenditures

These unds can be used or general operational costs, and also

or contracts within the ramework o government assignments.

A budget o 2.000 million EUR is available.

Other unds that are available under the Economic Support Policy

are given a brie explanation below.

BA 12.20: Study on sustainable entrepreneurship

This budget has been transerred rom the Hermesonds to the

department, and it will serve or nancing studies within the rame-

work o sustainable entrepreneurship. A budget o 0.050 million EUR

has been appropriated or this. This concerns scientic studies, so

that this budget also is a part o the Horizontal Budget Programme

or Science Policy (please reer to Chapter 2.2).

BA 33.01: Subsidies to the Steunpunt Economie

(Economy support centre)

A second generation o support centres has been launched as o

2007. This budget is or co-nancing the support centre Entrepre-

neurship and International Entrepreneurship, and it amounts to

0.124 million EUR. As in the preceding BA, it also concerns scientic

research (please reer to Chapter 2.2).

BA 33.06: Subsidies or promoting entrepreneurship

A budget o 4.355 million EUR has been appropriated or this BA in

2007. These unds will be used or a new Entrepreneurship call.

BA 33.09: Subsidies or supporting business plan competitions

This budget has also been transerred to the department. Under this

heading, only instalments o those obligations entered into under

the Hermesonds are paid out. 0.600 million EUR has been put aside

or this purpose.

BA 50.01: Subsidies to projects or supporting and nancing fexible

mechanisms

This budget has also been transerred to the department. A budget

o 0.050 million EUR has been appropriated, or urther ollow-up on

the call, projects in 2007 and new initiatives within the ramework o

the Kyoto protocol.



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2.1.3. PMV, LRM and VPM

The ollowing public limited companies are externally independent

agencies (EVAs) o the EWI policy domain: Participation Company

Flanders (PMV), Flemish Participation Company (VPM) and the

Limburg Investment Company (LRM). A brie explanation o their

activities is provided below.

ParticipatieMaatschappij Vlaanderen NV (Participation Company

Flanders - PMV)

ParticipatieMaatschappij Vlaanderen NV (Participation Company

Flanders) has taken over the role o GIMV, as the instrument or the

realisation o economic initiatives by the government in Flanders. As

an independent investment company, PMV has a unique position. It is

not a bank, and it is not an administration. PMV is a company that in-

vests in the Flemish Region in a businesslike manner. PMVisapublic

limitedcompany,whichhasbeencapitalisedbytheFlemishRegion.PMVdoesnotuseundsprovidedbytheFlemishgovernment.

PMV can, on the one hand, invest when private initiatives are not

orthcoming. Ater all, private capital providers oten have qualms

about participating in a company or project, because the expected

prot is too low, the possible risks are too high, or because the

investment period is too long.

What is o primary importance or PMV is that the (company) projects

have a high potential or the uture. In such cases, PMV will strive and

as much as possible towards a co-nancing with private parties.

On the other hand, PMV can invest in projects that are a part o the

responsibilities o government (inrastructure acilities, the building

o schools and hospitals, social housing, etc.), but where a participa-

tion o private parties is either useul or desirable or:

Realising the projects with a lower investments o government unds;

An improved distribution and management o risks;

Being able to handle projects more eciently.

The participation o PMV oers private parties the guarantee that

the rules o business economics are respected; or the government

PMV oers the guarantee that its interests will also be observed.

Furthermore, PMV oers the opportunity o realising a prot on

the money o the Flemish government. The objective is to increase

the investment potential o PMV and the government, so that new

initiatives can be realised without outside investment.

The activities o PMV have been assigned to our business units:

PMV-kmo(PMVorSMEs)

This business unit is the unique contact point or the nancing

requirements o small and medium-sized companies. It manages a

variety o instruments, which makes it easier or entrepreneurs to

nd nancing with private capital providers.

ARKimedes doubles the available risk capital that is available toyoung growth companies. The ARKimedes Fund, which is valued at

110 million EUR, oers one euro extra or every euro that is invested

in a Flemish SME by private risk capital unds (ARKIVs).

A suretyregulation oers the bank or credit providers greater secu-

rity, whenever an entrepreneur is looking or und to make invest-

ments, but cannot provide insucient guarantees. The government

provides the guarantee.

The win-win-loan provides tax advantages, which encourage private

persons to provide advantageous loans to start-up companies.

Innovative start-ups with a high risk prole and strong growth

potential can take up contact with, the VlaamsInnovatieonds

(FlemishInnovationFund-Vinno), to nd risk capital.

CultuurInvest grants companies in the cultural sector access to

risk capital, providing oxygen in this way to culturally engaged

entrepreneurs.

The FondsVlaanderenInternationaal (Flanders International Fund)helps Flemish SMEs to cross borders.

The NRC-Fonds oers high-technology companies long-term

nancing, or innovative projects that are connected to a specic

end-product.

PMV-pps

The PMV-pps business unit lays a oundation, with which it is pos-

sible to meet the quickly evolving expectations o our society by way

o public-private co-operations. PMV-pps structures capital-intensive

investment projects, which are part o the responsibilities o the

government, whereby the participation o private parties oers animportant added value. For instance:

A new feet o Flemish pilot vessels

Major inrastructure works

The elimination o the missing links in the Flemish road

inrastructure

Modernisation and renewal o our school inrastructure

Expansion and modernisation o the sports inrastructure

And an increase in the oer o social housing

Construction and renewal o hospitals

Care structures or senior citizens

The privatisation o the VRT broadcasting park

An optimisation o the Flemish optical network

PMV-Vastgoed(realestate)

By way o an active real estate management, PMV supports and

nances the real estate policy o the Flemish government. The

PMV-Vastgoed business unit plays a pioneering role in the area o

public-private co-operation, and it is involved in the realisation o

the three Flemish administrative centres, as well as in the valorisation

o Flemish government buildings.

PMV also carries out a strategic real estate policy or the development

o brownelds, and it oers support or regional and inner-city

development projects

PMV-Milieu&Energie(environmentandenergy)This business unit supports a strategic investment policy in the area

o environmental protection and energy. Such investments ater all

have a great impact on society, and they oer a new impulse or



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sustainable economic development. PMV invests in the development

and implementation o environmentally riendly and energy-ecient

technologies. It searches or uture possibilities or important public

enterprises in the environmental sector, and it takes initiatives or the

realisation o the Kyoto objectives.

More inormation is available on www.pmvlaanderen.be

Vlaamse Participatiemaatschappij NV (Flemish Participation

Company - VPM)

Vlaamse Participatiemaatschappij NV (Flemish Participation Company

- VPM) is a public limited company, whose only task is the management

o the participation o the Flemish government in GIMV. Today this par-

ticipation only consists o a minority position o 27%, ater large blocks

o GIMV shares were sold on the stock market during 2005 in 2006, in

conormity with the agreements that have been made.

GIMV is an independent investment company, which is listed on the

stock market and that has specialised itsel in investments in equity

capital o growth-oriented companies that are not listed (private equity).

GIMV has a leadership position in the private equity and venture capi-

tal sectors in Belgium, and it also operates at a European level.

Limburgse Reconversiemaatschappij NV (Limburg Investment

Company - LRM)

Limburgse Reconversiemaatschappij NV (Limburg Investment Com-

pany - LRM) participates in companies and other institutes, which

contribute to the economic development and employment opportu-

nities in the Belgian province o Limburg. LRM provides risk capitalto companies with a demonstrable link to Limburg, develops projects

and industrial zones, manages the ormer mining centres and pro-

vides atercare or damages due to mining and drainage operations.

The Flemish Community is the only shareholder in LRM. Nevertheless,

LRM is an ordinary public limited company, which is subject to the

regulations concerning commercial companies. Protability and mar-

ket conormity are the guiding principles in the operations o LRM.

LRM wants to be a driving orce in the economic expansion o

Limburg. This it does by, on the one hand, providing risk capital to

local and oreign companies that invest in Limburg. Established large

companies, as well as start-ups and SMEs, can be taken into consid-

eration. Furthermore, it can also accompany or nance management

buy-outs or buy-ins.

On the other hand, LRM is a partner, and requently the initiator, in

the development o sustainable projects in the area o real estate,

inrastructure, industrial terrains, tourism and utility acilities, which

are located on the old mining terrains and at other locations in

Limburg. In its atercare role, LRM manages the consequences o

mine closings.

This is a unique combination o expertise in the area o business

nancing, real estate and project development. This know-how andexperience is available or companies and government partners.

More inormation is available on www.lrm.be



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This chapter gives a precise overview o what the scientic and

technological innovation policy consists o. We will use the interna-

tionally agreed denitions or this purpose: Ater all, to be able to

make an international comparison, one has to keep to international

agreements.

As the social importance and the complexity o knowledge and

technological developments increased, exactly as the interest and

participation by governments in an international context, the deni-

tions also evolved in conormity with changed circumstances. The

technological policy was, ater all, originally considered as a subsidi-

ary sector, which was contained in the broader term science policy.Later on it was elt necessary to provide a separate description or

this type o policy, which is directly connected with technological

development. The accent today lays rather on innovation and with

this the entirety o the activities that stimulate renewal in industry

and society is meant.

Administrative structures o the Flemish science policy

Here we will provide a summary description o the administrative

structure or the management o the science policy. This structure

consists o:

The EWI Department, which is responsible or preparing policy initia-

tives and policy evaluation or the entire policy domain.

The institutes:

IWT Flanders: carries out policy related to industry. It is an inter-

mediary organ, which distributes the unds amongst businessesand research institutes, in conormity with dened selection

criteria, and evaluation and decision-making procedures.

FWO Flanders: carries out policy with regard to basic research at

the universities. It is an intermediary organ which distributes the

unds among the universities and research institutes. That happens

in conormity with dened selection criteria, and evaluation and

decision-making procedures.

The research institutes:

The Interuniversity Micro-Electronics Centre (IMEC): carries

out research activities and provide services in the area o micro-

electronics, nanotechnology, design methods and technologies

or ICT Systems.

Flemish Institute or Technological Research (VITO): carries out

research and development, and provides services in three research

domains: non-nuclear energy, environment, raw materials and

new materials.

Flanders Interuniversity Institute or Biotechnology (VIB): stimula-

tion o research and valorisation o research results, in the area o

biotechnology.

Interdisciplinary Institute or BroadBand Technology (IBBT): researchin the area o inormation and communications technology (ICT)

in general, and the development o broadband applications in

particular.

scic ii ic 00

C .



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The scientic institutes:

Research Institute or Nature and Forests (INBO)

Carries out policy-oriented scientic research with regard to the

conservation, management and sustainable use o biodiversity

and its environment;

Provides scientic services in support o the policy and to

dened target groups, amongst others through advising,

experimental analyses, the provision o new products,

techniques, concepts and documentation;

It reports periodically on the condition o nature and the natural

environment, and on the eects o environmental policy,

including the extent in which the assumed objectives o the

environmental policy are reached, while monitoring and

evaluating the available know-how and investigating uture

developments.

Flemish Heritage Institute (VIOE) Manages and preserves the natural heritage in Flanders;

Carries out scientic research in this area.

Royal Museum o Fine Arts - Antwerp (KMSKA)

Acquires, conserves, restores and exhibits its own art collection;

Carries out scientic research;

Publishes catalogues on its collection and yearbooks;

Organises exhibitions in the Royal Museum o Fine Art and in

oreign countries;

Organises educational activities: training o educational

assistants, training courses or adults, lessons or teachers and

schools, guided tours, lectures and youth ateliers, publications; Organises documentary activities: technical library, archives and

a collection register.

Institute or Agricultural and Fisheries Research (ILVO)

Co-ordinates and carries out policy-supporting research,

including the accompanying services, with the objective o

making the agricultural and shing sectors sustainable rom an

economic, environmental and social perspective.

Builds up the required know-how or an improvement o

products and production methods, or monitoring the quality

and saety o end-products, and or an improvement o policy

instruments, as a basis or sector development and agrarian

rural policy.

Regularly provides inormation to the policymakers, the

corresponding sectors and society at large.

The advisory organs:

The Flemish Council or Science Policy (VRWB) ormulates

recommendations to the Flemish government and the Flemish

Parliament, in the area o science and technology policy. This

council will provide such recommendations on request, or at its

own initiative.

The Royal Flemish Academy o Belgium or Sciences and Arts

ormulates recommendations and makes proposals to the Flemishgovernment, in the area o the sciences, literature and ne arts.

The Royal Academy o Medicine ormulates advice to the Flemish

government in matters concerning the medical sciences, medical

training and also the establishment o medical practices.

Thehorizontalsciencepolicy is situated in all thirteen policy domains.

The departments are authorised to give orm to science policy initia-

tives that support their policy. The thirteen policy domains are:

Services or the General Government Policy (DAR)

Administrative Aairs (BZ)

Finance and Budget (FB)

Foreign Aairs (IV)

Economy, Science and Innovation (EWI)

Education and Training (OV)

Welare, Public Health and Family (WVG)

Culture, Youth, Sport and Media (CJSM)

Work and Social Economy (WSE)

Agriculture and Fisheries (LV) Environment, Nature and Energy (LNE)

Mobility and Public Works (MOW)

Town and Country Planning, Housing Policy and Immovable

Heritage (RWO)

More inormation can be ound on

www2.vlaanderen.be/ned/sites/bbb



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9

International denitions

SCIENTIFIC ACTIVITIES - R&D - STET - STS

The term scientifcactivities, as dened in the Recommendation

concerning the International Standardisation o Statistics on Science

and Technology UNESCO, 1978 (Canberra Manual OECD,

Paris, 1995, p. 67) comprises:

Research and Development (R&D): ... creative work undertaken

on a systematic basis in order to increase the stock o knowledge,

including knowledge o man, culture and society, and the use

o this stock o knowledge to devise new applications (Frascati

Manual, OECD, 2002, p. 30). In other words, it includes any

scientic activity which is aimed at developing scientic knowl-

edge (basic research), making it applicable (applied research) and

applying it (development).

Education and Training (STET): ...all activities comprising special-

ised non-university higher education and training, higher educa-

tion and training leading to a university degree, postgraduate and

urther training, and organised lielong training or scientists and

engineers (Canberra Manual, OECD, Paris, 1995, p. 67). There-

ore it concerns the unding o scientic education, or example,

the proportion o the operational subsidies to universities that are

used or university education.

Scientic and Technological Services (STS): ...activities concerned

with research and experimental development and contributing

to the generation, dissemination and application o scientic andtechnical knowledge (Canberra Manual, OECD, Paris, 1995, p.

68). This concerns any orm o services, such as perorming rou-

tine measurements (e.g., routine medical analyses), the provision

o scientic-technological inormation (e.g., by libraries or inor-

mation centres), and the collection o data o a general interest

(including the collection o data on social-economic phenomena).

Studies related to policy and the activities o administrative units

with regard to the analysis, evaluation and monitoring o external

phenomena are included in this.

Within R&D there is a urther classication according to the typeo

research (Frascati Manual, OECD, 2002, p. 30):

Basic research is experimental or theoretical work undertaken

primarily to acquire new knowledge o the underlying oundation

o phenomena and observable acts, without any particular ap-

plication or use in view;

Applied research is also original investigation undertaken in

order to acquire new knowledge. It is, however, directed primarily

towards a specic practical aim or objective;

Experimental development is systematic work, drawing on exist-

ing knowledge gained rom research and/or practical experience,

that is directed to producing new materials, products or devices,

to installing new processes, systems and services, or to improvingsubstantially those already produced or installed.

Innovation

The term innovation is dened in the Oslo Manual (second edition,

OECD/Eurostat 1997, p. 31) as ollows:

Technologicalproductandprocess(TPP)innovationscomprise

implemented technologically new products and processes and

signicant technological improvements in products and processes.

A TPP innovation has been implemented i it has been introduced on

the market (product innovation) or used within a production process

(process innovation). TPP innovations involve a series o scientic,

technological, organisational, nancial and commercial activities.

Innovation now stands or the commercially and socially successul

exploitation o the new inventions. Also low-technology innova-

tion is important: The more gradual innovations that are part oproduct development, production processes and market strategies,

are viewed as being just as import or the creation o prosperity.

The diusion o knowledge and technology transers are thereore

exceedingly important or SMEs. An important role has been set

aside or the government here, amongst others as a stimulator

o the maximum valorisation o research results. That occurs, or

instance, through support o technology transer rom universities

and research institutes to industry. Innovation is viewed in a much

expanded sense: Not only scientic research is important (and a rst

requirement), but also the global innovation system, including the

social, economic and legal aspects that are connected to this. An

essential role in this is reserved or education and training, or thenancial ramework (the availability o a risk capital is essential),

and or an ecient regulation regarding intellectual property rights.

Innovation in commercial and management aspects, just as much

as social innovation, are also viewed as important actors in creating

employment opportunities, and or meeting evident needs o society.



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0

General science policy

Programme 71.1 o the expenditure budget is an umbrella or all

expenditures in the area o the General Science policy. It includes

the required activities or the global conception, development and

evaluation o Flemish innovation policy in science and technology.

This package also includes the instruments or supporting and publi-

cising this policy, including the integration in an international orum.

19.066 million EUR were appropriated or these expenditures. That

is an increase o 1.254 million EUR in comparison to 2006.

These budgets are primarily targeted or the Action Plan on Scientic

Inormation and Innovation, amounting to a total o 8.294 million

EUR, which is the indexed amount o 2006. Expenditures or pro-

moting the Flemish Inormation Society, which have been appropri-

ated in the ramework o the Lisbon strategy (BA 12.07 => a new

BA number that has replaced 12.06, due to a change in the type o

und), have now been xed at 3.031 million EUR. These expendi-

tures include the unds or a urther development o the research

network, but also serve or other initiatives rom the Action Plan

Flanders i2010, as described in the section on the e-research and

research inormation.

This programme o budget allocations has the ollowing strategic

objectives:

1. Policy preparation, implementation and ollow up with regard to

the research and technology policy, rationalisation;

2. Public inormation campaign: Strengthening the social basis o the

research and technology policy.

For enabling a realisation, the ollowing operational objectives have

been given precedence:

1. Transparent policy structures;

2. Balanced policy counselling;

3. Scientic motivation o the planned initiatives;

4. Increasing the scientic and technological potential o the

population through programmes promoting lielong learning.

5. Providing inormation about scientic and technological

developments or the general public.

The table 5 summarises all the unds or the General Science Policy

programme.

2.2.1. The EWI science policy domain

New policy resources and new policy accents or 2007

PR BA Initiative Newinitiative2007

(millionEUR)

71.1 12.07 Expenditures or promoting the Flemish inormation society, within the ramework

o the Lisbon strategy 1

71.2 33.01 Strengthening o international co-operation 1

71.2 40.02 Further development o the Methusalem initiative 7

71.2 40.03 Additional Special Research Fund/Independent Academic Personnel (ZAP)

mandates at Flemish universitiess 1.5

71.2 41.02 Launch o the Hercules initiative or a heavy and medium heavy research inrastructure 5

71.2 41.03 Additional postgraduate mandates through the Fund or Scientic Research -Flanders (FWO) 2.7

71.3 41.05 Strengthening o nancing or interace services 0.6

71.3 99.11 Innovation initiatives at the suggestion o the Flemish government (competence centres) 6

71.3 99.12 Additional unds or the Institute or the Promotion o Innovation by Science and

Technology in Flanders (IWT), or projects that are proposed by Flemish companies 17

71.4 33.01 An increase in the grant or the Interuniversity Micro-Electronics Centre (IMEC) 2.75

71.4 33.02 An increase in the grant or the Flanders Interuniversity Institute or Biotechnology (VIB) 6.3

71.4 33.04 An increase in co-nancing or the support centre or R&D indicators 0.5

71.4 33.07 Financing o research activities at institutes or advanced education 0.5

71.4 41.04 Additional unds or the TETRA (technology transer) und 0.4

71.4 41.07 Financing or the medical imaging processing cluster o IBBT 4.2

71.4 44.06 Strengthening o the research commitment in academic education at the universities 3TOTAL 59.45

Table 4: Overview o new policy resources and accents or the EWI science policy domain



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Scientic research at the initiative o the researcher

The comprehensive strategic objective o programme 71.2 is a

strengthening o general, knowledge-expanding undamental

research. Due to its unpredictable character and its anchor unc-

tion or the world o research, the nancing o this has become the

responsibility o the government.

For the realisation, the ollowing operational objectives have been

given precedence:

Qualitativeobjectives:

An increase in the quality o undamental research, through a

stricter selection o research proposals. The Fund or Scientic

Research - Flanders (FWO) assesses research projects and research

mandates on the basis o inter-university competitions, and by

peer reviews o scientic commissions that have been assembled

or the corresponding discipline.

An increase in the scale and the internationalisation o undamen-

tal research, through additional initiatives (see the Methusalem

and Odysseus programmes, BA 40.02 and 41.05).

Quantitativeobjectives:

An increase in the number o research mandates.

Expenditures or scientic research, which is carried out at the initia-

tive o the researcher, have been budgeted at 155.625 million EUR,

which is an increase o 14.493 million EUR in comparison to 2006.

The ollowing table summarises all the unds (unds in million EUR)

that have been a allocated within the programme or scientic

research at the initiative o the researcher.

In 2007, too, FWO Flanders remains the most important item in the

budget, with a subsidy o 135.013 million EUR. Together with the

2.342 million EUR rom the National Lottery (currently still allocated

under BA 24.6 00.23), the total available budget or FWO Flanders

reaches 137.355 million EUR. That is an increase o 4.605 million

EUR in comparison to the year 2006.

FWO Flanders is the channel that distributes research unds on the

basis o interuniversity competitions, and also peer reviews that

Table 5: Programme 71.1 General Science Policy (unds in million EUR)

BA SP R&D STS Description

01.90 0.050 0.000 0.050 Expenditures or a stock take and valorisation o scientic and

technological research

12.01 0.996 0.000 0.996 Expenditures or the conception, preparation and execution o

scientic actions

12.03 1.532 0.000 1.532 Popularisation o science, technology and technological innovation

12.07 3.031 0.000 3.031 Expenditures or promoting the Flemish inormation society, within the

ramework o the Lisbon strategy

12.20 0.240 0.000 0.240 Various communications initiatives, with regard to science, technology

and innovation33.01 0.839 0.000 0.839 Various subsidies, with reerence to publicising the Science Policy and

scientic research to structural partners

33.03 3.904 0.000 3.904 Subsidies to Flanders Technology International vzw (FTI vzw), a non-prot

oundation

33.04 2.374 2.374 0.000 Subsidy to the non-prot organisation Flanders DC vzw

40.01 2.019 0.000 2.019 Subsidies or expertise cells, with the objective o popularising science,

technology and technological innovation within associations

41.01 1.129 0.452 0.677 Subsidy to the Royal Flemish Academy o Belgium or the Sciences and Arts

41.03 0.465 0.000 0.465 Grant to the Flemish Council or Science Policy

41.04 0.256 0.000 0.256 Subsidy related to the inventory o scientic and technological

research (IWETO)

41.062.231 2.231 0.000 A subsidy or the Flanders Technology Foundation (STV)TOTAL 19.066 5.057 14.009



23/50

are conducted by scientic commissions, whose membership is

recruited rom the corresponding discipline. Financing o undamental

research that is initiated by researchers is, among other reasons due

to its unpredictable character and its anchor unction or the entire

scientic establishment, a primary responsibility o the government.Additional, relevant inormation can be ound on the website:

www.wo.be

In 2005, extra unds were made available in FWO to award additional

doctorate mandates. In 2006, one still appropriated an extra 2.7

million EUR, in an attempt to achieve a success percentage o 35%

o applications. From this same viewpoint, 2.7 million EUR will once

more be added in 2007, or the rst batch o post-doctoral mandates.

The subsidy on BA 41.03 amounts to 112.531 million EUR.

The Odysseus programme is an initiative that was started up in

2006. It is aimed at attracting Flemish and other top researchers rom

abroad, by providing them with start-up nancing and putting them

in a position to build up research groups in Flanders, with the intention

o making them into leading scientic centres at an international level.

The Odysseus programme is intended as project nancing, which is

designed to attract Flemish and other scientists rom abroad to Flanders.

The essence o this programme is that excellent researchers, who are

working in oreign countries, receive a generous start-up nancing

or a period o ve years, or developing a research group in Flanders.

The size o the amount will vary according to the discipline, and such

unds can be used or operational, personnel and equipment costs. In

2007, 12.171 million EUR have been appropriated or this programme

(BA 41.05). The basic principles o this programme were already ap-

proved by the Flemish government in July 2005.

The Flemish government has already taken a number o important

initiatives in the past, or nancing equipment at the expense o the

Financing Fund or One-o Investment Expenditures (FFEU). Ater all,

there had been no structural channel or easing the equipment needs

o the actors in the Flemish research sector. The Hercules Foundationwas established in 2007 (BA 41.02), in co-operation with FWO and

IWT, with the objective o providing structural nancing o medium-

heavy and heavy research inrastructure at Flemish universities and

at Flemish institutes o higher education. Starting in 2007, the unds

provided by the government will amount to 5 million EUR or larger

equipment, and 10 million EUR that comes rom previously appropri-

ated and saved unds o the basic subsidy o FWO or medium-sized

equipment.

The Methusalem programme (BA 40.02) represents a strengthening

o the BOF. The intention is to grant top researchers long-term and

substantial programme nancing (lump sum) at Flemish universities.

3 million EUR were made available or this purpose in 2006. For a

urther expansion, 10.043 million EUR have been appropriated in the

budget or 2007, a structural increase o 7 million EUR.

For the purpose o giving outstanding postdoctoral researchers an

academic career, whereby they can devote the rst years ater their

appointment largely to research, and or the purpose o strengthen-

ing the structural ramework or young researchers, 1.500 million

EUR will be appropriated in 2007 or nancing additional BOF-ZAP

mandates (BA 40.03). In addition, at least the same amount will

be allocated annually in 2008 and 2009, so that, depending on the

appointments that are made in the universities, between 45 and 60

additional BOF-ZAP mandates can be nanced with these additionalunds. To make this possible, a number o changes have been carried

out in the BOF resolution.

Table 6: Programme 71.2 Scientifc research at the initiative o the researcher (unds in million EUR)


12.24 0.116 0.116 0.000 Expenditures within the ramework o international scientic co-operations

33.01 1.520 1.520 0.000 Subsidies within the ramework o international scientic and innovative

cooperation

35.40 0.996 0.996 0.000 Subsidies to the United Nations University (UNU), within the ramework o

the programme or regional integration studies

35.41 1.437 1.437 0.000 Subsidy to UNESCO, in support o the Flemish UNESCO science trust und

40.02 10.043 10.043 0.000 Subsidy to the special research unds, which are part o the Methusalem

programme

40.03 1.500 1.500 0.000 Subsidy or special research unds, which provide additional mandates or

independent academic personnel

41.01 0.941 0.941 0.000 Subsidy to FWO Flanders, or projects within the ramework o international

research acilities

41.02 5.000 5.000 0.000 Subsidy to the Hercules Foundation41.03 112.531 112.531 0.000 Subsidy to FWO Flanders

41.05 12.171 12.171 0.000 Subsidy to FWO Flanders or the Odysseus programme

41.80 9.370 9.370 0.000 Allocation nanced with the net receipts rom prots in the National Lottery,

or the benet o FWO Flanders

TOTAL 155.625 155,625 0.000



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Scientic research with an economic ocus

The budgetary programme 71.3 Scientic research with an economic

ocus contains those measures, with the goal o stimulating specic

expansion o know-how. This support goes to projects proposed by

companies, research institutes or universities, as well as individual

researchers or doctoral students. It concerns action lines unded by the

internal operating resources o IWT Flanders, as well as new measures

that the Flemish government may decide to launch.

The central point o departure o the programme is more technologi-

cal innovation in Flemish companies. To be able to maintain ones po-

sition in todays highly competitive global economy, companies must,

ater all, continuously strive to provide improved or new services,

products and processes. Development and acquisition o technology

is crucial in this, but these must be positioned in a suciently spacious

ramework.

The primary objectives that have been dened are:

Creating the conditions or increasing technological innovation in

companies;

Creating conditions or promoting co-operation between knowl-

edge centres and companies, as well as between the companies

themselves;

The development o a policy aimed at SMEs;

Optimisation o unds aimed at stimulating the innovation climate;

Strengthening o the operations o university interace services.

The initial unds or 2007, and the budget programme 71.3, amount

to 174.577 million EUR, which is an increase o 21.869 million EUR

in comparison to the nal unds o 2006.

The allocation authorisation o IWT Flanders or projects, which are

proposed at the initiative o companies and or innovation co-op-

erations, is rising with 18.5 million EUR (including indexing). The

allocation authorisation o IWT Flanders, or supporting technologi-

cal innovation actions initiated by the Flemish government, is rising

with 2.3 million EUR. O all the IWT allocation authorisations, ap-

proximately 76% are destined or projects that have been proposed

by companies (74% in 2006). A slight rise o 0.6 million EUR can be

noted or the subsidy to university interace services.

All o the unds, which are part o the programme Scientic research

with economic objectives, are summarised in the ollowing table(unds in million EUR).

Table 7: Programme 71.3 Scientifc research with an economic ocus (unds in million EUR)


41.03 11.780 0.000 11.780 Grant or IWT

41.05 2.717 0.000 2.717 Subsidy to university interace services

99.11 26.468 26.468 0.000 Allocation authorisation or IWT Flanders, or supporting technical innovation

actions that are proposed at the initiative o the Flemish government

99.12 121.721 121.721 0.000 Allocation authorisation or IWT Flanders, or projects proposed by companies

and innovation co-operations

99.13 11.065 11.065 0.000 Allocation authorisation or IWT Flanders, or e-media projects

99.14 0.826 0.826 0.000 Allocation authorisation or IWT Flanders, or study and expertise assignments,

or the benet o the Flemish Innovation Network (VIN)

TOTAL 174.577 160.080 14.497



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Strategic and policy-oriented research

This budget very programme consists o unds or strategic basic

research, or or research that is policy-relevant, namely budgets or ini-

tiatives that support innovative developments in industry and society.

The expenditures or this programme were budgeted at 258.980

million EUR. In comparison to the nal unds o 2006, this is an

increase o 23.520 million EUR.

This programme o budget allocations has the ollowing strategic

objectives:

1. Strengthening strategic basic research, which generates know-how

in the service o the business world, the non-prot sector and the

government;

2. Strengthening policy-relevant research.

For the realisation, the ollowing operational objectives have been

dened:

1. A urther strengthening o the Flemish strategic research potential

in the Flemish research institutes;

2. A urther expansion o basic research;

3. A urther expansion o universities as ully qualied partners in

innovation;

4. An ongoing development o a revised ramework policy-oriented

research.

The ollowing table summarises all the unds (unds in million EUR),

which are summarised in the programme Strategic and policy-

oriented research.

Table 8: Programs 71.4 Strategic and policy-oriented research (unds in million EUR)


33.01 38.909 38.909 0.000 Subsidy to VZW IMEC

33.02 38.104 38.104 0.000 Subsidy to the Flanders Interuniversity Institute or Biotechnology (VIB)

33.03 8.500 8.500 0.000 Subsidy to support centres or policy-relevant research

33.04 1.222 1.222 0.000 Subsidy or co-nancing the support centre R&D statistics

33.05 9.000 9.000 0.000 Subsidies or project-based scientic research (PWO)

33.07 0.500 0.500 0.000 Subsidies or carrying out scientic research, by advanced educational institutes

33.41 0.677 0.677 0.000 Subsidy to the Royal Zoological Society o Antwerp (KMDA)

33.43 1.072 1.072 0.000 Subsidy to the Flemish Institute o the Sea (VLIZ)

33.440.576 0.403 0.173 Subsidy to the Flemish Institute o the Sea (VLIZ), or supporting the work theIODE Project Oce

33.45 0.120 0.000 0.120 Subsidy to the Flemish Institute o the Sea (VLIZ), or supporting the work the

ESF Marine Board

35.40 0.760 0.760 0.000 Grant to the Dutch Language Union or the implementation o the STEVIN

programme (Essential Speech and Language Technology Resources)

40.01 5.000 5.000 0.000 Strengthening o the research commitment in academic education at the

universities

40.02 11.503 11.503 0.000 Grant to the Industrial Research Fund Flanders (IOF)

41.01 9.602 9.602 0.000 Subsidies or scientic and technical research with an agricultural objective

(IWT Flanders)

41.02 24.255 24.255 0.000 Grant to IWT, related to awarding specialisation grants

(Decree o 23 January 1991)

41.03 30.132 30.132 0.000 Allocation or the Flemish Institute or Technological Research (VITO)

41.04 7.399 7.399 0.000 Grant to IWT, or the promotion o technology transer and research,

by higher educational institutes

41.05 38.604 38.604 0.000 Strategic basic research (IWT Flanders)

41.07 23.046 23.046 0.000 Grant to the Interdisciplinary Institute or BroadBand Technology (IBBT)

41.08 5.000 5.000 0.000 Grant to IWT, or support to applied biomedical research, with a primarily

a social purpose

61.02 4.999 4.999 0.000 Grant or investments at the Flemish Institute or Technological Research (VITO)

TOTAL 258.980 258.687 0.293



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The research institutes IMEC, VITO, VIB and IBBT together account

or 135.19 million EUR. An increase o 3.284 million EUR in the

subsidy to IMEC (2.75 million EUR structural), 6.77 million EUR to

VIB (6.3 million EUR structural) and to IBBT, or nancing the cluster

medical image processing, with an allocation o 5.759 million EUR

(4.2 million EUR structural) has been approved.

The sum o 0.5 million EUR was appropriated or a new initiative,

with the objective o creating basic nancing or research at research

institutes that do not have access to regular nancing channels or

research (BA 33.07).

Furthermore, a structural increase o 0.4 million EUR provides addi-

tional unds or the TETRA Fund (BA 44.06). With that, this budget

reaches 7.399 million EUR.

The subsidy or Project-based Scientic Research (PWO) wasincreased in 2005 rom 3.0 million EUR to 7.5 million EUR and

increase urther in 2006 to 9.0 million EUR. This is also the budget

or 2007.

The grant to IWT, or specialisation grants, is increasing rom 21.729

million EUR in 2006 to 24.255 million EUR in 2007.

For increasing at the research capacity at universities (BA 40.01),

additional unds are being made available rom the policy domain

Education and Training as well as rom the policy domains Economy

and Science and Innovation. In consultation with the Minister o

Education, it was decided to make extra unds available rom theR&D budget, as an additional stimulation designed to strengthen

the research component o education or the academic content o

graduate courses. In 2006, 2 million EUR was appropriated or this

(BA 44.06 rom programme 71.2). In 2007, 5 million EUR has been

appropriated or this purpose.

In addition, there is still a structural increase in the co-nancing o

the support centre R&D Indicators, rising by 0.5 million EUR.

Charts 2 and 3 below show the evolution o nancing or science

and innovation policy, o the programmes 71. OA 71 includes the

our programmes that have been described above. The rising trend

will be continued in 2007 (Figure 2: Without special unds). In 2007,

there will be a global increase (including indexation) o 62.547 mil-

lion EUR in the unds or Science Policy (SP), namely R&D and STS

together, and 60.131 million EUR o the R&D unds, in comparison

with the nal budget 2006.

Figure 3 below shows the evolution o the total unds, including the

one-o special unds outside out the classic budget programme,

which were introduced as o 2004, and which were intended or the

realisation o specic policy priorities o the corresponding year. Two

additional unds (or R&D) will also be available in 2007: 30 millionEUR or the Hermes Fund and 2.6 million EUR or LRM impulse

nancing, which is or the expansion o research activities at the

transnational University Limburg (tUL). This additional net increase

o approx. 60 million EUR in R&D Funds, which will be allocated

to the EWI policy domain in 2007, partially massed in gure 3 by

the act that the amount o 75 million EUR supplementary unds,

which had been allocated to the Flemish Innovation Fund (VINNOF)

outside o the classical budget programmes in 2005 in 2006, will not

be repeated in 2007. This increase becomes clearly visible in gure 2,

where the evolution is shown without the special one-o unds.

2000 2001 2002 2003 2004 2005 2006 2007i

300

350

400

450

500

550

600

650

700

750

800

Total SP 71 (+ BOF)

Total R&D 71 (+ BOF)

Figure 2: Evolution o OA 71, without special unds (million EUR)

2000 2001 2002 2003 2004 2005 2006 2007i

300

350

400

450

500

550

600

650

700

750

800

Total SP 71 (+ BOF)

Total R&D 71 (+ BOF)

Figure 3: Evolution o OA 71, incl. special unds (million EUR)



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2.2.2. Actual science policy

What one has, true to tradition, called the actual science policy,

concerns the organisation department 71 o the EWI policy domain

(described above under the reerence 2.2.1), together with the

organisation department 33 o the Education and Training (OV)

policy domain, or the nancing o universities and higher education.

Fundamental research at universities, which opens up new horizons,

as a necessary basis or all urther socially and industrially oriented

research, just as much as research at institutes o higher education, is

ater all a part o such a coherent policy. Strategic basic research also is

largely carried out at the universities and higher educational institutes,

including such Flemish research institutes as IMEC, VITO, VIB and

IBBT. In addition, there is also the broad and varied domain o indus-

trial research carried out in support o Flemish industry.

The general science policy (71.1), scientic research at the initiative othe researcher (71.2), scientic research with an economic ocus (71.3)

and strategic- and policy-oriented research (71.4) have already been

described in the Section 2.2.1.

Actual science policy in the Education and Trainingpolicy domainThe most important accents o the science policy or institutes o

higher education and universities are explained below. Together they

orm the actual science policy.

Envelope or education at institutes o higher education

The operating envelope or institutes o higher education, which

had been appropriated under BA 40.02, amount to 600.293 million

EUR or 2007, and are applicable or higher education, the provision

o services and or project-oriented scientic research. This budget

or 2007 once more contains a nancial impulse o 12.5 million

EUR, which is in implementation o the coalition agreement. This

concerns a structural increase o the budgets, as a consequence o

the increased number o students. This budget also contains 13.857

million EUR o unds or the academic content o graduate courses

(BaMa).

As a consequence o the Bologna and the Sorbonne Declarations,

European higher education must be harmonised and the quality o

education must be increased. Legislative initiatives in this regard

have already been taken in Flanders. These initiatives will mean

sweeping changes or the institutes o higher education (and the

universities) in the uture. Taking these objectives into account, the

structural decree has appropriated unds or the academic content o

graduate courses. As o the budget year 2004, the unds allocated

or this (= bringing master students to a knowledge and competency

level that is congruent with scientic unctionality) will be part o the

operational budgets or institutes o higher education.

As a consequence, the co-operation between higher educational

institutes and universities must be accentuated. In support o such

corporations, the establishment o associations between the involved

partners has been included in the structural decree. In the lap othis institute, the dividing line between proessionally oriented and

general scientic education must be redesigned.

Operational subsidies to Flemish universities

This concerns the BAs 41.20, 41.27, 41.79, 41.85, 44.81, 44.82

and 44.86 o programme 33.2. The total operational subsidies to

the Flemish universities or 2007 amounts to 598.495 million EUR.

In comparison to the preceding budgetary year (ater the budget

control 2006), the total operational subsidies have increased by

14.754 million EUR.

They contribute to covering normal expenditures or academic edu-

cation, scientic research and the provision o services, including the

administration o the universities. The operational subsidies to the

Flemish universities or 2007 have only evolved to a limited degree

in comparison to 2006. The budgetary growth scenario, which was

introduced with the nancing decree o 7 December 2001, has

dened the operational unds available to universities as o 2004.

Dierences must be largely attributed to indexation, with exception

o the Universities o Ghent and Hasselt. For the University o

Ghent, the degressive increase o operational unds will be continuedin 2007. In expectation o the new nancing regulations or higher

education, the University o Hasselt will receive additional unds or

education and trac science.

BA 44.64: Subsidy to the Special Research Fund (BOF) or

universities

Every university disposes over a special research und (BOF), or nanc-

ing groundbreaking, undamental research. The BOF is the channel,

with which universities can develop their own science policy (projects

and mandates), which is proposed by their own academic personnel,

and nance such a science policy in the long term. A Research Council

is responsible or the policy o the BOF within each university.Financing undamental research that is initiated by researchers

is, among other things, due to its unpredictable character and its

anchor unction or the entire scientic establishment, a primary

responsibility o the government. The calculation o the und needs

is currently carried out on the basis o a distribution ormula, which

is a weighted average o three criteria: The number o graduate

degrees (in accordance with one weighting actor), the number o

doctorate degrees awarded (also based on a weighting actor) and

the share o the total operational subsidies, and, on the other hand,

on the basis o indicators o international visibility and the research

output, which is measured on the basis o the number o citations

and publications. The BOF is thereore largely decided on the basis

o output indicators.

It is planned to amend the distribution key as o 2007, with the

objective o strengthening the research potential o universities,

through the introduction o a stimulant designed to activate the

HRM policy or independent academic personnel, and by nancing

a number o additional positions or independent academic personnel,

who are a primarily assigned to research projects. Furthermore, the

regulations or the utilisation o BOF unds, or the nancing o inter-

national scientic co-operation, are being drastically simplied, and

the term o the BOF decree is being extended to the end o 2012.

The subsidy is based on Article 168 o the University Decree o

12 June 1991, and on the resolution o the Flemish government o

8 September 2000, as amended on 24 January 2003. The budgetamounts to 100.444 million EUR in 2007.



28/50

The science policy (SP) unds or the actual science and technology

innovation policy increase rom 1,442.461 million EUR to 1,448.591

million EUR, a dierence o 6.130 million EUR. This increase, however,

is not refected in the R&D unds: According to the OECD denitions,

one can classiy an amount o 893.776 million EUR as R&D in 2007.

This is a decrease o 10.424 million EUR in comparison to 2006.

In the table presented below, the initial unds or 2007 compared

with the initial unds or 2006 (STI Inormation Guide 2006), and

with the adapted, nal unds or 2006.

SP 2006 2006 2007 Increasevs. Increasevs.

initial fnal initial 2006initial 2006fnal

71.1 14.525 17.812 19.066 4.541 1.254

71.2 (+BOF) 227.908 240.165 256.069 28.161 15.90471.3 159.990 152.708 174.577 14.587 21.869

71.4 232.058 235.460 258.980 26.922 23.520

Hermes und Innovation 30.000 30.000 30.000 0.000 0.000

Provisional budget - National Lottery 11.712 0.000 2.330 -9.382 2.330

Impulse nancing or tUL 2.600 2.600 2.600 0.000 0.000

P.M.V. VITO 2.700 2.700 0.000 -2.700 -2.700

VINNOF 75.000 75.000 0.000 -75.000 -75.000

33.1 14.186 14.210 14.476 0.290 0.266

33.2 (-BOF) 651.510 652.795 672.487 20.977 19.692

33.3 2.852 2.855 2.880 0.028 0.02535.1 Subsidy social prov. 14.890 16.156 15.126 0.236 -1.030

TOTAL 1,439.931 1,442.461 1,448.591 8.660 6.130

Table 9: Funds or the actual science policy, namely or the science and technology innovation policy in the programmes 71 and 33,

supplemented with several specifc unds o the initial and the revised budget 2006, and the initial budget 2007 (unds in million EUR).

R&D 2006 2006 2007 Increasevs. Increasevs.

initial fnal initial 2006initial 2006fnal

71.1 2.965 5.269 5.057 2.092 -0.212

71.2 (+BOF) 227.908 240.165 256.069 28.161 15.904

71.3 145.928 139.038 160.080 14.152 21.042

71.4 231.888 235.290 258.687 26.799 23.397

Hermes und Innovation 30.000 30.000 30.000 0.000 0.000

Provisional budget - National Lottery 11.712 0.000 2.330 -9.382 2.330

Impulse nancing or tUL 2.600 2.600 2.600 0.000 0.000

P.M.V. VITO 2.700 2.700 0.000 -2.700 -2.700

VINNOF 75.000 75.000 0.000 -75.000 -75.000

33.1 6.794 6.806 6.929 0.135 0.123

33.2 (-BOF) 162.972 163.293 168.242 5.270 4.949

33.3 0.000 0.000 0.000 0.000 0.000

35.1 Subsidy social prov. 3.723 4.039 3.782 0.059 -0.257

TOTAL 904.190 904.200 893.776 -10.414 -10.424



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2.2.3. Horizontal science policy

The horizontal science policy contains those scientic policy

initiatives, which are not a part o the actual science policy

(re. 2.2.2.). In other words, it is the science policy, or which the

competency lies with the policy domains themselves, which is

directed towards giving orm to and supporting the in-house

science policy.

The horizontal science policy is situated in all thirteen policy

domains. This discussion ollows the new Better Administrative

Policy (BBB) structure, which will be described one by one below.

The horizontal science policy represents 107 million EUR in

allocations, which is 6.9% o the total science and innovation policy

budget. However, it is not the intention to describe every budget

rom the Horizontal Budget Programme or Science Policy in this

new EWI-Budget Browser. For more inormation, we reer you to thewebsite www.ewi-vlaanderen.be/speurgids, where all data can be

consulted in the orm o index cards, which contain detailed

inormation or each budget.

1. Services or the General Government Policy (DAR)

O the budget that is available to the policy domain DAR, 0.859 mil-

lion EUR can be viewed as being assigned to the science policy. This

concerns, among other things, unds or the Studies Department o

the Flemish government. The Studies Department carries out multi-

disciplinary research on the basis o its own surveys o secondary

data sources, which serve to provide a better understanding and

explanation o developments. It searches or relationships across do-

mains, describes regional and (inter)national trends, develops models

and investigates possible uture developments.

Furthermore, DAR co-nances the support centres Administrative

Organisation Flanders, Equal Opportunity Policy and Sustainable De-

velopment. Besides this, unds are also oreseen or research, study

and expertise costs, which concern the topic state reorm.

2. Administrative Aairs (BZ)

Here 1.108 million EUR has been oreseen or science policy in 2007.This concerns, amongst others, expenditures or the encouragement,

organisation and development o activities that are aimed at the

integration o ethnic/cultural minorities, besides providing core--

nancing o the support centres Administrative Organisation Flanders

and Equal Opportunities Policy.

3. Finance and Budget (FB)

The science policy, which is budgeted with an amount o 5.95 mil-

lion EUR, also includes provisional unds or the execution o the

Limburg Plan. Two initiatives are a part o the science

Documents

EWI Budget Browser 2007