The Lisbon Strategy agreed in 2000 aims to make the EU the most competitive and innovative region in the world by 2010. However, EU R&D investment still lags far behind US and Japan, while emerging economies like China and India are catching up. The European automotive industry is the biggest R&D investor in Europe, spending euro 20 billion each year on research.
Innovation is crucial for the motor industry. The focus of R&D should be on applied research with clear economic value and high potential for commercial success - and guidelines should be set in the EU's new Seventh Framework Programme for Research (FP7).