EWI Budget Browser 2007

EWI- 2007
Budget Browser
Combining Economy, Science and Innovation
for a better society
Foreword
It is with pleasure that I present to you this first edition of the EWI-Budget Browser, which is the successor
publication to the Science, Technology and Innovation Information Guides.
The EWI Department (Economy, Science and Innovation) integrates the Flemish science and innovation
policy with the economic policy. This new entity is one of the 13 policy domains of the Flemish
government, in conformity with the great restructuring project ‘Better Administrative Policy’ (BBB).
Exactly as in the former Science, Technology and Innovation Information Guides, you will find information
on figures and funds, explanations, analyses and trends etc. for the Flemish science and innovation policy
in the new EWI-Budget Browser. A new aspect is, of course, that you now also get the same relevant
information about the economic policy of the Flemish government. Such information is always based on
the expenditure budgets of the Flemish government.
Another important change, which is immediately noticeable, is the new format of the EWI-Budget
Browser. You will notice that, despite the addition of the section on the economy, it is clearly thinner
than the earlier editions. And yet, you therefore do not get less information. Quite to the contrary; the
EWI-Budget Browser that you hold in your hands is supplemented with still more detailed information
on the website www.ewi-vlaanderen.be/speurgids. There you can quickly call up precise data and
information in an easy manner. On www.ewi-vlaanderen.be you will also find more information 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 figures 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
foreword

Contents
Foreword
Contents 3
Part 1 - Positioning of the EWI-Budget Browser 5
Part 2 - EWI: co-operation between economy, science and innovation 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 of the science and innovation policy 30
Part 3 - Government expenditures for R&D - expansion of the knowledge-based economy 39
Chapter 3.1 Flanders 41
Chapter 3.2 International comparison of government efforts for R&D (GBAORD) 43
Concluding remarks 45
Used abbreviations 46
Contributors 47
Colophon 48
Contents

Positioning of the
EWI-Budget Browser
Part 1
Deel 2 • EWI: samenspel tussen economie, wetenschap en innovatie

part 1 • POSITIONING OF THE EWI-BUDGET BROWSER
The great restructuring project of the Flemish government has led to EWI core department: three client-oriented and two
the creation of thirteen policy domains. Each of these policy domains information-oriented units.
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 Figure 1: Organigram of the core department of EWI
agencies called EVAs).
Secretary General
Client-oriented Information-oriented
Office for
Policy support & Valorisation & Awareness rising Statistics &
policy research &
Academic policy Industrial policy & Society Indicators
Foresight studies
The department furthermore consists of five thematic units:

Organisational Control and External Relations, Private and
Governmental Mobility, Budget, Communications and, finally,
Europe, International, Federal and Interregional.
The EWI-Budget Browser sheds light on the economic policy and

on the science and innovation policy of the Flemish government
in 2007: which funds have been included in the budget? What are
the accompanying policy accents, planned activities, etc.? What is
VLAO? What is the Hermesfonds? What are their activities? Also
the ‘outsiders’ of 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 information about the topics in this
edition can be found by way of the extended search function, which
is available on the website www.ewi-vlaanderen.be/speurgids.
In connection with the economic policy of the EWI policy domain

(also see Chapter 2.1), certain funds are managed by the core de-
partment, while others are managed by the IVA ‘Economy Agency’.
The science and innovation policy consists of the so-called ‘actual
science policy’: the science and innovation policy programmes of
EWI, supplemented with programmes for 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).

EWI: co-operation
between economy,
science and innovation
Part 2
Chapter 2.1
Economic Policy 2007

The Flemish economic policy consists of two parts: a general eco- 2.1.1. General economic policy
nomic policy and an economic support policy. Both policy directions,
which are part of the budget programmes 51.1 and 51.2 of the Strategic objectives
Flemish expenditures budget, will be shortly covered below. The primary objectives of the General Economic Policy are:
• Pro-actively boosting the development of the Flemish economic
fabric in an integrated manner.
• Making entrepreneurship more attractive for 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 of making the business community and consumers
aware of the necessity of striving for 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 of these funds is outlined in the table
below. The focus lies on the grants to VLAO (13.258 million EUR)
and to SERV (6.658 million EUR). A brief explanation of these two
Table 1: Funds programme of the
General Economic Policy 2007 funds is given below.
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 of the government administrators at VPM, Gimvindus and LRM Department
12.01 0.252 Specific operating costs with regard to the economic policy, including
among other things fees, expenditures for encouraging company investments,
and investments with regard to economic events Economy Agency
12.04 0.097 Expenditures for a variety of interregional economic co-operative associations Economy Agency
12.22 0.806 Expenditures for communications initiatives, with regard to the economic policy Economy Agency
12.23 0.350 Funds for financing assignments and co-operative agreements with partners
in social entrepreneurship (POMs) Department
12.41 2.165 Specific ICT costs of the IVA Economy Agency: project costs Economy Agency
33.02 1.000 Subsidy to the non-profit organisation “Vlaamse jonge ondernemingen”
(Young Flemish Enterprises) Economy Agency
33.06 0.372 Subsidies to the non-profit organisation “Vlaams Centrum voor Kwaliteitszorg”
(Flemish Centre for Quality Assurance) Economy Agency
41.06 0.900 Subsidies for certified regional co-operative associations Economy Agency
TOTAL 25.928
10 part 2 • ewi: co-operation between economy, science and innovation

VLAO – Flanders Enterprise (ABVV, ACLVB and ACV). SERV is the primary consultation organisa-
The grant for the budgetary year 2007, which is provided by the tion, where the social partners meet. There they determine their joint
Flemish government to VLAO – Flanders Enterprise, amounts to standpoints and formulate recommendations and advisories. This
13.258 million EUR. (BA 41.04). 2007 is the first complete operating representative composition gives SERV a strong social basis.
year for this new agency. The objective of VLAO is to provide a
unique point of contact for all companies and entrepreneurs, ena- The grant by the Flemish government to SERV (BA 41.01) amounts
bling them to find answers for their questions. VLAO also assists the to 6.658 million EUR in 2007.
companies and entrepreneurs in an efficient and company-friendly
manner and/or directs them towards the right channels within the In conformity with the decrees of 27 June 1985 and of 22 March
Flemish government. 1990, SERV has the following tasks:
• Counselling: on all important social and economic questions, for
ESTABLISHMENT which the Flemish Community or the Flemish Region are compe-
VLAO – Flanders Enterprise was established by the decree of 7 May tent, or in which they become involved at their own initiative or
2004. The mission statement, ‘Implementation of an integrated at the request of the Flemish Parliament, the Flemish government,
information centre account management’, of VLAO – Flanders or a member of the Flemish government (obligatory on every
Enterprise was approved by the Flemish government in May 2005. draft of a decree with a socio-economic impact, and on Flemish
Both of these texts provide the policy framework for this new budgetary policy);
agency. The commencement resolution for the establishment of • Preparation of studies: Studies about socio-economic subjects,
VLAO was approved by the Flemish government on 16 December including communication to external clients, among other things
2005. VLAO has become operational since 1 April 2006. VLAO in the form of standpoints and recommendations;
assumes a number of tasks from the former VIZO, and from the • Consultation: The preparation of tripartite consultations with the
Regional Development Societies. Flemish government, within the framework of VESOC, and the
consultations between the social partners amongst each other;
MISSION • Development of professional profiles.
The mission of VLAO is defined in the previously mentioned
foundation decree as: “Stimulating and facilitating sustainable SERV fulfils its assignments through its specific organisation and with
entrepreneurship in Flanders, by functioning as a low-threshold in-house expertise, which is provided by the Flanders Technology
and broadly-based contact point for candidate entrepreneurs, en- Foundation (STV) and various other commissions (Flemish Harbour
trepreneurs and companies, in partnership with the socio-economic Commission, Flemish Consultative Commission on Women, Com-
midfield organisations. The agency is responsible for a pro-active mission for Goods Transport, Commission for Metal Processing,
provision of services to candidate entrepreneurs, entrepreneurs and Textile and Clothing Manufacture Commission, Commission for
companies, so that the basic task package will be permanently and Welfare and Health Care, Woodworking and Construction Commis-
actively assured”. sion, the Study Commission R. Maris).
VLAO is also responsible for promoting designing, and for special More information is available on www.serv.be
tasks with regard to company management of (candidate) entrepre-
neurs and companies. For the promotion of designing, VLAO has
worked under the name ‘DESIGN VLAANDEREN’. 2.1.2. Economic support policy
CORE TASKS Mission

The tasks of VLAO lie in the execution of policy and include: The development of the Flemish economic fabric in a pro-active and
• Stimulation and promotion of awareness; integrated manner, by boosting “entrepreneurship” and making it
• Front-line advice and referral; more attractive for existing and new target groups, whereby the pre-
• Account management; vailing government approach is permanently evaluated and adapted.
• The establishment and the management of co-operative associa-
tions, including all actors in the area of entrepreneurship in Flanders; The achievement of an optimal endogenous and exogenous growth
• Promotion and designing (DESIGN VLAANDEREN); is of primary importance for conducting an integrated economic
• Company management for (candidate) entrepreneurs and companies. policy. For this purpose, it is important that the economic, urban
planning, social and innovative policies are harmonised more closely
More information can be found at www.vlao.be with one another, so that a sustainable prosperity and welfare can be
realised. The government aspires to conducting a policy that creates
The Socio-Economic Council of Flanders (SERV) frameworks, within which a variety of actors from the business world
The Socio-Economic Council of Flanders (SERV) is the consultation can dispose over an integrated, sufficient area for developing their
and counselling organisation of the social partners in Flanders. The initiatives. Innovative and creative initiatives, with broad economic
membership of SERV consists of 10 representatives of employer objectives are stimulated, and the successful growth of such projects
organisations (BB, UNIZO, VCSPO and Voka, the Flemish Economic is supported. It is necessary that an adequate communication about
Association), and 10 representatives of employee organisations all of these aspects is conducted with the involved groups.
1
As provided for in Article 5, §1, 1° to 3° of the foundation decree.
part 2 • ewi: co-operation between economy, science and innovation 11
Strategic objectives Funds 2007
The mission has been translated into the 3 strategic objectives. The total budget, which is available to the Economic Support Policy
1. Investment support, as a revised instrument for a policy designed 2007 (budget programme 51.2) amounts to 278.356 million euros.
to create the required economic conditions; The breakdown of these funds is outlined in the table below. The
2. Strengthening the regional and sub-regional dynamism, while focus lies on the Fund for Subsidiary Economic Support, the so-called
taking the individual characteristics of each sub-region into account; Hermesfonds, which is administered by the Economy Agency and
3. The promotion of more and better entrepreneurship, for starters, has a budget of 273.177 million EUR. The other BAs fall under the
growing companies and employees. EWI department.
Table 2: Funds for the Economic Support Policy 2007
BA Fund Description Unit

(million EUR)
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 for promoting entrepreneurship Department
33.09 0.600 Subsidies for supporting business plan competitions Department
50.01 0.050 Subsidies for projects that support and finance flexible mechanisms Department
99.11 273.177 Allocation authorisation for the Fund for Subsidiary Economic Policy Economy Agency
TOTAL 278.356
Table 3: Policy instruments and funds - Hermes fund 2007
Description Fund
(million EUR)
Policy for creating appropriate economic conditions

Investment expenditures 188.594
Expenditures for the construction of industrial parks and for the reutilisation of industrial sites 12.500
GIS contracts 0.075
Economic policy and urban planning
Government assignments in function of a continuation of policy-oriented research and the development
of policy initiatives 0.500
Income transfers to companies and financial institutes (exclusive of exploitation subsidies) 15.581
Centre management and measures for strengthening the commercial centres of inner cities 0.500
Projects within the framework of region-oriented partnerships and/or the Flemish economic policy with
regard to urban planning 3.300
Stimulating entrepreneurship
Initiatives for supporting entrepreneurship in education 2.500
Income transfers to companies and financial institutes (exclusive of exploitation subsidies) 44.132
Income transfers to private institutes without profit motives 3.000
Other expenditures that fit the social, economic and regional policy of the Flemish government
Operational expenditures 2.000
Economic governmental initiative 0.495
TOTAL 273.177
BA 99.11 Allocation authorisation for the Fund for Subsidiary

Economic Policy (Hermes fund)
With the decree of 21 December 2001, which contains provisions in of its service departments at the disposal of the Fund, and it can, in
accompaniment to the budget 2002, the Fund for Subsidiary Economic conformity with the general principles that are applicable in this matter,
Policy (Hermesfonds) was established. This fund replaced the previous delegate some of its competencies to the official in charge, who has
Funds for Economic Expansion and Regional Reconversion (FEERRs). been appointed by it.
Article 41 § 9 of this programme decree provides that the Flemish Policy instruments
Government controls the operations and management of the Fund. The budget 2007 contains 273,177 million EUR, by means of an
It puts the necessary services, equipment, installations and personnel allocation authorisation (BA 99.11). The policy instruments of this

authorisation are described in the table below, including correspon- legislation that cause hindrances in the acquisition of new loca-
ding funds for 2007, ordered by the major sectors of the economic tions, and research into exemptions for small works on industrial
policy domain. terrains, studies with regard to institutional concepts, development
bottlenecks, environmental effects reporting (MER) etc. A budget
of 0.500 million EUR is foreseen for these measures.
Explanations
• Income transfers to companies and financial institutes (exclusive of
Policy for creating appropriate economic conditions exploitation subsidies)
• Investment expenditures The European Fund for Regional Development (EFRD) was
• Investment support to SMEs, in application of the decree with established for providing support to productive investments and
regard to the economic support policy infrastructure in certain areas. During the programme period
Given an unchanged policy, 47.575 million EUR has been appro- 2002 to 2006, Flanders was able to dispose over a total budget of
priated for new investment support to SMEs. This concerns approximately 253 million EUR funded by EFRD. These resources
primarily investment programmes, which are distributed to compa- had been appropriated for co-financing actions, within the frame-
nies through a competitive formula. Four invitations are launched work of approved development programmes.
within a period of one year, which have a processing time of one
quarter, on the basis of which the administration publicises the Financial support from EFRD does not exceed a maximum of 50%
results after completion. The budget of 47.575 million EUR makes of the total project costs. In addition, it is required that a compara-
it possible to launch three invitations, each of 15.858 million EUR. ble amount is contributed from Flemish resources. These costs are
• Environmental support, in application of the decree concerning assumed by the Flemish Region, the provinces and municipalities,
the economic support policy as well as the private sector.
The environmental support measure was made stricter during
2006, and as of 2007 it has been transformed into a call system. Of the share that is contributed by the Flemish Region, the
A budget of 92.090 million EUR has been appropriated. greater part is assumed by the Economy budget. On average,
• Investment support to large companies, in application of the 17 million EUR of funds are appropriated annually. Depending
decree concerning the economic support policy on the planned priorities and measures, the remaining
Strategic support in its current form was discontinued by the co-financing funds are primarily provided by the domains
middle of June. As of 2007, a new measure will be implemented tourism (on average 7 million EUR) infrastructure (on average
that will also include support for ad hoc training. A budget of 5 million EUR), and technology and innovation (on average
43.929 million EUR has been appropriated (incl. 30.000 million 4 million EUR), by the programme Scientific Research with an
EUR for new measures). Economic Focus (also see Paragraph 2.2) and Environment
(on average 3 million EUR).
It must be emphasised that an amount of 30.000 million EUR,
which has been appropriated in the science and innovation policy On 24 March 2006, the Flemish government decided that a single
(also see Paragraph 2.2) will be used for initiatives that concern operational programme would be established for all of
innovation. These concern investments with an R&D character. Flanders during the next EFRD programme period. This programme
The above-mentioned initiative is therefore also a part of the concerns the following priorities:
Horizontal Budget Programme for Science Policy. 1. Stimulation of the knowledge industry and innovation;
2. Support for entrepreneurship;
• Expenditures for the construction of industrial parks and for the 3. Improvement of the basic economic factors with regard to
rehabilitation of industrial sites urban planning;
Assuming an unchanging policy, this measure will be funded with an 4. Support for urban development.
amount of 12.500 million EUR. In view of the fact that the current
measure was discontinued on 31 December 2006, a new system for This programme is currently being worked out. It will be presented
industrial terrains and buildings is currently in preparation. for the approval of the Flemish government before it is submitted
to the European Commission. Such a submission is a commitment
• GIS contracts for co-financing.
A budget of 0.075 million EUR is foreseen for GIS contracts in 2007.
• Centre management and measures for strengthening commercial
Economic policy and urban planning centres in inner cities
• Government contracts, in function of a continuation of policy- A budget of 0.500 million EUR is foreseen for 2007.
oriented research and the development of policy initiatives
Resources must be provided for study assignments, both in func- • Projects within the framework of region-oriented partnerships and/
tion of the development of regionally-oriented visions and institu- or the Flemish economic policy for urban planning
tional concepts, which define search zones for industrial terrains, The planned budget of 3.300 million EUR is necessary for being
as well as more general urban planning/economic studies, for able to carry out the Flemish economic policy with regard to urban
instance covering frictions between urban planning and VLAREM planning, with an emphasis on the stimulation of:

• Tackling outdated industrial zones (reinstallation and revitalisation Other expenditures that fit the social, economic and regional policy
projects); of the Flemish government
• Counteracting obsolescence through the introduction of • Operational expenditures
management; These funds can be used for general operational costs, and also
• Introduction on the market of difficult to realise industrial terrains for contracts within the framework of government assignments.
(problem-terrains, which are subject to specific study and A budget of 2.000 million EUR is available.
processing costs).
Other funds that are available under the Economic Support Policy
An increase in the number of submitted dossiers, in function of are given a brief explanation below.
subsidising advance procedures that are designed to obtain certi-
fication as a brownfield, is probable and will therefore necessarily BA 12.20: Study on sustainable entrepreneurship
require an increase in funds. This budget has been transferred from the Hermesfonds to the
department, and it will serve for financing studies within the frame-
Furthermore, funds (1.800 million EUR) are also being provided work of sustainable entrepreneurship. A budget of 0.050 million EUR
for the realisation of a programme of greywater recycling. This has been appropriated for this. This concerns scientific studies, so
amount is based on the original calculation of the first investment that this budget also is a part of the Horizontal Budget Programme
programme. These funds can, if required, also be used for other for Science Policy (please refer to Chapter 2.2).
economic projects in the area of urban planning.
BA 33.01: Subsidies to the “Steunpunt Economie”
Stimulating entrepreneurship (Economy support centre)
• Initiatives for supporting entrepreneurship in education A second generation of support centres has been launched as of
Support for so-called bridge projects was appropriated for the first 2007. This budget is for co-financing the support centre Entrepre-
time in 2003, projects which bridge the gap between education neurship and International Entrepreneurship, and it amounts to
and the business community, whereby the focus lies on entrepre- 0.124 million EUR. As in the preceding BA, it also concerns scientific
neurial skills and attitudes (not on technology or the infrastructure, research (please refer to Chapter 2.2).
since these are the domain of the Regional Technological Centres
(RTCs). A competition formula was used for evaluating these BA 33.06: Subsidies for promoting entrepreneurship
projects: With an available budget of 2.5 million EUR, 17 of the A budget of 4.355 million EUR has been appropriated for this BA in
50 submitted projects were supported. On the basis of an amend- 2007. These funds will be used for a new Entrepreneurship call.
ment, which was approved by the Flemish government for 2006,
a new call for projects was launched, with a total amount of 2.500 BA 33.09: Subsidies for supporting business plan competitions
million EUR. It is assumed that a similar call will be extended in This budget has also been transferred to the department. Under this
2007, for which the same budget will be provided. heading, only instalments of those obligations entered into under
the Hermesfonds are paid out. 0.600 million EUR has been put aside
• Income transfers to companies and financial institutes (exclusive of for this purpose.
exploitation subsidies)
• Entrepreneurship portfolio BA 50.01: Subsidies to projects for supporting and financing flexible
The measure, providing training and consultancy cheques, has mechanisms
been followed up by the BEA measure. BEA stands for Budget This budget has also been transferred to the department. A budget
for Economic Advice and is the name for the new integrated of 0.050 million EUR has been appropriated, for further follow-up on
subsidy measure, with which small and medium-sized companies the call, projects in 2007 and new initiatives within the framework of
can purchase training, consultancy, knowledge and mentoring the Kyoto protocol.
services, with the support of the Flemish government. This
measure was initiated on 20 May 2006. The budget amounts
to 42.900 million EUR.
• Godparent projects
By a resolution of the Flemish government, dated 5 September
2003, a new system was created for so-called ‘Godparent
projects’, whereby the minister responsible for economic policy
can launch two calls per year. To be able to support new
initiatives, 3.000 million EUR have been allocated for 2007.
In 2006, 31 projects were approved.

2.1.3. PMV, LRM and VPM A surety regulation offers the bank or credit providers greater secu-
rity, whenever an entrepreneur is looking for fund to make invest-
The following public limited companies are externally independent ments, but cannot provide insufficient guarantees. The government
agencies (EVAs) of the EWI policy domain: Participation Company provides the guarantee.
Flanders (PMV), Flemish Participation Company (VPM) and the
Limburg Investment Company (LRM). A brief explanation of their The win-win-loan provides tax advantages, which encourage private
activities is provided below. persons to provide advantageous loans to start-up companies.
ParticipatieMaatschappij Vlaanderen NV (Participation Company Innovative start-ups with a high risk profile and strong growth
Flanders - PMV) potential can take up contact with, the Vlaams Innovatiefonds
ParticipatieMaatschappij Vlaanderen NV (Participation Company (Flemish Innovation Fund - Vinnof), to find risk capital.
Flanders) has taken over the role of GIMV, as the instrument for the
realisation of economic initiatives by the government in Flanders. As CultuurInvest grants companies in the cultural sector access to
an independent investment company, PMV has a unique position. It is risk capital, providing oxygen in this way to culturally engaged
not a bank, and it is not an administration. PMV is a company that in- entrepreneurs.
vests in the Flemish Region in a businesslike manner. PMV is a public
limited company, which has been capitalised by the Flemish Region. The Fonds Vlaanderen Internationaal (Flanders International Fund)
PMV does not use funds provided by the Flemish government. helps Flemish SMEs to cross borders.
PMV can, on the one hand, invest when private initiatives are not The NRC-Fonds offers high-technology companies long-term
forthcoming. After all, private capital providers often have qualms financing, for innovative projects that are connected to a specific
about participating in a company or project, because the expected end-product.
profit is too low, the possible risks are too high, or because the
investment period is too long. PMV-pps
The PMV-pps business unit lays a foundation, with which it is pos-
What is of primary importance for PMV is that the (company) projects sible to meet the quickly evolving expectations of our society by way
have a high potential for the future. In such cases, PMV will strive and of public-private co-operations. PMV-pps structures capital-intensive
as much as possible towards a co-financing with private parties. investment projects, which are part of the responsibilities of the
government, whereby the participation of private parties offers an
On the other hand, PMV can invest in projects that are a part of the important added value. For instance:
responsibilities of government (infrastructure facilities, the building • A new fleet of Flemish pilot vessels
of schools and hospitals, social housing, etc.), but where a participa- • Major infrastructure works
tion of private parties is either useful or desirable for: • The elimination of the ‘missing links’ in the Flemish road
• Realising the projects with a lower investments of government funds; infrastructure
• An improved distribution and management of risks; • Modernisation and renewal of our school infrastructure
• Being able to handle projects more efficiently. • Expansion and modernisation of the sports infrastructure
• And an increase in the offer of social housing
The participation of PMV offers private parties the guarantee that • Construction and renewal of hospitals
the rules of business economics are respected; for the government • Care structures for senior citizens
PMV offers the guarantee that its interests will also be observed. • The privatisation of the VRT broadcasting park
• An optimisation of the Flemish optical network
Furthermore, PMV offers the opportunity of realising a profit on
the money of the Flemish government. The objective is to increase PMV-Vastgoed (real estate)
the investment potential of PMV and the government, so that new By way of an active real estate management, PMV supports and
initiatives can be realised without outside investment. finances the real estate policy of the Flemish government. The
The activities of PMV have been assigned to four business units: PMV-Vastgoed business unit plays a pioneering role in the area of
public-private co-operation, and it is involved in the realisation of
PMV-kmo (PMV for SMEs) the three Flemish administrative centres, as well as in the valorisation
This business unit is the unique contact point for the financing of Flemish government buildings.
requirements of small and medium-sized companies. It manages a PMV also carries out a strategic real estate policy for the development
variety of instruments, which makes it easier for entrepreneurs to of brownfields, and it offers support for regional and inner-city
find financing with private capital providers. development projects
ARKimedes doubles the available risk capital that is available to PMV-Milieu&Energie (environment and energy)
young growth companies. The ARKimedes Fund, which is valued at This business unit supports a strategic investment policy in the area
110 million EUR, offers one euro extra for every euro that is invested of environmental protection and energy. Such investments after all
in a Flemish SME by private risk capital funds (ARKIVs). have a great impact on society, and they offer a new impulse for

sustainable economic development. PMV invests in the development
and implementation of environmentally friendly and energy-efficient
technologies. It searches for future possibilities for important public
enterprises in the environmental sector, and it takes initiatives for the
realisation of the Kyoto objectives.
More information 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
of the participation of the Flemish government in GIMV. Today this par-
ticipation only consists of a minority position of 27%, after large blocks
of GIMV shares were sold on the stock market during 2005 in 2006, in
conformity with the agreements that have been made.
GIMV is an independent investment company, which is listed on the

stock market and that has specialised itself in investments in equity
capital of 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 of Limburg. LRM provides risk capital
to companies with a demonstrable link to Limburg, develops projects
and industrial zones, manages the former mining centres and pro-
vides aftercare for 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. Profitability and mar-
ket conformity are the guiding principles in the operations of LRM.
LRM wants to be a driving force in the economic expansion of

Limburg. This it does by, on the one hand, providing risk capital to
local and foreign 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 finance management
buy-outs or buy-ins.
On the other hand, LRM is a partner, and frequently the initiator, in

the development of sustainable projects in the area of real estate,
infrastructure, industrial terrains, tourism and utility facilities, which
are located on the old mining terrains and at other locations in
Limburg. In its aftercare role, LRM manages the consequences of
mine closings.
This is a unique combination of expertise in the area of business

financing, real estate and project development. This know-how and
experience is available for companies and government partners.
More information is available on www.lrm.be

Chapter 2.2
Science and
innovation policy 2007
This chapter gives a precise overview of what the scientific and Administrative structures of the Flemish science policy
technological innovation policy consists of. We will use the interna-
tionally agreed definitions for this purpose: After all, to be able to Here we will provide a summary description of the administrative
make an international comparison, one has to keep to international structure for the management of the science policy. This structure
agreements. consists of:
As the social importance and the complexity of knowledge and The EWI Department, which is responsible for preparing policy initia-
technological developments increased, exactly as the interest and tives and policy evaluation for the entire policy domain.
participation by governments in an international context, the defini-
tions also evolved in conformity with changed circumstances. The The institutes:
technological policy was, after all, originally considered as a subsidi- • IWT Flanders: carries out policy related to industry. It is an inter-
ary sector, which was contained in the broader term science policy. mediary organ, which distributes the funds amongst businesses
Later on it was felt necessary to provide a separate description for and research institutes, in conformity with defined selection
this type of policy, which is directly connected with technological criteria, and evaluation and decision-making procedures.
development. The accent today lays rather on innovation and with
this the entirety of the activities that stimulate renewal in industry • FWO Flanders: carries out policy with regard to basic research at
and society is meant. the universities. It is an intermediary organ which distributes the
funds among the universities and research institutes. That happens
in conformity with defined 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 of micro-
electronics, nanotechnology, design methods and technologies
for ICT Systems.
• Flemish Institute for 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 for Biotechnology (VIB): stimula-

tion of research and valorisation of research results, in the area of
biotechnology.
• Interdisciplinary Institute for BroadBand Technology (IBBT): research

in the area of information and communications technology (ICT)
in general, and the development of broadband applications in
particular.

The scientific institutes: • The Royal Academy of Medicine formulates advice to the Flemish
• Research Institute for Nature and Forests (INBO) government in matters concerning the medical sciences, medical
• Carries out policy-oriented scientific research with regard to the training and also the establishment of medical practices.
conservation, management and sustainable use of biodiversity
and its environment; The horizontal science policy is situated in all thirteen policy domains.
• Provides scientific services in support of the policy and to The departments are authorised to give form to science policy initia-
defined target groups, amongst others through advising, tives that support their policy. The thirteen policy domains are:
experimental analyses, the provision of new products, • Services for the General Government Policy (DAR)
techniques, concepts and documentation; • Administrative Affairs (BZ)
• It reports periodically on the condition of nature and the natural • Finance and Budget (FB)
environment, and on the effects of environmental policy, • Foreign Affairs (IV)
including the extent in which the assumed objectives of the • Economy, Science and Innovation (EWI)
environmental policy are reached, while monitoring and • Education and Training (OV)
evaluating the available know-how and investigating future • Welfare, Public Health and Family (WVG)
developments. • Culture, Youth, Sport and Media (CJSM)
• Work and Social Economy (WSE)
• Flemish Heritage Institute (VIOE) • Agriculture and Fisheries (LV)
• Manages and preserves the natural heritage in Flanders; • Environment, Nature and Energy (LNE)
• Carries out scientific research in this area. • Mobility and Public Works (MOW)
• Town and Country Planning, Housing Policy and Immovable
• Royal Museum of Fine Arts - Antwerp (KMSKA) Heritage (RWO)
• Acquires, conserves, restores and exhibits its own art collection;
• Carries out scientific research; More information can be found on
• Publishes catalogues on its collection and yearbooks; www2.vlaanderen.be/ned/sites/bbb
• Organises exhibitions in the Royal Museum of Fine Art and in
foreign countries;
• Organises educational activities: training of educational
assistants, training courses for adults, lessons for teachers and
schools, guided tours, lectures and youth ateliers, publications;
• Organises documentary activities: technical library, archives and
a collection register.
• Institute for Agricultural and Fisheries Research (ILVO)

• Co-ordinates and carries out policy-supporting research,
including the accompanying services, with the objective of
making the agricultural and fishing sectors sustainable from an
economic, environmental and social perspective.
• Builds up the required know-how for an improvement of
products and production methods, for monitoring the quality
and safety of end-products, and for an improvement of policy
instruments, as a basis for sector development and agrarian
rural policy.
• Regularly provides information to the policymakers, the
corresponding sectors and society at large.
The advisory organs:

• The Flemish Council for Science Policy (VRWB) formulates
recommendations to the Flemish government and the Flemish
Parliament, in the area of science and technology policy. This
council will provide such recommendations on request, or at its
own initiative.
• The Royal Flemish Academy of Belgium for Sciences and Arts

formulates recommendations and makes proposals to the Flemish
government, in the area of the sciences, literature and fine arts.

International definitions
SCIENTIFIC ACTIVITIES - R&D - STET - STS Innovation

The term “scientific activities”, as defined in the Recommendation The term innovation is defined in the Oslo Manual (second edition,
concerning the International Standardisation of Statistics on Science OECD/Eurostat 1997, p. 31) as follows:
and Technology” – UNESCO, 1978 (Canberra Manual – OECD,
Paris, 1995, p. 67) comprises: “Technological product and process (TPP) innovations comprise
implemented technologically new products and processes and
• Research and Development (R&D): “... creative work undertaken significant technological improvements in products and processes.
on a systematic basis in order to increase the stock of knowledge, A TPP innovation has been implemented if it has been introduced on
including knowledge of man, culture and society, and the use the market (product innovation) or used within a production process
of this stock of knowledge to devise new applications” (Frascati (process innovation). TPP innovations involve a series of scientific,
Manual, OECD, 2002, p. 30). In other words, it includes any technological, organisational, financial and commercial activities.”
scientific activity which is aimed at developing scientific knowl-
edge (basic research), making it applicable (applied research) and Innovation now stands for the commercially and socially successful
applying it (development). exploitation of the new inventions. Also low-technology innova-
tion is important: The more gradual innovations that are part of
• Education and Training (STET): “...all activities comprising special- product development, production processes and market strategies,
ised non-university higher education and training, higher educa- are viewed as being just as import for the creation of prosperity.
tion and training leading to a university degree, postgraduate and The diffusion of knowledge and technology transfers are therefore
further training, and organised lifelong training for scientists and exceedingly important for SMEs. An important role has been set
engineers” (Canberra Manual, OECD, Paris, 1995, p. 67). There- aside for the government here, amongst others as a stimulator
fore it concerns the funding of scientific education, for example, of the maximum valorisation of research results. That occurs, for
the proportion of the operational subsidies to universities that are instance, through support of technology transfer from universities
used for university education. and research institutes to industry. Innovation is viewed in a much
expanded sense: Not only scientific research is important (and a first
• Scientific and Technological Services (STS): “...activities concerned requirement), but also the global innovation system, including the
with research and experimental development and contributing social, economic and legal aspects that are connected to this. An
to the generation, dissemination and application of scientific and essential role in this is reserved for education and training, for the
technical knowledge” (Canberra Manual, OECD, Paris, 1995, p. financial framework (the availability of a risk capital is essential),
68). This concerns any form of services, such as performing rou- and for an efficient regulation regarding intellectual property rights.
tine measurements (e.g., routine medical analyses), the provision Innovation in commercial and management aspects, just as much
of scientific-technological information (e.g., by libraries or infor- as social innovation, are also viewed as important factors in creating
mation centres), and the collection of data of a general interest employment opportunities, and for meeting evident needs of society.
(including the collection of data on social-economic phenomena).
Studies related to policy and the activities of administrative units
with regard to the analysis, evaluation and monitoring of external
phenomena are included in this.
Within R&D there is a further classification according to the type of

research (Frascati Manual, OECD, 2002, p. 30):
• Basic research is “experimental or theoretical work undertaken
primarily to acquire new knowledge of the underlying foundation
of phenomena and observable facts, 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 specific practical aim or objective”;
• Experimental development is “systematic work, drawing on exist-

ing knowledge gained from research and/or practical experience,
that is directed to producing new materials, products or devices,
to installing new processes, systems and services, or to improving
substantially those already produced or installed.”

2.2.1. The EWI science policy domain
New policy resources and new policy accents for 2007
Table 4: Overview of new policy resources and accents for the EWI science policy domain
PR BA Initiative New initiative 2007

(million EUR)
71.1 12.07 Expenditures for promoting the Flemish information society, within the framework
of the Lisbon strategy 1
71.2 33.01 Strengthening of international co-operation 1
71.2 40.02 Further development of 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 of the Hercules initiative for a heavy and medium heavy research infrastructure 5
71.2 41.03 Additional postgraduate mandates through the Fund for Scientific Research -
Flanders (FWO) 2.7
71.3 41.05 Strengthening of financing for interface services 0.6
71.3 99.11 Innovation initiatives at the suggestion of the Flemish government (competence centres) 6
71.3 99.12 Additional funds for the Institute for the Promotion of Innovation by Science and
Technology in Flanders (IWT), for projects that are proposed by Flemish companies 17
71.4 33.01 An increase in the grant for the Interuniversity Micro-Electronics Centre (IMEC) 2.75
71.4 33.02 An increase in the grant for the Flanders Interuniversity Institute for Biotechnology (VIB) 6.3
71.4 33.04 An increase in co-financing for the support centre for R&D indicators 0.5
71.4 33.07 Financing of research activities at institutes for advanced education 0.5
71.4 41.04 Additional funds for the TETRA (technology transfer) fund 0.4
71.4 41.07 Financing for the ‘medical imaging processing’ cluster of IBBT 4.2
71.4 44.06 Strengthening of the research commitment in academic education at the universities 3
TOTAL 59.45
General science policy

Programme 71.1 of the expenditure budget is an umbrella for all This programme of budget allocations has the following strategic
expenditures in the area of the “General Science policy”. It includes objectives:
the required activities for the global conception, development and 1. Policy preparation, implementation and follow up with regard to
evaluation of Flemish innovation policy in science and technology. the research and technology policy, rationalisation;
This package also includes the instruments for supporting and publi- 2. Public information campaign: Strengthening the social basis of the
cising this policy, including the integration in an international forum. research and technology policy.
19.066 million EUR were appropriated for these expenditures. That
is an increase of 1.254 million EUR in comparison to 2006. For enabling a realisation, the following operational objectives have
been given precedence:
These budgets are primarily targeted for the Action Plan on Scientific 1. Transparent policy structures;
Information and Innovation, amounting to a total of 8.294 million 2. Balanced policy counselling;
EUR, which is the indexed amount of 2006. Expenditures for pro- 3. Scientific motivation of the planned initiatives;
moting the Flemish Information Society, which have been appropri- 4. Increasing the scientific and technological potential of the
ated in the framework of the Lisbon strategy (BA 12.07 => a new population through programmes promoting lifelong learning.
BA number that has replaced 12.06, due to a change in the type of 5. Providing information about scientific and technological
fund), have now been fixed at 3.031 million EUR. These expendi- developments for the general public.
tures include the funds for a further development of the research
network, but also serve for other initiatives from the Action Plan The table 5 summarises all the funds for the General Science Policy
Flanders i2010, as described in the section on the e-research and programme.
research information.

Table 5: Programme 71.1 General Science Policy (funds in million EUR)
BA SP R&D STS Description
01.90 0.050 0.000 0.050 Expenditures for a stock take and valorisation of scientific and
technological research
12.01 0.996 0.000 0.996 Expenditures for the conception, preparation and execution of
scientific actions
12.03 1.532 0.000 1.532 Popularisation of science, technology and technological innovation
12.07 3.031 0.000 3.031 Expenditures for promoting the Flemish information society, within the
framework of the Lisbon strategy
12.20 0.240 0.000 0.240 Various communications initiatives, with regard to science, technology
and innovation
33.01 0.839 0.000 0.839 Various subsidies, with reference to publicising the Science Policy and
scientific research to structural partners
33.03 3.904 0.000 3.904 Subsidies to Flanders Technology International vzw (FTI vzw), a non-profit
foundation
33.04 2.374 2.374 0.000 Subsidy to the non-profit organisation Flanders DC vzw
40.01 2.019 0.000 2.019 Subsidies for expertise cells, with the objective of popularising science,
technology and technological innovation within associations
41.01 1.129 0.452 0.677 Subsidy to the Royal Flemish Academy of Belgium for the Sciences and Arts
41.03 0.465 0.000 0.465 Grant to the Flemish Council for Science Policy
41.04 0.256 0.000 0.256 Subsidy related to the inventory of scientific and technological
research (IWETO)
41.06 2.231 2.231 0.000 A subsidy for the Flanders Technology Foundation (STV)
TOTAL 19.066 5.057 14.009
Scientific research at the initiative of the researcher Quantitative objectives:

The comprehensive strategic objective of programme 71.2 is a • An increase in the number of research mandates.
strengthening of general, knowledge-expanding fundamental
research. Due to its unpredictable character and its anchor func- Expenditures for scientific research, which is carried out at the initia-
tion for the world of research, the financing of this has become the tive of the researcher, have been budgeted at 155.625 million EUR,
responsibility of the government. which is an increase of 14.493 million EUR in comparison to 2006.
For the realisation, the following operational objectives have been The following table summarises all the funds (funds in million EUR)
given precedence: that have been a allocated within the programme for scientific
Qualitative objectives: research at the initiative of the researcher.
• An increase in the quality of fundamental research, through a
stricter selection of research proposals. The Fund for Scientific In 2007, too, FWO Flanders remains the most important item in the
Research - Flanders (FWO) assesses research projects and research budget, with a subsidy of 135.013 million EUR. Together with the
mandates on the basis of inter-university competitions, and by 2.342 million EUR from the National Lottery (currently still allocated
peer reviews of scientific commissions that have been assembled under BA 24.6 00.23), the total available budget for FWO Flanders
for the corresponding discipline. reaches 137.355 million EUR. That is an increase of 4.605 million
EUR in comparison to the year 2006.
• An increase in the scale and the internationalisation of fundamen-
tal research, through additional initiatives (see the Methusalem FWO Flanders is the channel that distributes research funds on the
and Odysseus programmes, BA 40.02 and 41.05). basis of interuniversity competitions, and also peer reviews that

Table 6: Programme 71.2 Scientific research at the initiative of the researcher (funds in million EUR)
12.24 0.116 0.116 0.000 Expenditures within the framework of international scientific co-operations
33.01 1.520 1.520 0.000 Subsidies within the framework of international scientific and innovative
cooperation
35.40 0.996 0.996 0.000 Subsidies to the United Nations University (UNU), within the framework of
the programme for regional integration studies
35.41 1.437 1.437 0.000 Subsidy to UNESCO, in support of the Flemish UNESCO science trust fund
40.02 10.043 10.043 0.000 Subsidy to the special research funds, which are part of the Methusalem
programme
40.03 1.500 1.500 0.000 Subsidy for special research funds, which provide additional mandates for
independent academic personnel
41.01 0.941 0.941 0.000 Subsidy to FWO Flanders, for projects within the framework of international
research facilities
41.02 5.000 5.000 0.000 Subsidy to the Hercules Foundation
41.03 112.531 112.531 0.000 Subsidy to FWO Flanders
41.05 12.171 12.171 0.000 Subsidy to FWO Flanders for the Odysseus programme
41.80 9.370 9.370 0.000 Allocation financed with the net receipts from profits in the National Lottery,
for the benefit of FWO Flanders
TOTAL 155.625 155,625 0.000
are conducted by scientific commissions, whose membership is The Flemish government has already taken a number of important
recruited from the corresponding discipline. Financing of fundamental initiatives in the past, for financing equipment at the expense of the
research that is initiated by researchers is, among other reasons due Financing Fund for One-off Investment Expenditures (FFEU). After all,
to its unpredictable character and its anchor function for the entire there had been no structural channel for easing the equipment needs
scientific establishment, a primary responsibility of the government. of the actors in the Flemish research sector. The Hercules Foundation
Additional, relevant information can be found on the website: was established in 2007 (BA 41.02), in co-operation with FWO and
www.fwo.be IWT, with the objective of providing structural financing of medium-
heavy and heavy research infrastructure at Flemish universities and
In 2005, extra funds were made available in FWO to award additional at Flemish institutes of higher education. Starting in 2007, the funds
doctorate mandates. In 2006, one still appropriated an extra 2.7 provided by the government will amount to 5 million EUR for larger
million EUR, in an attempt to achieve a success percentage of 35% equipment, and 10 million EUR that comes from previously appropri-
of applications. From this same viewpoint, 2.7 million EUR will once ated and saved funds of the basic subsidy of FWO for medium-sized
more be added in 2007, for the first batch of post-doctoral mandates. equipment.
The subsidy on BA 41.03 amounts to 112.531 million EUR.
The Methusalem programme (BA 40.02) represents a strengthening
The Odysseus programme is an initiative that was started up in of the BOF. The intention is to grant top researchers long-term and
2006. It is aimed at attracting Flemish and other top researchers from substantial programme financing (lump sum) at Flemish universities.
abroad, by providing them with start-up financing and putting them 3 million EUR were made available for this purpose in 2006. For a
in a position to build up research groups in Flanders, with the intention further expansion, 10.043 million EUR have been appropriated in the
of making them into leading scientific centres at an international level. budget for 2007, a structural increase of 7 million EUR.
The Odysseus programme is intended as project financing, which is
designed to attract Flemish and other scientists from abroad to Flanders. For the purpose of giving outstanding postdoctoral researchers an
The essence of this programme is that excellent researchers, who are academic career, whereby they can devote the first years after their
working in foreign countries, receive a generous start-up financing appointment largely to research, and for the purpose of strengthen-
for a period of five years, for developing a research group in Flanders. ing the structural framework for young researchers, 1.500 million
The size of the amount will vary according to the discipline, and such EUR will be appropriated in 2007 for financing additional BOF-ZAP
funds can be used for operational, personnel and equipment costs. In mandates (BA 40.03). In addition, at least the same amount will
2007, 12.171 million EUR have been appropriated for this programme be allocated annually in 2008 and 2009, so that, depending on the
(BA 41.05). The basic principles of this programme were already ap- appointments that are made in the universities, between 45 and 60
proved by the Flemish government in July 2005. additional BOF-ZAP mandates can be financed with these additional
funds. To make this possible, a number of changes have been carried
out in the BOF resolution.

Scientific research with an economic focus
The budgetary programme 71.3 “Scientific research with an economic The initial funds for 2007, and the budget programme 71.3, amount
focus” contains those measures, with the goal of stimulating specific to 174.577 million EUR, which is an increase of 21.869 million EUR
expansion of know-how. This support goes to projects proposed by in comparison to the final funds of 2006.
companies, research institutes or universities, as well as individual
researchers or doctoral students. It concerns action lines funded by the The allocation authorisation of IWT Flanders for projects, which are
internal operating resources of IWT Flanders, as well as new measures proposed at the initiative of companies and for innovation co-op-
that the Flemish government may decide to launch. erations, is rising with 18.5 million EUR (including indexing). The
allocation authorisation of IWT Flanders, for supporting technologi-
The central point of departure of the programme is ‘more technological innovation actions initiated by the Flemish government, is rising
cal innovation in Flemish companies’. To be able to maintain one’s po- with 2.3 million EUR. Of all the IWT allocation authorisations, ap-
sition in today’s highly competitive global economy, companies must, proximately 76% are destined for projects that have been proposed
after all, continuously strive to provide improved or new services, by companies (74% in 2006). A slight rise of 0.6 million EUR can be
products and processes. Development and acquisition of technology noted for the subsidy to university interface services.
is crucial in this, but these must be positioned in a sufficiently spacious
framework. All of the funds, which are part of the programme “Scientific research
with economic objectives”, are summarised in the following table
The primary objectives that have been defined are: (funds in million EUR).
• Creating the conditions for increasing technological innovation in
companies;
• Creating conditions for promoting co-operation between knowl-
edge centres and companies, as well as between the companies
themselves;
• The development of a policy aimed at SMEs;
• Optimisation of funds aimed at stimulating the innovation climate;
• Strengthening of the operations of university interface services.
Table 7: Programme 71.3 Scientific research with an economic focus (funds in million EUR)
41.03 11.780 0.000 11.780 Grant for IWT

41.05 2.717 0.000 2.717 Subsidy to university interface services
99.11 26.468 26.468 0.000 Allocation authorisation for IWT Flanders, for supporting technical innovation
actions that are proposed at the initiative of the Flemish government
99.12 121.721 121.721 0.000 Allocation authorisation for IWT Flanders, for projects proposed by companies
and innovation co-operations
99.13 11.065 11.065 0.000 Allocation authorisation for IWT Flanders, for e-media projects
99.14 0.826 0.826 0.000 Allocation authorisation for IWT Flanders, for study and expertise assignments,
for the benefit of the Flemish Innovation Network (VIN)
TOTAL 174.577 160.080 14.497

Strategic and policy-oriented research
This budget very programme consists of funds for strategic basic For the realisation, the following operational objectives have been
research, or for research that is policy-relevant, namely budgets for ini- defined:
tiatives that support innovative developments in industry and society. 1. A further strengthening of the Flemish strategic research potential
in the Flemish research institutes;
The expenditures for this programme were budgeted at 258.980 2. A further expansion of basic research;
million EUR. In comparison to the final funds of 2006, this is an 3. A further expansion of universities as fully qualified partners in
increase of 23.520 million EUR. innovation;
4. An ongoing development of a revised framework policy-oriented
This programme of budget allocations has the following strategic research.
objectives:
1. Strengthening strategic basic research, which generates know-how The following table summarises all the funds (funds in million EUR),
in the service of the business world, the non-profit sector and the which are summarised in the programme “Strategic and policy-
government; oriented research”.
2. Strengthening policy-relevant research.
Table 8: Programs 71.4 Strategic and policy-oriented research (funds 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 for Biotechnology (VIB)
33.03 8.500 8.500 0.000 Subsidy to support centres for policy-relevant research
33.04 1.222 1.222 0.000 Subsidy for co-financing the support centre “R&D statistics”
33.05 9.000 9.000 0.000 Subsidies for project-based scientific research (PWO)
33.07 0.500 0.500 0.000 Subsidies for carrying out scientific research, by advanced educational institutes
33.41 0.677 0.677 0.000 Subsidy to the Royal Zoological Society of Antwerp (KMDA)
33.43 1.072 1.072 0.000 Subsidy to the Flemish Institute of the Sea (VLIZ)
33.44 0.576 0.403 0.173 Subsidy to the Flemish Institute of the Sea (VLIZ), for supporting the work the
IODE Project Office
33.45 0.120 0.000 0.120 Subsidy to the Flemish Institute of the Sea (VLIZ), for supporting the work the
ESF Marine Board
35.40 0.760 0.760 0.000 Grant to the Dutch Language Union for the implementation of the “STEVIN
programme” (Essential Speech and Language Technology Resources)
40.01 5.000 5.000 0.000 Strengthening of 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 for scientific 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 of 23 January 1991)
41.03 30.132 30.132 0.000 Allocation for the Flemish Institute for Technological Research (VITO)
41.04 7.399 7.399 0.000 Grant to IWT, for the promotion of technology transfer 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 for BroadBand Technology (IBBT)
41.08 5.000 5.000 0.000 Grant to IWT, for support to applied biomedical research, with a primarily
a social purpose
61.02 4.999 4.999 0.000 Grant for investments at the Flemish Institute for Technological Research (VITO)
TOTAL 258.980 258.687 0.293

The research institutes IMEC, VITO, VIB and IBBT together account In addition, there is still a structural increase in the co-financing of
for 135.19 million EUR. An increase of 3.284 million EUR in the the support centre R&D Indicators, rising by 0.5 million EUR.
subsidy to IMEC (2.75 million EUR structural), 6.77 million EUR to
VIB (6.3 million EUR structural) and to IBBT, for financing the cluster Charts 2 and 3 below show the evolution of financing for science
‘medical image processing’, with an allocation of 5.759 million EUR and innovation policy, of the programmes 71. OA 71 includes the
(4.2 million EUR structural) has been approved. four programmes that have been described above. The rising trend
will be continued in 2007 (Figure 2: Without special funds). In 2007,
The sum of 0.5 million EUR was appropriated for a new initiative, there will be a global increase (including indexation) of 62.547 mil-
with the objective of creating basic financing for research at research lion EUR in the funds for Science Policy (SP), namely R&D and STS
institutes that do not have access to regular financing channels for together, and 60.131 million EUR of the R&D funds, in comparison
research (BA 33.07). with the final budget 2006.
Furthermore, a structural increase of 0.4 million EUR provides addi- Figure 3 below shows the evolution of the total funds, including the
tional funds for the TETRA Fund (BA 44.06). With that, this budget one-off special funds outside out the classic budget programme,
reaches 7.399 million EUR. which were introduced as of 2004, and which were intended for the
realisation of specific policy priorities of the corresponding year. Two
The subsidy for Project-based Scientific Research (PWO) was additional funds (for R&D) will also be available in 2007: 30 million
increased in 2005 from 3.0 million EUR to 7.5 million EUR and EUR for the Hermes Fund and 2.6 million EUR for LRM impulse
increase further in 2006 to 9.0 million EUR. This is also the budget financing, which is for the expansion of research activities at the
for 2007. transnational University Limburg (tUL). This additional net increase
of approx. 60 million EUR in R&D Funds, which will be allocated
The grant to IWT, for specialisation grants, is increasing from 21.729 to the EWI policy domain in 2007, partially massed in figure 3 by
million EUR in 2006 to 24.255 million EUR in 2007. the fact that the amount of 75 million EUR supplementary funds,
which had been allocated to the Flemish Innovation Fund (VINNOF)
For increasing at the research capacity at universities (BA 40.01), outside of the classical budget programmes in 2005 in 2006, will not
additional funds are being made available from the policy domain be repeated in 2007. This increase becomes clearly visible in figure 2,
Education and Training as well as from the policy domains Economy where the evolution is shown without the special one-off funds.
and Science and Innovation. In consultation with the Minister of
Education, it was decided to make extra funds available from the
R&D budget, as an additional stimulation designed to strengthen
the research component of education for the academic content of
graduate courses. In 2006, 2 million EUR was appropriated for this
(BA 44.06 from programme 71.2). In 2007, 5 million EUR has been
appropriated for this purpose.
Figure 2: Evolution of OA 71, without special funds (million EUR) Figure 3: Evolution of OA 71, incl. special funds (million EUR)
800 800
750 750
700 700
650 650
800 800
600 750 600 750
700 700
550 550
650 650
500 600 500 600
550 550
450 450
500 500
400 450 400 450
400 400
350 350
350 350
300 300 300 300
2000 2001 2002 2003 2000
2004
2001 2005 2006
2002 2003 2004 2007i
2005 2006 2007i 2000 2001 2002 20032000
2004
2001 2005 2006
2002 2003 2004 2007i
2005 2006 2007i
Total SP 71 (+ BOF) Total SP 71 (+ BOF)
Totaal WB 71 (+ BOF)
Total R&D 71 (+ BOF) Totaal WB 71 (+ BOF)
Total R&D 71 (+ BOF)
Totaal O&O 71 (+ BOF) Totaal O&O 71 (+ BOF)

2.2.2. ‘Actual science policy’ Operational subsidies to Flemish universities
This concerns the BAs 41.20, 41.27, 41.79, 41.85, 44.81, 44.82
What one has, true to tradition, called the ‘actual science policy’, and 44.86 of programme 33.2. The total operational subsidies to
concerns the organisation department 71 of the EWI policy domain the Flemish universities for 2007 amounts to 598.495 million EUR.
(described above under the reference 2.2.1), together with the In comparison to the preceding budgetary year (after the budget
organisation department 33 of the Education and Training (OV) control 2006), the total operational subsidies have increased by
policy domain, for the financing of universities and higher education. 14.754 million EUR.
Fundamental research at universities, which opens up new horizons, They contribute to covering normal expenditures for academic edu-
as a necessary basis for all further socially and industrially oriented cation, scientific research and the provision of services, including the
research, just as much as research at institutes of higher education, is administration of the universities. The operational subsidies to the
after all a part of such a coherent policy. Strategic basic research also is Flemish universities for 2007 have only evolved to a limited degree
largely carried out at the universities and higher educational institutes, in comparison to 2006. The budgetary growth scenario, which was
including such Flemish research institutes as IMEC, VITO, VIB and introduced with the financing decree of 7 December 2001, has
IBBT. In addition, there is also the broad and varied domain of indus- defined the operational funds available to universities as of 2004.
trial research carried out in support of Flemish industry. Differences must be largely attributed to indexation, with exception
of the Universities of Ghent and Hasselt. For the University of
The general science policy (71.1), scientific research at the initiative of Ghent, the degressive increase of operational funds will be continued
the researcher (71.2), scientific research with an economic focus (71.3) in 2007. In expectation of the new financing regulations for higher
and strategic- and policy-oriented research (71.4) have already been education, the University of Hasselt will receive additional funds for
described in the Section 2.2.1. education and traffic science.
BA 44.64: Subsidy to the Special Research Fund (BOF) for

‘Actual science policy’ in the Education and Training universities
policy domain Every university disposes over a special research fund (BOF), for financ-
The most important accents of the science policy for institutes of ing groundbreaking, fundamental research. The BOF is the channel,
higher education and universities are explained below. Together they with which universities can develop their own science policy (projects
form the ‘actual science policy’. and mandates), which is proposed by their own academic personnel,
and finance such a science policy in the long term. A Research Council
Envelope for education at institutes of higher education is responsible for the policy of the BOF within each university.
The operating envelope for institutes of higher education, which Financing fundamental research that is initiated by researchers
had been appropriated under BA 40.02, amount to 600.293 million is, among other things, due to its unpredictable character and its
EUR for 2007, and are applicable for higher education, the provision anchor function for the entire scientific establishment, a primary
of services and for project-oriented scientific research. This budget responsibility of the government. The calculation of the fund needs
for 2007 once more contains a financial impulse of 12.5 million is currently carried out on the basis of a distribution formula, which
EUR, which is in implementation of the coalition agreement. This is a weighted average of three criteria: The number of graduate
concerns a structural increase of the budgets, as a consequence of degrees (in accordance with one weighting factor), the number of
the increased number of students. This budget also contains 13.857 doctorate degrees awarded (also based on a weighting factor) and
million EUR of funds for the academic content of graduate courses the share of the total operational subsidies, and, on the other hand,
(BaMa). on the basis of indicators of international visibility and the research
As a consequence of the Bologna and the Sorbonne Declarations, output, which is measured on the basis of the number of citations
European higher education must be harmonised and the quality of and publications. The BOF is therefore largely decided on the basis
education must be increased. Legislative initiatives in this regard of output indicators.
have already been taken in Flanders. These initiatives will mean It is planned to amend the distribution key as of 2007, with the
sweeping changes for the institutes of higher education (and the objective of strengthening the research potential of universities,
universities) in the future. Taking these objectives into account, the through the introduction of a stimulant designed to activate the
structural decree has appropriated funds for the academic content of HRM policy for independent academic personnel, and by financing
graduate courses. As of the budget year 2004, the funds allocated a number of additional positions for independent academic personnel,
for this (= bringing master students to a knowledge and competency who are a primarily assigned to research projects. Furthermore, the
level that is congruent with scientific functionality) will be part of the regulations for the utilisation of BOF funds, for the financing of inter-
operational budgets for institutes of higher education. national scientific co-operation, are being drastically simplified, and
As a consequence, the co-operation between higher educational the term of the BOF decree is being extended to the end of 2012.
institutes and universities must be accentuated. In support of such The subsidy is based on Article 168 of the University Decree of
corporations, the establishment of associations between the involved 12 June 1991, and on the resolution of the Flemish government of
partners has been included in the structural decree. In the lap of 8 September 2000, as amended on 24 January 2003. The budget
this institute, the dividing line between professionally oriented and amounts to 100.444 million EUR in 2007.
general scientific education must be redesigned.

The science policy (SP) funds for the ‘actual science and technology In the table presented below, the initial funds for 2007 compared
innovation policy’ increase from 1,442.461 million EUR to 1,448.591 with the initial funds for 2006 (STI Information Guide 2006), and
million EUR, a difference of 6.130 million EUR. This increase, however, with the adapted, final funds for 2006.
is not reflected in the R&D funds: According to the OECD definitions,
one can classify an amount of 893.776 million EUR as R&D in 2007.
This is a decrease of 10.424 million EUR in comparison to 2006.
Table 9: Funds for the ‘actual science policy’, namely for the science and technology innovation policy in the programmes 71 and 33,
supplemented with several specific funds of the initial and the revised budget 2006, and the initial budget 2007 (funds in million EUR).
SP 2006 2006 2007 Increase vs. Increase vs.

initial final initial 2006 initial 2006 final

71.1 14.525 17.812 19.066 4.541 1.254
71.2 (+BOF) 227.908 240.165 256.069 28.161 15.904
71.3 159.990 152.708 174.577 14.587 21.869
71.4 232.058 235.460 258.980 26.922 23.520

Hermes fund – 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 financing for 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 0.025
35.1 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
&D
R 2006 2006 2007 Increase vs. Increase vs.
initial final initial 2006 initial 2006 final

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 fund – 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 financing for 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

2.2.3. Horizontal science policy 1. Services for the General Government Policy (DAR)
Of the budget that is available to the policy domain DAR, 0.859 mil-
The horizontal science policy contains those scientific policy lion EUR can be viewed as being assigned to the science policy. This
initiatives, which are not a part of the ‘actual science policy’ concerns, among other things, funds for the Studies Department of
(ref. 2.2.2.). In other words, it is the science policy, for which the the Flemish government. The Studies Department carries out multi-
competency lies with the policy domains themselves, which is disciplinary research on the basis of its own surveys of secondary
directed towards giving form to and supporting the in-house data sources, which serve to provide a better understanding and
science policy. explanation of developments. It searches for relationships across do-
mains, describes regional and (inter)national trends, develops models
The horizontal science policy is situated in all thirteen policy and investigates possible future developments.
domains. This discussion follows the new Better Administrative Furthermore, DAR co-finances the support centres Administrative
Policy (BBB) structure, which will be described one by one below. Organisation Flanders, Equal Opportunity Policy and Sustainable De-
The horizontal science policy represents 107 million EUR in velopment. Besides this, funds are also foreseen for research, study
allocations, which is 6.9% of the total science and innovation policy and expertise costs, which concern the topic state reform.
budget. However, it is not the intention to describe every budget
from the Horizontal Budget Programme for Science Policy in this 2. Administrative Affairs (BZ)
new EWI-Budget Browser. For more information, we refer you to the Here 1.108 million EUR has been foreseen for science policy in 2007.
website www.ewi-vlaanderen.be/speurgids, where all data can be This concerns, amongst others, expenditures for the encouragement,
consulted in the form of index cards, which contain detailed organisation and development of activities that are aimed at the
information for each budget. integration of ethnic/cultural minorities, besides providing core-fi-
nancing of the support centres Administrative Organisation Flanders
and Equal Opportunities Policy.
3. Finance and Budget (FB)

The science policy, which is budgeted with an amount of 5.95 mil-
lion EUR, also includes provisional funds for the execution of the
Limburg Plan. Two initiatives are a part of the science policy: Funds
for the Flemish Institute for Mobility (VIM), and a strengthening of
interface service operations that are connected with the University
of Hasselt. Another provisional budget concerns expenditures, which
are to be financed by means of net receipts from the profits of the
National Lottery. Here it is foreseen that that another sum will be
transferred to FWO Flanders in the course of 2007, as an allocation
for financing fundamental research.
There is also a capital retirement loan to universities (academic
sector), for an amount of 1 million EUR, which had still been set at
28 million EUR in the preceding year. Furthermore there is an interest
charge loan to universities (academic sector), which covers interest
charges on loans that have been concluded by the universities and
the University Hospital Ghent, for financing real estate investments.
4. Foreign Affairs (IV)

This policy domain primarily covers a subsidy to the Royal Zoological
Society of Antwerp (KMDA) (Decree of 30 May 1985), for which a
science policy amount of 1.768 million EUR has been budgeted. The
total science budget for 2007 amounts to 2.304 million EUR.
5. Economy, Science and Innovation (EWI)

The EWI programs, which have been described above, belong to
the ‘actual science policy’, with an appropriated amount of 608.248
million EUR. Besides this, there are still funds for studies concerning
sustainable entrepreneurship (0.050 million EUR) and co-financing
the support centre Entrepreneurship and International Entrepreneur-
ship (0.124 million EUR).

6. Education and Training (OV) the agricultural and fishing sectors sustainable from an economic,
Here, too, it is applicable that the funds from the programmes for environmental and social perspective. An extensive overview of
higher education are a part of the ‘actual science policy’, for which the research activities of ILVO in 2007 can be found on
a budget of 805.413 million EUR has been appropriated for 2007. www.ewi-vlaanderen.be/speurgids.
In addition to this, there are another 3.619 million EUR in funds that The subsidy to the Flanders’ Agricultural Marketing Board (VLAM),
belong to the horizontal science policy. This includes the programme and also the subsidy to the Flanders Agricultural Investment Fund
‘Co-ordination of policy and data management’, a number of dif- (VLIF) are partially used for the science policy domain.
ferent operational costs, expenditures in the area of the preparation In total, an allocation of 21.768 million EUR in scientific funds has
of policies, policy support and policy evaluation, and also a subsidy been planned for the LV policy domain in 2007.
to Educational Policy and Practice-oriented Scientific Research
(OBPWO). The OBPWO is specifically meant for the preparation, 11. Environment, Nature and Energy (LNE)
execution, evaluation and adaptation of educational policy and Within the Environment policy domain, research is financed out of
educational practice. The most important research themes, and their a general budget (budgetary programmes 61.1 to 61.5) and from
detailed presentation, help to crystallise answers to policy questions, the MINA Fund (Environment and Nature Fund). To bring coher-
which the government is trying to solve. ence into the multiplicity of research subjects, funds and principals,
a research programme called Applied Scientific Research into the
7. Welfare, Public Health and Family (WVG) Environment (TWOL) is prepared on an annual basis. The TWOL
The WVG policy domain covers funds for science and for a general programme aims at harmonising research projects of the various
welfare policy, amongst others for supporting advisory bodies, and departments of LNE, Flemish public institutes such as VLM, VMM
for co-financing the support centre Welfare, Public Health and and OVAM, and of Research Institute for Nature and Forest (INBO),
Family. Scientific research is also carried out at Child and Family and a scientific institute.
at the Flemish Agency for Persons with a Handicap. Funds have also The research projects of INBO are carried out by research groups
been made available within the science policy domain for the inte- within two scientific departments. The research priorities within
gration of disadvantaged persons, as well as for scientific research on INBO are specifically assured by means of the definition of strategic
ethnic-cultural minorities. In addition, there is co-financing for the projects, horizontally throughout the departments. Starting in 2007,
support centre Equal Opportunities Policy. The programme for Public INBO is initiating three strategic projects: Knowledge acquisition,
Health includes funds for the Royal Academy of Medicine, recognised monitoring and making inventories and, finally, sustainable use and
centres on human heredity and the advisory committee for bioeth- management.
ics. Here epidemiological research is being carried out, as well as Detailed explanations with regard to the funds available in 2007
research in connection with health and the environment. Finally, a for the scientific institutes INBO, VMM, VLM, OVAM, Aquafin, the
subsidy is also foreseen for the Scientific Institute for Public Health research programme TWOL and the Flemish Infrastructure Fund
Louis Pasteur. In total, the WVG policy domain can dispose over (VIF), can be consulted on www.ewi-vlaanderen.be/speurgids.
7.224 million EUR in funds for 2007. For the LNE policy domain, a total of 39.132 million EUR in scientific
funds have been appropriated.
8. Culture, Youth, Sport and Media (CJSM)
A budget of 15.5 million EUR has been planned for this area of the 12. Mobility and Public Works (MOW)
science policy in 2007. This includes, amongst others, subsidies to Mobility studies, mobility covenants, studies and research with
the Royal Museum for Fine Arts Antwerp (KMSKA), the Royal regard to artificial yachting and fishery harbours, expenditures for
Academy for Dutch Language and Letters – Ghent (KANTL) and the Hydraulics Engineering Laboratory and Hydraulic Research are
the VRT, subsidies to privately organised archives, documentation covered by the MOW policy domain. An overall budget of 3.362
centres and storage libraries, expenditures in connection with medi- million EUR for scientific funds had been planned for science policy.
cally recommended sports and co-financing for the support centre
Culture, Youth and Sport. A detailed explanation of the scientific 13. Town and Country Planning, Housing Policy and Immovable
activities in 2007, which were carried out by the scientific institute Heritage (RWO)
KMSKA, can be found on www.ewi-vlaanderen.be/speurgids. The most important budget is the subsidy to the scientific
institute Flemish Heritage Institute (VIOE). It manages and
9. Work and Social Economy (WSE) protects the archaeological patrimony of Flanders, and it carries
Studies and research are being carried out here, within the frame- out scientific research in this area. The total of science funds
work of the Job Opportunities programme. 0.348 million EUR had amounts to 6.971 million EUR.
been appropriated for this.
10. Agriculture and Fisheries (LV)

As a scientific institute, the Flemish Institute for Agriculture and
Fisheries Research (ILVO) assumes an important position in the
science policy of the LV policy domain. The mission of ILVO is the
coordination and execution of policy-supporting scientific research,
including the accompanying services, with the objective of making

2.2.4. Analysis of the science and innovation policy
In 2007, the global budget for the Horizontal Budget Programme

for Science Policy will amount to 1,555.772 million EUR, to of
which 953.584 million EUR have been earmarked as research funds.
These funds are distributed over all policy domains, as has been dis-
cussed above. The EWI policy domain, and Education and Training
(OV), are together good for 93% of the total Horizontal Budget
Programme for Science Policy (HBPWB). The horizontal science
policy is nevertheless important for supporting and defining a
specifically individual policy.
Figure 4: Distribution of science and innovation policy funds in 2007, over the 13 policy domains
LV
1.4%
OV LNE
2.5%
52.0%
WSE
0.02%
other
6.8%
CJSM
1.0%
EWI
41.2%
WVG MOW
0.5% 0.2%
IV RWO
FB BZ 0.4%
0.1%
0.4% 0.1%
DAR
0.1%
DAR Services for the General Government Policy

BZ Administrative Affairs
FB Finance and Budget
IV Foreign Affairs
EWI Economy, Science and Innovation
OV Education and Training
WVG Welfare, Public Health and Family
CJSM Culture, Youth, Sport and Media
WSE Work and Social Economy
LV Agriculture and Fisheries
LNE Environment, Nature and Energy
MOW Mobility and Public Works
RWO Town and Country Planning, Housing Policy and Immovable Heritage

Figure 5: Evolution of the Horizontal Budget Programme for Science Policy (HBPWB) Funds (in million EUR)
1800
1600
1400
1200
1000
800
600
400
200
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
R&D
O&O STET
O&V STS
W&T
The evolution of government budgets for the science and innova-

Figure 6: Distribution of the 2007 R&D budgets by NABS classification
tion policy is presented in figure 5. The successive governments gave
priority to science policy and provided the required funds for this
area. A decline can, however, been noticed in 2007, in comparison
to 2006. The 59.45 million EUR in new initiatives for 2007, which
19.65%
are planned in the ‘actual science policy’, are partially masked by
the fact that the special budget of 75 million EUR for financing R&D 29.23%
activities in high-technology SMEs is not repeated in 2007.
1.57%
In figure 6, the entire 2007 budget for science policy is distributed
according to the NABS classification. These NABS codes indicate the
application domain of the research that has been carried out, and
they are applied exclusively to R&D funds. NABS stands for “nomen-
clatures for the analysis and comparison of scientific programmes 1.65%
0.17%
and budgets”. Due to the fast evolution in some research domains,
0.87%
the NABS codes are due for a revision. The new NABS codes will 1.87%
probably be applied as of 2008. The most important advantage of a 1.05%
0.03%
structure according to the NABS classification is that it makes inter- 2.47%
41.43%
national comparisons possible.
n 1. Exploration and exploitation of the earth

n 2. Infrastructure and general planning of land use
n 3. Control of environmental pollution
n 4. Protection and improvement of human health
n 5. Production, distribution and rational utilisation of energy
n 6. Agricultural production and technology
n 7. Industrial production and technology
n 8. Social structures and relationships
n 10. Research financed from general university funds
n 11. Non-oriented research
n 12. Other civil research

The largest fund volume in 2007 has been provided for research The distribution of the entire HBPWB budget over these 6 larger
directed at industrial production and technology (NABS 7), amount- subdivisions, as well as the strong increase that it has been known in
ing to 395 million EUR or 41.4%. After this follows the area of the period between 1993 and 2006, can be seen in the table that is
non-oriented research (NABS 11), together with general university presented below. Spectacular increases are situated in non-oriented
funds (NABS 10), with a total of 466 million EUR or 49%. These research and in the operational subsidies tot universities, on the one
are, indeed, the two largest pillars of the science policy: fundamental hand, and for industrial research, on the other hand. But also the
research as a basis for an ongoing technological innovation policy. horizontal science policy area increases with 70 million EUR, over the
period between 1995 and 2003.
Table 10: Distribution of the total HBPWB budget (in million EUR)
Year Non-oriented Operational Other Other Industrial Govt. institutes, Sectoral Global Total
research university university institutes research departments, initiatives- science
subsidies subsidies services and policy- supporting policy
VOIs research
1993 76.866 401.472 75.700 9.649 120.873 15.113 18.927 6.780 725.380
1994 81.487 418.670 119.152 10.015 133.743 19.246 27.092 11.140 820.545
1995 89.248 434.771 99.891 10.105 121.855 19.217 25.419 7.350 807.855
1996 106.930 449.777 91.218 10.378 146.549 40.183 28.333 17.921 891.288
1997 124.926 464.636 73.848 9.165 178.442 39.890 29.850 22.099 942.855
1998 137.439 479.022 64.903 9.237 207.867 40.380 41.704 32.704 1,013.256
1999 155.727 489.009 83.944 11.902 219.446 45.813 39.338 61.800 1,106.979
2000 171.906 500.975 88.260 11.225 216.199 54.372 43.771 40.348 1,127.056
2001 180.526 512.265 88.058 12.455 227.163 52.917 68.867 23.417 1,165.667
2002 190.964 539.532 88.506 13.822 292.746 48.983 67.338 26.911 1,268.801
2003 195.554 561.284 89.112 14.382 330.105 71.795 50.500 22.465 1,335.196
2004 218.288 577.947 83.855 14.362 378.606 65.300 31.201 23.314 1,392.873
2005 233.359 594.462 85.543 14.724 433.491 69.029 33.857 24.365 1,488.829
2006 256.512 615.125 87.926 14.968 464.754 70.457 36.200 26.325 1,572.267
2007 278.597 633.213 62.431 16.564 426.919 70.000 39.116 28.931 1,555.772
The global expenditure items are reported for each of these six
Figure 7: Distribution of funds for the science policy (HBPWB) 2007
subdivisions below. The time series that are a consequence will be
discussed in detail in the Flemish Indicators Book 2007. Detailed
information about the funds can also be found on the website
www.ewi-vlaanderen.be/speurgids. The table below shows the
2.5% 1.9%
4.5% distribution of the entire 2007 budget for the science policy in
these six subdivisions.
17.9%
27.4%
n 1. Non-oriented research
n 2.1 Operational university subsidies
n 2.2 Other subsidies for universities
40.7% n 2.3 Other institutes
1.1%
n 3. Industrial research
4.0%
n 4. Governmental institutes, departments, services and VOIs
n 5. Sectoral initiatives - policy-supporting research
n 6. Global science policy

1. Non-oriented research at the universities The budgets for IWT Flanders’ specialisation grants, and for the
The funds for groundbreaking, non-oriented research at universi- mandates and projects of FWO Flanders, are indirectly distributed
ties, in other words research at the initiative of the researcher, are through these intermediaries.
presented below. These funds provide a so-called second funding to
the universities - the first funding consists of their operational sub- The IWT specialisation grants are also present in the table of
sidies (see item 2). The funds for the Special Research Fund (BOF) non-oriented research; they after all concern doctorate grants.
go directly to the universities, and the Research Council distributes An increase of 2.53 million EUR has been budgeted for 2007,
these in function of the research policy defined by the university. in comparison to 2006.
Table 11: Non-oriented research for 2007 at the universities
Funds (million EUR)
IWT specialisation grants 24.255

FWO Flanders 112.531
FWO Flanders (National Lottery contribution) 9.370
FWO Flanders - provisional budget (National Lottery contribution) 2.342
FWO Flanders, international research facilities 0.941
Odysseus programme 12.171
Hercules Foundation 5.000
BOF subsidy 100.444
Methusalem programme 10.043
ZAP mandates 1.500
General total 278.597
51% of the funds for non-oriented research are distributed via FWO
Figure 8: Non-oriented research for 2007 at the universities
Flanders, 40% via BOF and the remaining 9% via IWT Flanders.
IWT
9%
BOF
40%
FWO
51%

2. Operations of universities and similar institutes
The subsidies for universities take up an important share of the total law entities. Also the refinancing of such loans is a direct debt. For
of all science policy funds. In 2007 that will be 611.137 million EUR instance, an important part of the loans to universities (academic
or 39%. Of this amount, 75% is planned for Education and Train- sector) was brought together in one global loan, which amounts to
ing (STET), while 25% goes to Research and Development (R&D). 215 million EUR. This loan, together with the unconsolidated uni-
Table 12 summarises the operating cost subsidies to universities, versity loans (academic sector), were transferred to the direct debt
other subsidies to the universities, and those to other, ‘equivalent’ of the Flemish Community. At the end of December 2006, a mere
institutes for 2007 (funds in million EUR). 3.177 million EUR was still outstanding from of a debt that
was assumed in 1998. This total refers to the unconsolidated loans.
Table 12 also lists the financial burdens of the universities. Direct The global loan, on which the annual capital redemption amounts
debts are the loans that the Flemish Community or the Flemish to 26.875 million EUR, reached its final due date on 3 April 2006.
Region have concluded in the past, for financing its own budget This means a reduction of 28.3 million EUR as against 2006.
deficits, or those that it has contractually assumed from other public
Table 12: Operational subsidies to universities, other subsidies to universities and other institutes for 2007
Operational subsidies to universities Funds (million EUR)
Catholic University of Brussels 5.421

Catholic University of Louvain 217.568
University of Hasselt 16.298
transnational University of Limburg (tUL) 7.236
University of Ghent 190.852
University of Antwerp (UA) 84.315
Free University of Brussels (VUB) 76.805
Total operational subsidies 598.495
Supplementary operational funds - BAMA 12.642
Total operational subsidies + supplementary funds 611.137
Budget for university education, funds for the academic content of graduate courses + funds for library digitalisation 14.476
LRM impulse financing for tUL 2.600
Research involved in academic education at institutes of higher education 5.000
TOTAL 633.213
Other subsidies to universities Funds (million EUR)
Financial burdens of universities 2.019

Real estate investments of universities 25.013
Subsidy for the social facilities of students 15.126
Employer contributions for free universities 20.273
TOTAL 62.431
Other institutes Funds (million EUR)
Faculty of the Protestant Religion (Brussels) 0.314

University Institute for Judaism “Martin Buber” 0.160
Vlerick School of Management (VSM) 1.789
Institute of Tropical Medicine “Prince Leopold” (I.T.G.) 10.317
Institute for Development Policy (I.O.B.) (the former UCA - College of Developing Countries) 1.992
Institute of European Studies (IES) 1.492
Continuing professional education 0.500
TOTAL 16.564

Figure 9: Evolution of the operational subsidies to universities
700
600
500
400
300
200
100
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
In figure 10 you can see how these operational subsidies are

distributed over Flemish universities as a percentage. Figure 10: Distribution of the operational subsidies to
universities in 2007
KUBrussel
0.9%
VUB
12.8%
KULeuven
UA 36.4%
14.1%
UHasselt
2.7%
tUL
UGent 1.2%
31.9%

3. Financing research and development of new technologies, important share of the available 160.08 million EUR. The funds for
for industry the research institutes IMEC, VITO, VIB and IBBT, jointly amount to
Table 13 gives an overview of the funds that are available for 135.19 million EUR.
oriented industrial research. In 2007, this amounts to almost
427 million EUR. The funds managed by IWT Flanders, which Due to the fact that the special budget of 75 million EUR, which had
support actions in the area of technological innovation at the been used for financing innovation projects via risk capital through
initiative of the Flemish government, as well as projects initiated VINNOF, is not repeated, the total available for industrial research in
by companies and innovative co-operative societies, and which 2007 is declining in comparison to 2006 (- 37.8 million EUR).
are also used for financing innovative media projects, cover an
Table 13: Funds for oriented industrial research in 2007
Funds (million EUR)
IWT - initiative by the Flemish government 26.468

IWT - initiative by companies and associations for co-operative innovation 121.721
IWT - innovative media projects 11.065
IWT - Flemish Innovation Network (VIN) 0.826
IWT - operating costs 11.780
IMEC 38.909
VITO 35.131
VIB 38.104
IBBT 23.046
Agricultural research 9.602
STV 2.231
TETRA (HOBU) Fund 7.399
PWO 9.000
Strategic basic research SBO (GBOU) 38.604
Pre-clinical applied research 5.000
Interface services 2.717
Innovation 30.000
Industrial Research Fund (IOF) 11.503
vzw Flanders DC 2.374
Limburg plan 1.439
Total 426.919

4. Scientific institutes, departmental services and Flemish Public
Institutes (VOIs)
This covers funds that are distributed to scientific institutes, and
certain departmental services of Flemish Public Institutes, whose
assignments also include research and scientific services. In 2007,
a total of 70 million EUR in funds had been appropriated for this area.
Table 14 summarises these scientific institutes, the departmental
services, the Flemish Public Institutes and the corresponding funds.
Table 14: Scientific institutes, departmental services and Flemish Public Institutes (VOIs) in 2007
Funds (million EUR)
Flemish Heritage Institute (VIOE) 4.424

INBO 11.911
Royal Museum for Fine Arts - Antwerp (KMSKA) 5.402
Institute for Agricultural and Fisheries Research (ILVO) 16.130
Flemish Institute for Scientific and Technological Assessment (viWTA) 1.191
Flemish Institute for the Sea (VLIZ) 1.768
Flemish Community Broadcasting Company (VRT) 5.580
Scientific Institute for Public Health - Louis Pasteur 0.991
Child and Family 0.369
Flemish Agency for the Disabled 0.208
Royal Zoological Society Antwerp (KMDA) 2.445
Flemish Commissioner-General’s Office for Tourism (VCGT) 0.296
Public Environmental Agency of Flanders (VMM) 7.874
Public Waste Agency of Flanders( OVAM) 2.620
AQUAFIN 4.066
Public Land Agency of Flanders (VLM) 0.542
Environment and Nature Fund - MINA 361B1223 1.015
Hydrological Laboratory 2.409
Dutch Language Union 0.760
Total 70.000
5. Sectoral initiatives, and policy-supporting research and studies

Figure 11: Distribution of funds for sectoral initiatives and horizontal
The funds for policy-supporting research and policy-oriented initia-
policy-supporting research, by policy domains in 2007
tives from the horizontal science policy are covered by this, for which
a total of the 39.1 million EUR has been appropriated. Figure 11 DAR BZ
RWO IV
presents the percentage distribution of these funds. 1.9% 2.8% 0.6% EWI
MOW 6.5%
0.4%
2.4% OV
16.6%
LNE
28.4% WVG
14.0%
CJSM
10.9%
LV WSE
14.4% 0.9%

6. Miscellaneous expenditures in connection with the overall
science policy
This covers initiatives that support the science policy as a whole.
Advisory bodies are included here, since they support the global
policy with regard to science and technology
Table 15: Expenditures for the overall science policy in 2007
Funds (million EUR)
Royal Academy for Medicine 0.169

Royal Academy for Sciences, Literature and the Fine Arts 1.129
Royal Academy for the Dutch Language and Literature - Ghent 0.258
Subsidy to the Flemish Council for Science Policy (VRWB) 0.465
Conception, preparation and execution of scientific actions 0.996
Flemish electronic network - Lisbon strategy Flanders i2010/e-research 3.031
Publication of the science policy 2.371
International scientific co-operation 4.069
Flanders Technology International Foundation 3.904
Inventarisation and valorisation of science and technology research (VIA) 0.050
Subsidy to the Inventory of Scientific and Technological Research (IWETO) 0.256
Subsidy to support centres for policy research 9.974
Various communications initiatives, with regard to science, technology and innovation 0.240
Expertise centres 2.019
Total 28.931

Government expenditures
for R&D - expansion of the
knowledge-based economy
Part 3
A precondition for a good scientific and technological innovation po-
licy is the availability sufficient funds for research and development
(R&D). One of the most frequently used indicators for presenting
R&D funds is the R&D intensity: This is the percentage of the gross
domestic regional product (GDRP), which is appropriated for R&D.
This indicator removes the influence of the size of a region, and it
is therefore also excellently suited for international comparisons.
The financial resources that are included in this indicator consist of
all R&D expenditures by Flemish companies (BERD: Expenditure on
R&D in the Business Enterprise Sector), those of Public Research
Centres, expenditures by the government, the universities and the
higher education institutes, as well as non-profit organisations.
This total is abbreviated as GERD: Gross Domestic Expenditure on
Research and Development.
At the European Top, which took place in Lisbon in March of 2000,

the goal of making Europe the most competitive, knowledge-based
economy of the world by the end of 2010 was announced. To be
able to realise this, a further step was taken at the Top in Barcelona
(March 2002), where it was decided that the objective for 2010
is to increase R&D expenditures (GERD) by 3% of the GDP (gross
domestic product) in the EU. Research and development do, after
all, play a crucial role in the development of a flourishing economy.
As an additional objective, it was decided that one third of the R&D
expenditures must be financed by government and the other two
thirds by industry.
Flanders fully supports this European ambition, and it translated this

objective within a Flemish context through the so-called Innovation
Pact. This pact was signed in March 2003, and it contains a formal
engagement by all involved actors in the Flemish innovation land-
scape (government, business community, universities and research
institutes) to jointly realise this 3% objective by means of comple-
mentary efforts.
40 part 3 • government expenditures for r&d - expansion of the knowledge-based economy

Chapter 3.1
Flanders
The R&D intensity is calculated on the basis of the results, which are This calculation is built up as follows:
provided by a biannual OECD R&D survey. Such data has recently 1. The efforts of the Flemish government by itself;
been calculated for the survey of 2006 (period 2004-2005), and 2. The efforts of Flanders + the Flemish share in federal government
these will be published in the Flemish Indicators Book 2007. funds;
3. The efforts of the Flemish government + the Flemish share in the
There are of course no survey data available for 2006 and 2007, and federal government funds + the Flemish share in the funds of the
there are also no alternative information sources. The same approximate EU research programmes (Framework Programmes).
calculation will therefore be used here, which has already previously been
published in the Science, Technology and Innovation Information Guides.
Table 16: Evolution of R&D funds, and R&D funds as a percentage of GDRP of the Flemish government
R&D credits (million EUR) 2001 2002 2003 2004 2005 2006 2007
Flemish government (1) 625.071 711.258 770.687 820.666 898.638 966.137 953.584
Flemish share of Federal Govt. funds (2) 240.052 235.515 252.597 248.878 233.595 252.887 235.223
Flemish share of Federal Govt. funds (3) 272.383 268.151 279.271 282.974 259.004 287.058 272.569
Total V + Fed (2) 865.123 946.773 1,023.284 1,069.544 1,132.233 1,219.024 1,188.807
Total V + Fed (3) 897.454 979.409 1,049.958 1,103.640 1,157.642 1,253.195 1,226.153
Flemish share of EU funds (4) 70.723 70.723 70.723 70.723 70.723 70.723 70.723
Vl + Fed (2) + EU 935.845 1,017.495 1,094.006 1,140.266 1,202.955 1,289.747 1,259.529
Vl + Fed (3) + EU 968.177 1,050.131 1,120.680 1,174.362 1,228.364 1,323.918 1,296.875
GDRP (5) in million EUR 147,999.4 152,714.9 157,115.1 164,948.3 170,768.7 180,284.9 188,487.9
R&D as a % of GDRP 2001 2002 2003 2004 2005 2006 2007
Flemish government (1) 0.42 0.47 0.49 0.50 0.53 0.54 0.51
V1 + Federal Government funds (2) 0.58 0.62 0.65 0.65 0.66 0.68 0.63
V1 + Federal Government funds (3) 0.61 0.64 0.67 0.67 0.68 0.70 0.65
Vl + Fed (2) + EU 0.63 0.67 0.70 0.69 0.70 0.72 0.67
Vl + Fed (3) + EU 0.65 0.69 0.71 0.71 0.72 0.73 0.69
BERD (6) 1.84 1.61 1.51 1.42 1.46 1.46 1.46
Total Vl + BERD 2.26 2.08 2.00 1.92 1.99 2.00 1.97
Total govt. (2) + BERD 2.47 2.28 2.21 2.11 2.16 2.18 2.13
Total govt. (3) + BERD 2.49 2.30 2.22 2.13 2.18 2.19 2.15
(1)
Flemish government, as defined in the HBPWB - adapted budgets 2001-2006; initial (4)
Estimated according to the calculated return of 2.2%, for the 5th Framework Programme
budget 2007 (1998-2002). The same return was applied to the following years. Source: Flanders in the Eu-
(2)
Flemish share in the Federal Government R&D funds: ESA distribution keen at 35.5% ropean 5th Framework Programme for research, P. Dengis, E. Dewallef and K. Verlaeckt, 2005
Flemish (Source: VRWB - Flemish Indicators Book 2005) and the rest of Federal Govern- (5)
Source: Studiedienst Vlaamse Regering (SVR) - Flemish government (version of the calcula-
ment funds at 56% Flemish. Federal Government R&D funds: Source: Consultation group tions dated 25 January 2007), on the basis of various sources: 2001-2004: INR; 2005-2007:
CFS/STAT, amendments of the Federal science policy. For 2006: Initial funds; for 2007: Estimates by SVR
Provisional figures (6)
Source: 3% memorandum, R&D Indicators Support Centre, 14 March 2007. The % BERD
(3)
Flemish share in the Federal R&D funds, according to the distribution key 56% V 2005 was used for 2006 and 2007
part 3 • government expenditures for r&d - expansion of the knowledge-based economy 41

In the calculation of the share of Flanders in the federal funds for for companies, as arrived at through R&D surveys of the profit-
science policy, two different distribution keys are used (V = Flemish): oriented sector. During the years 2002 and 2003, a real decline of
• 35.5%V ESA (Source: VRWB) and 56%V for the remainder of the R&D expenditures by companies was detected. This was, by the
Federal R&D funds; way, a general international trend.
• 56%V: The general distribution key that has been used up to the
present, for the federal science funds. Table 16 and figure 12 show the government efforts for substanti-
ally increasing R&D funds each year. The Flemish government has
Furthermore, the joint efforts of the government (GBAORD = plotted out a growth path for the rise of the government budget
Government Budget Appropriations or Outlays for Research and during the coming years, so that the 1% objective can be achieved
Development, the R&D government funds) - Flemish, federal and in 2010. The profit-oriented sector will, especially in view of the
EU, and the input provided by industry (BERD, expressed as a collapse during 2002 and 2003, still have to increase its R&D efforts
percentage of GDP) are calculated approximately. substantially, if one wants to reach the joint 3% objective that has
been agreed for 2010. The European Commission, too, is aware of
Some reservations are warranted against this procedure, since one the fact that, at the halfway-point to 2010, the postulated objective
is adding data that was obtained via two different methodologies. of a 3% objective will not be achieved, unless both the government
BERD (Expenditure on R&D in the Business Enterprise Sector) is used and industry will come up with substantial, additional efforts.
Figure 12: Evolution of the R&D-%/GDP-Flanders, only taking into account the funds
of the Flemish government
0.60
0.55
0.50
0.45
0.40
0.35
0.30
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Figure 13: Evolution of the R&D-%/GDP-Flanders, Flemish government funds + share in the
Federal R&D funds, according to the distribution key 56% V + Flemish return on EU-FP + BERD
2.6
2.5
2.4
2.3
2.2
2.1
2.0
2001 2002 2003 2004 2005 2006 2007

Chapter 3.2
International comparison of
government efforts for R&D
(GBAORD)
The government efforts are expressed in GBAORD (Government
Budget Appropriations or Outlays for R&D), which are the funds
by the governments that are available for R&D. The GBAORD is an
indicator, which is applied by OECD and EUROSTAT, which gives
an idea of the input by governments for R&D. Table 17 presents
a comparison of the international GBAORD as a % of GDP (own
calculation).
Table 17: International comparison of the R&D government expenditures (GBAORD), expressed as a percentage of GDP (GDRP)
1996 1998 2000 2001 2002 2003 2004 2005 2006 2007
Flanders* 0.37 0.41 0.42 0.42 0.47 0.49 0.50 0.53 0.54 0.51
Flanders** 0.60 0.64 0.64 0.63 0.67 0.70 0.69 0.70 0.72 0.67
Flanders*** 0.64 0.66 0.66 0.65 0.69 0.71 0.71 0.72 0.73 0.69
Belgium 0.54 0.56 0.57 0.59 0.60 0.61 0.59 0.60 0.62
Germany 0.88 0.81 0.79 0.78 0.78 0.79 0.77 0.77 no data
France 1.07 0.96 0.96 0.99 1.00 0.99 0.96 0.93 no data
United Kingdom 0.75 0.66 0.69 0.68 0.77 0.76 0.71 0.72 no data
Ireland 0.32 0.27 0.30 0.32 0.33 0.34 0.42 0.42 no data
Netherlands 0.81 0.79 0.77 0.75 0.74 0.74 0.73 0.71 no data
Denmark 0.71 0.74 0.76 0.75 0.73 0.73 0.71 0.71 0.71
Finland 0.95 1.07 0.98 0.97 0.96 1.00 1.01 1.03 1.03
Sweden 1.07 0.77 0.71 0.84 0.90 0.95 0.90 0.89 0.88
Italy 0.57 0.56 0.64 0.68 no data no data no data 0.73 0.59
Portugal 0.48 0.51 0.58 0.60 0.67 0.62 0.64 0.73 0.75
Spain 0.47 0.55 0.60 0.66 0.74 0.73 0.80 0.85 no data
United States 0.89 0.85 0.86 0.91 0.99 1.05 1.08 1.07 1.00
Japan 0.56 0.60 0.66 0.70 0.72 0.73 0.73 0.71 no data
Main Science and Technology Indicators, OECD, Volume 2006/2

* Flemish government funds
** Flemish government funds + ESA distribution key at 35.5% ESA (1997-2003) + rest of federal funds at 56% Flemish + EU-FP Flemish share
*** Flemish government funds + Flemish share 56% of federal funds + EU-FP Flemish share
part 3 • government expenditures for r&d - expansion of the knowledge-based economy 43

The data from table 17 is presented in graphic form in figure 14. several years. It can be concluded from table 17 and figure 14 that
For Flanders, a Flemish share of 56% of federal funds and a Flemish Flanders is continuing to maintain its position among the compared
share from the EU framework programme (FP) were added to the countries.
Flemish government funds. The Belgian figures are arrived at by It must furthermore be mentioned that some countries foresee a not
summing up the funds of the federal government, the regions and unimportant part of their R&D expenditures for defence purposes.
the communities. With 56% of the R&D budget being spent for defence, the USA is
in a leadership position in this regard in 2004. In the same year, the
It can be seen clearly that the figures for R&D government expendi- average for the EU-25 is 15%, with the United Kingdom at 32%,
tures, when these are expressed as a percentage of GDP, do not con- France at 23%, Spain at 20%, Germany at 5.8%, Finland at 2.3%
tinue to rise in every country year after year. In some countries they and Denmark at 1.3%. For Belgium this share is very small (0.3%);
are stagnating; in other countries a decline is even noticeable over Flanders even finances no research in the defence sector at all.
Figure 14: International comparison of the R&D government expenditures

(GBAORD), expressed as a percentage of GDP(GDRP)
1,1
1,0
0,9
0,8
0,7
0,6
0,5
0,4
0,3
0,2
1996 1998 2000 2001 2002 2003 2004 2005 2006
n Flanders n Finland
n Belgium n Sweden
n Germany n Italy
n France n Portugal
n United Kingdom n Spain
n Ireland n United States
n Netherlands n Japan
n Denmark

Concluding remarks
This edition of the EWI-Budget Browser gave an overview of Flemish There is certainly nothing wrong with the Lisbon objective, but per-
government funds and initiatives, which have been appropriated for haps one should dare to think critically about the method for once,
2007, in the areas of the economy and the science and innovation which was agreed to for making this objective measurable: The cal-
policy domain. The EWI-Budget Browser presents this information culation of the so-called 3% objective. A very strong increase is after
in a very transparent manner: here you will find a documentation of all required in the science budget from a relative point of view, if this
the amount of operating funds that are made available to Flemish increase is to be visible in comparison to a strongly rising Flemish
universities in 2007, how large the grant to VLAO is, within what GDP. Both the government and industry will have to increase their
other policy domains scientific research is still being carried out, etc. efforts substantially ... And last but not least, the input is only one
Furthermore, every initiative and every budget is explained in detail side of the story. The investment of more funds does not automati-
on www.ewi-vlaanderen.be/speurgids. cally imply more efficiency. As a consequence, permanent evaluation
and adaptation of governmental expenditures are therefore core
This far-reaching transparency does not mean that it has become tasks of EWI.
simpler to draw conclusions. Rather to the contrary: caution is
always required on this exceedingly complex subject. Much has
already been said, written (and also calculated) about the Lisbon
objective, which is designed to make Europe the most competitive,
knowledge-based economy of the world by the end of 2010. This
objective is to be achieved by raising the R&D expenditures in the
EU to 3% of GDP (gross domestic product) by the end of 2010,
the so-called 3% objective. Flanders fully supports this European We hope that you have read this first EWI-Budget Browser with
ambition, through the Innovation Pact that it has enacted. This pact interest and, above all, that you have found the answers to your
consists of a formal engagement by all involved actors (government, questions here. Do you have any comments or suggestions? If
business community, universities and research institutes) to realise you do still have a question about the economy, science and
this 3% objective through joint and complementary efforts. innovation policy of the Flemish government, do contact us via
info@ewi.vlaanderen.be.
This publication shows how difficult it is, and how difficult it will
continue to be, to achieve this 3% objective. A structural increase And if you require a more detailed explanation with regard to
of government financing for R&D, of approximately 60 million EUR a certain budget, programme, policy aspect, institution etc.,
in 2007, which has been appropriated in the budget programmes you can also surf to the specific page on the EWI website
for the science policy of EWI, and the additional indexing of these (www.ewi-vlaanderen.be/speurgids), which will help you
funds, is still insufficient for realising a genuine increase in the total browsing to find the information you need. Here you can also
R&D funds in comparison to the previous year, which is largely due download other EWI publications free-of-charge as a PDF file.
to the discontinuance of an important one-off financial injection. In the course of the year, you will also be able to consult
the adapted funds for 2007 (after budget control), and you
The global government budget for R&D reaches 953.584 million can consult the archive of the science policy for the years 1993
EUR, which is a decrease of 1.3% in comparison to 2006. This to 2006. To remain fully up-to-date, do visit our website at
budget corresponds to 0.51% of GDP-Flanders. In 2006 this had still www.ewi-vlaanderen.be regularly.
been 0.54%. If one bases oneself on the estimated growth of the
regional GDP, then one can calculate that an increase of 5.3% would Furthermore, we would like to refer you to the EWI Reviews
have been required in 2007, if one wanted to maintain a status quo. which highlight several topics of current interest.
concluding remarks 45
Used abbreviations
BA Basic allocation IWT Instituut voor de Aanmoediging van Innovatie door

BAMA Bachelor-Masters structure Wetenschap en Technologie in Vlaanderen
BBB Beter Bestuurlijk Beleid (Better Administrative Policy) (Institute for Promoting Innovation through Science
BEA Budget for economic advice and Technology in Flanders)
BERD Expenditure on R&D in the Business Enterprise Sector KMDA Koninklijke Maatschappij voor Dierkunde te
BOF Bijzonder Onderzoeksfonds (Special Research Fund) Antwerpen (Royal Zoological Society - Antwerp)
BP Budget programme KMSKA Koninklijk Museum voor Schone Kunsten Antwerpen
BZ Bestuurszaken (Administrative Affairs) (Museum for Fine Arts Antwerp)
CJSM Cultuur, Jeugd, Sport en Media KUBrussel Katholieke Universiteit Brussel
(Culture, Youth, Sport and Media) (Catholic University of Brussels)
DAR Diensten voor het Algemeen Regeringsbeleid KULeuven Katholieke Universiteit Leuven
(Services for the General Government Policy) (Catholic University of Louvain)
EFRD European Fund for Regional Development LNE Leefmilieu, Natuur en Energie
ESA European Space Agency (Environment, Nature and Energy)
ESF European Social Fund LRM Limburgse Reconversiemaatschappij
EU European Union (Limburg Investment Company)
EVA Extern Verzelfstandigd Agentschap LV Landbouw en Visserij (Agriculture and Fisheries)
(External Independent Agency) MER Milieueffectenrapport (Environmental Effects Report)
EWI Economie, Wetenschap en Innovatie MINA Fund Environment and Nature Fund
(Economy, Science and Innovation) MIRA Milieu- en Natuurrapport Vlaanderen
FB Finance and Budget (Environment and Nature Report Flanders)
FFEU Financieringsfonds voor Schuldafbouw en Eenmalige MOD Managementondersteunende Diensten
Investeringsuitgaven (Financing Fund for one-off (Management Support Services)
Investment Expenditures) MOW Mobiliteit en Openbare Werken
FP Framework Programme (Mobility and Public Works)
FTI Flanders Technology International NABS Nomenclatuur voor de analyse en vergelijking
FWO Fonds voor Wetenschappelijk Onderzoek - Vlaanderen van wetenschapsbegrotingen en -programma’s
(Fund for Scientific Research - Flanders) (Nomenclature for the analysis and comparison of
GBAORD Government Budget Appropriations or Outlays for scientific programmes and budgets)
Research and Development NACE General Industrial Classification of Economic Activities
GBOU Generisch Basisonderzoek aan de Universiteiten within the European Communities
(Generic Basic Research at Universities) OA Organisatie Afdeling
GDRP Gross Domestic Regional Product OBPWO Onderwijskundig Beleids- en Praktijkgericht
GERD Gross Domestic Expenditure on R&D Wetenschappelijk Onderzoek
GIMV Gewestelijke Investeringsmaatschappij Vlaanderen (Education Policy and Practical Scientific Research)
(Regional Investment Company - Flanders) OECD Organisation for Economic Cooperation and
HBPWB Horizontaal Begrotingsprogramma Wetenschapsbeleid Development
(Horizontal Budget Programme for Science Policy) OV Onderwijs en Vorming (Education and Training)
IBBT Interdisciplinary Institute for BroadBand Technology OVAM Openbare Vlaamse Afvalstoffenmaatschappij
ICT Information and Communications Technology (Public Waste Agency of Flanders)
ILVO Instituut voor Landbouw- en Visserijonderzoek PMV ParticipatieMaatschappij Vlaanderen
(Institute for Agricultural and Fisheries Research) (Flanders Participation Company)
IMEC Interuniversity Micro-Electronic Centre PROG. Begrotingsprogramma (Budget programme)
INBO Instituut voor Natuur- en Bosonderzoek PWO Projectmatig Wetenschappelijk Onderzoek
(Research Institute for Nature and Forest) (Project-based Scientific Research)
ITG Instituut voor Tropische Geneeskunde R&D Research and Development
(Institute for Tropical Medicine) RO Ruimtelijke ordening (Urban Planning)
IV Internationaal Vlaanderen (Foreign Affairs) ROW Ruimtelijke Ordening, Woonbeleid en Onroerend
IVA Intern Verzelfstandigd Agentschap Erfgoed (Town and Country Planning, Housing Policy
(Internal Independent Agency) and Immovable Heritage)
IWETO Inventaris van het Wetenschappelijk en Technologisch SBO Strategisch Basisonderzoek (Strategic basic research)
Onderzoek (Inventory of Scientific and Technological SERV Sociaal-Economische Raad van Vlaanderen
Research) (Socio-economic Council of Flanders)
46
SME Small and Medium-sized Enterprise VIZO Vlaams Instituut voor het Zelfstandig Ondernemen
SP Science policy (Flemish Institute for Independent Entrepreneurs)
STET Scientific and Technical Education and Training VLAM Vlaams Centrum voor Agro- en Visserijmarketing vzw
STS Scientific and technological services (Flanders Agricultural Marketing Board)
TPP Technological Product and Process VLAO Vlaams Agentschap Ondernemen (Flanders Enterprise)
tUL Transnationale Universiteit Limburg VLAREM Vlaams reglement betreffende de milieuvergunning
(transnational University of Limburg) (Flemish Regulations related to Environmental Licensing)
TWOL Toegepast Wetenschappelijk Onderzoek Leefmilieu VLM Vlaamse Landmaatschappij
(Applied Scientific Research into the Environment) (Public Land Agency of Flanders)
UA Universiteit Antwerpen (University of Antwerp) VMM Vlaamse Milieumaatschappij
UGent Universiteit Gent (University of Ghent) (Public Environmental Agency of Flanders)
UHasselt Universiteit Hasselt (University of Hasselt) VOI Vlaamse Openbare Instelling
UNESCO United Nations Educational, Scientific and Cultural (Flemish Public Institution)
Organization VPM Vlaamse Participatiemaatschappij
UNU United Nations University (Flemish Participation Company)
VESOC Vlaams Economisch Sociaal Overlegcomité VRT Vlaamse Radio- en Televisieomroep
(Economic and Social Consultation Committee (Flemish Community Broadcasting Company)
of Flanders) VRWB Vlaamse Raad voor Wetenschapsbeleid
VIB Vlaams Interuniversitair Instituut voor Biotechnologie (Flemish Council for Science Policy)
(Flanders Interuniversity Institute for Biotechnology) VUB Vrije Universiteit Brussel (Free University of Brussels)
VIN Vlaams Innovatie Netwerk WSE Werk en Sociale Economie (Work and Social Economy)
(Flemish Innovation Network) WVG Welzijn, Volksgezondheid en Gezin
VINNOF Vlaams Innovatiefonds (Flemish Innovation Fund) (Welfare, Public Health and Family)
VIOE Vlaams Instituut voor het Onroerend Erfgoed ZAP Zelfstandig Academisch Personeel
(Flemish Heritage Institute) (Independent Academic Personnel)
VITO Vlaamse Instelling voor Technologisch Onderzoek
(Flemish Institute for Technological Research)
viWTA Vlaams instituut voor Wetenschappelijk en
Technologisch Aspectenonderzoek (Flemish Institute
for Scientific and Technological Assessment)
Contributors
IWT Flanders: Paul Zeeuwts; FWO Flanders: Benno Hinnekint; IBBT: Karen Boers; IMEC: Koen Snoeckx; VIB: Lieve Ongena; VITO: Dirk Fransaer;
PMV: Bart De Smet; VPM: Herman Daems; LRM: Lieve Ketelslegers; INBO: Jos Van Slycken, Beatrijs Van der Aa; AQUAFIN: Eev Breugelmans, Chris
Thoeye; OVAM: Luc Vanacker; VLM: Roland De Paepe, Sofie Ducheyne; VMM: Ann De Meester; Vlaams Agentschap voor Personen met een
Handicap: Rudi Kennes; KMDA: Zjef Pereboom; Kind en Gezin: Bea Buysse; STV: Paul Berckmans; ILVO: André Roelandts, Erik Van Bockstaele,
Dirk Van Lierde; KANTL: Marijke De Wit; KMSKA: Marjolijn Barbier; Toerisme Vlaanderen: Jan Van Praet; VLAM: Jean De Lescluze, Luc Van
Bellegem; viWTA: Robby Berloznik; Agentschap Economie: Tim Ampe; DAR: Tine Mortelmans, Frank Steenput, Sabine Van de Gaer, Heidi Vander
Poorten; BZ: Annemie Degroote, Jeroen Dejonckheere, Fatima Tigra; FB: Bart Dewandeleer, Stefan Lagast, Tom Van Laere; IV: Koen Jongbloet, Jos
Van Cleynenbreugel; OV: Lieven Blomme, Noël Vercruysse, Geertrui De Ruytter, Micheline Scheys; WVG: Kurt Cooreman, Anne Van Walleghem,
Ria Vandenreyt, Jos Versaen, Dirk Wildemeersch; Herwig Deumens; CJSM: Martin Decuyper, Patrick Ghelen, Sofie Taghon, Tony Verstraete; WSE:
Johan Troch, Ann Van den Cruyce; LV: Nicole De Boeck, Inge Piessens, Dirk Van Gijseghem; LNE: Philippe Van Haver; Marnix De Vrieze, Martien
Swerts, Katrijn Van Damme, Lieve Vandecasteele, Elke Vanwildemeersch, Jan Vereecke; MOW: Wilfried Goossens, Frank Mostaert, Lieve Van de
Water; RWO: Sofie Houvenaghel, René Van der Lecq, Ronald Van Paassen.
47
Colophon
The EWI-Budget Browser is a publication of the department of

Economy, Science and Innovation of the Flemish government.
Compilation and editing:

Koen Waeyaert
Final editing and responsible publisher:

Rudy Aernoudt
For further information and for obtaining a copy,

please contact:
Flemish government
Department EWI
Statistics and Indicators team
Pascale Dengis, Team Leader
Koning Albert II-laan 35, bus 10
1030 Brussels
T +32 (0)2 553 57 40
info@ewi.vlaanderen.be
www.ewi-vlaanderen.be/speurgids
Deze publicatie is eveneens in het Nederlands beschikbaar.
D/2007/3241/107
48
Flemish government
Department of Economy,
Science and Innovation
Koning Albert II-laan 35 bus 10
1030 Brussels
info@ewi.vlaanderen.be
www.ewi-vlaanderen.be

EWI Budget Browser 2007

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EWI- 2007

Part 1 - Positioning of the EWI-Budget Browser 5

Part 2 - EWI: co-operation between economy, science and innovation 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 of the science and innovation policy 30

Part 3 - Government expenditures for R&D - expansion of the knowledge-based economy 39

Chapter 3.1 Flanders 41

Chapter 3.2 International comparison of government efforts for R&D (GBAORD) 43

Deel 2 • EWI: samenspel tussen economie, wetenschap en innovatie 

The department furthermore consists of five thematic units:

The EWI-Budget Browser sheds light on the economic policy and

In connection with the economic policy of the EWI policy domain

part 1 • POSITIONING OF THE EWI-BUDGET BROWSER 

Economic Policy 2007

BA Fund Description Unit

41.04 13.258 Grant to VLAO Department

10 part 2 • ewi: co-operation between economy, science and innovation

CORE TASKS Mission

Table 2: Funds for the Economic Support Policy 2007

BA Fund Description Unit

12.20 0.050 Study on sustainable entrepreneurship Department

Table 3: Policy instruments and funds - Hermes fund 2007

Policy for creating appropriate economic conditions

BA 99.11 Allocation authorisation for the Fund for Subsidiary

12 part 2 • ewi: co-operation between economy, science and innovation

part 2 • ewi: co-operation between economy, science and innovation 13

14 part 2 • ewi: co-operation between economy, science and innovation

part 2 • ewi: co-operation between economy, science and innovation 15

More information is available on www.pmvlaanderen.be

Vlaamse Participatiemaatschappij NV (Flemish Participation

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

Limburgse Reconversiemaatschappij NV (Limburg Investment

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

LRM wants to be a driving force in the economic expansion of

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

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

More information is available on www.lrm.be

16 part 2 • ewi: co-operation between economy, science and innovation

The research institutes:

• Flemish Institute for Technological Research (VITO): carries out

• Flanders Interuniversity Institute for Biotechnology (VIB): stimula-

• Interdisciplinary Institute for BroadBand Technology (IBBT): research

part 2 • ewi: co-operation between economy, science and innovation 17

• Institute for Agricultural and Fisheries Research (ILVO)

The advisory organs:

• The Royal Flemish Academy of Belgium for Sciences and Arts

18 part 2 • ewi: co-operation between economy, science and innovation

SCIENTIFIC ACTIVITIES - R&D - STET - STS Innovation

Within R&D there is a further classification according to the type of

• Applied research is “also original investigation undertaken in

• Experimental development is “systematic work, drawing on exist-

part 2 • ewi: co-operation between economy, science and innovation 19

New policy resources and new policy accents for 2007

PR BA Initiative New initiative 2007

General science policy

20 part 2 • ewi: co-operation between economy, science and innovation

Deel 2 • EWI: samenspel tussen economie, wetenschap en innovatie

part 1 • POSITIONING OF THE EWI-BUDGET BROWSER