You are on page 1of 76

EWI 2010

Budget Browser
The Flemish government budget for
Economy, Science and Innovation
The subject of the current economic crisis cannot be avoided in the introduction to this fourth edition of the
EWI Budget Browser. All aspects of the government budget have been negatively impacted by the uncertain
financial situation. Although this should not be played down, predictions of potential economic growth
should – however cautiously – be taken into account – for we must avoid becoming bogged down in the
status quo.

Despite this precarious situation, the Flemish government intends to pursue its endeavours to dedicate 1%
of GDP to government investment in research and development by 2014, as specified in Pact 2020 and con-
firmed by the coalition agreement. The EWI Budget Browser presents the road map for growth which should
be followed by the Flemish Government in order to achieve its targets.

This year, 1.066 billion EUR will be spent on research, out of an overall science and innovation budget of
around 1.711 billion EUR.

During the Belgian EU Presidency, Flanders intends to demonstrate an active presence on the European and
international stage, in which the implementation of the Lisbon Strategy will play an important part. The
EWI Budget Browser places the financial endeavours of the Flemish government in favour of research and
development in an international context.

Flanders has also opted for an innovation-driven economy, and intends to support this process by strength-
ening its innovation policy, with a special focus on eco-innovation. New environmentally friendly materials,
techniques, production processes, products, services, management and business methods will open the way
for an internationally competitive green economy. In view of the subject’s topicality, a special chapter will be
devoted to government expenditure on eco-innovation.

The purpose of the EWI Budget Browser is to be an objective and transparent guide to the complex subject
of government financing of Economy, Science and Innovation, and supply readers with figures, budgets,
information, analyses, and trends relating to the Flemish economic, scientific and innovation policy. I hope
this publication will provide you with many valuable insights.

Flemish Minister for Innovation, Public Investment, Media and Poverty Reduction

foreword 1
Foreword 1

Contents 3

Introduction 5

Part 1 EWI: co-operation between economy, science and innovation 7

Chapter 1.1 Economic Support policy 8

Chapter 1.2 Policy Support and Academic P ­ olicy 12
Chapter 1.3 Valorisation and Industrial Policy 16
Chapter 1.4 Awareness-Raising and Society 19
Chapter 1.5 General Policy 21
Chapter 1.6 The investment companies PMV, VPM and LRM 23
Chapter 1.7 Enterprise in an international context 26

Part 2 Science and innovation policy 29

Chapter 2.1 ‘Actual science policy’ 32

2.1.1. EWI ‘actual science policy’ 32
2.1.2. ‘Actual science policy’ in the Education and Training policy area 33
2.1.3. Evolution of the ‘actual science policy’ 34
Chapter 2.2 Science policy in the other policy areas 36
Chapter 2.3 Analysis of the Horizontal Budget Programme for Science Policy 38
2.3.1. Period of time 38
2.3.2. According to policy area 39
2.3.3. According to the minister in charge 40
2.3.4. According to NABS classification 42
2.3.5. Oriented vs. non-oriented research 43
2.3.6. According to the six major categories 44
Chapter 2.4 Expenditure analysis of the science and innovation policy 51

Part 3 R&D government expenditure for Flanders in the international context 53

Chapter 3.1 International comparison of Government Budget Appropriations or Outlays for R&D
Chapter 3.2 R&D intensity in Flanders 57
3.2.1. Overall R&D intensity (3% target) 57
3.2.2. Estimate calculation method for publicly-financed R&D intensity (1% target) 57
3.2.3. Growth path to 2014 59
Chapter 3.3 In depth analysis of GBAORD 61
3.3.1. GBAORD by sector of performance 61
3.3.2. Higher education share of GBAORD by funding mode 63

contents 3
Part 4 Government expenditure for eco-innovation 65

Used abbreviations 70

Contributors 71

Colophon 72


The EWI Budget Browser is an annual publication of the department of Economy, Science and Innovation
(EWI) of the Flemish government.

Part 1 deals with the budget funds for the EWI policy area . The structure of the budget of expenses of the
Flemish government is followed for this purpose, with the following budget programmes as regards content:
the economic support policy, policy support and academic policy, valorisation and industrial policy, and
finally, general policy.

The second part gives an overview of the Flemish government’s science and innovation policy. Then the
‘actual science policy’ is discussed (from the policy areas of EWI and Education and Training – OV), followed
by the science policy in the other policy areas. Thereafter follows an analysis of the Horizontal Science Policy
Budget Programme (HBPWB). Chapter 2.4 shows the results of the expenditure analysis for science policy.
It also investigates how much of the planned science-policy budgets was actually spent, and includes a
timeline up to and including 2008.

Part 3 supplies detailed information on research and development (R&D). To emphasise the international
status of Flanders, the R&D activities of the Flemish public sector are compared with those of other countries.

Part 4 is new and discusses the public support for eco-innovation, an as yet undeveloped indicator in Pact
2020. The public budgets for 2007-2009 are presented and briefly explained.

The initial 2010 budget funds are referred to in this publication – in accordance with the decree of 18
December 2009 concerning the general budget expenditure of the Flemish Community for the 2010 budget
year. For the time periods we always used the definitive funds for the previous years (2009 and earlier) –
after the budget controls and any budget restructuring. In 2010, the budget lines were given new codes.
The basic allocation numbers were replaced with a new serial number attached to the programme code. The
structure, which is based on policy areas, budget programmes and entities, has, however, been retained. The
one-to-one relationship between the old and new codes will enable budget fluctuations to be monitored.

This publication does not include all the funds which are concerned in the economic and sci-
ence and innovation policy in 2010. The EWI Budget Browser is described in more detail on the website. Amongst other things, there is an explanatory text for
every fund, and you can search specifically for a particular policy initiative; in other words it is possible to
retrieve information quickly and accurately. More detailed possibilities for analysis, time series and so on will
also be available on the website in the future.

Finally, thanks are due to everyone for his or her contribution to the 2010 EWI Budget Browser. Because of
their constructive work, we have once more succeeded in grouping together and making available all the
information relating to the economic and science and innovation policy.

introduction 5
EWI: co-operation between
economy, science and

Part 1
The Economy, Science and Innovation policy area consists of the EWI EWI budget programmes. These programmes comprise both the
department and seven agencies for the execution of policy. These funds for financing the economic policy and those for the science
agencies are Enterprise Flanders (Agentschap Ondernemen), the and innovation policy. They are concisely explained below.
Institute for Promoting Innovation through Science and Technology
(IWT), the Research Foundation - Flanders (FWO), the Hercules The tables reveal whether these concern funds for science policy.
Foundation and the investment companies PMV, LRM, and VPM. Parts 2 and 3 contain the analysis of the science policy.

The Economic Support Policy (ED), Policy Support and Academic

Policy (EE), Valorisation and Industrial Policy (EF), Awareness raising
and Society (EG), and General Policy (EC) form the content of the

Chapter 1.1.

Economic Support policy

Fund for Subsidiary Policy (Hermes fund) Figure 1. Evolution Hermes Fund budget (allocation authorisation) -
2007-2010 (million EUR)
Policy Instruments
Enterprise Flanders (Agentschap Ondernemen), initiated on 2 January 314.143
2009 after the fusion of the Economy Agency and Flanders Enter- 308.744 11.000
prise (VLAO), manages all the resources of the Hermes Fund, and its 290.051 292.987
300 24.061 17.370
mission is to support, strengthen and stimulate business enterprises 273.177
in Flanders sustainably. It implements those programmes of an eco- 259.076
nomic nature which the Flemish government approves. 250

In 2010 there is 259.076 million EUR on the allocation authorisation

Fund for Subsidiary Policy in the budget (BA EC0 ED200 9999 – 200
former BA ED9911C).

Figure 1 shows the evolution of the funding volumes for the alloca- 150

tion authorisation of the Hermes fund for the period 2007-2010. As

in previous years, a sum of 30 million EUR will again be provided for
initiatives related to innovation in 2010. These concern investments 100

with an R&D nature in the context of the subsidies for ecology. In

fact, this initiative is part of the science policy – also see part 2.
50 11.100
30.000 30.000 30.000 30.000 30.000 30.000 30.000
2007i 2007fin 2008i 2008fin 2009i 2009fin 2010i

n SP n EP n Budget restructuring

SP: science policy: EP: economic policy


Table 1 describes the policy instruments with the related funds for Figure 2. Initiatives Fund for Subsidiary Policy (Hermes Fund), 2010
2010, shown for every strategic aim of the programme.

Figure 2 shows the relative share of the most important instruments 2% 4%

in the Hermes fund. In 2010 the largest volume of funding is again
allocated to the ecology support. 11%



n Ecology support
n Investment support for large companies
n SME portfolio
n Business parks and industrial sites
n Promotion of entrepreneurship
n Other

Table 1. Policy instruments and funds in the Hermes Fund for 2010 (million EUR)

Description Funds for 2010

Supporting the competitiveness of business enterprises 161.595

Ecology support in application of the decree concerning the economic support policy 119.000
Ecology support for particulate filters and ‘Euro V’ 1.000
Investment support for large companies in application of the decree concerning the Economic support
Interest supplements as a result of problems caused by public works 0.500
The promotion of entrepreneurship 43.391
Subsidies Design Flanders 0.141
SME portfolio 33.080
Mentoring projects 3.000
Initiatives to promote entrepreneurship 6.320
Convenant with Flanders DC 2009-2014 for the execution of activities FFI and the business plan
Facilitating environmental factors 32.157
Government commissions in relation to the continuation of policy-oriented research including
contracts and cooperation agreements with the Provincial Autonomous Development Bodies (POMs).
Industry-Friendly Municipality project 0.800
Projects relating to locally-oriented partnerships and/or the Flemish environmental-economic policy 3.000
Expenditure for laying out business parks and for re-using industrial sites 27.857
ERDF 20.393
Income transfers, being no exploitation subsidies, to companies and financial institutes 20.285
Payment to FIT for the implementation of the ERDF project 0.108
Other expenditure relating to the social, economic and regional policy of the Flemish Government 1.540
Operational expenditures 1.540
Total 259.076


Explanations starting up a new business, but also stimulating what we might call
Supporting the competitiveness of business enterprises ‘intrapreneurship’: entrepreneurship within the business. The aim here
Enterprise Flanders aims to develop instruments and initiatives which is also to take and manage measures that will really make a substantial
will strengthen the competitive position of companies. In principle, contribution – again with the focus on future-oriented activities. Thus,
Enterprise Flanders focuses on all companies. With the measures the the Agency aims to contribute to stimulating creativity among both
agency wants to make a difference and the results should therefore ‘entrepreneurs’ and ‘intrapreneurs’. For this strategic aim, 43.391 mil-
be clearly demonstrable. Furthermore, the aim is to above all to sup- lion EUR is foreseen in 2010.
port those aspects which focus on the future of the company. There-
fore Enterprise Flanders wants to contribute to the innovation of the Design Flanders subsidies. The integration of VLAO into Flanders
Flemish economic fabric. 161.595 million EUR has been provided for Enterprise has led to the inclusion of the Design Flanders subsidies
this purpose in 2010. in the budget under this new heading. Design Flanders promotes
high-quality, contemporary Flemish design, and has developed into an
Ecology support in application on the decree concerning the economic economic success factor by encouraging quality improvement, innova-
support policy. The investment budget for 2010 is 120 million EUR as tion and profitability. For this reason, Design Flanders wishes to support
a matter of stable policy, of which 1 million EUR to finance particulate designers and encourage companies to include design in their corporate
filters. An ecology premium is a financial contribution for companies culture and production processes. The investment budget required is
which will make ecological investments in the Flemish Region. Ecologi- 0.141 million EUR.
cal investments refer to environmental investments and investments in
the energy field. With the ecology premium the Flemish government SME portfolio. The SME portfolio is the successor of BEA, the Budget
aims to cover the expense of part of the extra costs involved in ecology for Economic Advice. With this portfolio SMEs can purchase services
investments which could amount to a competitive disadvantage in the which promote enterprise with the support of the Flemish govern-
short term. Climate and environmental concerns will become increas- ment. These include the aspect of training, advice, the exploration of
ingly important and responding to these appropriately will undoubtedly technology, and advice on international enterprise. SMEs can receive
result in competitive advantages in the long term. 50% subsidy for the costs which are eligible. The initial budget for 2009
(42.4 million EUR) was reduced to 33.08 million further to the third
The ecology premium is 20% for large companies and 40% for budget inspection. The planned amount for 2010 is also 33.08 million
SMEs, and may not exceed 1.750 million EUR per application. The EUR, to match the actual expenditure in 2009.
amount of support is calculated on the basis of the added environ-
mental cost of the components of the investments under considera- Mentoring projects. A mentoring project involves a group of companies
tion. In 2009, the planned budget was 160 million EUR, divided into which meet regularly under the guidance of a “mentor” to exchange
3 calls: 2 of 40 million EUR and 1 of 60 million EUR. The first call experiences and learn from each other. The “mentors” are executives
period for 2010 was 19 January to 30 April 2010, and the budget from large corporations or experienced CEOs of small and medium-
was 40 million EUR. sized enterprises. The companies form a network and take part
together in business activities. The mentoring projects are currently be-
Investment support for large companies in application of the decree ing evaluated. In the meantime, the budget line will be kept separate.
concerning the economic support policy. For 2010, an amount of Should the policy remain unchanged, the 2010 budget for mentoring
41.095 million EUR will be allocated as a matter of stable policy. This projects is 3 million EUR.
concerns both investments in tangible assets and major strategic
training and education projects. Initiatives to encourage entrepreneurship. In the course of 2008 the
measures concerning bridging projects, entrepreneurship and mentor-
Interest supplements as a result of problems caused by public works. ing projects were integrated. In addition, ad-hoc subsidies were also
Public works often obstruct access. Fewer clients mean less income. granted, such as for the Dag van de Klant (‘Customer Day’), the Open
The longer the work takes, the larger the loss of turnover. Existing Bedrijvendag (‘Open Business Day’) and the Vlaamse Startersdag
short-term obligations can no longer be met. In order to tackle a (‘Flemish Starters Day’). Further to cuts, the investment budget was re-
temporary cash flow problem, the company can conclude a credit duced by 1.3 million EUR. This amount will have to be saved by allocat-
agreement with the bank, but bridging loans are usually expensive. ing ad hoc subsidies more selectively and, in the case of call formulas,
By contributing to the costs of the interest, the Flemish government targeting budgets more accurately.
will make it significantly cheaper to take out this sort of loan. Until
the measure has been investigated in depth, the adjusted investment Agreement with Flanders DC 2009-2014 concerning the implementa-
budget of 0.5 million EUR for 2009 will be maintained in 2010. tion of FFI activities and business plan. In 2009, the Flemish Govern-
ment decided to include the subsidy to Bizidee and the Flanders Fashion
The promotion of entrepreneurship Institute (FFI) in Flanders DC. Bizidee is a business plan competition in
Healthy business enterprises first and foremost need strong entre- which participants produce a full business plan in three stages. During
preneurship. Enterprise Flanders aims to contribute to this end by Phase 1, the competitors describe their idea for a business, in Phase 2
offering advice, training and assistance. In this regard, the following they perform a repeatability study, and in Phase 3 they submit a full
are considered as an integral part of ‘entrepreneurship’: not only business plan. FFI is the fashion sector’s knowledge centre in Flanders.

10 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon

Its priority goals are to encourage hiring in the fashion industry and Expenditure for laying out business parks and for re-using industrial
promote Flemish fashion nationally and internationally. The budget sites. This support is intended for all developers of industrial sites,
allocated to these initiatives is 0.850 million EUR and will be managed both public and private – and also for any form of mutual collabora-
by Flanders DC. tion. It is a question here of investments needed for making individual
plots on industrial land ready for building. Further to the third budget
Business Angels Networks (BANs). BAN Flanders is a Flemish busi- inspection, the budget for 2009 was reduced to 27.857 million. This
ness angel network, an added-value platform through which new or is also the budget 2010, as a matter of stable policy.
growing companies in search of venture capital can contact informal
private investors, otherwise known as business angels. Business angels Efficient management of the European Regional Development Fund
contribute not only cash, but also their own know-how, experience and (ERDF)
contacts. Both the companies and business angels are supplied with The Agency is the unique place for the management of the ERDF
connection services. BAN Flanders is not an investment fund. It does fund, objectives 2 and 3. Because of the efficient management of
not buy stakes or make investment decisions, either on its own account the ERDF fund, the Enterprise Agency contributes to the structural
or on behalf of member investors. It is a marketplace designed to bring fund policy of the European Union. The agency is also pivotal in the
supply and demand together. At this point, the 2010 budget does not ‘Enterprise Europe Network’ (formerly EIC/IRC) in Flanders. It makes
include any investment funds, as the financing of the non-profit as- the information, advice, mediation and promotional services of this
sociation BAN Flanders is due to end at the end of 2010. European network available to Flemish companies (information on
European matters, support for setting up partnerships and interna-
Facilitating environmental factors tional relationships).
Another condition for a successful economy is providing favourable
environmental factors for businesses. The Enterprise Flanders provides A. Objective 2 ‘Regional competitive capacity and Employment op-
support for creating various opportunities for setting up in business portunities’
and develops instruments that contribute to the optimum factors for 1. Stimulating the knowledge economy and innovation;
doing this. This applies both to Flemish entrepreneurs themselves 2. Promoting entrepreneurship;
and for companies from abroad that want to invest in Flanders. The 3. Improving urban planning-economic environmental factors;
Agency will again be concentrating here on factors that are important 4. Promoting urban development;
to the future development of the economy. 5. Technical support.

Government commissions in relation to the continuation of policy- B. Objective 3 ‘Territorial cooperation’

oriented research, including contracts and cooperation agreements During the 2007-2013 programme period, Flanders participates in
with the Provincial Autonomous Development Bodies (POMs). the following cooperation programmes:
The description was amended so that the contracts and cooperation 1. Cross-border cooperation: border region Flanders-Netherlands,
agreements could be developed, for instance on how to include Euregion, Meuse-Rhine, France/Flanders/Wallonia, Maritime pro-
problematic, space-consuming enterprises in the guaranteed land gramme United Kingdom/France/Flanders/Netherlands;
supply strategy, or on forms of cooperation to encourage logistics, 2. Transnational cooperation: North Sea area, North-West Europe;
etc. Consequently, the budget must also cover the study require- 3. Interregional cooperation: the whole of the EU.
ments attached to these tasks. Should requirements remain constant,
the required investment budget is 0.5 million EUR. Payment to FIT for the implementation of the ERDF project. FIT will
receive financial support for the “Internationalisering van de Vlaamse
Industry-Friendly Municipality project. 0.8 million EUR has been Kenniseconomie” (“Internationalisation of the Flemish Knowledge
provided for supporting Campaigns with the aim of stimulating Economy”) project until the end of 2010. The actual project has a
enterprise-friendly local policy in 2010. fourfold goal: to generate cooperation by means of industrial clusters
in Flanders, the USA, India, China and Japan; to promote alternative
Projects relating to locally-oriented partnerships and/or the Flemish subsidies; to integrate Flemish professionals overseas and to set up a
environmental-economic policy. This project operation uses funds in communication platform on the operation of the project.
order to:
• Instigate processes to re-equip outdated business/industrial parks; Out of the total budget of 0.482 million EUR, ERDF is allocated 45%.
• Resolve serious bottlenecks on industrial sites that are designed Half of this amount is financed by the Hermes Fund. Some 0.108
for the purpose, but have not been developed (bottleneck sites); million EUR has been allocated for that purpose for 2010. FIT will
• Support projects that stimulate the careful use of space on such take responsibility for the remaining 5% of the total project amount.
sites; examine in detail unused industrial land, negotiating teams Chapter 1.7 gives a brief summary of FIT’s other activities.
for unused industrial land.
This budget has been cut by 0.3 million EUR to 3.0 million EUR, due
to the economy drive.

part 11
Chapter 1.2.

Policy Support and Academic

The strategic objectives of the programme are: the opportunity to carry out independent research as a lecturer
1. To strengthen general knowledge-expanding fundamental for 5 years. Following a positive evaluation, these people can be
research; appointed immediately as ZAP, without a vacancy. In 2010, 5.645
2. To strengthen the strategic basic research that generates knowledge million EUR is foreseen.
useful to industry, the non-profit sector and the government. • To strengthen the basic BOF subsidy, an amount of 2.540 million
EUR is provided.
The target groups are (the researchers at) institutes of higher educa- • The process to create 40 to 60 additional ZAP mandates which
tion, universities, research institutes and industry. started in 2007 is being continued. A budget of 4.348 million EUR
is provided in 2010.
All resources from the Policy Support and Academic Policy pro-
gramme are intended for science policy. The initial 2010 budget for The basic subsidy to the Research Foundation - Flanders (FWO) is
this programme is 299.836 million EUR. In 2009, this was originally the largest budget item in the programme, with 120.063 million EUR
309.517 million EUR (see EWI Budget Browser 2009). The grant to in 2010. In addition to this basic amount, the following FWO budget
the Flemish Council for Science Policy (VRWB) (0.843 million EUR lines will also be available:
in 2009) is no longer listed here, but included in the device funds in • the Odysseus Programme is a “brain-gain” programme designed
the budget. Table 2 gives an overview per budget line, together with to attract Flemish and other top scientists to Flanders. They
the difference with the 2009 budget (definitive amounts). Table 2 may be internationally acknowledged as leading researchers, or
shows the summary per fund, together with the difference (including postdoctoral researchers who have given evidence that they have
indexations) in relation to the 2009 budget (final funds). the potential to become leaders in their area. In 2010, 12.6 million
EUR will be available for this purpose.
The Special Research Fund (BOF) and the Research Foundation • The precise amount of the National Lottery allocation will not be
(FWO) are the two funding channels for the non-targeted research at known before mid-2010. 80% of the estimated amount (9.37
Flemish universities aimed at increasing knowledge. While the FWO million EUR) has already been allocated to the relevant budget
assigns the budgets on the basis of scientific interuniversity competi- line.
tion, for the BOF it is assigned on the basis of intrauniversity competi- • For projects involving international research facilities, 2.201 mil-
tion. The FWO is the funding channel for encouraging and sup- lion EUR has been allocated. In connection with access to these
porting groundbreaking and fundamental scientific research on the research facilities, the bodies which manage the institutions (e.g.
initiative of the researcher (bottom up) in all the scientific fields at the CERN, ESRF, EMBO, ESO, etc.) are requesting more institutional
Flemish universities. The BOF funds are divided amongst the universi- support from members from the member states concerned, in ad-
ties on the basis of a distribution key which includes performance- dition to the contribution from the member states and the specific
oriented parameters, amongst other things: the BOF key. The FWO research projects.
and the BOF complement and strengthen each other. • For international scientific cooperation, a subsidy of 2.088 million
EUR has been allocated to FWO for 2010. This will improve the
The basic BOF subsidy, which amounts to 104.590 million EUR in international operation of FWO and regulate financing of interna-
2010, is allocated to the budget for the Education and Training policy tional coordination actions and bilateral collaborative research.
area (see 2.1.2). The BOF budget lines of the EWI budget are:
• The Methusalem programme focuses on retaining scientific talent Funds from the EWI budget have been used since 2008 to increase
by awarding long- term funding for excellent Flemish researchers. the involvement in research of academic courses at institutes of
This concerns excellence funding awarded ad personam. In 2010, higher education. In 2010, this amount is 7.5 million EUR. In addi-
there is 20.076 million EUR. tion, further funds are made available to institutes of higher educa-
• With the introduction of the tenure track system, a limited tion in the education budget (8.229 million EUR in 2010), for the de-
number of excellent post-doctoral researchers can be offered velopment of academic courses. As part of the restructuring of higher

12 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon

education in Flanders, the former two-cycle courses at institutes of designed to encouraged interaction and knowledge dissemina-
higher education have been changed into full academic courses. tion between enterprises and institutes of higher education. It is
intended to increase the capacity of companies and organisations
Project-based Scientific Research (PWO) is another funding channel for innovation in Flanders, as well as to improve the knowledge
aimed at institutes of higher education, i.e. for professional bachelor’s base of institutes of higher education. The programme primarily
degrees. PWO enables these courses to stimulate innovation in SMEs targets the requirements of Flemish companies which depend on
and non-profit institutes. This does not so much involve research as external research facilities for their innovation as they do not have
the transfer of knowledge and solving specific problems which affect extensive R&D departments. Priority is given to projects which
these bodies. At the same time, this kind of cooperation has a stimu- are important to SMEs and organisations of social benefit. The
lating effect on the course programmes. The 2010 budget for PWO projects are submitted by Flemish institutes of higher education,
is 9.025 million EUR. which play a prominent part in the programme. Over the years,
the TETRA Fund has increasingly become an instrument for the
The Industrial Research Fund (lOF) has been allocated 17.022 million improvement of institutes of higher education, as it supports their
EUR for 2010. This structural funding for universities was allocated to networking with other research facilities and with companies, both
build up a portfolio of application-oriented knowledge and to stimulate in Flanders and abroad. 8.454 million EUR has been allocated
interaction between universities and industry. The revised IOF decision for the encouragement of technology transfer and research by
extended the area of application of IOF to applied research and inte- institutes of higher education.
grated the IOF and interface decree. A strategic plan was introduced • Strategic Basic Research (SBO) is long-term, high-quality research
and the weights of the parameters which directly measure the indus- intended to build up scientific or technical capacity as a basis
trial valorisation efforts of the universities became more important in for economic and/or social applications in Flanders. Strategic
the distribution key for the distribution of funds among universities. Basic Research lies somewhere between groundbreaking general
research and specifically oriented R&D projects. It has been al-
The 2010 budget includes 2.819 million EUR to support of the located the amount of 36.674 million EUR.
interface services. In the case of the interface services of the Flemish • The Agricultural Research programme is intended to support the
universities, 2008 was the last operating year in which IWF was collection, classification and translation of scientific and technical
responsible for monitoring. In the meantime, the 2002 Interface knowledge, with a view to innovative applications in Flemish ag-
Decree has been replaced with a new financing decree1. Under this riculture and horticulture. The projects are joint efforts: they must
new decree, EWI has general responsibility for monitoring the IOF be intended to support this sector rather than solve the problems
and interface activities, as developed by the associations in the policy of individual farms. The projects are implemented by research
plans for 2009-2013. IWT is specifically involved in monitoring groups from Flemish universities and institutes of higher educa-
cooperation by the associations, both mutual and with the Flemish tion, research facilities and approved practice centres. The 2010
innovation network, and is required to evaluate both the related budget for this programme is 9.122 million EUR.
policy plans and the related reports.
The Hercules Foundation was set up by the Flemish Government as
The operating subsidy to the Flanders Marine Institute (VLIZ) will an agency for the financing of medium-heavy (financing cost 0.15
be 1.057 million EUR in 2010. VLIZ also has access to the following to 1.5 million EUR) and heavy infrastructure (over 1.5 million EUR)
resources: for fundamental and strategic basic research. All scientific disciplines
• 1.1 million EUR has been allocated for investment expenses; are eligible for Hercules financing, including the human and social
• 0.568 million EUR is available for the support and operation of the sciences, for instance for the financing of databases or collection.
IODE Project Office of the UNESCO Intergovernmental Oceano- The agency is intended to encourage cooperation by universities,
graphic Commission (IOC); institutes of higher education, post-initial training facilities, strategic
• 0.120 million EUR has been allocated to the Marine Board of the research centres, research facilities, whether mutual or with third par-
European Science Foundation (ESF). ties, especially with companies. For this purpose, a budget of 14.250
million EUR has been allocated.
The Policy Support and Academic Policy budget programme includes
the following programmes, which are managed by the Agency for With its subsidy of 0.802 million EUR, the Royal Zoological Society -
Innovation by Science and Technology (IWT): Antwerp (KMDA) undertakes scientific research in the areas of ethol-
• The Applied Biomedical Research (TBM) programme is aimed at a ogy, functional morphology, veterinary medicine and conservation
specific niche within biomedical research, i.e. late-stage, application- biology. The results of this research are measured using the traditional
driven biomedical research with explicit social applicability and methods of publication in peer-reviewed journals and active participa-
limited industrial potential. The main reason for this narrow focus tion in scientific conferences, and used to train young researchers.
was the fact that few financial resources are available for this type of
research. In 2010, the budget for this activity is 5.7 million EUR. Over the past years, the Institute of Plant Biotechnology for Devel-
• The TEchnology TRAnsfer Fund is a programme intended to sup- oping Countries (IPBO) has been subsidised with a view to aligning
port application-oriented research. The TETRA Fund is a platform its activities more closely with the strategy of the United Nations

The Flemish Government Decree of 29 May 2009 on support to the Industrial Research Funds and the interface activities of the associations in the Flemish Community.

part 13
Industrial Development Organization (UNIDO). The management Figure 3 compares the 2010 funds with those of the past years. Due
agreement covers the period from 2007 to 2011 and was signed by to the cuts, the overall budget is 3.4% smaller than in 2009, the
the Flemish Government, Ghent University and IPBO. As the design 2009 grant to VRWB not included.
of a convergence trajectory and embedding of the programme in
existing university structures will be encouraged, the new manage- Figure 3. Policy Support and Academic Policy Programme, funds
ment agreement specifies that the annual financing of IPBO will be 2007-2010 (million EUR)
gradually decreased. The 2010 subsidy is 0.071 million EUR.

In 2006, a subsidy was granted for the first time to Ghent University
to develop the International Centre for Reproductive Health (ICRH). 300

A management agreement for the period 2007-2011 was signed by

the Flemish Government, Ghent University and ICRH. The manage- 250
ment agreement also specifies that the annual subsidy will gradually
decrease. The 2010 subsidy is 0.058 million EUR.

The amount of the subsidies available for the performance of scien-

tific research by post-initial training facilities and higher institutes 150 SP SP SP SP
277.197 331.997 311.156 299.836
of fine arts is 2.489 million EUR. A structural subsidy is required to
support and expand scientific research at ITG, the Vlerick School and 100
the Orpheus Institute, so that the scientific quality of the research
can be maintained, research can be performed independently and the
institutes are encouraged to strive for international excellence. Unlike
universities, ITG, the Vlerick School and the Orpheus Institute cannot
make independent use of financing sources for scientific research 0
such as FWO, IWT or BOF. 2007 2008 2009 2010i

n SP  n EP
Since the operating year 2001, the United Nations University (UNU)
has been receiving a subsidy from the Flemish Community for the
implementation of the “Comparative Regional Integration Studies” SP: science policy; EP: economic policy
(CRIS) training and research programme. The 2010 subsidy is 0.967
million EUR.

On 6 March 1998, the Flemish Government and UNESCO signed a

cooperation agreement which forms the basis for financial support to
research projects included in UNESCO’s official research strategy and
to which Flanders can contribute its own (international) expertise. In
1999, the implementation of this agreement led to the formation of
the Flanders Science Trust Fund (FUST). Some 1.385 million EUR will
be available for this purpose in 2010.

The Royal Flemish Academy of Belgium for Science and the Arts
is an autonomous, independent and multidisciplinary body which
assesses and encourages scientific and cultural achievements. For this
purpose, it regularly organises meetings, lectures, conventions, con-
gresses, competitions and contests, issues publications and takes all
other appropriate initiatives. The Academy issues opinions concerning
projects of social significance. It can also support or even organise
long-term and/or multidisciplinary projects which require protection
or promotion. Finally, the Academy contributes to the dissemination
of Flemish science and culture in Belgium and abroad. It may also
commission work and set up commissions, scientific committees and
centres for the purpose of, inter alia, cooperating with national and
overseas academies and international scientific and cultural organisa-
tions, and sign cooperation agreements with these bodies. The 2010
subsidy for this purpose is 1.137 million EUR.

14 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon

Table 2. Policy Support and Academic Policy Programme – funds for 2010 (million EUR)

Budget Compared
ENT­  PR ESR Description SP fund
Fund to 2009

EB0 EE134 4170 120.063 -2.450 Subsidy to FWO Flanders 120.063

EB0 EE121 4141 36.674 -1.930 Strategic basic research (IWT) 36.674
EB0 EE128 4150 20.076 -0.456 Subsidy to the special research funds, Methusalem programme 20.076
EB0 EE130 4150 17.022 -0.050 Grant to the Industrial Research Fund Flanders (IOF) 17.022
Grant to the EVA Hercules Foundation for financing medium-heavy
EB0 EE140 6142 14.250 -0.750 14.250
and heavy infrastructure
EB0 EE132 4170 12.600 0.000 Subsidy to FWO Flanders for the Odysseus programme 12.600
Grant financed with the net receipts from profits in the National
EB0 EE137 4170 9.370 -2.343 9.370
Lottery, for the benefit of FWO Flanders
Subsidies for scientific and technical research with an agricultural
EB0 EE123 4141 9.122 -0.480 9.122
objective (IWT)
EB0 EE104 3300 9.025 -0.475 Subsidies for project-based scientific research (PWO) 9.025
Grant to IWT, for the promotion of technology transfer and research,
EB0 EE120 4141 8.454 -0.445 8.454
by higher educational institutes
Strengthening of the involvement of research in academic courses at
EB0 EE127 4150 7.500 0.000 7.500
the institutes of higher education
Grant to IWT, for support to applied biomedical research, with a
EB0 EE118 4141 5.700 -0.300 5.700
primarily a social purpose
Subsidy for the Special Research Funds for the funding of a 'tenure
EB0 EE106 3300 5.645 -0.008 5.645
track' - mechanism at the universities
Subsidy for the special research funds, which provide additional
EB0 EE129 4150 4.348 -0.239 4.348
mandates for independent academic personnel (ZAP)
EB0 EE126 4150 2.819 -0.009 Subsidy to university interface services 2.819
EB0 EE138 4410 2.540 -0.008 Subsidy for the Special Research Funds for the universities 2.540
Subsidies for carrying out scientific research, by institutes for post-
EB0 EE105 3300 2.489 -0.131 2.489
initial education and by higher institutes of fine arts
Subsidy to FWO Flanders, for projects within the framework of
EB0 EE135 4170 2.201 -0.116 2.201
international research facilities
EB0 EE136 4170 2.088 -0.112 Subsidy to FWO Flanders for international scientific cooperation 2.088
Subsidy to UNESCO, in support of the Flemish UNESCO science trust
EB0 EE112 3540 1.385 -0.096 1.385
Subsidy to the Royal Flemish Academy of Belgium for the Sciences
EB0 EE133 4170 1.137 -0.061 1.137
and Arts
EB0 EE139 5220 1.100 0.000 Subsidies to the Flanders Marine Institute (VLIZ), for investments 1.100
EB0 EE108 3300 1.057 -0.056 Subsidy to the Flanders Marine Institute (VLIZ) 1.057
Subsidies to the United Nations University (UNU), within the
EB0 EE111 3540 0.967 -0.052 0.967
framework of the programme for regional integration studies
EB0 EE107 3300 0.802 -0.042 Subsidy to the Royal Zoological Society of Antwerp (KMDA) 0.802
EB0 EE116 4140 0.585 -0.021 Grant to the EVA Hercules Foundation as management remuneration 0.585
Subsidy to the Flanders Marine Institute (VLIZ), for supporting the
EB0 EE109 3300 0.568 -0.030 0.568
work of the IODE Project Office
Subsidy to the Flanders Marine Institute (VLIZ), for supporting the
EB0 EE110 3300 0.120 -0.006 0.120
work of the ESF Marine Board
Subsidy to the Institute of Plant Biotechnology for Developing
EB0 EE102 3300 0.071 -0.012 0.071
Countries (IPBO)
EB0 EE103 3300 0.058 -0.014 Subsidy to the International Centre for Reproductive Health (ICRH) 0.058
TOTAL 299.836 299.836

part 15
Chapter 1.3.

Valorisation and Industrial Policy

The global initial funds in 2010 for the EF budget programme, budget for the specialisation grants and doctoral grants under the
­Valorisation and Industrial Policy, amount to 362.842 million EUR Baekeland programme is 32.092 million EUR.
and just as much SP fund. • There are also IWT’s four allocation authorisations (EB0 EF100,
101, 102 and 103 – previously BAs EF9911B through EF9914B).
The Valorisation and industrial policy programme has the following These are budget lines intended to support technological innova-
strategic objectives: tion actions at the initiative of the Flemish Government, projects
1. Strengthening the basic technological research that generates at the initiative of enterprises, and innovations by cooperation
knowledge for the benefit of industry; ­bodies, e-media projects and finally study and expertise projects
2. More technological innovation in Flemish industries. for the Flemish Innovation Network (VIN). A total budget of
172.493 million EUR has been allocated to these projects for
Target groups are the research institutes and the Flemish companies. 2010.

NERF (Neuro-Electronic Research Flanders) is a new Flemish inter- In 2010, the Valorisation budget programme comprises a budget of
disciplinary research centre created at the initiative of VIB, IMEC and 43.491 million EUR for VITO, the Flemish Institute for Technological
K.U.Leuven, with the support of the Flemish government. Its purpose Research. These are grants for operation, the financing of reference
is to understand the working of a neuronal circuit in the human brain. tasks and investments. Via the LC, General budget programme of
Neuronal circuits are composed of various nerve cells, which receive, the Environment, Nature and Energy (LNE) policy area, VITO also
transmit, store and/or process a set of signals, and finally translate has access to a grant of 2.118 million EUR for the financing of refer-
it into an effect. The NERF budget for 2010 is 2.876 million EUR, of ence tasks.
which 0.926 million EUR from the Flemish government (EB0 EF103
3300) and 1.950 million EUR from the 3 founding members: VIB, VITO’s purpose is to find technological solutions in an innovative and
IMEC and K.U.Leuven. customer-friendly manner, and to supply independent, scientifically
based opinions and advice to strengthen the economic and social
The Valorisation and Industrial Policy programme includes a number ­fabric of Flanders and make an essential contribution to sustain-
of budget lines for IWT: able development. The grant resources enable VITO to start its
• The operating grant of 10.859 million EUR includes the resources own research, which is organised into approximately 8 technology
required to ensure the necessary policy continuity, on the basis of programmes.
its current work and the agency’s mission. 1. Smart Systems for Energy Networks;
• In 2009, a basic change was made to the system under which IWT 2. Transition Energy and Environment;
grants doctoral grants. Specialisation grants were renamed strategic 3. Environmental Risk and Health;
research grants. On the one hand, the diploma restriction was lifted, 4. Earth Observation;
and on the other it was decided to focus on strategic basic research. 5. Environmental Modelling;
In the context of a doctoral grant, “strategic basic research” is taken 6. Sustainable Chemistry;
to mean doctorate-worthy innovative research which, if successful, 7. Processing of Multifunctional Materials;
may have industrial applications in the long term. 8. Development and Validation of Innovative Analysis Techniques and
In late 2008, the opening of a new support channel under the Methodologies.
R&D decree was given the go-ahead: the Baekeland mandates.
The Baekeland programme is intended to give researchers the IMEC supplies nano-electronics research which ranks among the best
opportunity to prepare a doctorate in close cooperation with a in the world. IMEC contributes its innovative strength to ICT, health-
company or companies. Under the existing doctoral grants, young care and energy partnerships worldwide. This enables technological
researchers often do their research within an exclusively academic solutions to be developed which are relevant to industry. In a unique
context, and the results remain the property of the academic insti- high-tech environment, IMEC’s top international talent develops
tute concerned. The Baekeland programme is primarily designed to building blocks for a better life and a sustainable society. It has five
encourage researcher mobility between academia and enterprises. major areas of activity:
Not only does it target graduates and young researchers, but also
company employees interested in preparing for a doctorate. The

16 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon

1. Scoringsdriftje nano-electronics. IMEC works on techniques to
Figure 4. Valorisation and Industrial Policy Programme, funds 2007-
make transistors, the building blocks for chips, smaller. This makes 2010 (million EUR)
chips more powerful and enables them to perform more functions.
2. Heterogeneous integration. IMEC believes that highly integrated,
ultra-small chip systems with functionalities other than calculat-
ing functionalities, have an important future. In this connection, 350
technologies such as microelectromechanical systems (MEMS) and
sensors will play a major role, as well as high-capacity electronics
based on gallium nitride, photonics and advanced interconnection
and packaging technologies.
3. Combining biology and electronics for a better life. IMEC is devel- 250
oping technological solutions in major areas such as affordable and
reliable healthcare.
4. Smart systems. Chips make our current electronic appliances smart-
er, as they can communicate with the environment and adjust to
306.657 361.809 382.638 362.842
the user’s requirements. 150
5. Energy. The development of solar-cell technology forms a major
part of this activity.

VIB, the Flanders Interuniversity Institute for Biotechnology, is an

enterprising research institute, active in the most advanced areas of 50
biotechnology. Scientists and technicians carry out basic research on
the molecular mechanisms of the human body, plants and micro-
organisms. The scientists work in eight VIB departments closely as- 2007 2008 2009 2010i
sociated with four Flemish universities: Ghent University, the Catholic
University of Leuven, Antwerp University and the Free University of SP: science policy
Brussels (VUB). The grouping of this research into a single institute
has an immediate advantage for the various partners as well as their
academic, industrial and social environment. In cooperation with its
academic partners, VIB proposes building a foundation for a better
quality of life. For this purpose, it engages in three core activities:
1. VIB’s main task is the acquisition of new knowledge by means of
strategic basic research. Such knowledge gives a better insight into
the molecular mechanisms of life. Creativity, combined with state-
of-the-art technology, makes breakthroughs possible. This is what
enables us to push back the frontiers of biomolecular knowledge.
2. The translation of knowledge into useful applications, such as di-
agnosis, drugs or agricultural applications, is the Institute’s second
core activity. Technology-transfer activities must lead to products
which are of use to consumers and patients.
3. VIB’s third core activity is to keep the Flemish population informed
of discoveries and developments in the life sciences. For this pur-
pose, a wide range of scientifically based documents and informa-
tion is made available in a database.

The Interdisciplinary Institute for Broadband Technology (IBBT)

performs research on information and communication technology
(ICT) in general, and the development of broadband applications
in particular. This research is multidisciplinary and demand-driven,
and is carried out in close cooperation with both enterprises and the
authorities. Its purpose is to solve complex problems and meet the
societal challenges of tomorrow. The range of IBBT applications is
wide and includes healthcare, mobility and logistics, culture and new
media, and green ICT. IBBT’s multidisciplinary research model builds
bridges between knowledge institutes, industry and the authorities,
and ensures the development of highly skilled human capital.

part 17
Table 3. Valorisation and Industrial Policy Programme – funds for 20010 (million EUR)

Budget Compared
ENT  PR ESR Description SP fund
fund to 2009

Allocation authorisation for IWT, for projects proposed by companies

EB0 EF101 9999 126.423 -1.048 126.423
and innovation cooperations
EB0 EF100 3300 42.616 -2.114 Subsidy to IMEC 42.616
EB0 EF101 3300 37.598 -1.858 Subsidy to the Flanders Interuniversity Institute for Biotechnology (VIB) 37.598
Allocation authorisation for IWT, for supporting technical innovation
EB0 EF100 9999 35.078 -14.075 actions that are proposed at the initiative of the Flemish government 35.078
actions that are proposed at the initiative of the Flemish government
EB0 EF110 4141 33.409 3.862 Grant to the Flemish Institute for Technological Research (VITO) 33.409
Grant to IWT, related to awarding specialisation grants (Decree of 23
EB0 EF112 4141 32.092 1.749 January 1991) and awarding doctorate grants in the framework of 32.092
the Baekeland programme
Grant to the Interdisciplinary Institute for BroadBand Technology
EB0 EF102 3300 22.767 -1.124 22.767
EB0 EF107 4141 10.859 -1.746 Grant for IWT 10.859
Allocation authorisation for IWT, for policy area exceeding innovation
EB0 EF102 9999 10.319 -1.000 10.319
Grant to the Flemish Institute for Technological Research (VITO) for
EB0 EF111 4141 7.968 0.000 7.968
financing the reference tasks
Grant for investments at the Flemish Institute for Technological
EB0 EF113 6141 2.114 -3.000 2.114
Research (VITO)
EB0 EF103 3300 0.926 new Subsidy to IMEC for the NERF activities 0.926
Allocation authorisation for IWT, for study and expertise
EB0 EF103 9999 0.673 -0.173 0.673
assignments, for the benefit of the Flemish Innovation Network (VIN)
TOTAL 62.842 62.842

18 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon

Chapter 1.4.

Awareness-Raising and Society

For the Awareness-Raising and Society Programme, there is a global
Figure 5: Awareness-Raising and Society Programme, funds 2007-
fund in the initial 2010 budget of 11.010 million EUR. 2010 (million EUR)
The programme has science information service as strategic objective,
namely to strengthen public support for the scientific and technological
innovation policy in Flanders.

The merging of the Economy Agency and VLAO into Enterprise

Flanders caused the grant and subsidies to organisers of local contact
points, as well as the budget for projects involving the financing and 20
support of flexible mechanisms, to be transferred in 2009 to Enter- EP EP
prise Flanders, as shown in Figure 5. 13.613 15.463

2.923 million EUR has been allocated to the implementation of the
annual Scientific Information and Innovation Plan for the supply of
information concerning scientific policy and research to structural
partners in 2010. Each year, the strategic and operational goals of this 10
action plan are translated into a number of concrete initiatives aimed SP SP SP SP
at a number of target groups, especially young people and the general 11.414 11.604 11.788 11.010
public. The plan mainly comprises two types of action: targeted ac- 5
tions and broad awareness-raising actions. The purpose of targeted
actions is mainly to increase the flow of young people through scien-
tific and technical facilities. Broader awareness activities mainly target
the general public and usually support general goals such as informa- 2007 2008 2009 2010i
tion, awareness-raising and encouraging a sense of responsibility.
n SP  n EP

The subsidy to non-profit association Flanders Technology Interna-

SP: science policy; EP: economic policy
tional (FTI) of 3.789 million EUR also forms a part of the Scientific
Information and Innovation Plan. Its tasks are: the operation of the
Technopolis activity centre in Mechelen, as well as related tasks such
as the implementation of various other actions in the plan.

The financing of the expertise cells for the popularisation of science,

technology and technological innovation to the universities and
institutes of higher education of the Flemish Community forms a part
of the above plan. 2 million EUR has been made available for this
purpose in 2010.

Flanders DC has the task of contributing to awareness and encour-

agement of entrepreneurship, creativity and innovation. This includes
attracting the general public to creativity and innovation. The subsidy
for 2010 is 2.298 million EUR.

part 19
Table 4. Awareness-Raising and Society Programme – funds for 2010 (million EUR)

Budget Compared
ENT  PR ESR Description SP fund
fund to 2009

EB0 EG102 3300 3.789 -0.204 Subsidy to Flanders Technology International (FTI) 3.789
Various subsidies, with reference to publicising the Science Policy and
EB0 EG101 3300 2.923 -0.155 2.923
scientific research to structural partners
EB0 EG103 3300 2.298 -0.312 Subsidy to the non-profit organisation Flanders DC 2.298
Subsidies for expertise cells, with the objective of popularising
EB0 EG106 4150 2.000 -0.107 2.000
science, technology and technological innovation within associations
TOTAL 11.010 11.010

20 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon

Chapter 1.5.

General Policy
The ‘General’ programme covers the resources for 2010 that give relating to research and innovation, and the improvement of support
shape to both the general economic policy and the science and inno- to Flemish companies participating in European projects.
vation policy. This also includes those BAs that cannot be unambigu-
ously assigned to the content of another programme (see above).
The total fund included in the 2010 budget for the EC programme,
Figure 6: General Policy Programme, funds 2007-2010 (million EUR)
General Policy, amounts to 25.062 million EUR. Of this, 17.383 mil-
lion EUR is science policy (SP) fund. Figure 6 compares these funds
with the past years.

The main budget item here is the subsidy to the policy research cen- 25

tres. In the budget for 2010, 7.857 million EUR has been allocated to
finance these centres. The relevant policy area(s) is/are in charge of EP EP
8.070 7.679
cofinancing these centres. The Enterprise and International Enterprise 20
Policy Centre is cofinanced from the EWI budget (EB0 EC107 3300). 5.658
Further information concerning the policy research centres is available EP
at 5.851

2.931 million EUR has been allocated to promote the Flemish Infor-
mation Society in accordance with the Lisbon Strategy. Resources
have been allocated for the further development of a consistent set 10 SP SP
SP 17.429 17.383
of tools to maximise the use of ICT as a lever for innovation. Besides SP 16.097
the further development of the Flemish electronic network, as much 13.839
attention as possible is being paid to the challenges and developments
formulated in the European Commission’s i-2010 initiative. In the
2010 Action Plan Flanders i2010, approved in 2006 by the Flemish
Government and which gives a concrete expression to the develop-
ment of the Flemish information society in accordance with the Lisbon 0
2007 2008 2009 2010i
Strategy, the Flemish government has made a resolute choice in
n SP  n EP
favour of e-research, further to which the digital infrastructure, e.g.
the electronic research network, supercomputers, software platforms,
SP: science policy; EP: economic policy
software tools, digital aids, databases, grids, etc., will be expanded.

The Flemish Point of Contact (VCP) for the framework programme

was set up as a coordination platform in which activities relating to
EWI and IWT research and innovation programmes were coordinat-
ed. 0.392 million EUR has been allocated to this item for 2010. With-
in this structure, IWT and, as of this year, FWO take joint responsibil-
ity for the activities which support Flemish stakeholders participating
in European programmes. To further strengthen the international
function, a number of national contact points were created at FWO
for the European framework programme for research and develop-
ment, with fundamental research and the human sciences as their
areas of activity. In 2010, the emphasis will be on the setting-up of a
Flemish Europe Platform, an extension to all European programmes

part 21
Table 5. General Programme – funds for 2010 (million EUR)

Budget Compared
ENT  PR ESR Description SP fund
fund to 2009

EB0 EC109 3300 7.857 -0.163 Subsidies to the policy research centres 7.857

Expenditures for promoting the Flemish Information society, within

EB0 EC102 1211 2.931 0.000 2.931
the framework of the Lisbon Strategy
EC0 EC205 1211 2.465 0.000 Specific ICT costs of Enterprise Flanders: project costs 0.000
Subsidies within the framework of international scientific and
EB0 EC111 3300 1.927 0.050 1.927
innovative cooperation
EB0 EC110 3300 1.864 -0.100 Subsidy for the Centre for R&D Monitoring 1.864
EC0 EC207 3132 1.470 -0.030 Subsidies for the local contact points 0.000
Expenditures for communications initiatives, with regard to the
EC0 EC203 1211 1.128 -0.187 0.000
economic policy
Subsidy to the non-profit organisation “Vlaamse jonge
EC0 EC208 3300 1.045 -0.055 0.000
ondernemingen” (Young Flemish Enterprises)
EC0 EC211 4170 0.921 -0.049 Subsidies for certified regional co-operative associations 0.000
Expenditures for inventory taking and valorisation of scientific and
EB0 EC100 0100 0.848 0.485 0.848
technological research
Expenditures for the conception, preparation and execution of
EB0 EC101 1211 0.840 -0.264 scientific actions on the initiative of the Flemish minister of Science 0.840
and Innovation
Grant to IWT to support Flemish participation in the European
EB0 EC113 4141 0.392 0.031 0.392
programmes (Flemish point of contact – VCP)
Subsidies to the non-profit organisation “Vlaams Centrum voor
EC0 EC210 3300 0.353 -0.019 0.000
Kwaliteitszorg” (Flemish Centre for Quality Assurance)
Subsidy for co-financing the Policy Research Centre Entrepreneurship
EB0 EC107 3300 0.263 -0.005 0.263
and International Entrepreneurship
Subsidy related to the inventory of scientific and technological
EB0 EC114 4170 0.247 -0.013 0.247
research (IWETO)
Specific operating costs with regard to the economic policy, including
EC0 EC200 1211 0.199 -0.051 among other things fees, expenditures for encouraging company 0.000
investments, and investments with regard to economic events
Various communications initiatives, with regard to science,
EB0 EC103 1211 0.150 -0.044 technology and innovation on the initiative of the Flemish minister of 0.150
Science and Innovation
Expenditures for a variety of interregional economic co-operative
EC0 EC201 1211 0.098 0.000 0.000
Expenditures within the framework of international scientific
EB0 EC105 1211 0.064 0.000 0.064

22 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon

Chapter 1.6.

The investment companies PMV,

Participation Company Flanders (PMV), Flemish Participation ARKIVs, this means that 218 million EUR has become available to
Company (VPM) and the Limburg Investment Company (LRM) are provide the risk capital for Flemish SMEs. In view of the route which
externally independent agencies (EVAs) of the EWI policy area. ARKimedes has followed up to now, and the fact that the initial in-
vestment period of the ARKIVs will take place in the course of 2010,
In contrast to the previous chapters, this does not concern budget preparations have started for launching a second ARKimedes fund.
funds, but rather an overview of the activities of the aforementioned
agencies. CultuurInvest (Enterprise process)
Since the end of 2006 Flanders has had an investment fund for cul-
turally related activities and businesses. CultuurInvest was established
ParticipatieMaatschappij Vlaanderen NV (PMV) because of the lack of private investments in the cultural industry. At
­(Participation Company Flanders) the end of 2009, the foundation has provided funding for 36 compa-
nies for a total amount of more than 5.5 million EUR.
PMV (ParticipatieMaatschappij Vlaanderen) is an investment
company which targets sustainable economic growth and attaches Vinnof (Innovation process)
considerable importance to the social results of its initiatives. It invests The Flemish government has agreed with the following reforms:
in companies and projects which are important to our region. This 1. In future Vinnof will be used only as the brand name for seed
enables it to generate added value (or simply value) for the funds ­capital investments;
Flanders invests in its future. 2. On the basis of the notification to the European Commission (which
has now been approved) under the framework regulation for state
In recent years Participation Company Flanders (PMV) has acquired subsidy for research, development and innovation, Vinnof will in
a key position in the Flemish market for business financing. PMV future be able to provide seed capital for a maximum of 1.5 million
facilitates the financing cycle of companies from the very beginning EUR. In addition, the target group of start-up companies will be
up to international growth. Furthermore, PMV has become a market extended from companies less than three years old to companies
leader in seed capital, the cultural industry and the internationalisa- less than six years old;
tion of Flemish SMEs. 3. Taking into account the limited sums available for financing and the
absence of a business plan worked out by (pre) starters, the alloca-
The financial crisis and its impact on the real economy are an encour- tion of incubation financing will in the future be left to the IWT;
agement to further increase PMV’s effectiveness, so that the negative 4. Project financing will disappear for Vinnof and will be accommo-
effects on Flemish industry can be neutralised together with private dated in the new PMV financing company PMV-Mezzanine (see
financiers. PMV will do this by supplying venture capital, credit (and below).
credit guarantees), and mezzanine financing.
Flanders International Fund (Internationalisation process)
Risk capital The Flanders International Fund (FVI) has promoted the international
PMV provides risk capital with the help of four instruments. Each of growth of Flemish SMEs since 2007 by taking part in their investment
these instruments corresponds to one of the three processes on which projects abroad.
the Flemish economic support policy focuses: Enterprise, Innovation,
Internationalisation. Providing credit
At the moment, PMV is indirectly active in the field of providing
ARKimedes (Enterprise process) credit via the Guarantee Facility, Gigarant and the Win-Win loan.
The ARKimedes Foundation has promised 105 million EUR to 12
ARKIVs. Together with the contribution of private parties to the

part 23
Table 6. State of affairs of the PMV financing products (31 December 2009)

Total financing sum

PMV product Start up Number of dossiers
(million EUR)

ARKimedes Spring 2006 101 98.9

CultuurInvest January 2007 36 5.5
Fonds Vlaanderen-Internationaal January 2007 8 5.3
Gigarant April 2009 2 125
Vlaams Innovatiefonds (Vinnof) Spring 2006 33 14.5
Guarantee Facility July 2005 3,908 452.3
Win-Win loan September 2006 1,127 29.4
Total 5,215 730.9

Guarantee Facility For the providers of deferred loans, this form of funding has the ad-
Due to the financial crisis and the expected impact for the companies, vantage of returns determined in advance with a clear exit perspec-
the Flemish government decided already in 2008 to increase the tive. By starting this activity, the aim is to strengthen the financial
budget of the Surety regulation and to simplify the use of the regula- structure of companies. This has a twofold advantage:
tion on several points: increase of the surety budget and amount, 1. To provide an alternative for the current Project funding of Vinnof
there are no additional securities needed to the securities requested (see above), and for the NRC Fund, which will be abolished. The
by the bank and also short term credits can be guaranteed in the NRC Fund was established at the end of 2006 at the request of the
future. All these above mentioned measures have taken effect in the Flemish government in order to provide long-term funding for in-
mean time. novation projects of high-tech companies. However, the fund has
not been successful; up to now only one company has been given
Gigarant funding. The most important reason for the limited interest in this
Gigarant is a mechanism which enables PMV to supply crisis guar- fund is the non-deferred character of the funding which is pro-
antees to enterprises which cannot be considered for the generic vided. This is why the funding of innovation projects is the explicit
Guarantee Regulation. These are usually large companies or SMEs aim of the new ‘Mezzanine’ element of PMV.
which require guarantees over 1.5 million EUR. Gigarant is a tempo- 2. The provision of growth funding for innovative growth companies
rary measure, which will only be effective up to the end of 2010. At in Flanders, the so-called ‘gazelles’. Gazelles serve as a motor for
the end of 2009, Gigarant had already guaranteed a total amount of innovation in Flanders, grow faster than other companies and score
125 million EUR. significantly better in the field of job creation. Therefore it would
seem essential to devote attention to the gazelles, in particular dur-
Win-Win loan ing periods of crisis.
The Win-Win loan encourages private individuals to lend money to
enterprises at advantageous rates via a tax benefit. The Win-Win PMV’s mezzanine financing is intended for as wide a range of enter-
loan is a subordinated loan of 50,000 EUR max. The loan has a prises as possible. The total available budget for PMV Mezzanine will
lifetime of eight years and must be repaid in a single lump sum. If the be 92 million EUR. At the end of 2009, PMV had already supplied
firm is ultimately unable to repay the subordinated loan, the investor mezzanine financing to four companies for a total amount of 9.2
receives 30% of the amount outstanding via a one-off tax reduction. million EUR.
However, it is examining whether it would be possible to increase the
maximum sum of Winwin loans that one company can take out to a Table 6 shows the number of dossiers and the financing sum per
higher amount. financing product (situation end 2009).

PMV Mezzanine
The provision of Mezzanine financing will be the third element in the Vlaamse Participatiemaatschappij NV
activities of PMV in the field of business financing. PMV Mezzanine (Flemish Participation Company – VPM)
refers to deferred loans, loans which are deferred in relation to the The Flemish Participation company (VPM) is an NV with the only
existing and future debts of the company. Mezzanine funding is task to manage the participation of the Flemish government in GIMV.
viewed as own capital by banks and other providers of external capi- GIMV is an independent investment company registered on the stock
tal. In this way it contributes to strengthening the financial structure exchange which has specialised in the investment in the capital of
of the company and serves as a lever to attract external capital from companies not registered on the stock exchange and focusing on
(private) credit providers. Deferred loans have the advantage for growth (private equity). GIMV has a leading position in Private Equity
entrepreneurs that they do not have to open up their share capital to and Venture capital in Belgium and also operates on a European scale.
third parties.

24 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon


Oxygen for growth

LRM invests in companies and projects which generate income in
Limburg, a province of Belgium. Its mission is to “supply oxygen”
to Limburg-based companies. LRM is a profit-driven investor with a
unique combined offer of financial resources, infrastructure and know-
how, and is available to all enterprises, whatever their size or area of
activity. Although a generalist, it has, over the years, built up specific
competencies in ICT, the life sciences and clean technology. With this
focus, LCT is helping Limburg make the transition from a traditional
manufacturing economy to an innovative, technological knowledge
economy. LRM invests in companies in the five following areas: ICT
& Media, Life Sciences, Clean Tech & Energy, SMEs and, finally, large
companies. In these five segments, LRM’s main activities are the supply
of venture capital, the development of company infrastructures and
the sale of real estate.

Venture capital
LRM is the financial partner in start-up and expansion financing,
shareholder changes, family succession, buyout financing and project
financing. LRM enters most of its partnerships with a combination
of capital investment and a subordinated loan with warrants. Each
partnership is set up individually and takes into account the company’s
requirements and the partner’s wishes. In the case of small enterprises,
LRM uses a standard subordinated loan, the Plus Loan. In the area of
clean technology, LRM spontaneously initiates new projects or takes
part in demo projects. LRM’s current portfolio comprises over 90 com-
panies and the amount of its capital and reserves is 250 million EUR.

Company infrastructure development and real estate sale

A healthy economy needs appropriate industrial real estate. For this
reason, LRM develops SME, industrial, business and science parks
which quite literally provide room for growth. To achieve this, LRM
works in close cooperation with local and other authorities such as
the Limburg Provincial Autonomous Development Body (POM) and
waterway-management company De Scheepvaart. LRM also develops
real-estate projects which are specifically required by the market.
Often, these are projects consistent with Limburg’s high-tech activity,
such as logistics, life sciences and clean technology. One example is
life-sciences incubator building BioVille. LRM is currently involved in
developing over 500 ha of industrial real estate, including the 100 ha
of high-value real estate known as Waterschei- EnergyVille (Genk),
the 300-ha Kristalpark III in Lommel and 150 ha of the Albert Canal
Economic Network (ENA).

LRM also looks outside the province to fill available real estate.
Limburg has many assets with which to entice international investors.
LRM plays a coordinating role in the acquisition policy, in cooperation
with POM-Limburg, Enterprise Flanders and FIT (Flanders Investment
& Trade).
More info at

part 25
Chapter 1.7.

Enterprise in an international
The agency Flanders Investment & Trade (FIT) belongs to the Foreign For the export of equipment
Affairs policy area (IV). FIT has important points of contact with The end customer in a developing country (in accordance with the
EWI, in particular with regard to the economic support policy. In the OECD consensus) receives a direct discount on the purchase of
context of this publication it is therefore very interesting to briefly equipment, and Flemish suppliers remain competitive.
explain the activities of this agency and the different subsidies which
it provides. For feasibility studies
This subsidy applies for feasibility studies by construction and envi-
FIT supports Flemish businesses in their international activities and ronmental projects in developing countries.
guides foreign investors towards opportunities in Flanders. Flemish
entrepreneurs can call on the agency for information about foreign In addition, FIT supports collective projects of business groups and
markets, advice on strategies to approach the market and the partici- combined chambers of commerce. Every year a call is launched for
pation in seminars, business trips and trade fairs. FIT has representa- projects which create as many international business opportunities as
tives in 90 offices abroad, who work for Flemish businesses. possible for the individual companies. These must be projects which
are innovative both in terms of an approach and in terms of content,
The agency provides different forms of subsidies. Additional financial and which encourage sustainable or ethical enterprise.
support can, after all, make the difference for the international
ambitions of Flemish companies. At the moment FIT provides four Figure 7 shows the budgets which the Flemish government is making
categories of financial support for SMEs which are hoping to become available for the different subsidy systems for international enterprise.
As of 2010, the service-centre budget will be added to the budget for
For 8 types of projects (since 1 October 2009): the encouragement of international enterprise. The budget for 2010
• Prospection and business trips; is the initial budget.
• Participation in trade fairs or niche events abroad;
• Setting-up of a prospection office; In 2010, FIT will also receive financial support from the Hermes
• Travel to headquarters of multilateral facilities; Fund (see Chapter 1.1) for the “Internationalisation of the Flemish
• Production of product documentation, commercial translations Knowledge Economy” project (0.108 million EUR). The purpose of
and publications in trade media; the project is to strengthen the global position of Flemish high-tech
• Registration, approval and certification costs; and knowledge enterprises. Internationalisation is always an absolute
• Invitation of overseas buyers and decision-makers to Flanders; precondition for such companies to grow.
• Admission to a FIT-approved service centre.
More info is available at
Via the SME business portfolio
Since 1 January 2009, companies in the SME portfolio have also been
able to apply for subsidies for training and advice for international

26 PART 1 • EWI: co-oPErATIon BETWEEn EconoMY, ScIEncE And InnoVATIon

Figure 7. Summary of budget decisions on new dossiers in 2008 - 2010 (million EUR)








Feasability studies Support activities
Promotion of inter- Export of Flemish by construction business groups SME portfolio
Service centres
national enterprise equipment and environmental and chambers of (from 1 Jan. 2009)
projects commerce

n 2008 5.033 6.045 1.400 2.250 0.400 0.000

5.433 5.666 1.400 2.250 0.600 0.500

n 2009

5.396 5.374 1.350 2.157 0.000 0.475

n 2010

part 27
Science and innovation

Part 2
This chapter gives a precise overview of what the scientific and Administrative Structures of the Flem-
technological innovation policy consists of. We will use the interna- ish Science and Innovation Policy
tionally agreed definitions for this purpose. After all, to be able to
make an international comparison, one has to keep to international Here we will provide a summary description of the administrative
agreements. structure for the management of the science policy.

EWI policy area

International definitions The EWI Department, which is responsible for preparing policy initia-
tives and policy evaluation for the entire policy area.
Scientific activities - R&D - STET - STS
The term “scientific activities”, as defined in the Recommendation The agencies
concerning the International Standardisation of Statistics on Science • IWT: carries out policy related to industry. It is an intermediary
and Technology” – UNESCO, 1978 (Canberra Manual – OECD, Paris, organ, which distributes the funds amongst businesses and re-
1995, p. 67) comprises: search institutes, in conformity with defined selection criteria, and
evaluation and decision-making procedures.
Research and Development (R&D): “... creative work undertaken on • FWO: carries out policy with regard to basic research at the
a systematic basis in order to increase the stock of knowledge, includ- universities. It is an intermediary organ which distributes the funds
ing knowledge of man, culture and society, and the use of this stock among the universities and research institutes. That happens in
of knowledge to devise new applications” (Frascati Manual, OECD, conformity with defined selection criteria, and evaluation and
2002, p. 30). In other words, it includes any scientific activity which is decision-making procedures.
aimed at developing scientific knowledge (basic research), making it • Hercules foundation: finances medium-heavy and heavy in-
applicable (applied research) and applying it (development). frastructure for fundamental and strategic basic research in all
scientific areas.
Education and Training (STET): “...all activities comprising specialised
non-university higher education and training, higher education and Furthermore, the Participation Company Flanders (PMV), the
training leading to a university degree, postgraduate and further Flemish Participation Company (VPM) and the LRM as externally
training, and organised lifelong training for scientists and engineers” autonomous agencies (EVAs) and Enterprise Flanders (Agentschap
(Canberra Manual, OECD, Paris, 1995, p. 67). Therefore it concerns Ondernemen) as an internally autonomous agency make part of the
the funding of scientific education, for example, the proportion of EWI policy area. Although they have much ground in common with
the operational subsidies to universities that are used for university the science and innovation policy, the execution of it isn’t included in
education. their key tasks. Enterprise Flanders was described in chapter 1.1; the
agencies PMV, VPM and LRM in chapter 1.6.
Scientific and Technological Services (STS): “...activities concerned
with research and experimental development and contributing to the The advisory body
generation, dissemination and application of scientific and techni- The Flemish Council for Science and Innovation (VRWI) was estab-
cal knowledge” (Canberra Manual, OECD, Paris, 1995, p. 68). This lished by decree on 30 April 2009 as the strategic advisory council
concerns any form of services, such as performing routine measure- (SAR) for the science and innovation area. The VRWI is the successor
ments (e.g., routine medical analyses), the provision of scientifictech- of the Flemish Science Policy Council (VRWB) and formulates recom-
nological information (e.g., by libraries or information centres), and mendations to the Flemish Government and the Flemish Parliament,
the collection of data of a general interest (including the collection of in the area of science and innovation policy. The council will provide
data on social-economic phenomena). Studies related to policy and such recommendations on request, or at its own initiative.
the activities of administrative units with regard to the analysis, evalu-
ation and monitoring of external phenomena are included in this. The Socio-economic Council of Flanders (SERV) is the other advisory
body of the EWI policy area. SERV formulates and gives advice about
the broad economic aspects of the Flemish policy. Here too, there is
common ground with the science and innovation policy.

30 part 2 • science and innovation policy

Other policy areas • Royal Museum of Fine Arts – Antwerp (KMSKA – policy area
The science policy is situated in all thirteen policy areas. The depart- • Acquires, conserves, restores and exhibits its own art collection;
ments are authorised to give form to science policy initiatives that • Carries out scientific research;
support their policy. Besides EWI, these policy areas are: • Publishes catalogues on its collection and yearbooks;
• Services for the General Government Policy (DAR); • Organises exhibitions in the Royal Museum of Fine Art and in
• Administrative Affairs (BZ); foreign countries;
• Finance and Budget (FB); • Organises educational activities: training of educational as-
• Foreign Affairs (IV); sistants, training courses for adults, lessons for teachers and
• Education and Training (OV); schools, guided tours, lectures and youth ateliers, publications;
• Welfare, Public Health and Family (WVG); • Organises documentary activities: technical library, archives and
• Culture, Youth, Sport and Media (CJSM); a collection register.
• Work and Social Economy (WSE);
• Agriculture and Fisheries (LV); • Institute for Agricultural and Fisheries Research (ILVO – policy
• Environment, Nature and Energy (LNE); area LV)
• Mobility and Public Works (MOW); • Co-ordinates and carries out policy-supporting research,
• Town and Country Planning, Housing Policy and Immovable including the accompanying services, with the objective of
Heritage (RWO). making the agricultural and fishing sectors sustainable from an
economic, environmental and social perspective;
The four Flemish scientific institutes • Builds up the required know-how for an improvement of
• Research Institute for Nature and Forests (INBO – policy area LNE) products and production methods, for monitoring the quality
• Carries out policy-oriented scientific research with regard to the and safety of end-products, and for an improvement of policy
conservation, management and sustainable use of biodiversity instruments, as a basis for sector development and agrarian
and its environment; rural policy;
• Provides scientific services in support of the policy and to • Regularly provides information to the policymakers, the cor-
defined target groups, amongst others through advising, ex- responding sectors and society at large.
perimental analyses, the provision of new products, techniques,
concepts and documentation;
• It reports periodically on the condition of nature and the natural
environment, and on the effects of environmental policy, in-
cluding the extent in which the assumed objectives of the envi-
ronmental policy are reached, while monitoring and evaluating
the available know-how and investigating future developments.

• Flemish Heritage Institute (VIOE – policy area RWO)

• Aimed at leading scientific research with regard to monuments,
landscapes and the archaeological heritage;
• Formulates scientifically supported advice which contributes to
justified policy choices;
• Develops a social perspective to approach the heritage with
integrity by disseminating knowledge;
• Assesses its research and expertise in the light of an interna-
tional context;
• Aims to make the concern for the heritage self evident on the
basis of a sincere concern for the heritage.

Part 2 • science and innovation policy 31

Chapter 2.1.

‘Actual Science Policy’

The ‘actual science policy’ concerns the science policy of the EWI DISTRIBUTION OF RESOURCES FOR 2010 OVER THE EWI BUDGET
policy area that come directly under the minister responsible for sci- PROGRAMMES
ence and innovation policy, together with the resources for financing The five budget programmes with a content in the EWI policy area
the science policy at the universities and institutes of higher educa- were discussed in chapters 1.1 to 1.5. Table 7 shows the funding
tion under the Education and Training (OV) policy area. Previously, volumes for the science policy that come directly under the minister
these resources were ascribed to the organisation division OA 71 of responsible for science and innovation policy in 2010 per programme.
the former WIM department, together with the aforementioned sci- In 2010, the Valorisation and Industrial Policy programme accounts
ence funds from OA 33 of the former Education department. for more than half of the EWI funds for science policy. Together with
the Policy Support and Academic Policy programme, this share is
Fundamental research at universities, which opens up new horizons, even above 90% (figure 8).
as a necessary basis for all further socially and industrially oriented
research, just as much as research at institutes of higher education,
is after all a part of such a coherent policy. Strategic basic research
Figure 8: Percentage distribution of resources for the 2010 ‘actual
also is largely carried out at the universities and institutes of higher science policy’ in the EWI policy area
education, including the strategic research centres IMEC, VITO, VIB
2% 2%
and IBBT. In addition, there is also the broad and varied domain of 0.2%
industrial research carried out in support of Flemish industry. 4%

2.1.1. EWI ‘Actual Science Policy’
The policy funds for science and innovation that come directly under
the minister responsible for science and innovation policy amount to
722.029 million EUR in 2010, of which 692.429 million is foreseen
for R&D. A new 0.926 million EUR subsidy will be available to NERF
in 2010. NERF is the new Flemish interdisciplinary research centre set
up at the initiative of VIB, IMEC and K.U.Leuven. n EF. Valorisation and Industrial Policy
n EE. Policy Support and Academic Policy
n ED. Economic Support Policy
n EC. General
n EG. Awareness-raising and Society
n EA. Device funds

Table 7: Distribution of resources for the 2010 ‘actual science policy’ in the EWI policy area

Budget Programmes EWI SP R&D STET STS

EF. Valorisation and Industrial Policy 362.842 351.983 0.000 10.859

EE. Policy Support en Academic Policy 299.836 296.044 0.000 3.792
ED. Economic Support Policy 30.000 30.000 0.000 0.000
EC. General 17.120 12.104 0.000 5.016
EG. Awareness-raising and Society 11.010 2.298 0.000 8.712
EA. Device Funds 1.221 0.000 0.000 1.221
Total 722.029 692.429 0.000 29.600

32 part
IMEC via reinvestment of the participation in Finindus. At this point,
Figure 9. Evolution of EWI (Economy Science and Innovation) ‘actual
science policy’ funds, without one-off special funds (million EUR) the non-recurrent resources or special budget lines for 2010 are: 30
million EUR for R&D from the Hermes Fund, and 2.343 million EUR
from a provisional budget which should normally be transferred to
the relevant FWO budget line during 2010, once the funds from the
National Lottery have been definitively allocated.
2.1.2. ‘Actual science policy’ in the Education and
Training policy area
The operational subsidies for higher education budget line (FD0
0 FG201 4000, previously FG4002D) includes the operating resources
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i for the universities and the funds for academic courses at institutes of
n R&D EWI  n STS EWI higher education (see below: table 14).

In 2010, as in 2009, the basic subsidy for the Special Research Fund
(BOF) for the universities is 104.590 million EUR.
Figure 10. Evolution of EWI (Economy Science and Innovation) ‘actual
science policy’ funds, including one-off special funds (million EUR)
As part of the new financing of higher education, the universities will
900 receive an additional payment during budget years 2008-2014 to
800 reinforce research in the human sciences. These include: the histori-
700 cal sciences, literature (including the information and documenta-
600 tion sciences, library science and archival science), and philosophy
500 (including the moral sciences). These funds are distributed among the
400 universities according to the number of researchers at each university
300 who are engaged in this type of work, and paid from sources other
200 than the operational subsidy, expressed in full-time equivalent. The
100 amount of this subsidy for 2010 is 1.039 million EUR.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i
The Flemish government contributes to supporting the strengthen-
n SP EWI  n one-off ‘special’ funds
ing of involvement in research in academic courses at institutes of
higher education. This includes increasing capacity for research and
EVOLUTION OF THE RESOURCES innovation, enhancing the interdisciplinarity of research performed,
Figures 9 and 10 show the evolution of the financing of the science supporting the valorisation of research results and cooperation with
and innovation policy of the former Organisation Division OA 71 the business world. As part of the public-finance trimming campaign,
(2000-2007) and of EWI for 2008-2010. Figure 9 shows the evolution it was decided that the amount of this subsidy for the budget year
of the budgets for the ‘actual science policy’, not including one-time 2010 would be 8.229 million EUR (Similar financing is also available
budgets. These increased by 23.2 million EUR in 2009. However, cuts from the EWI policy area: 7.5 million EUR).
have caused them to decrease by 30.7 million EUR in 2010.

Figure 10 shows the evolution of the overall science-policy budget,

including one-time, special budget lines and resources for the
implementation of specific policy priorities for the year. For instance,
in 2008, 30 million EUR was allocated to R&D initiatives from the
Hermes Fund, and a special grant of 45.1 million EUR was paid from
the Financing Fund for one-off Investment Expenditures (FFEU) for
the reinforcement of the Flemish knowledge infrastructure: the new
VLIZ research vessel (7 million EUR), the VITO research infrastructure
(8 million EUR), Supercomputer (7.1 million EUR), Flemish Biobank
(8 million EUR) and training infrastructure for the industrial-sciences
campus at Antwerp Institute of Higher Education (15 million EUR).
25.5 million EUR of non-recurrent resources were also released in
2008 further to the so-called “abolition of encours”: 11.1 million
EUR for IWT and 14.4 million EUR to ERDF (Hermes Fund) for the
cofinancing of two wide-ranging projects relating to renewable energy
within the scope of Interreg. In 2009, 30 million EUR was supplied
by the Hermes Fund for R&D, as well as an injection of capital into

PART 2 • ScIEncE And InnoVATIon PoLIcY 33

2.1.3. Evolution of the ‘actual science policy’ The 2010 budgets for the ‘actual science policy’ amount to 1.601
Table 9 shows the initial funds for the ‘actual science policy’ (EWI billion, of which 1.002 billion for R&D resources. This represents an
policy area, the Higher Education programme for the Education and 80 million EUR cutback compared with the initial budget for 2009
Training policy area and some special funds) with the initial 2009 (EWI Budget Browser 2009), and is 62 million EUR less than the final
budgets (as described in the EWI Budget Browser 2009) and with budget for 2009. The share intended for R&D has decreased by 76
the definitive funds for that year. In 2010, a further 30 million EUR million EUR compared with the initial budgets for 2009 and by 61
from the Hermes Fund (EC0 ED200 9999 – previously BA ED9911B million EUR compared with the final budgets for 2009.
– authorisation allocation Fund for Subsidiary Economic Policy) has
been allocated to R&D initiatives. In 2009 there was a one-off capital Figures 11 and 12 show the evolution of the ‘actual science policy’ in
injection in IMEC, via a reinvestment of the participation in Finindus the EWI and OV policy areas, without and with the one-off special
for the construction of the new clean room. funds.

The funds for the science policy (the sum of the scientific activities in
R&D, STET and STS – for definitions see page 30) are shown in the
upper part of the table, the budgets specific to R&D in the lower half.

Table 8. Basic Allocations to ‘actual science policy’ in the Education and Training policy area (OV), 2010 (million EUR)

Budget Compared
ENT  PR ESR Description SP fund
fund to 2009

FD0 FG201 4000 1,304.374 +1.840 Operational subsidies Higher Education 668.637
FD0 FG223 4430 104.590 0.000 Subsidy for the Special Research Fund for the universities 104.590
FD0 FG224 6152 26.921 0.000 Capital transfers for real estate investments for university education 26.921
FD0 FG222 4410 24.016 0.000 Legal and conventional employers' contribution for free universities 24.016
Subsidy granted to the "Prins Leopold" Institute for Tropical
FD0 FG229 4430 10.151 0.000 10.151
Medicine (ITG), in Antwerp
FD0 FG218 4150 8.304 0.000 Subsidies for social provisions in university education 8.304
Strengthening of the research commitment in academic education at
FD0 FG215 4430 8.229 -0.025 8.229
the institutes of higher education
FD0 FG245 4430 7.359 0.000 Subsidies for social provisions in university education 7.359
Additional operational subsidies within the framework of an incentive
FD0 FG203 4430 6.213 -0.018 6.213
fund for policy spearheads
Subsidies for financing expertise networks and regional platforms in
FB0 FG003 3300 2.878 -0.035 0.000
relation to the decree on teacher training in Flanders
FD0 FG205 4170 2.287 0.000 Operating payments for the Dutch-Flemish Accreditation Organ 2.287
Subsidy to the Universiteit Antwerpen for the Institute for
FD0 FG219 4150 2.075 0.000 2.075
Development Policy and Management (IOB)
FD0 FG230 4430 1.862 0.000 Subsidy for the Vlerick Leuven Ghent Management School 1.862
Subsidy to the Vrije Universiteit Brussel for the Institute for European
FD0 FG221 4430 1.859 0.000 1.859
Studies (IES)
Additional operational subsidies to strengthen the research of human
FB0 FG009 4430 1.039 0.000 1.039
sciences at the universities
FB0 FG004 3300 0.841 0.000 Subsidies for specific projects related to the teacher training 0.000
FD0 FG231 6410 0.636 0.000 Capital transfers for real estate investments ITG 0.636
FD0 FG206 4430 0.632 0.000 Subsidies for open higher education 0.632
FD0 FG217 4430 0.520 +0.005 Subsidy for associations 0.520
FD0 FG225 4430 0.510 -0.070 Subsidy to Universiteit Antwerpen Management School (UAMS) 0.510
FD0 FG227 4430 0.419 0.000 Subsidy to the Evangelical Theological Faculty Leuven 0.419
FD0 FG228 4430 0.215 +1.840 Subsidy for the Faculty of Protestant Theology in Brussels 0.215
Subsidy to the Universiteit Antwerpen for the Institute for Jewish
FD0 FG220 4150 0.167 0.000 0.167
Studies (IJS)
TOTAL 876.641

34 part
Table 9. Comparison of initial funds in 2010 with initial and final funds in 2009 for the ‘actual science policy’, in particular, the SP funds in the
EWI and Education and Training (OV) policy areas, supplemented with one-off special funds (million EUR)

2010 2009 2009 vs. vs.

‘Actual SP’
initial initial final 2009 initial 2009 final

Policy Area EWI (SP Hermes fund included) 722.029 766.157 752.743 -44.128 -30.714
Provisional budget National Lottery 2.343 0.000 0.000 2.343 2.343
IMEC: reinvestment of the participation in Finindus 0.000 35.000 35.000 -35.000 -35.000
Policy Area OV 876.641 880.287 874.944 -3.646 1.697
Total ‘actual SP' 1,601.013 1,681.444 1,662.687 -80.431 -61.674

2010 2009 2009 vs. vs.

‘Actual R&D’
initial initial final 2009 initial 2009 final

Policy Area EWI (SP Hermes fund included) 692.429 734.961 721.198 -42.532 -28.768
Provisional budget National Lottery 2.343 0.000 0.000 2.343 2.343
IMEC: reinvestment of the participation in Finindus 0.000 35.000 35.000 -35.000 -35.000
Policy Area OV 307.259 308.180 306.842 -0.921 0.416
Total ‘actual R&D’ 1,002.031 1,078.141 1,063.040 -76.110 -61.009

Figure 11. Evolution of the ‘actual science policy’ funds, without Figure 12. Evolution of the ‘actual science policy’ funds, including
one-off special funds (million EUR) one-off special funds (million EUR)

1,800 1,800
1,600 1,600
1,400 1,400
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i

n R&D   n STET  n STS n ‘actual SP’   n one-off ‘special’ funds

PART 2 • ScIEncE And InnoVATIon PoLIcY 35

Chapter 2.2.

Science policy in the other policy

The science policy within the other policy areas comprises those Finance and Budget (FB)
science policy initiatives that do not come under the ‘actual science FB subsidies include the subsidies to the Taxation and Budget policy
policy’ (see chapter 2.1). In other words, it is the science policy for research centre and to Universiteit Antwerpen Management School
which the authority lies with the policy areas themselves, and that (UAMS). Due to the current low interest rates and capital repayments,
authority is geared towards supporting and giving shape to the the budget for the intervention in interest charges by the Flemish Com-
‘actual science policy’. munity for loans taken out by the universities and UZ Gent to finance
real-estate investments was cut to 0.492 million EUR. The FB budget is
This policy is situated within all the policy areas, which will be 1.1 million EUR. The 2.343 million EUR currently entered in the provi-
discussed point by point below. It represents 109.624 million EUR: sional budget for expenditure to be financed by the net income from
6.4% of the total science and innovation policy. Of this, 63.897 mil- the National Lottery and which will normally be transferred to FWO is
lion EUR is R&D funding, or 6.0% of the total volume of R&D funds considered to be allocated to ‘actual science policy’ (see chapter 2.1).
from the HBPWB (Horizontal Budget Programme for Science Policy).
Foreign Affairs (IV)
Of course, it is not the intention to explain each and every fund Part of the funds for science policy are earmarked for the Tourism
from this section. For that, we would refer you to the website programme, both from the subsidy to the Antwerp Royal Zoological, where you can consult all Society (KMDA) and that to Flanders Tourism. Cofinancing has also
the detailed information per fund in the form of index cards. been granted to the Foreign Policy, Tourism and Recreation policy
research centre. The total amount for 2010 is 2.2 million EUR.
Services for the General Government Policy (DAR)
The DAR research budget for 2010 is 3.5 million EUR. Economy, Science and Innovation (EWI)
The resources for the Foundation Innovation & Labour are included The subsidy for the cofinancing of the Entrepreneurship and Interna-
in the budget as a component of the grant to SERV. One recurrent tional Entrepreneurship policy research centre – 0.263 million EUR – is
research project is the Technology-Organisation-Work (TOA) survey, the only budget line in the EWI policy area which is not included in
which is taken from a representative sample of enterprises and the ‘actual science policy’, as the purpose of this financing of policy-
organisations in Flanders, with a view to assessing knowledge and the relevant research is to improve the definition of the economic policy.
application of (new) forms of work and business organisation, new
management concepts, and specific technical innovations. There is Education and Training (OV)
also the Vlaamse werkbaarheidsmonitor (Flemish Working Environ- The resources from the Higher Education programme belong to the
ment Monitor), a tool intended to measure and monitor the quality ‘actual science policy’ (see table 8). Within the OV policy domain,
of working conditions in Flanders. Foundation Innovation & Labour is another 4.7 million EUR has been made available, among others for
also implementing or preparing eight one-time projects. policy-preparation, -support and -assessment initiatives. A subsidy has
In the DAR policy area, research is also financed by supporting the also been granted to Education Policy and Practical Scientific Research
Sustainable Development, Equal Opportunities and Administrative (OBPWO). This is distributed to university research centres and is an
Organisation policy research centres. Resources are also available essential source of funds for the development of knowledge in the
to the Research Centre of the Flemish government (Studiedienst policy area and the planning, monitoring and evaluation of policy
Vlaamse regering). projects. Finally, a subsidy has been allocated to the Education and
School Careers policy research centre.
Administrative Affairs (BZ)
1.5 million EUR will be available for research in the Administrative Af- Welfare, Public Health, and Family (WVG)
fairs policy area, in the form of subsidies to the Administrative Organisa- The Welfare, Public Health and Family and Environment and Health
tion and Equal Opportunities policy research centres, as well as research policy research centres are partly financed by the WVG policy area.
projects on town planning and public administration. This includes a grant to the Louis Pasteur Scientific Institute for Public

36 part
Health and subsidies to the approved centres for human heredity and to ensure consistency between the research projects of the various
the Royal Academy of Medicine (KAGB), as well as for epidemiologi- divisions of Environment, Nature and Energy (LNE), Flemish public
cal research and indicator collection. Child and Family (Kind en Gezin) institutes VLM, VMM and OVAM, and Flemish scientific institute
and the Flemish Agency for Disabled Persons (VAPH) also provide for INBO (Research Institute for Nature and Forest). The planned budget
a scientific research section within their own budgets. In 2010, the for INBO in 2010 is 13.8 million EUR.
overall science policy budget of the WVG policy area is 6.6 million Further information concerning the 2010 budget lines for INBO,
EUR. VMM, VLM, OVAM, Aquafin, the TWOL research programme and
VIF is available at
Culture, Youth, Sport and Media (CJSM)
A total of 12.5 million EUR will be paid from CJSM in support of sci- Mobility and Public Works (MOW)
ence policy. The largest budget is intended for the Antwerp Museum Mobility studies, mobility agreements, research into harbour issues
of Fine Arts (KMSKA) Flemish Scientific Institute: 5.8 million EUR and expenditure on the Waterways Laboratory and hydrological re-
(grant, wages and supplements). CJSM will also be cofinancing the search are covered by the MOW (Mobility and Public Works) policy
Culture, Youth and Sport policy research centre. Resources will also be area. A total of 3.8 million EUR has been earmarked for science
available from the Media programme, for media innovation and (in policy in 2010.
part) the grant to VRT (Flemish Community Broadcasting Company).
Town and Country Planning, Housing Policy and Immovable Herit-
Work and Social Economy (WSE) age (RWO)
In 2010, the WSE policy area has earmarked 0.398 million EUR for The total science budget in this area is 7.5 million EUR for 2010.
studies and research. The Flemish Interuniversity Research Network The grant to VIOE (Flemish Heritage Institute) is the largest scientific
(VIONA) has been supporting strategic labour market research in budget line from the RWO policy area: 5.8 million EUR in 2010.
Flanders since 1994. This research network is an initiative by the Flem- VIOE is the scientific institute set up by the Flemish government to
ish government and the Flemish social partners. VIONA focuses on research and inventory our heritage. Its research forms the basis for
concrete issues relating to the current employment-opportunity policy. the Flemish authorities’ heritage policy. Some instances are: archaeo-
logical sites, historic buildings, landscapes on which human beings
Agriculture and Fisheries (LV) have left their mark, shipwrecks, etc. VIOE’s scientists publish the
In 2010, the LV policy area will be supplying 25 million EUR to sup- results of their research in scientific journals and books. The public is
port science policy. informed by means of readings, brochures, exhibitions, educational
The Institute for Agricultural and Fisheries Research (ILVO) has been projects and other initiatives.
allocated a budget of 18.1 million EUR (grant, wages and supple- RWO also finances the Spatial Planning and Housing policy research
ments). ILVO’s mission is to perform and coordinate policy-forming centre.
scientific research and related services, with a view to achieving
agriculture and fisheries which are sustainable from the economic, Higher Entities
environmental, social and societal viewpoint. The research subjects This concerns the part of the grant to the Flemish Parliament for sci-
are highly diversified, increase knowledge, and inform policy. The ence policy, which is managed by the Institute Society and Technology
research is carried out on behalf of a number of stakeholders, includ- (IST), a total of 1.118 million EUR. The Institute Society and Technol-
ing public authorities, producers and the chain/sector. Its subjects ogy (IST) is an independent and autonomous body with links to the
help strengthen the sector and region economically, environmentally Flemish Parliament, which researches the social aspects of scientific and
and socially, and are future-oriented. ILVO also supplies advice and technological developments. This involves study and analysis, the struc-
technological services on request. turing and encouraging of social debate, the observation of scientific
The Agriculture, Fisheries and Countryside Policy also includes various and technological developments at home and abroad, the performance
budget lines which finance science policy, such as subsidies to agri- of prospective research concerning such developments, the supply of
cultural and horticultural practice centres, Chambers of Agriculture, information to target groups and the supply of advice to the Flemish
agricultural trade fairs, horticultural associations, warning services, Parliament on the basis of these activities. The Institute’s purpose is to
and other agricultural and horticultural subsidies. LV also subsidises help increase the quality of social debate and ensure a better-informed
VLAM, Flanders’ Agricultural Marketing Board. decision-making process.

Environment, Nature and Energy (LNE)

Within the LNE policy area, a total of 39.2 million EUR has been
allocated to science budgets. LNE finances research and other sci-
entific activities from the general budget (General, Nature, Forestry
and Greenery and Energy programmes), the MINA fund (Fund for
Prevention and Redevelopment concerning Environment and Nature)
and the Flemish Infrastructure Fund (VIF).
To ensure consistency between the many research projects, budgets
and project owners, the TWOL programme (Applied Environmen-
tal Scientific Research) has been set up. The purpose of TWOL is

PART 2 • ScIEncE And InnoVATIon PoLIcY 37

Chapter 2.3.

Analysis of the Horizontal Budget

Programme for Science Policy
2.3.1. Period of time A first round of cuts was made during the third budget adjustment of
Table 10 and figure 13 illustrate the evolution of the government 2009. During 2009, the science policy funds declined by 1.5% (down
funds for science and innovation policy. 27 million EUR). The R&D resources also decreased by 1.5% (down
17 million EUR).
Initially, in 2009, a structural increase of 29 million EUR was made to
augment the resources for the science policy in the EWI policy area Further economies were required for the 2010 budget. As a result,
(see EWI Budget Browser 2009). A one-time capital injection was compared with the final budgets for 2009, WB resources fell by 66
also made in IMEC by reinvesting of the participation in Finindus (35 million EUR (3.7%), mainly due to the cutting of R&D budgets: down
million EUR). 64 million EUR (5.7%) compared with 2009.

Table 10. Evolution of the Horizontal Budget Programme for Science Policy (HBPWB) (million EUR)

1993 ... 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i

R&D 326.78 ... 625.07 711.26 770.69 820.67 898.64 967.95 952.67 1,121.43 1,130.07 1,065.93
STET 365.13 ... 463.81 482.41 497.54 504.05 517.91 532.92 531.17 580.39 566.59 567.27
STS 31.88 ... 76.79 75.13 66.97 68.16 72.28 75.10 77.52 80.17 80.26 77.44
SP 723.79 ... 1,165.67 1,268.80 1,335.20 1,392.87 1,488.83 1,575.97 1,561.36 1,781.99 1,776.92 1,710.64

Figure 13. Evolution of the Horizontal Budget Programme for Science Policy (HBPWB) (million EUR)
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i

n R&D   n STET  n STS

38 part
2.3.2. According to policy area Table 11 shows the total SP fund per policy area, split up into three
In 2010, the global fund for the HBPWB (Horizontal Budget Pro- scientific activities (definitions on page 30): research and development
gramme for Science Policy) amounts to 1.711 billion EUR, of which (R&D), education and training (STET) and scientific and technologi-
1.066 billion is for research funds. Compared to the final funds for cal services (STS). The distribution from table11 follows strictly the
2009, this is a decrease in the science budget of 66.3 million EUR structure of the budget expenditure.
(-3.7%) and in the R&D budget of 64.15 million EUR (-5.7%).
Figures 14a and 14b show the ratios in percentage of science policy
These budgets are spread over all the policy areas alluded to above. and of R&D funds respectively, for the various policy areas.
The ‘actual science policy’ (see 2.1.3) provides 93.6% of the total
HBPWB budget. The R&D share of the ‘actual science policy’ is 94.0%
of the total R&D budget.

Figure 14a. Distribution of the science and innovation policy funds in 2010 over the policy areas of the Flemish government

2.3% MOW
Other 0.2%

42.3% 0.2% 0.1%

1.5% 0.4% 0.1%

Figure 14b. Distribution of the R&D funds in 2010 over the policy areas of the Flemish government

1.8% 0.3%
OV 0.4%
0.3% BZ
Other 0.1%
5.7% FB
65.0% IV
LV 0.4%
1.5% CJSM

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

PART 2 • ScIEncE And InnoVATIon PoLIcY 39

Table 11. Distribution of the Horizontal Budget Programme for Science Policy (HBPWB) over the policy areas (million EUR)


OV 881.304 311.862 566.516 2.926

EWI 722.292 692.692 0.000 29.600
LNE 39.233 18.980 0.020 20.234
LV 25.154 15.799 0.000 9.355
CJSM 12.520 3.926 0.000 8.594
RWO 7.524 4.647 0.000 2.877
WVG 6.564 4.693 0.003 1.867
MOW 3.807 3.468 0.000 0.339
DAR 3.525 3.525 0.000 0.000
FB 3.467 2.737 0.731 0.000
IV 2.215 0.988 0.000 1.227
BZ 1.515 1.515 0.000 0.000
WSE 0.398 0.398 0.000 0.000
Higher Entities 1.118 0.698 0.000 0.420
Total 1,710.637 1,065.927 567.270 77.439

2.3.3. According to the minister in charge As shown in Figures 15a and 15b, the distribution is made according to
The Flemish government includes nine ministers in charge of the the “minister in charge” code for the related budget lines in the budget
policy sections in the thirteen policy areas defined some years ago by table. In the case of three EWI budget lines, responsibility is shared
the Flemish authorities’ so-called BBB reform (Beter Bestuurlijk Beleid, between the Minister for Innovation, Public Investment, Media and
i.e. Better Administrative Policy). Only two ministers are fully respon- Poverty Reduction and the Minister for the Economy, Foreign Policy,
sible for a single policy area: the Minister for Welfare, Public Health Agriculture and Rural Policy. These budgets are shared out 50/50,
and the Family (WVG policy area) and the Minister for Mobility and with the exception of EB0 EC101 1211 (funding relating to the design,
Public Works (MOW policy area). All nine ministers in the Flem- preparation and implementation of actions relating to the economy,
ish government contribute funds to budgets for the policy sections science and innovation), which is divided 75/25 prior to the splitting of
for which they are responsible. The same also applies to resources the budget in the course of the year. The BAs in the other policy areas
specific to R&D. which are the responsibility of several ministers are not subdivided any
further (see “several ministers” in figures 15a and 15b).

40 part
Figure 15 a. Distribution of resources for the 2010 science and innovation policy according to the minister in charge


51.5% 0.4%

Other 0.3%
7.7% 0.2%


Figure 15 b. Distribution of R&D budget for 2010 according to the minister in charge

2.1% 0.3% 0.05%




As in the case of distribution by policy area, the difference between n Flemish Minister for Innovation, Public Investment, Media and
both figures can be explained by the fact that the operational sub- Poverty Reduction
sidies to the universities are divided into 25% for R&D and 75% for n Flemish Minister for Education, Youth, Equal Opportunities and
STET. The Minister for Innovation is responsible for 62% of the R&D Brussels Affairs
resources and the Minister for Education for 29.3%. The remaining n Minister-President of the Flemish government and Flemish
8.5% fall under the jurisdiction of the seven other ministers in the Minister for Economy, Foreign Policy, Agriculture and Rural Policy
Flemish government. n Flemish Minister for Environment, Nature and Culture
n Flemish Minister for Administrative Affairs, Local and Provincial
Government, Civic Integration, Tourism and the Vlaamse Rand
n Flemish Minister for Welfare, Public Health and Family
n Flemish Minister for Finance, Budget, Work, Town and Country
Planning and Sport
n Flemish Minister for Mobility and Public Works
n Flemish Minister for Energy, Housing, Cities and Social Economy
n Several ministers

PART 2 • ScIEncE And InnoVATIon PoLIcY 41

2.3.4. According to the NABS classification services and Flemish public institutions, research is carried out in
Figure 16 divides the entire budget for the 2010 science policy in many cases which falls under several NABS fields (e.g., environment,
accordance with the new NABS classification. NABS stands for No- energy, industrial production and technology, …). As this division
menclature for the analysis and comparison of scientific programmes cannot always be clearly established, one NABS code is assigned to
and is an EU classification system which subdivides the government one fund. In other words, the lack of funds for research into energy
funds for R&D in terms of socio-economic objectives. The important (NABS 5) certainly does not mean that the Flemish government does
advantage of this classification of the R&D funds is that it allows for into fund any research in that field. The NABS classification per basic
international comparisons – also see chapter 3.2. However, the NABS allocation can be found on
classification, when applied to the Flemish government R&D funds
entails an important limitation. With the overall subsidies or grants
for the strategic research centres, scientific institutes, departmental

Figure 16. Distribution of the 2010 R&D budget according to the NABS classification

0.25% 1.77%


19.99% 0.96%
0.43% 2.35%

n   1. Exploration and exploitation of the earth

n   2. Environment
n   3. Exploration and exploitation of space
n   4. Transport, telecommunication and other infrastructures
n   5. Energy
n   6. Industrial production and technology
n   7. Health
n   8. Agriculture
n   9. Education
n   10. Culture, recreation, religion and mass media
n   11. Political and social systems, structures and processes
n   12. General advancement of knowledge: R&D financed from general university funds (GUF)
n   13. General advancement of knowledge: R&D financed from other sources

The NABS classes can be aggregated into larger categories: economic for 2010 is 46%. The relative share of research financed by general
development, health and environment (social structures, protection university funds has decreased from 28% in 1997 to 20% in 2010.
of the environment and exploitation of the terrestrial environment), The share of R&D (25%) in the operational subsidies to universities
education and society, space programmes, non-oriented research and is included. The share of health and environmental research has also
general university funds. decreased, while that of non-oriented research has remained more or
less constant over time. Figure 26 on page 56 compares Flanders with
Budgets for research which supports economic development are in- other countries.
creasing in proportion to the total R&D budget: whereas in 1997 this
type of research accounted for 35% of the total budget, the figure

42 part
Figure 17. Distribution of the 2010 R&D budget according to aggregated NABS categories


3% 3%

n Economic development  n Health and environment  n Education and society  n Non-oriented research  n General university funds

2.3.5. Oriented vs. non-oriented research research centres IMEC, VITO, VIB and IBBT (149.5 million EUR incl.
In 2010, the R&D budget is 1,065.9 million EUR, of which 503.4 NERF), Hercules resources (50%: 7.4 million EUR) and other resources
million EUR for non-oriented research2 and 562.5 million EUR for from oriented industrial research (60.8 million EUR), subsidies (for
oriented research. The ratio of non-oriented to oriented research is instance) to ITG and other similar institutes (7.1 million EUR), the sub-
therefore 47/53. sidies to the scientific institutes, departmental divisions and VOIs (38.3
million EUR), the R&D share of the horizontal initiatives in the various
The 2010 budget for non-oriented research comprises the resources policy areas (23.5 million EUR), and finally miscellaneous payments in
for FWO (148.7 million EUR), BOF (137.2 million EUR), Hercules connection with the overall science policy (11.0 million EUR).
(50%: 7.4 million EUR), the R&D share (25%) of the operational
subsidies to universities and institutes of higher education and of the Figure 18 shows the evolution of this ratio since 1995. In 1995, the
supplementary operational funds (189.0 million EUR), the R&D share ratio of non-oriented to oriented research was 60/40. As of 2002,
of the other payments to universities (16.8 million EUR), and finally the proportion of oriented research has slightly exceeded that of non-
the resources for international scientific cooperation (4.3 million EUR). oriented research. In 2009 and 2010, the difference between both
Oriented research comprises the resources managed by IWT, except categories has decreased slightly.
the operational subsidies (264.9 million EUR), the subsidies to strategic

Figure 18. Evolution of the ratio of non-oriented to oriented research, 1995-2010









1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i
n % non-oriented research  ● % oriented research

Source: 1995-2008: VRWI with EWI input; 2009 update (final budgets) and 2010 (initial budgets): EWI

Compared to the NABS classification (see 2.3.4), non-oriented research considered here comprises also GUF (general university funds).

PART 2 • ScIEncE And InnoVATIon PoLIcY 43

2.3.6. According to the six major categories
Figure 19 shows the apportionment of the whole budget for the sci-
ence policy (HBPWB) for 2010 over six major categories. The funds
for ‘operation universities and similar institutes’ account for 45.6%
of the total science budget. These six classifications are separately
discussed in detail below.

Table 12. Distribution of the total Horizontal Budget Programme for Science Policy (HBPWB) (million EUR)
research via FWO,
BOF and Hercules

services and VOIs

similar institutes

Govt. institutes,
universities and

Global science

Operation of



Year Total

1993 70.736 486.821 127.003 15.113 18.927 6.780 725.380

1994 73.887 547.837 141.343 19.246 27.092 11.140 820.545
1995 78.551 544.767 132.552 19.217 25.419 7.350 807.855
1996 94.994 551.373 158.485 40.183 28.333 17.921 891.288
1997 112.179 547.649 191.189 39.890 29.850 22.099 942.855
1998 125.258 553.162 220.048 40.380 41.704 32.704 1,013.256
1999 139.936 584.855 235.237 45.813 39.338 61.800 1,106.979
2000 156.420 600.460 231.685 54.372 43.771 40.348 1,127.056
2001 164.279 612.778 243.410 52.917 68.867 23.417 1,165.667
2002 172.699 641.860 311.011 48.983 67.338 26.911 1,268.801
2003 177.768 664.778 347.891 71.795 50.500 22.465 1,335.196
2004 200.235 676.164 396.659 65.300 31.201 23.314 1,392.873
2005 213.090 694.729 453.760 69.029 33.857 24.365 1,488.829
2006 234.783 718.485 487.204 72.741 36.434 26.325 1,575.972
2007 253.336 716.167 450.310 74.491 37.070 29.982 1,561.357
2008 280.518 770.610 572.556 86.489 41.774 30.040 1,781.988
2009 296.844 778.974 555.443 80.175 34.212 31.276 1,776.925
2010i 293.282 780.095 496.307 77.368 32.449 31.137 1,710.637

Figure 19. Distribution of the funds for the 2010 science policy

4.5% 1.9%
29.0% 17.1%

n Govt. institutes, departments, services and VOIs

n Horizontal initiatives, policy-supporting research
n Global science policy
n Non-oriented research via FWO, BOF and Hercules (50%)
n Operation of universities and similar institutes
n Industrial research

44 part
1. Non-oriented research via FWO, BOF and Hercules (50%)
(million EUR)
Table 13 shows the resources for non-oriented, groundbreak-
ing research distributed via FWO, BOF and Hercules (50%). The
resources of the Special Research Fund (BOF) are paid directly to the
universities and apportioned by the research council according to the
university’s research policy. The budgets for FWO’s mandates and
projects are allocated indirectly by these intermediaries.

Table 13. Non-oriented research distributed via FWO, BOF and Hercules (50%) (million EUR)


FWO 148.665
Basic subsidy 120.063
National Lottery 9.370
Provisional budget (National Lottery) 2.343
Odysseus programme 12.600
International research facilities 2.201
International scientific cooperation 2.088
BOF 137.199
Basic subsidy (OV policy area) 104.590
Strengthening basic subsidy (EWI policy area) 2.540
Methusalem programme 20.076
Tenure Track System 5.645
ZAP (Independant Academic Personnel) mandates 4.348
Hercules - funding of (medium-)heavy research infrastructure and management remuneration (50%) 7.4175
Total 293.282

The Special Research Fund (BOF) and the Research Foundation Figure 20 shows the distribution of funds for non-oriented research in
(FWO) are the two funding channels for the non-targeted research at 2010 distributed via FWO, BOF and Hercules (50%). 50.7% goes via
Flemish universities aimed at increasing knowledge. While the FWO the FWO, 46.8% via the BOF and 2.5% via the Hercules Foundation
assigns the budgets on the basis of scientific interuniversity competi- (50% of the grant).
tion, for the BOF it is assigned on the basis of intrauniversity competi-
tion. The FWO is the funding channel for encouraging and sup-
porting groundbreaking and fundamental scientific research on the
initiative of the researcher (bottom up) in all the scientific fields at the
Figure 20: Distribution of the non-oriented research funds via FWO,
Flemish universities. The BOF funds are divided amongst the universi- BOF and Hercules (50%) 2010
ties on the basis of a distribution key which includes performance-
oriented parameters, amongst other things: the BOF key. The FWO Hercules
and the BOF complement and strengthen each other. BOF 2.5%
46.8% FWO
Half of the grant for the 2010 Hercules Foundation for funding heavy
and medium-heavy research infrastructure, amounting to 14.250
million EUR, and the management remuneration of 0.585 million
EUR, are included in the non-oriented research, while the other half is
accommodated in the strategic basic research.

One change compared with previous years is that the IWT specialisa-
tion grants for oriented research have been classified (Table 15). This
change was applied retroactively in the time series.

PART 2 • ScIEncE And InnoVATIon PoLIcY 45

2. Operation of universities and equivalent institutes

Table 14. Operation of universities and equivalent institutes (million EUR)

Operational subsidies to universities 2010i

Operational subsidies to universities 653.620

KUBrussel 1.449
K.U.Leuven 242.987
UHasselt 25.564
tUL 0.006
UGent 212.151
UA 89.840
VUB 81.623
Strengthening of the involvement of research in academic courses at institutes of higher education 15.729
Funds for the academic content of graduate courses + funds for library digitalisation 15.016
Additional operational subsidies within the framework of an incentive fund for policy spearheads 6.213
Additional operational subsidies to strengthen the research of human sciences at the universities 1.039
Subsidy to the associations 0.520
TOTAL 692.138

Other subsidies to universities

Real estate investments of universities 26.921

Employer contributions for free universities 24.016
Subsidy for the social facilities of students 15.663
Financial burdens of universities 0.492
Total 67.092

Other similar institutes

Institute of Tropical Medecine “Prins Leopold” (ITG) 10.787

Post-initial education 2.489
Institute of Development Policy and Management (IOB) 2.075
Vlerick Leuven Gent Management School 1.862
Institute for European Studies (IES) 1.859
University of Antwerp Management School (UAMS) 0.992
Evangelical Theological Faculty (ETF) 0.419
Faculty of the protestant Theology (Brussels) 0.215
Institute of Jewish studies (IJS) 0.167
Total 20.865

Grand total 780.095

Out of the total science-policy funds, the subsidies to universities 2010 these subsidies amount to 8.229 million from OV and 7.500
account for the lion’s share. The initial budgets for 2010 amount to million EUR from EWI.
653.620 million EUR. 75% of this sum is intended for STET, and the
remaining 25% for R&D. UAMS (Universiteit Antwerpen Management School) has been granted
a subsidy from the Education and Training policy area of 0.510 million
To strengthen the involvement of research in academic courses at EUR, as well as a Finance and Budget subsidy of 0.482 million EUR.
institutes of higher education, subsidies have been allocated to the
Education and Training (OV) and EWI policy areas since 2008. In

46 part
Figure 21. Distribution of the operational subsidies to the universities in 2010 (on the basis of initial budget funds)

UHasselt KUB tUL

3.9% 0.22% 0.001%





Figure 22. Evolution of the operational subsidies to the universities and supplementary funds (million EUR)








1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i

PART 2 • ScIEncE And InnoVATIon PoLIcY 47

3. Financing of research and development of new technologies for the industry

Table 15. Funds for oriented industrial research (million EUR)


IWT 275.786
Initiative of industry and innovation cooperative ventures 126.423
Initiative of the Flemish Government 35.078
Innovative media projects 10.319
Flemish Innovation Network (VIN) 0.673
Strategic basic research (SBO) 36.674
Specialisation grants and Baekeland programme 32.092
Agricultural research 9.122
TETRA fund 8.454
Applied Biomedical research (TBO) 5.700
Flemish participation in the European programmes (Flemish point of contact – VCP) 0.392
Operation 10.859
Strategic Research Centres 149.516
IMEC (incl. NERF) 43.542
VITO 45.609
VIB 37.598
IBBT 22.767
Innovation (Hermes fund) 30.000
Industrial Research fund (IOF) 17.022
Project-based scientific research (PWO) 9.025
Funding (medium-) heavy research infrastructure (Hercules - 50%) 7.4175
Interface services 2.819
Foundation Innovation & Labour 2.423
Flanders DC 2.298
Total 496.307

Table 15 gives an overview of the budgets for oriented industrial Fifty percent of the 2010 grant to the Hercules Foundation for the
research. In 2010, these amount to 499.307 million EUR, over half of financing of medium-heavy and heavy infrastructure (14.250 million
which is managed by IWT, the Agency for Innovation by Science and EUR) and the management subsidy of 0.585 million EUR is allocated
Technology (55.6%). These resources are discussed in part 1. to industrial research, and the other 50% to non-oriented research
(see table 13).
Many of these resources (30%) are intended for research under-
taken by the strategic research centres (SOCs) IMEC, VITO, VIB and
IBBT, and altogether account for 149.516 million EUR. The amount
intended for the NERF activities (0.926 million EUR) is included in the
IMEC budget. NERF (Neuro-Electronic Research Flanders) is a new
Flemish interdisciplinary research centre created at the initiative of
VIB, IMEC and K.U.Leuven, with government support. Its purpose is
to understand the working of a neuronal circuit in the human brain.

48 part
Figure 23. Distribution of the funds for oriented industrial research in 2010

30.1% 6.0% 3.4%

n IWT 1.5%
n SOC’S 1.8%
n Innovation (Hermes)
n PWO Other
n Hercules (50%) 3.1%
n Interface services
n Flanders DC 55.6% 0.6%
n Innovation & Labour Foundation 0.5%


4. Scientific institutes, departmental divisions and Flemish Public In the case of VLIZ (Flanders Marine Institute), subsidies have been
Institutions (VOIs) granted for operation (1.057 million EUR), investment expenditure
In this case, the budgets are distributed to Flemish scientific insti- (1.100 million EUR) and the support and operation of the IODE
tutes, specific departmental divisions or Flemish Public Institutions Project Office (0.568 million EUR) and the ESF Marine Board (0.120
(VOIs) which are also responsible for research and the supply of million EUR).
scientific services. The total budgets amount to 77.368 million EUR.
Table 16 lists these scientific institutes, departmental divisions and Other institutes such as Kind en Gezin (Child and Family), VRT, and
VOIs, together with the corresponding budgets. VAPH have been allocated only a limited share of the overall grant
for the funding of science policy.
The four Flemish scientific institutes ILVO (Institute for Agricultural
and Fisheries Research), INBO (Research Institute for Nature and
Forest), VIOE (Flemish Heritage Institute) and KMSKA (Antwerp
Royal Museum of Fine Arts) have been allocated a total of 43.529
million EUR for their science policy in 2010. They will be financed
from their respective policy areas: ILVO from LV, INBO from LNE,
VIOE from RWO and KMSKA from CJSM.

Table 16. Scientific institutes, departmental divisions and Flemish Public Institutions (VOIs) (million EUR)


Institute for Agricultural and Fisheries Research (ILVO) 18.117

Research Institute for Nature and Forest (INBO) 13.854
Public Environmental Agency of Flanders (VMM) 11.054
VRT 5.842
Flemish Heritage Institute (VIOE) 5.782
Royal Museum for Fine Arts – Antwerp (KMSKA) 5.776
Aquafin 4.388
Flanders Marine Institute (VLIZ) 2.845
Hydrological Laboratory 2.700
Royal Zoological Society of Antwerp (KMDA) 2.564
Institute Society and Technology (IST) 1.118
Public Waste Agency of Flanders (OVAM) 1.065
Scientific Institute of Public Health – Louis Pasteur 0.967
Flemish Land Agency (VLM) 0.460
Child and Family 0.378
Tourism Flanders 0.194
Flemish Agency for Disabled Persons (VAPH) 0.135
Institute of Plant Biotechnology for Developing Countries (IPBO) 0.071
International Centre for Reproductive Health (ICRH) 0.058
Total 77.368

PART 2 • ScIEncE And InnoVATIon PoLIcY 49

Table 17. Horizontal initiatives and policy-supporting research and
5. Horizontal initiatives and policy-supporting research and studies
studies (million EUR)
In 2010, 32.449 million EUR has been allocated to horizontal initia-
tives and policy-supporting research. The resources for policy-relevant 2010i
research performed by institutes of any kind, such as the Flemish
DAR 1.187
scientific institutes, are not included in this table, but in table 16.
However, the cofinancing of the policy research centres from the BZ 0.880
policy areas for policy-relevant research is included here. FB 0.150
IV 0.259
These initiatives are distributed according to Flemish governmental EWI 0.263
policy area.
OV 7.582

6. Miscellaneous expenditure related to the general science policy WVG 5.111

This includes initiatives which support the science policy as a whole. CJSM 0.639
The advisory bodies are included, as they support the general science WSE 0.398
and technology policy. The largest budget line is the one which fi-
LV 7.037
nances the subsidies to the policy research centres for policy-relevant
LNE 6.094
research: 10.271 million EUR (see table 18).
MOW 1.107
RWO 1.742
Total 32.449

Table 18. Miscellaneous expenditure related to the general science policy ( million EUR)


Policy research centres 10.271

International scientific cooperation 4.343
Flanders Technology International (FTI) Foundation 3.789
Flemish electronic network – Lisbon Strategy 2.931
Publication of the science policy 2.923
Expertise centres 2.000
Flemish Council for Science and Innovation (VRWI) 1.221
Royal Academy for Sciences, Literature and the Fine Arts 1.137
Inventory and valorisation of science and technology research (VIA) 0.848
Conception, preparation and execution of scientific actions 0.840
Royal Academy for Dutch Language and Literature – Ghent (KANTL) 0.264
Inventory of Scientific and Technological Research (IWETO) 0.247
Royal Academy for Medicine 0.173
Various communications initiatives, with regard to science, technology and innovation 0.150
Total 31.137

50 part
Chapter 2.4.

Expenditure analysis of the

science and innovation policy
The Horizontal Budget Programme for Science Policy (HBPWB) Of course, it is impossible to discuss the expenditure analyses for the
indicates for a particular year how much money is earmarked for previous years in detail. For this reason, the most important global
science policy according to plan, and for what activities. Where the results follow here. For certain Basic Allocations, for which global
HBPWB is looking ahead, the expenditure analysis will on the other subsidies or grants for institutes are recorded, no detailed analysis has
hand check whether the money budgeted has indeed been spent, been made. This is the case with FWO and IWT and for the strategic
and on what precisely. research centres and the Flemish Scientific institutes. They each have
their own account management system, which cannot supply further
An accurate understanding of the expenditure is a basic parameter details via the Financial System.
for being able to meet future needs. It might appear that a project
did not get off the ground or was postponed, or cost more than Finally, we would also mention that for IWT and the Hermes Fund,
was envisaged, that certain sums of money were used for different only the allocation authorisations have been taken into account and
purposes. It should be remembered that an ad-hoc adjustment on the not the grants, because the HBPWB is always based on the descrip-
grounds of a re-orientation of the policy accents during the course tion of the actual policy area. The complete allocation authorisations
of the year is part of the normal course of affairs. The interaction be- have been included; how these funds are paid out is published in the
tween the HBPWB and the expenditure analysis enables a deeper un- annual reports.
derstanding and better orientation when drawing up the subsequent
budget. Thus, the information obtained via the Horizontal Budget Table 19 compares the global science policy budget, whereby a distinc-
Programme for Science Policy can be essentially supplemented and tion is made between initial and final funds, with the Science Policy
completed – so that the expenditure of all funds on science, technol- funds allocated. The last column shows the percentage that was ordi-
ogy and innovation can be properly evaluated. nanced. This is the section for which the instruction to pay was given.

Table 19. Evolution of the initial, final, allocated and ordinanced Science Policy (SP) funds for HBPWB, 1997-2008

Allocated SP Allocated SP vs. % ordinanced of

Initial SP budget Final SP budget
Budget year budget final SP budget the allocated SP
(million EUR) (million EUR)
(million EUR) (%) budget

1997 943.23 942.86 940.45 99.7 94.0

1998 1,013.64 1,006.71 1,003.05 99.6 93.9
1999 1,107.30 1,122.06 1,099.60 99.4 91.7
2000 1,131.16 1,127.06 1,120.94 99.5 92.5
2001 1,155.549 1,165.669 1,147.899 98.5 88.7
2002 1,214.279 1,268.801 1,256.331 99.0 97.6
2003 1,321.910 1,335.197 1,326.806 99.4 95.3
2004 1,418.101 1,392.873 1,367.665 99.2 93.4
2005 1,486.495 1,488.829 1,485.631 99.8 93.4
2006 1,573.737 1,575.972 1,570.561 99.8 90.2
2007 1,555.772 1,561.357 1,552.269 99.4 93.6
2008 1,681.895 1,781.988 1,767.706 99.2 91.9

PART 2 • ScIEncE And InnoVATIon PoLIcY 51

Figure 24. Evolution of the initial, final, allocated and ordinanced Science Policy (SP) funds for HBPWB, 1997-2008 (million EUR)










1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

n Initial SP fund  n Final SP fund  n Allocated SP fund  n Ordinanced SP fund

There is clearly a very good correlation between the planned and

the finally allocated SP fund. With regard to the ordinanced SP fund
(ordered for payment) we would point out that the expenditure
analysis of the budget year was done during the course of the year
following. But not all payments of allocations made had already been
carried out then: the actual amount is therefore higher and closer to
the allocated fund.

52 part
R&D government
expenditure for Flanders in
the international context

Part 3
At the European Top in Barcelona (March 2002) it was decided that the Pact 2020. This pact reflects the joint long-term vision, strategy
the objective for 2010 is to increase R&D expenditures (GERD) by and actions of the Flemish Government and the social partners. The
3% of the GDP (gross domestic product) in the EU. As an additional above-mentioned 3% objective is contained in this, but the deadline
objective, it was decided that one third of the R&D expenditures has been put forward to 2014.
must be financed by government and the other two thirds by
industry. Flanders translated this objective within a Flemish con- The EU 2020 Strategy, the European Union’s new long-term strategy
text through the so-called Innovation Pact. This pact was signed in and the successor to the Lisbon Strategy, has reaffirmed the 3%
March 2003, and it contains a formal engagement by all involved objective and has set the European deadline for 2020.
actors in the Flemish innovation landscape to jointly realise this 3%
objective by means of complementary efforts. This section examines in detail the expenditure on R&D by Flanders, in
particular that of the Flemish government, and compares it with that of
In 2009 the Flemish government and the Flemish social partners other countries. Also a cautious prognosis is made of the growth path to
took the initiative to conclude a new future pact for Flanders in ad- realise the 1% objective (the public financed share of the above men-
dition to Flanders in Action (VIA), with aims and actions for 2020: tioned 3% objective) by 2014, one of the objectives of the Pact 2020.

Chapter 3.1.

International comparison of Gov-

ernment Budget Appropriations
or Outlays for R&D (GBAORD)
GBAORD (Government Budget Appropriations or Outlays for R&D) is It is clear that the figures for GBAORD, expressed as % GDP, do not
an indicator used by the OECD and EUROSTAT. Table 20 shows an in- rise everywhere year after year. In some countries it stagnates, in
ternational comparison of the GBAORD as a percentage of GDP. The others there is even a drop over several years. Figure 25 compares
calculation method of the Flemish figure is explained in Chapter 3.2. Flanders with the selected countries. Because of the worldwide crisis
followed by economy measures taken, one must proceed with cau-
tion when comparing budgets. Comparison is therefore made for the
year 2008, the most recent year with figure for all countries.

54 part 3 • R&d government expenditure for flanders in the international context

Table 20. International comparison of Government Budget Appropriations or Outlays for R&D (GBAORD), expressed as a percentage of GD(R)P

2002 2003 2004 2005 2006 2007 2008 2009 2010i

Flanders* 0.62% 0.65% 0.64% 0.65% 0.67% 0.63% 0.70% 0.69% 0.65%
Belgium 0.60% 0.61% 0.59% 0.59% 0.61% 0.60% 0.69% no data
Germany 0.78% 0.79% 0.77% 0.77% 0.76% 0.77% 0.79% 0.86%
France 1.00% 0.99% 0.96% 0.97% 0.81% 0.74% 0.75% no data
United Kingdom 0.75% 0.74% 0.69% 0.67% 0.67% 0.66% 0.64% no data
Ireland 0.33% 0.37% 0.43% 0.46% 0.45% 0.49% 0.52% 0.60%
Netherlands 0.74% 0.74% 0.73% 0.69% 0.71% 0.69% 0.70% 0.80%
Denmark 0.73% 0.73% 0.71% 0.71% 0.72% 0.79% 0.85% no data
Finland 0.97% 1.00% 1.01% 1.03% 1.01% 0.97% 0.98% 1.08%
Sweden 0.88% 0.92% 0.88% 0.87% 0.85% 0.81% 0.81% 0.90%
Italy no data no data no data 0.67% 0.61% 0.64% 0.63% 0.62%
Portugal 0.67% 0.61% 0.64% 0.73% 0.72% 0.78% 1.02% 1.13%
Spain 0.74% 0.73% 0.80% 0.84% 1.00% 1.08% 1.00% no data
United States 0.97% 1.04% 1.07% 1.04% 1.02% 1.01% 0.99% no data
Japan 0.72% 0.73% 0.72% 0.71% 0.70% 0.68% 0.70% 0.74%
EU-25 0.75% 0.74% 0.74% 0.72% 0.70% 0.70% 0.70% no data
EU-27 0.74% 0.73% 0.73% 0.71% 0.69% 0.70% 0.69% no data

Source: Main Science and Technology Indicators, OESO, Volume 2009/2

* Flemish government R&D funds + Flemish share of the federal funds (35.5% ESA 56% for the rest) - variant 2 – see chapter 3.2)

International comparison shows that the 2008 figure of Flanders USA is the leader in this regard with 57% of their R&D budget for
(0.70%) is close to EU-27 level (0.69%). The GBAORD figure of defence, France 28%, the UK 22%, Spain 15% and Sweden 12%.
Portugal increased in 2008 with 33% and reaches the first position in The Flemish government does not finance any research whatsoever
this comparison. It should also be pointed out that certain countries in the area of defence. This does not alter the fact that Flanders is still
provide a substantial proportion of their R&D expenditure for defence not a leader, even when comparing solely the portion of GBAORD
(see also the explanation of the NABS analysis in chapter 2.3). The allocated to civilian research.

Figure 25. International comparison of Government Budget Appropriations or Outlays for R&D (GBAORD) 2008, expressed as a percentage of

1.02 1.00 0.99
1.00 0.98

0.90 0.85
0.81 0.79
0.75 0.70 0.70 0.70 0.69 0.69
0.70 0.64 0.63


United States











United Kingdom



n civil GBAORD  n defence GBAORD

Source: Main Science and Technology Indicators, OESO, Volume 2009/2

* Flemish government R&D funds + Flemish share of the federal funds (35.5% ESA 56% for the rest) - variant 2 – see chapter 3.2)

part 3 • R&d government expenditure for flanders in the international context 55

According to the socio-economic objectives, we can categorise the Figure 26 shows the ratios of the aforementioned categories com-
civil R&D funds (this is the GBAORD without defence R&D) as fol- pared with some other countries. The countries are arranged in order
lows: of decreasing share of economic development. It is striking that the
• Economic development; Flemish government, compared with the other countries listed, directs
• Health and Environment (This should be interpreted broadly: relatively the largest portion of research funding towards economic
control and care of the environment, exploration and exploitation development – more than 46%. On the other hand, the Flemish
of earth, as well as social structures and relationships); government does not finance any research that is directly related to
• Education and Society; space programmes. Helped by funds from the federal science policy
• Space; budget, Belgium does score highly here: 12%.
• Non-oriented research;
• General university funds (GUF).

Figure 26. International comparison of the civil GBAORD (exc. defence research): ratios of economic development, health and environment,
education and society, space, non-oriented research and general university funds























United States

United Kingdom

n Economic development  n Health and Environment   n Education and Society  n Space

n Non-oriented Research  n General University Funds

Source: OECD – MSTI 2009/2

Year: Flanders: 2010; Finland, Sweden, Germany, Netherlands, Japan, Italy and Ireland: 2009; other countries and EU-27: 2008
Flanders*: Flemish government funds in the strict sense (variant 1 – see chapter 3.2)

56 part
Chapter 3.2.

R&D intensity in Flanders

3.2.1. Overall R&D intensity (3% objective) sector in which the research is carried out (private or public). The first
R&D intensity – i.e. the percentage of gross domestic product (GDP) refers to the source of the funding (private or public), irrespective of
spent on R&D by all research actors, and better known as the 3% the sector in which the research is carried out. In this case, the 2%
objective - is calculated on the basis of the results of the two-yearly and 1% objective apply respectively. The latter is applicable to the
OECD R&D surveys. The results of the 2008 survey (covering 2006- sector in which the research is performed, whatever the origin of
2007) are published in the 2009 Vlaams Indicatorenboek by the the funding, whether companies R&D (BERD), R&D in the higher-
Expertise Centre R&D Monitoring (ECOOM)3. Table 21 shows the education sector (HERD), the public research centres (GOVERD) or
evolution of: private non-profit sector (PNP). The latter three are also known as
• The overall R&D intensity in Flanders (GERD); the non-BERD or R&D in the public sector.
• The division of GERD into public and private funding (2% and 1%
objective); Table 21 shows that after the drop in R&D intensity (GERD/GDRP)
• The division of GERD into BERD (R&D funding by the private sec- during 2001-2004 the total R&D expenditure rose slightly in 2005,
tor) and non-BERD (R&D funding by the public sector). but fell once more in 2006 to the lowest level in 9 years. Although it
increased again slightly in 2007, the 3% objective was still far from
The division of R&D intensity according to funding sector (public vs. having been achieved.
private) should not be confused with the division according to the

Table 21. Evolution of R&D intensity in Flanders

2001 2002 2003 2004 2005 2006 2007

GERDregion /GDRP 4
2.38 2.17 2.08 2.01 2.06 1.97 2.03
GERDcommunity /GDRP 5
2.42 2.21 2.12 2.05 2.10 1.99 2.06

Private funding/GDRP
1.56 1.51 1.50
(2% objective)
Public funding/GDRP
0.52 0.56 0.53
(1% objective)

BERD/GDRP 1.83 1.61 1.51 1.41 1.44 1.36 1.40

non-BERD/GDRP 0.54 0.56 0.57 0.60 0.63 0.61 0.63

Source: Vlaams Indicatorenboek 2009, Expertise Centre for R&D Monitoring (ECOOM)

3.2.2. Estimate calculation method for publicly- calculation is included to approximate the results for the most recent
financed R&D intensity (1% objective) years. Of course, certain circumspection is justifiable for this approx-
For the period 2008-2010, however, there are no survey data avail- imative method, based on a number of assumptions.
able yet, nor any alternative sources of information. Consequently,
for the present purpose, as in the previous EWI Budget Browsers, a

The Vlaams Indicatorenboek is an ECOOM publication.
GERDregion: estimate by region for the calculation of the GERD. R&D expenditure at Flemish institutes of higher education in the Brussels-Capital Region is not taken into account.
GERDcommunity: estimate by community for the calculation of the GERD. R&D expenditure at Flemish institutes of higher education in the Brussels-Capital Region is taken into account, leading to a higher R&D intensity figure.

part 57
The combined efforts of the government are calculated here by With variant 2, the Flemish return from the EU Framework pro-
working out different variants. grammes for Research and Technological Development can also be
1. The efforts of the Flemish government by itself. counted, since here too it is a question of R&D activities financed
This is the Flemish GBAORD in the strict sense, financed by the with public funds. However, the result can no longer be considered
Flemish government alone. as GBAORD, but is actually a third variant that can be used for
2. The efforts of the Flemish government + the Flemish share in the calculating the publicly financed portion of the R&D intensity.
federal government funds.
In Flanders, R&D activities are also financed with federal govern- The results of this calculation are given in table 22. If we look at the
ment R&D funds. When this share of the federal government R&D funds of the Flemish government, then – after the regression in
is counted into the Flemish GBAORD in the strict sense (1), a 2007 – we see a sharp rise in the absolute figures in 2008, due mainly
GBAORD is obtained for Flanders that is possibly closer to reality. to the extra 75 million EUR in new structural policy funds and accents
This variant is consequently the most suitable for an international in 2008 (see EWI Budget Browser 2008), but also to some one-
comparison of the GBAORD. When calculating Flanders’ share in time injections of funds into the science policy during the course of
the federal government funds, following formula is used: 2008. In 2009, the budget continued to increase (+ 8.6 million EUR),
35.5% European Space Agency (source: Flemish Council for Sci- although less than expected: 25.5 million (see EWI Budget Browser
ence and Innovation – VRWI) and 56% for the rest of the federal 2009), due to economy measures taken during the third budget in-
R&D funds. spection. The 2010 budget has been provisionally cut by 64.1 million
3. The efforts of the Flemish government + the Flemish share in the EUR due to further economy measures. The figure achieved for 2010
federal government funds + the Flemish return from the funds of is therefore presumed to be 0.72%.
the EU Framework programmes for Research and Technological

Table 22. Evolution of R&D efforts and R&D efforts as a percentage of GDRP by the Flemish government

R&D budget (million

2003 2004 2005 2006 2007 2008 2009 2010i

Flemish government (1) 770.687 820.666 898.638 967.954 952.670 1,121.429 1,130.072 1,065.927
Flemish share of federal
252.584 248.861 233.582 251.996 262.972 281.852 238.255 238.255
government (2)
Flemish government +
Flemish share of federal 1,023.271 1,069.527 1,132.220 1,219.950 1,215.642 1,403.281 1,368.327 1,304.182
Flemish share EU FP (3) 88.073 88.073 88.073 88.073 88.073 146.000 146.000 146.000
Flemish government+
1,111.343 1,157.600 1,220.293 1,308.023 1,303.714 1,549.281 1,514.327 1,450.182
federal + EU FP

Public R&D intensity as %

2003 2004 2005 2006 2007 2008 2009 2010i
of GDRP (1% objective)

Flemish government 0.49 0.49 0.52 0.53 0.49 0.56 0.57 0.53
Flemish government +
Flemish share of federal 0.65 0.64 0.65 0.67 0.63 0.70 0.69 0.65
Flemish government +
0.71 0.70 0.70 0.71 0.67 0.77 0.76 0.72
federal + EU FP

GDRP (million EUR) (4) 2003 2004 2005 2006 2007 2008 2009 2010i
157,411.7 166,387.4 173,222.2 183,210.7 194,173.4 200,640.9 198,443.4 201,969.1

(1) Flemish government, as defined in the HBPWB - final budgets 2003-2009; initial budget 2010.
(2) • Flemish share in the Federal government R&D funds: ESA distribution key at 35.5% Flemish (source: VRWI) and the rest of Federal government R&D funds at 56% Flemish.
• Federal government R&D funds: source: CFS/STAT. For 2009 and 2010: initial budget of 2009 used.
(3) Estimated according to the calculated Flemish return for the 6th Framework Programme for 2003-2007. For 2008-2010i: estimated return based on preliminary results of the
Flemish return for the 7th Framework Programme. Sources: Flanders in the European 5th Framework Programme for research, Flanders in the European 6th Framework Programme for Research, EWI.
(4) GDRP: Gross Domestic Regional Product – source: Hermreg – Research Centre of the Flemish Government (Studiedienst van de Vlaamse Regering) – June 2009.

58 part
Figure 27 shows the evolution of the results of the calculation
method described above in the case of publicly financed R&D inten-
sity. The red line at the bottom shows the evolution of the figures
from the R&D survey. The results for 2003, 2005 and 2007 can be
compared with the results achieved using the estimate calculation
method. This method overestimated publically financed R&D inten-
sity by around 25%, both for 2005 (0.70% against 0.56%) and 2007
(0.67% against 0.53%). Assuming that this is also the case for more
recent years, the 0.72% for 2010 should be “corrected” to 0.57%.
Of course, this is a purely indicative figure. However, what cannot be
disputed is that the 1% objective for Flanders is still far from having
been achieved in 2010.

Figure 27. Evolution of the R&D/GDPR for Flanders (Flemish government funds + Flemish share in the federal R&D funds + Flemish share of EU
research programmes - variant 3), comparing publicly-financed R&D intensity calculated using the estimate calculation method with the actual

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i
n Flanders + Federal (ESA 35.5% + rest 56%) + EU FP (variant 3)  ● Publicly financed R&D intensity
▲  Using estimate calculation method (corrected)

3.2.3. Growth path to 2014 • A GDRP as estimated by the Research Centre of the Flemish Gov-
In the Pact 2020, which reflects the long-term vision, strategy and ernment (Studiedienst van de Vlaamse Regering);
actions of the Flemish Government and the social partners, Flanders • Calculation of public R&D intensity as per variant 3 (Flemish gov-
has set itself the goal of investing 3% of its GDP in R&D by 2014. ernment + Flemish share of federal funds + EU FP), in which the
If, by analogy with the Innovation Pact, one-third of this is to come share of the federal R&D government funds for Flanders remains
from public funds and two-third from private funds, a growth path constant in absolute figures, as well as Flanders’ share of the EU
can be traced to the achievement of the 1% figure in 2014. Framework Programme (FP) for Research;
• No correction to the over-large estimate achieved with this calcu-
Here is an estimate of the budgetary measures required to achieve lation method (see figure 27).
the 1% objective by 2014. The following assumptions have been
• A saving of 2% on the overall R&D funds from the Flemish gov-
ernment in 2011;
• A linear growth rate compared with the GDRP for 2012-2014;

part 59
Figure 28 shows the evolution of public R&D intensity (1% objective) in known values up to 2010, and with the prognosis up to 2014.

Figure 28. Evolution of the public R&D intensity* 1995-2010 and of the growth path 2011-2014 to achieve the 1% objective by 2014

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010i 2011 2012 2013 2014

n Flemish government + Flemish share federal government + EU FP (variant 3)  ▲  Growth path 2011-2014

2010i: initial budget 2010

* Flemish government R&D funds + Flemish share of the federal R&D funds (35.5% ESA 56% for the rest) + Flemish return on EU FP- variant 3

Table 23 shows the results of this calculation. Provided growth for 2010. In view of the changes usually made to budgets during the
remains linear in 2012-2014, annual budget increases of over 300 year, the reader is advised to consult the most recent prognosis at
million EUR will be required if the figure of 1% is to be achieved.
This prognosis has been calculated on the basis of the initial budget

Table 23. 1% objective by 2014: annual increase in government R&D funding required (million EUR)

2010i 2011 2012 2013 2014

Prognosis GDRP - current prices 201,969.1 210,622.7 219,470.2 228,290.9 237,576.2

GDRP growth in % - current prices 4.3% 4.2% 4.0% 4.1%
R&D as % of GDRP 0.72 0.68 0.79 0.89 1.00

2010i 2011 2012 2013 2014

Flemish share federal funds 238 238 238 238 238

Flemish share EU FP 146 146 146 146 146
Flemish government 1,066 1,045 1,340 1,654 1,992
Annual increase 295 314 338
Total: Flemish gov. + fed. gov. + EU FP 1,450 1,429 1,724 2,038 2,376
(variant 3)

Source for GDRP: estimate by Research Centre of the Flemish Government (Studiedienst van de Vlaamse Regering) - June 2009

60 part
Chapter 3.3.

In depth analysis of GBAORD

In 2009, Belgium took part in an exploratory project to develop new 3.3.1. GBAORD by sector of performance
internationally comparable indicators on public funding modes, based Data are classified by funding mode and by destination of funds: sec-
on GBAORD data (Government Budget Appropriations or Outlays tor of performance, according to the Frascati Manual definitions6:
on R&D), organised by an OECD body, NESTI (National Experts on • Business enterprise sector: firms and joint research centres;
Science and Technology Indicators). The department of Economy, • Government sector: authorities, including strategic research centres
Science and Innovation (EWI) was the Flemish participant. Four new (IMEC, VITO, VIB, and IBBT);
indicators based on GBAORD data were developed as a result: • Higher education sector: universities, research facilities attached to
1. GBAORD by sector of performance universities, and institutes of higher education;
Data are classified by destination of funds: sector of performance, • Private non profit sector: both semi-public and private organisations,
according to the Frascati Manual definitions: business enterprise and international organisations.
sector, higher education sector, government sector and private non
profit sector. At first sight, it is not easy to divide research budgets according to
2. GBAORD by funding mode organisation type, as the organisations which ultimately receive the
This indicator shows distinction between institutional and project resources in the budget to perform the planned research are not
funding. always known in advance. In the case of many budget lines such as
3. Public R&D funding by funding agency operational subsidies and other payments to universities, subsidies
The funding agencies are divided into four categories: national and grants to research institutes, and R&D subsidies to enterprises,
public funding agencies, independent agencies, regional authorities this does not pose a problem. However, in the case of other studies
and European and international agencies. and research projects, the name of the institute or enterprise which
4. GBAORD by type of instrument will be carrying out the research is not known in advance. For this
The three types of instrument taken into account are: academic reason, the information from the analysis of science-policy allocations
instruments, policy or thematic instruments, and innovative instru- (see chapter 2.5) or the activity reports of the funding institutes has
ments. been used.

The first two indicators (GBAORD by sector of performance and by

funding mode) are included in OECD document “Measuring Innova-
tion: A New Perspective”, under the OECD Innovation Strategy and
will be described briefly in this document. These are experimental
indicators. International comparability is currently limited.

The 2008 budgets were used for this project. In the case of Flanders,
the figures are also an accurate indicator for other years. In order
to view the results in an accurate context, it should be remembered
that the figures only refer to R&D budgets. This means that the other
scientific activities STET (education and training) and STS (scientific
and technological services) are not taken into consideration. As far as
operational subsidies to universities are concerned, this means that
the 25% allocated to R&D have been taken into account, but not the
75% for STET.

Frascati Manual, Proposed Standard Practice for Surveys on Research and Experimental Development, OECD, 2002, Paris.

part 61
Figure 29 shows that over half the government funds available Figure 29. Distribution of the Flemish 2008 GBAORD by sector
for scientific research in 2008 went to higher education. The total of performance: higher education (HES), enterprises (BES), public
amount was 619 million EUR, financed via FWO, BOF, the opera- research centres (GOV) and private non profit sector (PNP)
tional subsidies to universities (25%), PWO, the IWT specialisation
grants, Hercules funds for the funding of (medium-)heavy research PNP
equipment, subsidies to policy research centres, and others. Most of 1% HES
the budget for policy-supporting scientific research from the thirteen 56%
policy areas was also allocated to the higher-education sector.

Around one-quarter of the government’s total R&D budget (264

million EUR) was paid to enterprises in 2008, mainly to enterprises
under the management of IWT (R&D support to enterprises and SME
programme). The Hermes Fund also contributed innovation funding,
and budgets were also allocated to policy-supporting research com- 24%
missioned by the various policy areas.

The government sector also carried out research in 2008, to the Figure 30. International comparison of GBAORD by sector of per-
amount of 218 million EUR, one-fifth of the total budget. Using formance, 2008
the same method as the OECD R&D survey for Flanders, this figure
includes the subsidies to the strategic research centres VITO, IMEC,
VIB and IBBT, as well as government funding of Flemish scientific
institutes ILVO, INBO, VIOE and KMSKA. The share of R&D in the
total funds allocated to the government is 55%.

Finally, 1% (12 million EUR) of the government’s R&D budget for

2008 was allocated to the private non profit sector.

Figure 30 compared the figures for Flanders with those for Belgium,
the Netherlands, Germany and Ireland. These are the participating
countries for which comparison with Flanders is usually made.

In all five cases, higher education received the lion’s share. In Flan-
ders, the amount was slightly more than half the total GBAORD
(55%). The percentage was even higher in Ireland (about 70%) and
the Netherlands (above 60%). Although in Germany the proportion
was somewhat lower, the higher-education sector was still the main
beneficiary of GBAORD.

In 2008, Belgium’s and Flanders’ contribution to government research

(GOV) was considerable. Flanders allocated about 20% of its own





budget for this purpose, Germany and Ireland allocated less and the
Netherlands only about 4%.

It can also be noted that the Dutch, Irish and German authorities’ n HES  n GOV  n BES  n PNP
budgets for private non profit organisations (PNP) were tiny to non-
Source: OECD, 2010, Measuring Innovation: A New Perspective, Paris.
existent and very small in Belgium and Flanders.
Note: This is an experimental indicator. International comparability
is currently limited.

62 part
3.3.2. Higher education share of GBAORD by funding to define the research activities to be performed (also called block
mode funding). A distinction is made between general university funds
This analysis of the higher education sector share of GBAORD shows (GUF) and other institutional funds.
the proportion of institutional to project funding. Project funding is The general university funds (GUF), for Flanders an amount of 209 mil-
defined as money attributed to a group or an individual to perform lion EUR in 2008 (see also the GBAORD analysis by NABS classification
a R&D activity limited in scope, budget and time, normally on the in part 2 – 2.3.4), are included in institutional funding. The resources
basis of the submission of a project proposal describing the research allocated by the government to FWO, IWT and Hercules and the
activities to be done. The public institutional funding is defined as funding instruments BOF, IOF and PWO were considered to be project
the total of national budgets in a given country, attributed to an in- funding, as these funds were mainly allocated under this form.
stitution, for which money the organisation has more or less freedom

Figure 31. Ratio of institutional to project funding of the Flemish GBAORD 2008 for the higher-education sector (HES)

3.3% FWO
GUF 23.7%

Other IWT
2.2% PWO Hercules IOF 9.9%
1.5% 2.5% 2.7%

n Institutional funding  n Project funding

Figure 31 shows that in Flanders project funding has the edge. The ratio Figure 32. International comparison of GBAORD for higher educa-
of project funding to institutional funding is 63/37 (389 million/230 tion according to funding type, 2008
million). 100

Figure 32 shows that, for research in the higher-education sector, the
ratio of project funding to institutional funding in Flanders is quite high.
In the case of Ireland, the ratio is 50/50, while the Dutch and German
governments have opted for a higher ratio of institutional funding to 70
project funding. However, it should be noted that the various countries
may not interpret the definitions of funding mode in the same manner,
so that some caution should be exercised when interpreting these 50
preliminary results.









n Institutional funding  n Project funding

Source: OECD, 2010, Measuring Innovation: A New Perspective, Paris.

Note: This is an experimental indicator. International comparability
is currently limited.

part 63
64 part
Government expenditure
for eco-innovation

Part 4
In order to ensure that the provisions of the Flanders in Action (VIA) Results
project were implemented, over 80 organisations and associations
signed the Pact 2020 in Brussels on 17 April 2009, in which they IWT (Agency for Innovation by Science and Technology): DTO support
undertook to achieve twenty objectives expressed in actual figures The Flemish government’s DTO (sustainable technological devel-
in five principal domains. Further information and the results of the opment) support is intended to create stimulating conditions for
benchmark are available at research and development projects, the purpose of which is sustain-
able technological development. This measure has seven goals: to
There are 121 core indicators, and another 60 remain to be devel- save raw materials, save energy, reduce emissions, reduce waste or
oped. One of these is “government expenditure for eco-innovation other environmental pollutants, develop renewable raw materials
(including research)”. This type of support should enable Flanders and energy sources, increase the recyclability of raw materials and
to become one of Europe’s top 5 regions by 2020. As well as the increase the life of products. The environmental qualities of a project
overall government budget for science and innovation policy, this are measured using an eco-points system. DTO support is awarded
publication supplies the first figures on government expenditure for in addition to other IWT subsidies. It has been integrated into IWT
eco-innovation. support for industrial R&D projects, SME innovation projects and
feasability studies, and in the calls by SBO, TETRA, VIS and Agricul-
tural Research (LO). Further information is available at
Definition and area of application subsidies/extrasteun/dto (in Dutch).

The European Commission’s definition reads as follows: All IWT DTO subsidies were taken into account for projects active
“Eco-innovation: all innovation which can benefit the environment. in 2007, 2008 and 2009. To calculate the amount of the subsidy
Eco-innovation includes new production processes, new products or for each year, the length of the project was taken into account. 265
services, and new management and business methods. Eco-innova- projects were under way in 2007, 240 in 2008 and 148 in 2009. In
tion means all forms of innovation reducing environmental impacts terms of subsidy amounts, the result is:
and/or optimising the use of resources throughout the lifecycle of
related activities.” (European Commission webpage on eco-innovation) IWT DTO support (million EUR)

Year 2007 2008 2009

The time frame 2007-2009 was selected as the benchmark. Its pur-
pose is to estimate government expenditure for eco-innovation and Amount 14.242 15.070 13.641
related research. A horizontal cross-section was made of all science-
and innovation policy budgets included in the 2007-2009 Flemish
Budget for science policy (HBPWB). Enterprise Flanders: Ecology support and clean tech projects (jointly
financed by ERDF)
Major sources of funding included: Enterprise Flanders (Agentschap Ondernemen) implements the eco-
• Financing institutes IWT, Enterprise Flanders, FWO, BOF; nomic programmes approved by the Flemish Government by means
• Innovation and research financed via the budget lines for the of certification, subsidies, funding and other measures (see part 1).
policy areas;
• Environment, Nature and Energy: TWOL programme (Applied Each year, 120 million EUR from the Hermes Fund (see part 1) are
Scientific Research into the Environment) (LNE department, earmarked for ecology support. An ecology premium is a payment
INBO, VMM, OVAM, VLM); made to companies which make environmental and energy-related
• Agriculture and Fisheries (LV department and scientific institute investments. Since this can only be paid if existing standards – which
ILVO); are already very strict – are exceeded, the support makes a significant
• Strategic research centres VITO and IMEC; contribution to improving environmental protection, energy savings
• The Environment and Energy Technology Platform (MIP) compe- and energy efficiency.
tency pool.
The Hermes Fund also jointly finances projects in association with
The strictest possible definition of the above definition was used to the European Regional Development Fund (ERDF). The Hermes
screen the projects. For instance, research which measures risks, analy- funding for clean tech projects was classified under Objectives 2 and
ses or inventories situations, etc. is not considered despite the fact that 3 of ERDF (see page 11). “Clean tech”, an abbreviation of “clean
it is both useful and necessary to the implementation of innovation ac- technology”, is the name of a category of products which optimise
tivities. In other words, the project must involve innovation or research the consumption of our natural resources and minimise environmental
which clearly benefits the environment or aims to do so, or prevents impact. Both environmental added value and environmental gain play
or substantially reduces negative impact on the environment. an important part in this connection.


Flanders Enterprise: Ecology support and ERDF clean tech projects IMEC is also studying the potential use of III-V semiconductors (GaAs
(million EUR) and InGaP) in multilayer structures for solar-concentration applica-
tions, as well as Ge-based cells for thermophotovoltaic applications.
Year 2007 2008 2009
Besides PV power generation, IMEC is also participating in the de-
Ecology support 120.000 120.000 120.000 velopment of high-capacity electronics for power switching based on
Clean tech projects 1.928 8.786 GaN technology. This technology may be very useful for integrating
solar panels into smart-grid systems. The following table shows the
amounts of government funding for PV research.
FWO (Research Foundation - Flanders) and BOF (Special Research
Fund) IMEC (million EUR)
To screen research projects financed by the FWO and BOF (see part
Year 2007 2008 2009
2), university data from the FRIS database (Flanders Research Infor-
mation Space) were used. The necessary information can be found Amount 3.002 3.475 2.861
on the FRIS research portal ( of the EWI
department using various search options such as research projects,
organisations and researchers. Research projects are classified by Agriculture and Fisheries (LV)
subject, according to the scientific discipline to which they relate. The Agriculture and Fisheries department finances eco-innovation in
various forms: organic farming, investments in agricultural companies
First, as wide a selection as possible was made of discipline codes. with a view to significantly improving environmental protection (via
The projects were then screened manually on the basis of their title the Flemish Agricultural Investment Fund - VLIF), introduction of
and abstract, using a strict interpretation of the above definition of techniques which reduce the use of herbicides and pesticides, reduc-
eco-innovation research. 50 projects were selected for 2007-2009. tion of pesticide, herbicide and fertiliser use in horticulture, mechani-
cal weeding combined with strip spraying, and finally integrated
FWO and BOF projects (million EUR) production methods for stone fruit.

Year 2007 2008 2009

LV department (million EUR)
Amount 1.025 1.406 1.791
Year 2007 2008 2009

Amount 36.984 29.010 30.155

The goal of VITO is the performance of research with a view to
encouraging sustainable development and strengthening the eco- Institute for Agricultural and Fisheries Research (ILVO)
nomic and social fabric of Flanders. Besides contracting work and ILVO (the Institute for Agricultural and Fisheries Research) is a Flem-
performing reference tasks, it performs its own research, known as ish scientific institute (see also Part 2), the main task of which is the
Organised Scientific Research (GWO). VITO cooperates closely with performance of scientific research in the areas of agriculture and
universities and other research facilities, both national and interna- fisheries. The research is shared between the Animal Sciences, Plant
tional. VITO’s own research is performed in the areas of industrial Sciences, Social Sciences and Technology & Food Units. The ‘eco-
innovation, energy, and the quality of the living environment. Since innovation’ indicator applies to a wide range of projects: technical
2008, the management contract with the Flemish Government has (e.g. cowshed equipment, fertiliser spreading, emission reduction,
not permitted the use of government funding to finance contract re- sustainable fisheries techniques, crop protection), animal well-being,
search, so that government support for eco-innovation is given only the development of sustainability indicators and marine planning.
for GWO. In the same way, only the strategic-research component The budgets include funds for operation, investments and staff. 18
was taken into consideration for 2007. projects were started in 2008 and 24 in 2009.

VITO (million EUR) ILVO (million EUR)

Year 2007 2008 2009 Year 2007 2008 2009

Amount 8.49 8.45 12.32 Amount 1.00 1.03 1.95

IMEC has a worldwide reputation in the area of photovoltaic (PV)
research and covers a wide range of technologies: the development
of solar cells on increasingly thin silicon wafers, an organic approach
based on the potential of very low cost applications in combina-
tion with flexible and large substrates, the combination of extensive
semiconductor expertise with specific organic electronics expertise.


Environment, Nature and Energy (LNE): TWOL programme (Applied General summary
Scientific Research into the Environment)
Each year, the LNE department, in cooperation with VLM, OVAM, Table 24 shows that the Flemish government allocates approxi-
the Nature and Forest Agency (ANB) and INBO, draws up the TWOL mately 180-190 million EUR each year to eco-innovation and related
programme. This is a research programme which supports the Flemish research. This support is paid from the policy areas Economy, Science
environmental policy. The indicative programme for 2009 comprised a and Innovation (EWI), Agriculture and Fisheries (LV). Environment,
total of 96 projects under 19 themes, both specifically environmental Nature and Energy (LNE) and Education and Training (OV - BOF
(acidification, pollution, soil deterioration, noise and odour pollution, projects). It amounts to 17-19% of the GBAORD and 0.09-0.10%
integral water policy, etc.) and more general (policy preparation and of GDRP (Gross Domestic Regional Product), a denominater often
planning, target groups, etc.). 5 projects were selected in strict accord- used for international comparison of indicators. At this point in time,
ance with the definition: 3 in 2007, 1 in 2008 and 1 in 2009. no figures are available concerning government expenditure for eco-
innovation in other regions or countries.
TWOL projects (million EUR)

Year 2007 2008 2009 Figure 33. Overview of the Flemish government expenditure for eco-
innovation 2007-2009 (million EUR)
Amount 0.214 0.091 0.071

Environment and Energy Technology Platform (MIP)
The Environment and Energy Technology Platform (MIP) was
launched in 2005 as a centre of excellence further to a decision by
the Flemish Government. Seven research projects have been ap-
proved. The emphasis was on the development of new energy and
environmental technologies. The following table shows the distribu-
tion of the project budgets by year for 2007-2009, not including the
contribution by VITO (see above).

MIP (million EUR)

Year 2007 2008 2009

Amount of
0.275 1.149 0.970
subsidy 50

2007 2008 2009

n Enterprise Flanders (Ecology support and ERDF clean tech projects)

n Agriculture and Fisheries Department
n Agency for Innovation by Science and Technology (IWT - DTO)
n Research Foundation - Flanders (FWO) and Special Research Fund
n Environment and Energy Technology Platform (MIP)
n Environment, Nature and Energy Department (TWOL)

68 part
Table 24. Overview of the Flemish government expenditure for eco-innovation 2007-2009 (million EUR)

2007 2008 2009

Enterprise Flanders (Ecology support and ERDF clean tech projects) 120.000 121.928 128.786
Agriculture and Fisheries Departement 36.984 29.010 30.155
Agency for Innovation by Science and Technology (IWT - DTO) 14.242 15.070 13.641
VITO 8.49 8.45 12.32
IMEC 3.002 3.475 2.861
Research Foundation - Flanders (FWO) and Special Research Fund (BOF) 1.025 1.406 1.791
Institute for Agricultural and Fisheries Research (ILVO) 1.00 1.03 1.95
Environment and Energy Technology Platform (MIP) 0.275 1.149 0.970
Environment, Nature and Energy Department (TWOL) 0.214 0.091 0.071
Total 185.23 181.61 192.55

GBAORD 952.67 1,121.43 1,130.07

Government expenditure for eco-innovation expressed as % of GBAORD 19.44% 16.19% 17.04%

GDRP (1) 194,173.4 200,640.9 198,443.4

Government expenditure for eco-innovation expressed as % of GDRP 0.10% 0.09% 0.10%
(1) GDRP: Gross Domestic Regional Product – source: Hermreg – Research Centre of the Flemish Government (Studiedienst van de Vlaamse Regering) – June 2009

part 69
Used abbreviations IPBO Instituut voor Plantenbiotechnologie voor
BA Basic allocation (Institute of Plant Biotechnology for Developing
BAMA Bachelor-Masters structure ­Countries)
BBB Beter Bestuurlijk Beleid (Better Administrative Policy) IST Instituut Samenleving en Technologie
BEA Budget for Economic Advice (Institute Society and Technology)
BERD Expenditure on R&D in the Business Enterprise Sector ITG Instituut voor Tropische Geneeskunde
BOF Bijzonder Onderzoeksfonds (Special Research Fund) (Institute for Tropical Medicine)
BP Budget programme IV Internationaal Vlaanderen (Foreign Affairs)
BZ Bestuurszaken (Administrative Affairs) IVA Intern Verzelfstandigd Agentschap
CJSM Cultuur, Jeugd, Sport en Media (Culture, Youth, Sport (Internally Autonomous Agency)
and Media) IWETO Inventaris van het Wetenschappelijk en Technologisch
DAR Diensten voor het Algemeen Regeringsbeleid Onderzoek (Inventory of Scientific and Technological
(Services for the General Government Policy) Research)
DTO Duurzame Technologische Ontwikkeling IWT Agentschap voor Innovatie door Wetenschap en
(Sustainable Technological Development) Technologie (Agency for Innovation by Science and
ECOOM Expertise Centrum O&O Monitoring Technology)
(Centre for R&D Monitoring) KMDA Koninklijke Maatschappij voor Dierkunde te Antwerpen
ERDF European Regional Development Fund (Royal Zoological Society - Antwerp)
ESA European Space Agency KMSKA Koninklijk Museum voor Schone Kunsten Antwerpen
ESF European Social Fund (Museum for Fine Arts Antwerp)
EU European Union KUBrussel Katholieke Universiteit Brussel
EVA Extern Verzelfstandigd Agentschap (Externally Autono- K.U.Leuven Katholieke Universiteit Leuven
mous Agency) LNE Leefmilieu, Natuur en Energie
EWI Economie, Wetenschap en Innovatie (Environment, Nature and Energy)
(Economy, Science and Innovation) LRM LRM
FB Finance and Budget LV Landbouw en Visserij (Agriculture and Fisheries)
FFEU Financieringsfonds voor Schuldafbouw en Eenmalige MER Milieueffectenrapport (Environmental Effects Report)
Investeringsuitgaven (Financing Fund for Debt Reduc- MINA Fund Environment and Nature Fund
tion and One-off Investment Expenditures) MIP Milieu- en energietechnologie Innovatieplatform
FIT Flanders Investment & Trade (Environment and Energy Technology Platform)
FP Framework Programme MIRA Milieu- en Natuurrapport Vlaanderen
FTI Flanders Technology International (Environment and Nature Report Flanders)
FWO Fonds Wetenschappelijk Onderzoek MOD Managementondersteunende Diensten
(Research Foundation - Flanders) (Management Support Services)
GBAORD Government Budget Appropriations or Outlays for MOW Mobiliteit en Openbare Werken
Research and Development (Mobility and Public Works)
GBOU Generisch Basisonderzoek aan de Universiteiten NABS Nomenclature for the analysis and comparison of
(Generic Basic Research at Universities) ­scientific programmes and budgets
GDRP Gross Domestic Regional Product NACE General Industrial Classification of Economic Activities
GERD Gross Domestic Expenditure on R&D within the European Communities
GIMV Gewestelijke Investeringsmaatschappij Vlaanderen NERF Neuro-Electronic Research Flanders
(Regional Investment Company - Flanders) NESTI National Experts on Science and Technology Indicators
GUF General University Funds OBPWO Onderwijskundig Beleids- en Praktijkgericht Weten-
HBPWB Horizontaal Begrotingsprogramma Wetenschapsbeleid schappelijk Onderzoek
(Horizontal Budget Programme for Science Policy) (Education Policy and Practical Scientific Research)
HUB Hogeschool-Universiteit Brussel OECD Organisation for Economic Cooperation and Develop-
IBBT Interdisciplinary Institute for BroadBand Technology ment
ICT Information and Communications Technology OV Onderwijs en Vorming (Education and Training)
ICRH International Centre for Reproductive Health OVAM Openbare Vlaamse Afvalstoffenmaatschappij
IJS Institute of Jewish Studies (Public Waste Agency of Flanders)
ILVO Instituut voor Landbouw- en Visserijonderzoek PMV ParticipatieMaatschappij Vlaanderen
(Institute for Agricultural and Fisheries Research) POM Provinciale Ontwikkelingsmaatschappij
IMEC Interuniversity Micro-Electronic Centre (Provincial Development Agency)
INBO Instituut voor Natuur- en Bosonderzoek (Flanders Participation Company)
(Research Institute for Nature and Forest) PROG. Begrotingsprogramma (Budget programme)

PWO Projectmatig Wetenschappelijk Onderzoek VOI Vlaamse Openbare Instelling
(Project-based Scientific Research) (Flemish Public Institution)
R&D Research and development VPM Vlaamse Participatiemaatschappij
RO Ruimtelijke ordening (Urban Planning) (Flemish Participation Company)
ROW Ruimtelijke Ordening, Woonbeleid en Onroerend Erfgoed VRT Vlaamse Radio- en Televisieomroep
(Town and Country Planning, Housing Policy and Im- (Flemish Community Broadcasting Company)
movable Heritage) VRWB Vlaamse Raad voor Wetenschapsbeleid
SAR Strategische adviesraad (Flemish Science Policy Council)
(Strategic advisory body) VRWI Vlaamse Raad voor Wetenschap en Innovatie
SBO Strategisch Basisonderzoek (Strategic basic research) (Flemish Council for Science and Innovation)
SERV Sociaal-Economische Raad van Vlaanderen VUB Vrije Universiteit Brussel (Free University of Brussels)
(Socio-economic Council of Flanders) VZW Vereniging zonder winstoogmerk (not-for-profit or-
SME Small or Medium-sized Enterprise ganisation)
SP Science policy WSE Werk en Sociale Economie (Work and Social Economy)
STET Scientific and technological education and training WVG Welzijn, Volksgezondheid en Gezin
STS Scientific and technological services (Welfare, Public Health and Family)
TETRA Fund TEchnology TRAnsfer Fund ZAP Zelfstandig Academisch Personeel
TPP Technological Product and Process (Independent Academic Personnel)
tUL Transnationale Universiteit Limburg
(transnational University of Limburg)
TWOL Toegepast Wetenschappelijk Onderzoek Leefmilieu
(Applied Scientific Research into the Environment)
UA Universiteit Antwerpen (Antwerp University)
UGent Universiteit Gent (Ghent University)
UHasselt Universiteit Hasselt (Hasselt University)
UNESCO United Nations Educational, Scientific and Cultural
Organisation Contributors
UNU United Nations University
VAPH Vlaams Agentschap voor Personen met een Handicap
(Flemish Agency for Disabled Persons) DAR: An Van Acker, Frank Steenput, Oda Walpot; Research Centre
VESOC Vlaams Economisch Sociaal Overlegcomité of the Flemish Government: Josée Lemaître, Thierry Vergeynst;
(Economic and Social Consultation Committee of BZ: Annemie Degroote; Ilse Snelders; FB: Tom Van Laere, Jean
Flanders) Dekempeneer, Guy Muylaert; IV: Jan Carmans, FIT: Caroline Ampe;
VIB Vlaams Interuniversitair Instituut voor Biotechnologie Toerisme Vlaanderen: Jan Van Praet; EWI: all EWI department
(Flanders Interuniversity Institute for Biotechnology) contributors; IWT: Veerle Lories, Leo Van de Loock, Eric Sleeckx; FWO:
VIN Vlaams Innovatie Netwerk Benno Hinnekint; Foundation Innovation & Labour: Paul Berckmans,
(Flemish Innovation Network) Anne Reyniers; Enterprise Flanders (Agentschap Ondernemen):
VINNOF Vlaams Innovatiefonds (Flemish Innovation Fund) Bernard De Potter, Tim Ampe, André Van Haver, Erik De Gendt;
VIOE Vlaams Instituut voor het Onroerend Erfgoed PMV: Bart De Smet; Ben Jehaes; LRM: Jeffrey Alenus; OV: Noël
(Flemish Heritage Institute) Vercruysse, Lieven Blomme, Evy Vogeleer, Nina Mares; Agentschap
VITO Vlaamse Instelling voor Technologisch Onderzoek voor Hoger Onderwijs, Volwassenenonderwijs en Studietoelagen:
(Flemish Institute for Technological Research) Karel De Temmerman, Myriam De Thaye; WVG: Kathleen Verreth,
(Flemish Institute for Scientific and Technological As- Nathalie Stallaert, Jos Versaen, Herwin De Kind, Herwig Deumens;
sessment) VAPH: Catherine Molleman, Marc Cloet; Kind & Gezin (Child &
VIZO Vlaams Instituut voor het Zelfstandig Ondernemen Family): Bea Buysse, Tina Capiau; CJSM: Bart Van der Herten, Hilde
(Flemish Institute for Independent Entrepreneurs) Cuyt, Patrick Ghelen, Caroline De Pauw; KMSKA: Marjolijn Barbier;
VLAM Vlaams Centrum voor Agro- en Visserijmarketing vzw WSE: Johan Troch; LV: Dirk Van Gijseghem, Anne Vuylsteke, ILVO:
(Flanders Agricultural Marketing Board) Karin Van Peteghem, Maurice Moens, Sandra De Schepper; VLAM:
VLAO Vlaams Agentschap Ondernemen (Flanders Enterprise) Luc Van Bellegem; Jean De Lescluze; LNE: Philippe Van Haver, Katrien
VLAREM Vlaams reglement betreffende de milieuvergunning Oorts; Vlaams Energieagentschap: Jan Vereecke; INBO: Dominique
(Flemish Regulations related to Environmental Licensing) Aerts; OVAM: Luc Vanacker; VLM: Sofie Ducheyne; VMM: Line
VLIZ Vlaams Instituut voor de Zee Vancraeynest; MOW: Wilfried Goossens, Frank Mostaert, Lieve Van
(Flanders Marine Institute) de Water, Karl Vermaercke; RWO: Sofie Houvenaghel; Luc Goedertier,
VLM Vlaamse Landmaatschappij Ronald van Paassen; VIOE: Dirk Callebaut, Marnix Pieters; IST: Robby
(Flemish Land Agency) Berloznik, Lieve Vandamme; IMEC: Els Parton, Katrien Marent, Ingrid
VMM Vlaamse Milieumaatschappij Reynaert; VIB: Jo Bury, Lieve Ongena; VITO: Dirk Fransaer; IBBT:
(Public Environmental Agency of Flanders) Karen Boers; MIP: Geert De Meyer; KMDA: Zjef Pereboom; KANTL:
Marijke De Wit; AQUAFIN: Chris Thoeye.

We hope that you have read this EWI Budget Browser with
interest and, above all, that you have found the answers to your
questions here.

Do you have any comments or suggestions? If you do still have a

question about the economy, science and innovation policy of the
Flemish government, do contact us via

And if you require a more detailed explanation with regard to a

certain budget, programme, policy aspect, institution etc., go to There you can browse
to find the information you need and download other EWI

In the course of the year, you will also be able to consult the
adapted funds for 2010 (after budget adjustment), and you can
consult the archive of the science policy funds for the years 1993
to 2010.

To remain fully up-to-date, do visit

Furthermore, we would like to refer you to the EWI Reviews
which highlight several policy area-related topics.


The EWI Budget Browser is a publication of the department of

Economy, Science and Innovation of the Flemish government.

Knowledge Management Division

Pascale Dengis, Head of Division
Koning Albert II-laan 35, box 10
1030 Brussels

T +32 (0)2 553 57 40

Compilation and editing:

Koen Waeyaert en Pascale Dengis

Responsible publisher:
Dirk Van Melkebeke, Secretary General

Deze publicatie is eveneens in het Nederlands beschikbaar.


Flemish government
Department of Economy,
Science and Innovation
Koning Albert II-laan 35 box 10 Cyclus paper, 100% recycled
1030 Brussels