Hungary Beats Poland to Host EU Technology Institute

June 18 (Bloomberg) -- The European Union chose the Hungarian capital of Budapest over the Polish city of Wroclaw for the headquarters of a technology institute that will seek to bolster EU economic growth.

The decision by EU governments clears the way for the European Institute of Innovation and Technology to start operating later this year. The organization, known as the EIT, aims to bring together research groups, universities and companies to help increase research spending in Europe to 3 percent of gross domestic product from 1.8 percent.

``The EIT can finally become the driver of European innovation,'' Research Minister Mojca Kucler Dolinar of Slovenia, which holds the 27-nation EU's rotating presidency, said in a statement after she and her EU counterparts reached the accord today in Brussels. Budapest and Wroclaw were the finalists in a contest that had also included candidates from Germany, Spain and -- in a joint bid -- Austria and Slovakia.

The EU wants to overcome stagnation in research and development spending to reduce unemployment of around 7 percent. Europe is too slow to turn cutting-edge technologies into marketable goods, say EU leaders including Jose Barroso, president of the European Commission, which proposed the technology institute in 2006.

The EIT will focus initially on energy, climate change and information technology, working through partnerships dubbed Knowledge and Innovation Communities.

Total Budget

The institute is projected to have a total budget of as much as 2.4 billion euros ($3.7 billion) from 2008 through 2013. The money is supposed to come from public and private partners as well as from income generated by the institute's own activities. The EU budget will provide 308.7 million euros.

Hungarian Prime Minister Ferenc Gyurcsany hailed the choice of Budapest for the EIT headquarters, saying the city and country would benefit economically.

``The center will probably be a significant draw for capital interested in research and development, increase Hungary's competitiveness by raising value-added investments and boost conference tourism,'' Gyurcsany said in a statement.

Source www.bloomberg.com

By Jonathan Stearns

published by J.Babinec