The role of publicly funded academic research in Europe's future economic and social development has been both misunderstood and neglected in Europe's science and technology policy. Experience in the USA suggests that the generous public funding of high-quality academic research is the source of major new technological opportunities, as well as an attraction for high-quality business activities in an increasingly globalised world. The European Union should consider establishing an agency to complement and compete with national agencies in funding academic research. Its success would depend on its capacity to identify and support exciting multi-disciplinary programmes of research and related training in promising fields, rather than on its capacity to forecast or demonstrate specific applications.
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