This book covers a gap in EU policy literature by addressing the intersection between research policy and industrial policy. It analyzes how the EU supports the competitiveness of domestic companies and the common objective of sustained (and sustainable) economic growth. An exhaustive introduction to the founding principles, institutions, and activities of the EU and an overview of the 15 new and candidate member states are also provided. This new edition is thoroughly revised and extended to incorporate updated and new material and data on the new R&D Framework Program, the Lisbon Agenda, the EU Reform Treaty, and the EU enlargement. The appendix and accompanying website contain ancillary distance-learning material, extended readings, country-specific data, and other materials for producing course notes and visuals. The book will be useful for lecturers, students, politicians and civil servants who are interested in EU technology policy as well as for professionals who are involved in EU funded R&D projects. As a consultant, I have learned that not only organizations have to be transformed, but also the way people look at them.This is true in business, but also in politics. The new edition of this book gives a sharper vision on a major European effort. It will not change the reality of Europe, but will boost your perception of what's going on.-Luc de Brabandere, Vice-President, The Boston Consulting Group Allocation for schools and education are believed [by most] to be a cost. Stajano proves with cogent analysis that education and knowledge are instead veritable infrastructures for social cohesion and economic productivity. Allocations for school and education are also necessary investments for life and productivity of a nation.