Europeans enjoy one of the highest standards of living in the world. Today, this situation is being severely threatened by major challenges the European Union is facing including changes in climate, demographics, high energy and food prices as well as increasing competition, particularly from Asia.

Maintaining our living standards with an emphasis on sustainability requires Europe to become a leading edge, knowledge based economy where innovation - driven by talent and creativity - lies at the forefront of continued success. Europe does not lack know-how, but many problems of the 21^st century increasingly require concerted efforts by the public, private and academic sectors.

To ensure that Europe takes advantage of - and leads - the global knowledge and innovation economy, it must reconsider its strategic agenda, and formulate relevant policies and projects at the European and Member State levels.