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On behalf of the European Commission, Dialogic, in collaboration with three European partners, is conducting a detailed analysis of the R&D deficit in European business-related services (especially in the most knowledge-intensive sectors). The aim is to assess how combined private and public R&D expenditures can effectively and efficiently contribute to the innovation and competitiveness of European business-related services. The project runs from September of this year until June 2006. The other parties in the consortium are: Institute of Innovation Research (University of Manchester/UMIST), Fraunhofer Institute for Industrial Engineering IAO (Stuttgart), and Servilab (Alcalá University, Madrid).