The EU’s R&D policy has recently come under the spotlight. It is a central element both in the review of the EU budget and in the so called Europe 2020 strategy, where the goal of increasing the level of investment in R&D in the EU to three percent of GDP is emphasized. The authors of this report discuss the strengths and weaknesses of Union´s R&D policy and examine areas in which the EU should pay particular attention in order to ensure that results are delivered.