Research is vital to both the European Higher Education and the European Research Areas, because on the one hand it will serve as an ultimate source of most innovation and on the other hand it will provide a framework for education. The combination of basic research and research-based education is best found in research-intensive universities. LERU warns for the deterioration of the capacities of research universities in Europe in comparison to the U.S., because it may cause severe implications for the European economy and society. LERU proposes that the EU must e.g. invest more in basic research to halt the deterioration.