This is the Final Report from the European Evaluation Consortium (TEEC) on the Impact Assessment of the International Science and Technology Cooperation (INCO 2) Programme. The objective of this assessment was to perform an analysis of the impact of INCO’s activities on the generation of societal impact and in relation to strengthening human and institutional capital relevant to the international challenges it set out to contribute addressing. The evaluation was carried out by a team of external experts between January and September 2005 taking into account past, present and future aspects of the programme as DG Research moves towards the 7th Framework Programme. This document presents the experts’ findings from the impact assessment of INCO 2 and makes conclusions and recommendations to the European Commission, as it prepares to shape the role of international scientific collaboration for the next 7 years under FP7.