In European proposals it has become customary to write section 1.4 as "State of the art" vs. "Own contribution". Each of us should conform to this tradition.
In your State of the art part refer to the current debate in the discipline at hand. Your goal is to show the reviewer that you are on top of that debate.
In your own contribution show the reviewer what you are going to do that is new, and can be said to advance the frontier of knowledge in this particular domain.