2013 EDITION
Mr. Pierre Vigier
Head of Unit Economic Analysis and Indicators
Tougher world competition in research and
innovation
But the EU defends its world share of knowledge better than the United States
The EU remains competitive
but China, Brazil and India are rising
FDI inflows to the EU
Source: DG Research and Innovation – Economic Analysis Unit
Data: Eurostat, OECD; WIOD database
Global Value Chain income
Innovation Union Competitiveness report 2013
The EU is the world region attracting most FDI and reaping largest income from Global Value Chains
The EU must seize now tomorrow's markets
Technology strengths of Europe, North America and Asia
Source: DG Research and Innovation Data: OECD patent database
Europe leads in transport, aeronautics, waste management and renewable energy
4
Leaders in smart fiscal consolidation
Protecting direct R&D investment
Smart fiscal consolidation 1
Notes: (1) Real growth was calculated from values in PPS€ at constant 2005
prices and exchange rates. (2) Data for 2012 are provisional.
+
Indirect support (tax incentives), 2010
Smart fiscal consolidation 2
Source: DG Research and Innovation - Economic Analysis Unit
Data: Eurostat
Leaders in Research excellence and Innovation
Sweden, Denmark, Finland, the United Kingdom, the Netherlands and Belgium have achieved both
research excellence and high innovation output
Leaders in structural change:
Structural change 1
Structural change 2
Lessons for innovation-driven growth
The report relates the performance presented in the previous slides
with the characteristics of policies in the various countries. This
provides hints for supporting innovation-driven growth in Europe.
Some of these policy conclusions are highlighted in background to
this presentation. In order to limit the time of the presentation, they
will not be presented but distributed for your convenient use
Thank you for your attention!
Lessons for innovation-driven growth:
1) Build on People
In highly innovative economies, people are skilled, incentivized,
enabled and demanding. Skilled labour, combining generic and
sector-specific knowledge, is the engine for service innovation and
for quality manufacturing. Efficient public research organisations with
performance-based institutional funding complemented with effective
project-based funding provide staff with strong incentives to excel in
education, research and technology transfer.
 Research and innovation policies preparing the future should
therefore consider a strong emphasis on incentives for researchers
and inventors alongside skills uptake.
Lessons for innovation-driven growth:
2) Focus on the markets of the future
Top innovation performers in the EU are characterised by open and
very knowledge intensive manufacturing or services sectors, often
coupled with strong firm dynamics in transformative technologies
addressing global societal challenges.
 The confluence of different but related technologies is facilitated
by Horizon 2020 and smart specialisation strategies at regional
level. Further policy integration between R&I and industrial policies
would help in seizing this opportunity.
Lessons for innovation-driven growth:
3) Believe in High-growth firms and
solution-driven clusters
Europe’s firm structure is older and less knowledge-intensive than
that in the USA. The R&D intensity gap is linked to the growth of
firms in ICT and biotechnology in the USA over the last decade.
However, several European countries show high dynamics of highgrowth enterprises in innovative sectors which generate new jobs.
Entrepreneurship is particularly strong in innovation-driven clusters.
 Focus on framework conditions that generate high-growth
innovative enterprises, stimulated by solution-driven clusters and
by a culture of demanding customers leading to higher standards
and lead markets.
Lessons for innovation-driven growth:
4) Build alliances and networks
Innovation is increasingly global. The ability of a country to grow is
enhanced
through
knowledge
alliances.
Cooperation
with
international partners is positively correlated with research quality
and there is a positive correlation between success in FP participation
and scientific strengths.
 Progress towards a European Research Area, improving
transnational access to research infrastructure and a digital ERA
are therefore essential. Integrated innovation/industrial policies for
upgrading manufacturing industries must be differentiated by
sector and adapt to the globalisation of production by focusing on
vertical specialisation in manufacturing and service segments of
global value chains.
Lessons
for innovation-driven growth:
5) Think Single Market
While there is increasing knowledge circulation in Europe, Member
States with lower absorptive capacity still have access to fewer
knowledge channels. Lifting barriers such as high patent and
licensing costs, information asymmetries and non-compete
agreements and other barriers blocking the mobility of skilled labour
would further stimulate knowledge circulation and enhance economic
impact. Science and technology can also be better matched with
industry needs, both at national and European level.
 Increasing the intensity and speed of the circulation of knowledge
is therefore a key measurable objective of effective R&I policies.