Presentation to Joint Meeting of the
Competitiveness and Growth and the Research
Working Parties
8 October 2010
Cyril Robin-Champigneul
Dg RTD
Keith Sequeira
Dg ENTR
Why Innovation Union?
A cornerstone of Europe 2020 strategy
Three aspects:
- Globalisation of knowledge production and innovation
capacities
- Impact of the crisis on public and private finance,
survival of innovative SMEs
- Major challenges to address with reduced means
 Innovation emergency!
900
Globalisation
of knowledge
800
600
ROW
500
Japan
400
Declining EU share of
knowledge production
US
US
300
Evolution of World R&D expenditure
in real terms, PPS€ at 2000 prices
and exchange rates, 1995-2008
200
EU-27
100
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
SANCHES Luisa (REGIO)
Figure Private Expenditure on R&D as % of GDP
(1)
- average annual
growth (%) in the major economies, 2000-2007 (2)
12,0
Stagnating
business R&D
9,8
10,0
8,0
6,0
Average annual growth as %
of GDP, EU-27, US, Japan,
South Korea & China,
2000-2007
5,0
%
PPS€2000 (billions)
700
4,0
2,5
2,0
0,0
-0,2
-0,7
-2,0
EU-27
US
Japan
South Korea
China
Economic and financial crisis
EU lost six million jobs, €1000 Bn annual GDP due to crisis
 Invest in future growth
EU target of 3% of GDP for R&D in 2020 could create a net
3.7 million jobs and close to €800 Bn annual GDP by 2025
 Make the most of available resources
through leverage effects, integration and cooperation
Societal challenges
• Climate change
• Health and ageing
• Use of natural resources
• Energy security
• Clean transport
• Powerful drivers of
change in economy and
society
• Major global market
opportunities
• Land use
• Requiring EU-scale
approaches
• ….
• From research to market
New needs  new ideas  new markets
What is Innovation Union?
Strategic approach
• Partnership with Member
States
• From idea to market
Tackling weaknesses
• Under-investment
• Fragmentation
• Framework conditions
Highlights
•
•
•
•
•
•
•
•
•
European Innovation Partnerships
European Research Area framework
Streamlined EU programmes
New financial instruments
Reform of standardisation system
Public procurement of innovation
Social innovation pilot
Stronger monitoring
Innovation Convention
Building on strengths
• Focus on societal challenges
• Broad concept of innovation
• Involving all actors
 A distinctive European
approach to innovation
Key measures of Innovation Union
Collaborating internationally
Pooling efforts for breakthroughs
Maximising social and regional benefits
Getting good ideas to market
Strengthening the knowledge base
Excellence in education and skills
Issues
• Universities need reform to specialise/diversify and attract top talents
• EU needs at least one million more researchers to reach its R&D targets
• Education & training should better match business needs
Actions
1. National strategies to boost training and careers of researchers (2011)
2. Independent multidimensional university ranking system and launch of
business-education « knowledge alliances » (2011)
3. Commission to promote e-skills for innovation (2011)
Delivering the European Research Area
Issues
• Costly fragmentation and overlaps between national research and
innovation systems
• Need for a unified European Research Area where all actors move and
operate as easily as within national borders
• Complex funding landscape creating administrative burden for
researchers and business
• Urgent need for world-class research infrastructures
Actions
4. Commission to propose a European Research Area framework (2012)
to remove obstacles to mobility and cross-border cooperation by 2014
5. EU and Member States to complete or launch 60% of priority European
research infrastructures by 2015.
Focusing EU funding instruments
Issues
•
•
•
•
Need to support the whole innovation chain, from research to market
Further simplify access for beneficiaries, including SMEs
Develop scientific evidence to support policy-making
Promote the European Institute of Innovation & Technology
Actions
6. Focus future EU R&I programmes on EU2020 and Innovation Union: societal
challenges, with streamlining/ simplification (2014)
7. Ensure strong involvement of SMEs with high growth potential (2014)
8. Develop the Joint Research Centre’s role to support the science base for
policy making through forward-looking activities
9. European Institute of Innovation & Technology to set out a strategic
innovation agenda (2011)
Key measures of Innovation Union
Collaborating internationally
Pooling efforts for breakthroughs
Maximising social and regional benefits
Getting good ideas to market
Strengthening the knowledge base
Access to finance
Issues
Lack of finance is main constraint on innovative companies
Few European SMEs grow into major companies
Specific market gaps for start ups, for high growth companies, and for
financing major research and innovation projects
RSFF, CIP Financial Instruments cannot meet demand.
Actions
10. New generation of Financial instruments with EIB (by 2014)
11. Regime for cross border Venture Capital funds (2012)
12. Stronger brokerage between innovative SMEs and investors
13. Review State Aid framework, to enable support to all forms of
innovation (2011)
A Single Innovation Market
Issues
Costly EU patent system
Lack of harmonised regulations for innovations
EU standard setting too slow
Public procurers lack incentives, knowledge or scale to benefit from
innovation
Importance of eco-innovation
Actions
14. Rapid agreement on EU patent
15. Screen regulatory frameworks linked to Partnerships (2011)
16. Reform EU standard setting & link to R&D projects (2011)
17. Member States to set aside procurement budgets for
innovation, with EC technical/ financial support (2011)
18. Commission to present an eco-innovation action plan (20110
Openness and creative potential
Issues
Many different forms of innovation (open, user driven, systemic etc.)
EU strengths in design and creativity not recognised in policy
Much IPR is dormant, as it is difficult to find a user.
Actions
19. Establish Design Leadership Board & Creative Industries
Alliance (2011)
20. Open access to FP research publications
21. Model agreements for collaborative research and knowledge
transfer
22. Develop EU knowledge markets to trade & invest in patents
(2011)
23. Examine the role of Competition Policy
Key measures of Innovation Union
Collaborating internationally
Pooling efforts for breakthroughs
Maximising social and regional benefits
Getting good ideas to market
Strengthening the knowledge base
Social and territorial cohesion
Issues
-
Innovation needed everywhere
Need to avoid an “innovation divide”
-
Make best use of € 86 Bn Structural Funds earmarked for
research and innovation until 2013
Actions
24. Improve use of Structural Funds by Member States with
Commission supported « smart specialisation » platform
25. Preparations on future Structural Funds to support innovation
26. Launch social innovation pilot and mainstream in European
Social Funds
27. Research programme on social and public sector innovation
28. Innovation all occupations, starting with caring sector
Key measures of Innovation Union
Collaborating internationally
Pooling efforts for breakthroughs
Maximising social and regional benefits
Getting good ideas to market
Strengthening the knowledge base
European Innovation Partnerships
Key issues
− Major societal challenges require joint responses
across policies and across EU
− Numerous sub-critical, uncoordinated initiatives:
between EU / Member States / Regions
− R&D / Market-side actions (public procurement, standards,
regulation)
−
European Innovation Partnerships are:
Frameworks bringing together main actors and actions
- At EU and national levels
- From research to market
- Around common objectives and targets
European Innovation Partnerships
2010
– Pilot on active and healthy ageing
Aim: two additional healthy life years by 2020
– Council, Parliament to discuss the concept
– Member States and stakeholders invited to join
2011
– Others to follow pending discussions and building
on pilot experience
– Topics considered: smart cities, water, raw
materials, mobility, agriculture,
Key measures of Innovation Union
Collaborating internationally
Pooling efforts for breakthroughs
Maximising social and regional benefits
Getting good ideas to market
Strengthening the knowledge base
International cooperation
Key issues
- Third countries see 27+1 small/medium parties, not one major
partner
- Europe’s openness is not always reciprocated
- Global challenges require a global response
Actions
30. Attract high skilled third country nationals
31. Joint EU / national priorities for cooperation with third countries (2012)
32. Agree international infrastructures with world partners (2012)
Making it happen!
A priority for EU Institutions
– European Council dedicated discussion in December
– Council invited to meet as “Innovation Council”
– European Parliament discussions
– Innovation Group of Commissioners
Accelerating national reforms
– Self assessments of R&I systems under Europe 2020
Tracking progress
– EU target of 3% of GDP on R&D and national targets
– New indicator on fast-growing innovative firms
– New Scoreboard of 25 indicators
Annual Innovation Convention
Next steps
Oct. 12, Nov. 26: Competitiveness Council conclusions
Dec. 16: European Council
European Parliament debate
Implementation
•Launch of European Innovation Partnerships, …
•Proposals for future EU programmes, European
Research Area, ..
•Implementation in Member States, regions…
Innovation Union website
http://ec.europa.eu/innovation-union/
Innovation Facebook page
http://www.facebook.com/Innovation.Union
Innovation unlimited blog
http://blogs.ec.europa.eu/innovationunlimited