EU innovation policy: current issues and next steps – essentials for regional policy makers Tomasz JERZYNIAK European Commission DG Enterprise and Industry Policy Development for Industrial Innovation Email: tomasz.jerzyniak@ec.europa.eu Main issues 1.Innovation: where is Europe? Where is my country? Where is my region? 2.Strategic position of EU innovation policy; 3.Evidence-based innovation policy: monitoring, benchmarking, analysing; 4.EU Innovation policy: Current issues and next steps Performance lead/gap to EU27 Innovation: where is Europe? 60 US Japan 40 20 0 -20 -40 C hina Russia India -60 -80 -4.0% -2.0% 0.0% 2.0% Brazil 4.0% 6.0% Average annual growth rate of performance lead/gap 8.0% Innovation: where is my country? Innovation Union Scoreboard 2010 0.800 0.700 0.600 0.500 0.400 0.300 0.200 0.100 0.000 LV BG LT RO SK PL HU MT GR ES CZ IT PT EE SI CY EU FR LU IE NL AT BE UK DE FI DK SE M ODEST INNOVATORS M ODERATE INNOVATORS INNOVATION FOLLOWERS INNOVATION LEADERS Innovation: where is my region? Regional Innovation Scoreboard, 2009 EU innovation policy in Europe 2020 Smart Growth Sustainable Growth Inclusive Growth fostering a more efficient, greener and more competitive economy high-employment economy delivering social and territorial cohesion Innovation « Innovation Union » Climate, energy and mobility « Resource efficient Europe » Employment and skills « An agenda for new skills and jobs » Education « Youth on the move » Competitiveness « An industrial policy for the globalisation era » Fighting poverty « European platform against poverty » developing an economy based on knowledge and innovation Digital society « A digital agenda for Europe » Key messages of Innovation Union Altogether 34 commitments • Strengthening the knowledge base: ERA: mobility, infrastructures, skills, EU funding instruments • Getting good ideas to market: financial instruments, VC, state aid, patent, standards, procurement, design, creativity, open access, model grant agreements and IP marketplace • Maximising social and regional benefits: “smart specialisation”, social innovation pilot • Pooling efforts for breakthroughs: European Innovation Partnerships • Collaborating internationally: attract international talent, research infrastructure • Accelerate national reforms & track progress: self-assessment, 3% target + Innovation indicator (fast-growing innovative firms) Policy based on evidence: monitoring, benchmarking, analysing. • Innovation Union Scoreboard • Regional Innovation Scoreboard • Regional Innovation Monitor • GRIPS (Global Review of Innovation Policy Studies) • Innovation Policy Trendchart Innovation Union Scoreboard & Regional Innovation Scoreboard Regional Innovation Monitor GRIPS: Global Review of Innovation Policy Studies Supply- vs. demand side policy Demand-side measures - regulation - procurement - standardisation - Fiscal measures for buyers - Clusters Supply-side measures Public procurement of innovation • Public procurement in Europe: around 18% of EU GDP, i.e. € 2,000 billion; • Using public procurement for innovation: new challenge for national, regional and local authorities; • EU: new framework conditions Lead Market Initiatives in 6 sectors Lead Market Areas Standardisation Labelling Certification Legislation Public Procurement Complementary Actions e-Health eHealth action plan Sustainable construction Sust. Construction action plan Protective textiles Protective Text. action plan Bio-based products Bio-based products action plan Recycling Recycling action plan Renewable energies Renewable Energies action plan New networks Final evaluation of the Lead Market Initiative • LMI's novel architecture was an innovation in itself. • Choice of instruments (public procurement, standards, regulation and 'complementary actions') was right and gave EUadded value. • Action plans have mostly delivered. Impact found in 4 out of 6 sectors. • LMI did not have a dedicated budget, but achieved with limited funds (total of € 153 m from FP7 and CIP in 4 years). • Great involvement of industry and other stakeholders particularly in 3 sectors (bio-based products, eHealth and protective textiles). 4 key lessons learnt in the Lead Market Initiative: 1) Building bridges takes time 2) In practice, few tools for demand-side policy exist 3) Greatest impact may be medium-long term 4) Obtaining good visibility is essential for success Next steps in demand-side policies (not mutually exclusive): • Continue LMI approach: In innovation, industry (sector) and other policies Linking regional and national demand-side policies • Connect demand-side and supply-side tools: Innovation Partnerships: aging, raw materials, agriculture, water Set up looser cooperation/ alignment forms (JTI+, LMI+ ?) Prioritise ‘societal goals’ or specify challenges (what level of granularity?) • Further develop our demand-side toolkit in Innovation Union and Horizon2020: New forms of supporting public procurement of innovations Broaden to private demand: procurement, supply-chains, end-users • Worry: Demand-side policies do not cost much, but need good human resources Public sector innovation • Mix of innovation actors: private vs. public • Innovative public sector • European Public Sector Innovation Scoreboard Horizon 2020: € 80 billion for research and innovation Europe 2020 priorities European Research Area International cooperation Shared objectives and principles Tackling Societal Challenges Health, demographic change and wellbeing Food security and the bio-based economy Secure, clean and efficient energy Smart, green and integrated transport Supply of raw materials Resource efficiency and climate action Inclusive, innovative and secure societies EIT and JRC will contribute to addressing these challenges Simplified access Creating Industrial Leadership and Competitive Frameworks Leadership in enabling and industrial technologies Access to risk finance Innovation in SMEs Excellence in the Science Base Frontier research (ERC) Future and Emerging Technologies (FET) Skills and career development (Marie Curie) Research infrastructures Common rules, toolkit of funding schemes Coherent with other EU and MS actions European Design Innovation Initiative The goal of the initiative is to: • raise the awareness of design as a driver of innovation in Europe • enhance its role as a key discipline to bring ideas to market transforming them into user-friendly and appealing products, processes or services by enterprises and public services in the EU. Social Innovation • Social innovation produces innovations that meet a social need by Workplace innovation: empowering people Connect social economy, social entrepreneurs, business, charities, public sector, finance Multiannual Financial Framework COMPARISON MFF 2007-13/2014-20 Billion € in 2011 prices Difference (in %) 2007-2013 2014-2020 1. Smart and Inclusive Growth 445.5 490.9 10.2% Of which Cohesion Policy 354.8 336.0 -5.3% Of which infrastructure (Connecting Europe Facility) 12.9 40.0 209.7% Of which Competitiveness (CSF research & innovation; Education; Galileo etc) 77.8 114.9 47.7% 2. Sustainable Growth: natural resources 421.1 382.9 -9.1% Of which Market related expenditure and direct payments 322.0 281.8 -12.5% 12.4 18.5 49.9% of which Freedom, Security and Justice 7.6 11.6 53.0% of Citizenship 4.8 6.9 44.9% 4. Global Europe 56.8 70.0 23.2% 5. Administration (including pensions and European schools) 56.9 62.6 10.1% Of which administrative expenditure of EU institutions 48.4 50.5 4.2% 993.6 1 025.0 3.2% 1.12% 1.05% 3. Security and Citizenship 6. Compensations Total commitment appropriations In % of EU-27 GNI 0.9 Thank you very much for your attention! Tomasz JERZYNIAK DG Enterprise and Industry Policy Development for Industrial Innovation Email: tomasz.jerzyniak@ec.europa.eu