1. Innovation Union Investing in growth and jobs & the role of ETPs Charlotte Andersdotter Brussels, 28 May 2013

2. Europe 2020 - 5 headline targets EMPLOYMENT 75% of the population aged 20-64 should be employed R & INNOVATION 3% of the EU's GDP should be invested in R&D A reduction of CO2 emissions by 20% CLIMATE / ENERGY A share of renewable energies up to 20% An increase in energy efficiency by 20% EDUCATION The share of early school leavers should be under 10% At least 40% of the younger generation should have a degree or diploma POVERTY 20 million fewer people should be at risk of poverty

3. The 7 “Flagship Initiatives” Smart GrowthSustainable GrowthInclusive Growth 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 » Digital society « A digital agenda for Europe »

4. Innovation Union at a glance 1. Training researchers 5. European Research infrastructures 8. Forum on Forward Looking Activities 2. University ranking system 3. Developing new curricula 7. Involvement of SMEs in R&I 6. Programmes focusing on EU2020 (HORIZON 2020) 4. ERA Framework 27. Research programmes on public sector and social innovation 19. European Design Board 12. Cross-border matching of innovative firms 9. EIT to expand its activities 10. New financial instruments for private finance 11. Free Venture Capital funds 34. New indicator for fast-growing companies and monitoring 31. Scientific cooperation with third countries 32. International agreements on research infrastructures 33. MS to carry out self assessments 14. EU Patent 17. Pre-commercial and public procurements 18. Eco-innovation action plan 13. Review of State aid R&D&I 24. Smart Specialisation 29. European Innovation Partnerships 30. Policies for researchers to reside in Europe 20. Open access 28. Partners consultation on knowledge economy 25. Focus on Innovation in the next Structural Funds 26. European Social innovation pilot 21. Knowledge transfer 16. Modernise standard-setting 22. European market for patents and licensing 23. Safeguard of IPRs 15. Screening of key regulatory frameworks STRENGTHENING THE KNOWLEDGE BASE BRINGING IDEAS TO MARKET ENSURING TERRITORIAL AND SOCIAL COHESION INTERNATIONAL DIMENSION MONITORING INNOVATION

6. Protecting public R&D spending 6 Increasing Broadly flat Decreasing

7. Growing Innovation Divide 7 Innovation leaders Modest innovators

8. FDI by US firms 8

9. Global value chain income 9

10. Implementing the Innovation Union. What is needed? -Knowledge, involvement and empowerment -Follow up targets, monitoring and evaluation of progress

11. Monitoring progress State of the Innovation Union - overall progress highlighting state of play on the main EU initiatives. Country Profiles - analysis of performance of the research and innovation systems of individual Member States. Scoreboard - snapshot of performance based on 25 indicators spanning the whole innovation cycle. Allows comparison of relative strengths and weaknesses and performance monitoring. 11

12. Progress of the Innovation Union 2011  Changing innovation landscape in Europe 9 proposals tabled including 6 legislative: ERA communication (#4) Horizon 2020 (#6) EIT Strategic Innovation Agenda (#9) Venture capital passport (#11) Unitary patent (#14) Standards (#16) Public procurement (#17) Eco-innovation Action Plan (#18) Structural Funds (#24/#25)  proposal on headline indicator (#34) is in progress

13.  Experimenting and testing new ideas 6 pilot initiatives launched: Knowledge Alliances (#2) University ranking (#2) Regulatory screening (#15) Support mechanism for procurement of innovative products and services (#17) European Social Innovation pilot (#26) European Public Sector Innovation Scoreboard (#27)  Working in Partnership 5 novel platforms and fora: European Forum on Forward Looking Activities (#8) European Creative Industries Alliance (#19) European Design Leadership Board (#19) Smart Specialisation Platform (#24) European Innovation Partnerships (#29) Progress of the Innovation Union 2011

14. Progress of the Innovation Union 2012 Positives: – Total R&D budgets of the 27 EU Member States increased nominally by ca. 8% between 2007 and 2011. – Business R&D expenditure in the EU also 10% higher in 2011 than before the crisis (2007) in nominal terms. – Top R&D investing companies headquartered in the EU expect their global R&D investments to grow by an average of 4% annually over the period 2012 to 2014. – EU R&D intensity grew from 1.85% of GDP before the crisis (2007) to 2.03% of GDP in 2011. 14

15. Progress of the Innovation Union 2012 Warning signs: – Total R&D investment by EU Member States slowed down in 2010 and decreased in 2011. – Increasing disparities in performance of Member States and regions - process of convergence in performance has come to a halt for the first time since 2001 – Firms piling up cash reserves and differing research and innovation investments due to low confidence in future prospects of the European economy. 15

16. International Comparison – Innovation leaders, US, Japan and South Korea outperform EU. – Innovation performance gap with US and Japan has closed since 2008, but performance lead of South Korea has increased. – EU continues to have a strong performance lead over Australia, Canada and all BRICS countries, but China is catching up. 16

17. Not all bleak! – One of the world best-performers in terms of high quality science and innovative products – Capture the largest share (28%) of income generated in global manufacturing value chains – Prime beneficiary of foreign R&D investments by US firms – Specialised in medium-high tech sectors, but two- thirds of business R&D investment in US clustered in high-tech – e.g. health and ICT. 17

18. Policy Shift – Concrete actions on European Research Area – Improved business environment thanks to unitary patent, faster standard setting, modernised EU procurement rules and a European passport for venture capital funds – European Innovation Partnerships are pooling resources and concentrating demand and supply-side measures on key societal challenges – Gist of the Commission's proposal for Horizon 2020 accepted. 18

19. Implications for Member States "Invest, Reform, Transform“ – Continue to invest by protecting R&D budgets – Reforms to improve the efficiency of the national research and innovation eco- systems – European economy must be transformed through a stronger presence in high-tech sectors while maintaining and revitalising current industrial fabric 19

20.  AIM: Squeezing the gap between ideas and market Innovation Union and the new funding programme  Broad approach to innovation Activities and support to social, public sector, service innovation  Reinforcing the innovation dimension Measures supporting the uptake and exploitation of the research results: demonstrators, prototyping, proof of concept, validation, testing, experimental development, piloting (including in industrial settings)  Supporting the EU 2020 priorities and demand-driven innovation Targeting Europe 2020 and particularly IU objectives and commitments. Many themes providing support to pre-commercial procurement, standardisation activities, activities relevant to EIPs… 20

21. Horizon 2020 approach to innovation  Increased support to activities closer to users and markets - piloting, demonstration, prototyping.  Support for demand side activity  Continuation of PPPs  SME instrument  Extensive use of financial instruments with leverage effect  Simplification 21

22. ETPs – State of Play Since 2003, 36 ETPs created - important source of input for FP7 JTIs, contractual PPPs and the six European Industrial Initiatives (SET Plan) originated from ETPs Rationale remains valid and has been reinforced by the Innovation Union and Horizon 2020: high impact research, growth and jobs. However, weaknesses must be addressed: – Representation – Managing risks of duplication and fragmentation – EC and ETP interactions and associated procedures

23. Strategy ETPs 2020 Vision: ETP 2020 key player in the EU R&I eco-system ETP2020 to take holistic view on R&I

24. Strategy ETPs 2020 Mission: Strategy function Mobilising function Dissemination function

25. Strategy ETPs 2020 Main features: Be inclusive & representative of stakeholders in field Work in partnership with MS/AS & MS/AS based networks Actively engage with stakeholders to foster social responsible, inclusive & sustainable solutions

26. Strategy ETPs 2020 Core activities: Develop SRIAs Encourage wider participation in Horizon 2020 International collaboration Opportunities to move towards more open models of innovation Facilitating new partnerships

27. ETP 2020 – the recognition criteria 27  Europe 2020 + Horizon 2020 priorities  Scale of market opportunity  EU added value  Transparency and openness  Scope  Leverage

28. Key features of ETP role in strategy Holistic view on R&I Inclusive & representative Working in partnership with each other and with Member States Encouraging industry participation in Horizon 2020 and helping widen participation Identifying opportunities for international cooperation Providing networking opportunities Facilitating the formation of new partnerships

29. Next steps Strategy and new ETP landscape in place with a number of recommendations to individual ETPs Guidance document to be developed to operationalise strategy e.g. metrics used to assess ETPs going forward Work on cross-cutting issues e.g. best practice in cooperation with Member States Assessment every two to three years

30. ETP2020 June: Finalising assessment July: Adoption of Strategy, listing of ETP2020 2015/2016: Performance evaluation

31. Grazie!