Presentation on theme: "Henriette van Eijl, DG ENTR, Unit D1 (innovation policy)"— Presentation transcript:
1 Henriette van Eijl, DG ENTR, Unit D1 (innovation policy) Current highlights in EU innovation policy Rotterdam School of Management Overview: 1. EU innovation policy - what is it? - who does what? results of the European Innovation Scoreboard and Trendchart 3. Funding for EU innovation policy 4. Some ideas about future directions… 5. If you would have been the Minister of Economic AffairsHenriette van Eijl,DG ENTR, Unit D1 (innovation policy)
2 1. Which EU policies are relevant for innovation? Innovation CapitalPrivate & public sourcesFor enterprises of all sizes anddevelopment stagesMarket regulations Env. & Health protection, public procurement, Standards, WTO, etc.State Aid, financial instruments,Cohesion policytaxation, investor readiness, etc.InnovationEnterprises: Product innovation,organisational, marketing, design,Processes,Etc.KnowledgeTechnologies, methods,Know-how, maret knowledgePatents copy right,etc.MarketsEU & global,consumers, industry& public sectorInnovation is not a linear process where new research results lead to developing new products / services that then are taken up in the marketInnovation is a systemic process with many factors that influence its emergence and success.Innovation is often triggered by a new demand in the market, e.g. a demand for integrating things like a phone, Internet access and TV into one gadget – provided that gadget will be small and light.Enterprises are at the heart of the innovation process, as they can combine the different innovation factors (knowledge, capital, HR, market knowledge) and drive the process with entrepreneurial initiative (risk-taking is a vital element of this).Although policy-makers / public authorities are not at the heart of innovation, they can influence it (in the good and in the bad sense)Education and training prgs,Labour & social lawimmigration, etc.Human CapitalSkills, creativity,Mobility, Flexibility,etc.Research funding, IPR support, Technology transfer, Networking, cluster, research infrastructure, etc.
3 EU Innovation policy = Broad Based Innovation Strategy (from 2006) 9 prioritiesIntellectual Property RightsStandardisationPublic procurementJoint Technology InitiativesLead marketsEuropean Institute of TechnologyClustersInnovation in servicesRisk capital marketsExamples of good progressJoint Technology Initiatives launchedEuropean Institute of Technology on trackCommunication and implementation of Lead Market Initiative
4 Lead Market Initiative - a policy mix to achieve maximum impact Demand-side measures- regulationstandardisation- procurementclusters?Package= LMI- Fiscal measures- Equity support- R&D funding…Supply-side measuresThe Aho-report, followed by a Communication“Putting knowledge into practice: a broad-basedinnovation strategy for Europe” of 2006
5 Activities already started in 2008: Policy toolsStandardisationLabellingCertificationLegislationPublic ProcurementComplementary ActionsLead Market Arease-HealthEU Recommendation for interoperabilityIntroduce the Electronic Health Insurance CardNetwork to be set up by DG INFSOEU Patient Smart Open Services large scale pilot fundedSustainable construction2nd generation of EurocodesScreening of national building regulationsNetworks of European Contracting Authorities to foster demand for innovationSMEs guide on collaborative working schemes in constructionProtective textilesInventory of all relevant standardsTraining platform for buyers and usersBio-based productsProduct performance standardsInventory of legislation affecting bio-based productsFP7 call on bio-refinery pilot plantsRecyclingCEN Packaging StandardsWaste Framework DirectiveFinancial support (CIP) for market replication projectsRenewable energiesMandatory national targets for 2020Guide on funding available for RE demonstration and pilot projects
6 Innovation policy in Europe: who does what? Member StatesNational governments, including standardisation, public procurement and regulatory organisationsRegional governments, cities etcInnovation and regional agenciesEuropean Commission initiativesComplementing national initiativesCIP: Competitiveness and Innovation ProgramBroad based innovation strategy (2006)Lead Market InitiativeMonitoring EU innovation performance and policyEuropean Innovation ScoreboardTrendchart policy monitoringEU legislationCouncil of Ministers + European Parliament (based on proposals from the Commission)
7 2008 results of the European Innovation Scoreboard and Trendchart
8 What is the European Innovation Scoreboard (EIS)? Annual benchmarking of innovation performance across EU27Identifying strengths & weaknesses, trends, patterns in innovation performance under the Lisbon StrategyMethodology further improved for 2008:More emphasis on services, non-technological innovation, outputsMeasuring trends over timeENABLERS (external drivers):Human resources – the availability of high-skilled and educated people.Finance and support – the availability of finance for innovation projects and the support of governments for innovation activitiesFIRM ACTIVITIES:Firm investments – covers a range of different investments firms make in order to generate innovations.Linkages & entrepreneurship – captures entrepreneurial efforts and collaboration efforts among innovating firms and also with the public sector.Throughputs – Intellectual Property Rights generated as a throughput in the innovation process and Technology Balance of Payments flows.OUTPUTS of firm activities as:Innovators – the number of firms that have introduced innovations onto the market or within their organisations, covering technological and non-technological innovations.Economic effects – captures the economic success of innovation in employment, exports and sales due to innovation activities.
9 Overall innovation performance summary innovation index of 29 indicators (2007 & 2006 data) Summary innovation performance EU Member States (2008 SII)Innovation leaders: Switzerland, Sweden, Finland, Germany, Denmark, UKInnovation followers: Austria, Ireland, Luxembourg, Belgium, France, NetherlandsModerate innovators: Cyprus, Iceland, Estonia, Slovenia, Czech Republic, Norway, Spain, Portugal, Greece, ItalyCatching up countries: Malta, Hungary, Slovakia, Poland, Lithuania, Croatia, Romania, Latvia, Bulgaria, Turkey
10 Innovation performance based on 2006-2007 data for Netherlands (Innovation follower) Netherlands is one of the Innovation followers.Its innovation performance is just above the EU27 average but the rate of improvement is below that of the EU27.Relative strengths, compared to the country’s average performance, are in Finance and support and Linkages & entrepreneurship while relative weaknesses are in Firm investments and Innovators.Over the past 5 years, Human resources and Finance and support have been the main drivers of the improvement in innovation performance,in particular as a result from strong growth in S&E and SSH graduates (11.3%), S&E and SSH doctorate graduates (6.8%) and Broadband access by firms (23.8%).Performance in Firm investments and Linkages & entrepreneurship has worsened, in particular due to a decrease in Non-R&D innovation expenditures (-1.5%) and the Firm renewal rate (-4.4%).Weaknesses:NL slower growth in innovation-performance than EU27Performance in Firm investments and Linkages & entrepreneurship is worse by lower Non-R&D innovation expenditures (-1.5%) and the Firm renewal rate (-4.4%).Strengths:+ Finance and support and Linkages & entrepreneurship+ Human resources, broadband access and Finance were main drivers for improvement in innovation performance
11 Policy trends in Europe : annual Trendchart report Aim: to track innovation policy developments in all 27 EU Member States, plus Iceland, Norway, Switzerland, Croatia, Turkey, Israel, Brazil, Canada, China, Japan, USA and India. See
12 Failures addressed in the overall EU innovation policy mix Apart from the market perspective, analysis of innovation process has to take into account also key deficiencies of companies and failures in systems (Smith 2000, Arnold 2004). Arnold (2004) differentiates four systemic failures:capability failures - inadequacies in companies’ ability to act in their own best interests, for example through managerial deficits, lack of technological understanding, learning ability or ‘absorptive capacity’;failure in institutions – inadequacies in other relevant NIS actors such as universities, research institutes, patent offices and so on. Rigid disciplinary orientation in universities and consequent inability to adapt to changes in environment is an example of such a failure;network failures - problems in the interaction among actors in the innovation system such as inadequate amounts and quality of links, ‘transition failures’ and ‘lock-in’ failures (Smith 2000) as well as problems in industry structure such as too intense competition or monopoly;framework failures – gaps and shortcomings of regulatory frameworks, intellectual property rights, health and safety rules, etc. as well as other background conditions, such as the consumer demand, culture and social values (Smith 2000).The support measures database includes also measures focused on improving policy making capacity including activities such as policy advisory services or establishing consultative fora. It is argued that activities to enhance the policy process and to induce policy learning are a response to actual or potential policy failures. Hence, this analysis recognises policy failure as a systemic shortcoming in its own right.Capability failures remains the most prevalent category addressed by measuresInnovation leaders and followers (ie Netherlands) tend to address more network and policy failuresModerate innovators and catching-up tend to address more capability failures, followed by market failures
13 Groups targeted by the support measures SMEs!STI policies are concerned above all with companies and research performers.Nearly 65% of measures target companies (31% only target SMEs).More than 42% of all support measures has as a target higher education institutions (HEI) performing research.Individual scientists and researchers are targeted by 25% of measuresThe recently introduced measures target much more strongly SMEs (31% as compared to 21% in an overall policy mix).This is consistent with other findings presented previously on the increasing focus of the measures supporting innovative start-ups.Less than one third of the recent measures target HEI performing research, which also reflects the previously discussed trend.This does not, however, influence substantially the overall policy mix in which more than 40% of active measures target research performers.Highest relative increase in: measures supporting innovative start-ups and technology transfer between firmsTogether with a slight increase in measures supporting risk capital……suggest an increased focus of innovation policy on supporting fast growing innovative SMEs, especially start-ups and spin-offs (particularly in catching-up countries)Certain slowdown in measures addressing R&D cooperationJump in number of policy measures from 2004 clearly due to new Member States using Structural Funds
16 EU innovation & research funding instruments € 50 billionResearch projects(Mainly multi-country)& joint actions (JTI, 169)ScholarshipsPolicy coordinationCapacity building€ 3.6 billlionMulti-countryInnovation networksCluster, MonitoringSupport servicesPolicy developmentFinancial instruments€ 86 billion (of the €347 billion)Nat / regional programmesResearch, capacity, SME, Cluster, TT, services ...EntrepreneurshipInnovative ICTHuman Capital€ 6.2 billionErasmus &Erasmus Mundus:Univ.Educ:Scholarshipse-learning Programme: ICT in schoolsLeonardo vocational trainingPractical Guide to EU funding for research and innovationLife Long Learning:LIFE environmentEuropean Fisheries FundEuropean Agricultural Fund for Rural DevelopmentEUREKA: a non-EU-dependent pan-European network for market-oriented, industrial R&D created as an intergovernmental initiative. It supports businesses, research centres and universities who carry out pan-European projects to develop innovative products, processes and services. (COST (European Cooperation in the field of Scientific and Technical Research) has 34 European member countries and enables scientists to collaborate in a wide spectrum of activities grouped under nine key scientific domains. It also aims to maximise European Synergy and added value in non-competitive and pre-normative research. (€ 450 millionIntermodal transport and freight logisticsFisheries &Aquaculture€2.1 billionEnvironment:Policy monitoring & develop.Projects on:Air, Energy, Climate,Industry, Urban env., SoilWaste, WaterRuraldevelopmentTrans-European Networks (TEN)TransportEnergyTelecommunicationsNot EU research initiatives:
17 CIP objectives 2007-2013; pillars Facilitate access to finance for SMEs€ 1129 millionSupport services for enterprises (especially SMEs)€ 338 millionPromotion of innovation and particularly eco-innovation€ 585 millionICT interoperability and up-take€ 728 millionEnergy issues (e.g. efficiency, renewable)€ 727 million
18 Innovation Support Policy Initiatives Support policy analysis, learning and coordinationInnovation policy makers design and test new support programmes and policy methodsSector-oriented analysis, develop and test new or better support tools, promote their wide adoptionInnovation support providers in public-private partnerships with companiesServing complementary policy objectives
19 Knowledge-intensive services Eco-innovation Focus of 2009 calls:ClustersKnowledge-intensive servicesEco-innovationNetworks of public procurers in support of lead marketsDeadline 12 Feb
21 Innovation policies: into the 4th generation 1st generation innovation policy:innovation follows from scientific research2nd generation innovation policyinteractive nature of the innovation process(e.g. innovation systems, clusters)3rd generation innovation policy:recognises the need to mainstream innovationobjectives in a broad range of policy areas4th generation innovation policy (future)puts society’s needs at its heart and translates this into opportunities for businessIn parallel, the role of innovation policy has developed from the linear concept, i.e. that innovation follows from scientific research(the first generation of innovation policy),to recognition of the interactive nature of the innovation process (e.g. innovation systems, clusters – "the second generation"),and more recently a "third generation" that recognises the need to mainstream innovation objectives in a broad range of policy areasThe objective is to make Europe the place for innovative people, companies and markets.To achieve this, a fourth generation innovation policy is needed which puts society at its heart.This means recognising that innovation depends crucially on societal acceptance and must address society concerns about change.It also means showing that innovation provides answers to societal challenges such as those stemming from globalisation, climate change and demographic trends which are more attractive than a defensive, protectionist approach.But how?
22 Development of a European Plan for Innovation Commission Communication (June 2009)Assessing progress under Broad Based Innovation StrategyReviews of:lead markets initiative,innovation support for services,efficiency of innovation support,financing innovation in SMEsEuropean Plan for Innovation (end 2009), linked to Post Lisbon strategyStakeholder consultations, workshops, supporting studies and analysis
23 Innovation and economic crisis in the spirit of Darwin:“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”
24 Impact of financial crisis and economic downturn does not yet show in indicators, but: Countries with higher innovation capacity better placed to recover faster. Hence EU better placed than 5 years ago but still behind US.EU firms under investment in research and innovation is a particular concern.
25 Example from Finland… innovating through the downturn….
27 Innovative public services New /missingUsers’ tax incentivesPublic procurementStandardsNormsLead marketsInnovative public servicesVC taxincentivesGreenProcurementTYKESLiving labsUser communitiesSourcing know-howPre-compprocurem. (R&D)YIC funding
28 Finland’s innovation strategy - Focal points Mobility and attractivenessParticipation and contributionWORLD WITHOUT BORDERSInnovation communities & hubsLead marketsINNOVATIVE INDIVIDUALS ANDCOMMUNITIESDEMAND AND USER ORIENTATIONCOMPETENCE BASEIndividuals and entrepreneurshipCo-innovationSYSTEMIC APPROACHBroad-based innovationLeadership & change management
29 If you were the Minister of Economic Affairs, how would you answer these questions? Which areas or topics are priorities for further development in innovation policy for Europe?What is the relationship between future EU innovation policies and those at national and regional level?
30 Thank you for your attention References:Homepage DG enterprise:Homepage European innovation policy:Homepage Lead Market Initiative:Contact address LMI/ Henriette van Eijl:
31 What next ? – Mapping what and for whom Financial support: grants & loans for research and demonstration projects, market replication, commercial innovation activities, staff exchanges, mobility, industrial & research capacity …Direct innovation support services: technology-transfer, innovation capacity audits, IPR advice, partner finding, mobility portals, global market access …Capacity building of investors, innovation talents, innovation support bodies, cluster managers, other multipliers …Help build critical mass: clusters, PPP, JTI, …Improve interaction among innovation actors: improve partnerships at nat/reg level, RoK, open innovation systems, internationalisation, cluster management, LivingLabs …Improve support by nat/reg bodies: networks among innovation agencies, teaming up for larger scope, partnering ….Research institutes, researchers, enterprises, students …Banks, business angels, entrepreneurs, researchers, consultants, public bodies, development agencies …Reg/loc actors, public & private, triple helix (business, research, education, finance…Innovation / development agencies, consultants, technology parks, cluster managers …