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Current highlights in EU innovation policy Rotterdam School of Management Overview: 1. EU innovation policy - what is it? - who does what? 2. 2008 results.

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Presentation on theme: "Current highlights in EU innovation policy Rotterdam School of Management Overview: 1. EU innovation policy - what is it? - who does what? 2. 2008 results."— Presentation transcript:

1 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 Affairs Henriette van Eijl, DG ENTR, Unit D1 (innovation policy)

2 State Aid, financial instruments, Cohesion policy taxation, investor readiness, etc. Knowledge Technologies, methods, Know-how, maret knowledge Patents copy right, etc. Research funding, IPR support, Technology transfer, Networking, cluster, research infrastructure, etc. Capital Private & public sources For enterprises of all sizes and development stages Human Capital Skills, creativity, Mobility, Flexibility, etc. Market regulations Env. & Health protection, public procurement, Standards, WTO, etc. Markets EU & global, consumers, industry & public sector Education and training prgs, Labour & social law immigration, etc. Innovation Enterprises: Product innovation, organisational, marketing, design, Processes, Etc. 1. Which EU policies are relevant for innovation?

3 EU Innovation policy = Broad Based Innovation Strategy (from 2006) 9 priorities 1.Intellectual Property Rights 2.Standardisation 3.Public procurement 4.Joint Technology Initiatives 5.Lead markets 6.European Institute of Technology 7.Clusters 8.Innovation in services 9.Risk capital markets Examples of good progress Joint Technology Initiatives launched European Institute of Technology on track Communication and implementation of Lead Market Initiative

4 Lead Market Initiative - a policy mix to achieve maximum impact Supply-side measures Demand-side measures - regulation - procurement - R&D funding - Equity support - Fiscal measures … The Aho-report, followed by a Communication Putting knowledge into practice: a broad-based innovation strategy for Europe of standardisation - clusters? Package = LMI

5 Standardisation Labelling Certification Legislation Public Procurement Complementary Actions Networks of European Contracting Authorities to foster demand for innovation EU Recommendation for interoperability Financial support (CIP) for market replication projects Guide on funding available for RE demonstration and pilot projects Product performance standards e-Health Sustainable construction Protective textiles Bio-based products Recycling Renewable energies 2 nd generation of Eurocodes SMEs guide on collaborative working schemes in construction Network to be set up by DG INFSO Waste Framework Directive Lead Market Areas Policy tools Screening of national building regulations CEN Packaging Standards Introduce the Electronic Health Insurance Card Training platform for buyers and users FP7 call on bio- refinery pilot plants Mandatory national targets for 2020 Activities already started in 2008: EU Patient Smart Open Services large scale pilot funded Inventory of legislation affecting bio- based products Inventory of all relevant standards

6 Innovation policy in Europe: who does what? Member States National governments, including standardisation, public procurement and regulatory organisations Regional governments, cities etc Innovation and regional agencies European Commission initiatives Complementing national initiatives CIP: Competitiveness and Innovation Program Broad based innovation strategy (2006) Lead Market Initiative Monitoring EU innovation performance and policy European Innovation Scoreboard Trendchart policy monitoring EU legislation Council 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 EU27 Identifying strengths & weaknesses, trends, patterns in innovation performance under the Lisbon Strategy Methodology further improved for 2008: More emphasis on services, non-technological innovation, outputs Measuring trends over time

9 Overall innovation performance summary innovation index of 29 indicators (2007 & 2006 data) Innovation leaders: Switzerland, Sweden, Finland, Germany, Denmark, UK Innovation followers: Austria, Ireland, Luxembourg, Belgium, France, Netherlands Moderate innovators: Cyprus, Iceland, Estonia, Slovenia, Czech Republic, Norway, Spain, Portugal, Greece, Italy Catching up countries: Malta, Hungary, Slovakia, Poland, Lithuania, Croatia, Romania, Latvia, Bulgaria, Turkey Summary innovation performance EU Member States (2008 SII)

10 Innovation performance based on data for Netherlands (Innovation follower) Weaknesses: - NL slower growth in innovation-performance than EU27 - Performance 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 Capability failures remains the most prevalent category addressed by measures Innovation leaders and followers (ie Netherlands) tend to address more network and policy failures Moderate innovators and catching-up tend to address more capability failures, followed by market failures

13 Groups targeted by the support measures SMEs!

14 3. Funding for EU innovation policy

15 On-going funding actions – the menu… Supply-led Demand-led EU-led MS-led FP - themes - Infrastructure - RSFF, ERC - CRAFT - People … CIP - 3 pillars - EIF ETP +/- 38 JTI (5x) 169/ERA-NET - EDCTP, AAL - ERA CAs EIT – KIC (2-3) from 2010 National R&D programmes … EUREKA Structural Funds Lead Market Initiative 6 x, demand side policy Structural Funds - Res infrastructures … (Pre-commercial) public procurement Regulatory frameworks: legislation, standardisation, IPR Joint Programming (TBC)

16 6.2 billion Erasmus & Erasmus Mundus: Univ.Educ:Scholarships e-learning Programme: ICT in schools Leonardo vocational training 2.1 billion Environment: Policy monitoring & develop. Projects on: Air, Energy, Climate, Industry, Urban env., Soil Waste, Water Not EU research initiatives: Rural development Fisheries & Aquaculture 50 billion Research projects (Mainly multi-country) & joint actions (JTI, 169) Scholarships Policy coordination Capacity building 3.6 billlion Multi-country Innovation networks Cluster, Monitoring Support services Policy development Financial instruments 86 billion (of the 347 billion) Nat / regional programmes Research, capacity, SME, Cluster, TT, services... Entrepreneurship Innovative ICT Human Capital 450 million Intermodal transport and freight logistics Trans-European Networks (TEN) Transport Energy Telecommunications EU innovation & research funding instruments

17 CIP objectives ; pillars Facilitate access to finance for SMEs 1129 million Support services for enterprises (especially SMEs) 338 million Promotion of innovation and particularly eco-innovation 585 million ICT interoperability and up-take 728 million Energy issues (e.g. efficiency, renewable) 727 million

18 Innovation Support Policy Initiatives erving complementary policy objectives Serving complementary policy objectives Sector-oriented analysis, develop and test new or better support tools, promote their wide adoption Innovation support providers in public-private partnerships with companies Support policy analysis, learning and coordination Innovation policy makers design and test new support programmes and policy methods

19 Focus of 2009 calls: Clusters Knowledge-intensive services Eco-innovation Networks of public procurers in support of lead markets Deadline 12 Feb

20 4. Some ideas about future directions…

21 Innovation policies: into the 4th generation 1st generation innovation policy: innovation follows from scientific research 2nd generation innovation policy interactive nature of the innovation process (e.g. innovation systems, clusters) 3rd generation innovation policy: recognises the need to mainstream innovation objectives in a broad range of policy areas 4th generation innovation policy (future) puts societys needs at its heart and translates this into opportunities for business But how?

22 Development of a European Plan for Innovation Commission Communication (June 2009) Assessing progress under Broad Based Innovation Strategy Reviews of: lead markets initiative, innovation support for services, efficiency of innovation support, financing innovation in SMEs European Plan for Innovation (end 2009), linked to Post Lisbon strategy Stakeholder 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….

26 Based on information at Statistics Finland about inflation. The funding includes funding for purchase of research services and EUs Structural Funds. The funding for 2007 does not include any EU funds, since funds from the new Structural Funding period were not allocated until Development of Tekes R&D funding in Finland Million euros Nominal funding Real funding deflated by the cost-of- living index DM Copyright © Tekes Finlands financial crisis Major bank sector difficulties Exports down by >20% GDP down by 13% Unemployment from 3,5% to 18%

27 VC tax incentives Lead markets YIC funding New / missingTYKES Public procurement Standards Norms Innovative public services User communities Sourcing know-how Pre-comp procurem. (R&D) Green ProcurementLiving labs Users tax incentives

28 COMPETENCE BASE Participation and contribution Participation and contribution Mobility and attractiveness Mobility and attractiveness Innovation communities & hubs Innovation communities & hubs Individuals and entrepreneurship Individuals and entrepreneurship Co-innovation Lead markets Broad-based innovation Broad-based innovation Leadership & change management Leadership & change management Finlands innovation strategy - Focal points SYSTEMIC APPROACH DEMAND AND USER ORIENTATION WORLD WITHOUT BORDERS INNOVATIVE INDIVIDUALS AND COMMUNITIES

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 References: Homepage DG enterprise: Homepage European innovation policy: Homepage Lead Market Initiative: Contact address LMI/ Henriette van Eijl: Thank you for your attention

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 …

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