European Innovation Policy. an Economic perspective
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1 European Policy an Economic perspective Pierre VIGIER Economic Analysis Directorate DG Research &
2 Europe is facing major challenges Knowledge and innovation are crucial Today: Major economic and financial crisis Tomorrow: An agile Europe able to respond to new paradigms. Societal challenges and Structural change Reforms are needed to foster resilience in crisis Investments are needed to prepare the rebound Thematic sectorial approach to lead the change
3 1)Resilience in times of crisis: Reforms for an efficient and effective R&I system
4 Citations (%), The challenge of system efficiency: High-quality Science on invested public funding Public (1) expenditure on R&D per public sector researcher (euro), 2003 (2) and scientific publications in the 10% most cited scientific publications worldwide as % of total scientific publications, (3) LV BG RO SK RU CH IS DK NL BE UK SE NO AT FI IE DE MT FR LU IT PT ES EU CY EE EL CN LT PL SI HU CZ TR HR KR (5) JP US (4) Public expenditure on R&D per public sector researcher (euro), 2003 Source: DG Union Competitiveness Report 2011 Data: Eurostat, OECD, Science Metrix / Scopus (Elsevier)
5 Policies reforming the R&I system Strategic focus of science, technology a) societal challenges, b) industry dialogue, c) streamline with H2020 Reform of funding mechanisms for research institutions: balance institutional-competitive funding and link budget allocations to performance Autonomy of universities, combined with evaluation of quality Human resources development (science and entrepreneurial training, gender equity, attracting foreign researchers) Cooperation academia-industry - an area of continuing reform and policy experimentation Industry involved in choices and funding of science and technology fields Internationalisation of institutions, infrastructure and people building on ERA
6 Opening up the national system to ERA National public funding of transnationally coordinated research as a percentage of total national GBOARD, 2008 Source: DG Research and
7 2)Preparing the rebound: Investing in knowledge & smart fiscal consolidation
8 Investing in R&D triggers recovery R&D investment (1) and economic recovery 4,0 3,5 FI SE Average R&D investment (1), (2) 3,0 DK DE 2,5 AT FR 2,0 BE UK LU 1,5 CZ ES PT IT EE 1,0 HU PL EL LT 0,5 RO SK LV BG CY 0, GDP growth (3) (%), 2010 Source: DG - Economic Analysis unit Data: Eurostat
9 EU is world's most attractive area for US firm's R&D investments
10 Smart fiscal consolidation A majority of Member States are maintaining or increase their investments in R&D, despite fiscal constraints. This, together with contributions from the Framework Programme, has created a climate of confidence which has encouraged business to invest more too. European enterprises increased their investment in R&D as a share of GDP since 2008, they also expect their investments to grow by an average of 4% annually over the period
11 Real growth in GBAORD less real growth in GDP (percentage points) Prioritising R&I investments in public budget Government investment in the future The difference in percentage points between real growth (1) in Government budgets for R&D (GBAORD) and real growth (1) in GDP, (2) Source: DG Data: Eurostat
12 R&D Intensity (%) R&D Intensity (%) Setting national targets Austria Estonia Austria - R&D Intensity projections, (1) Estonia - R&D Intensity projections, (1) 4,5 4,5 Estonia - trend 4,0 Austria - trend 4,0 3,5 3,5 Austria (2) - target 3,0 EU (2) - target 3,0 EU (3) - target 2,5 Estonia (3) - target 2,5 2,0 EU - trend EU - trend 1,5 2,0 1,0 1, , Source: DG - Economic Analysis unit Source: DG - Economic Analysis unit
13 3)Leading the change: Smart thematic-sectorial approach and structural change anticipating the new economy
14 EU maintain its income from competitive position in Global Value Chains - while USA and Japan fall
15 Firm growth in innovative dynamic sectors Slovakia Germany 120 Slovakia - Index of high-growth innovative enterprises, 2010 (1) EU (2) = 100 Germany - Index of high-growth innovative enterprises, 2010 (1) EU (2) = Slovakia EU Reference Group (CZ+IT+HU+SI+SK) 0 Germany EU Source: DG - Economic Analysis Unit Data: Eurostat, OECD Source: DG - Economic Analysis Unit Data: Eurostat, OECD
16 The thematic challenge: smart technologies driving structural change Systemic transition technologies (renewable energy technologies, environment and transport technologies, technologies for sustainable agriculture) Emerging sciences and technologies (nanotechnology, cognitive sciences, complexity research and converging technologies). Pervasive and enabling technologies (info-communication technologies, health and biotechnology, manufacturing and materials technologies, service research)
17 EU-27 is lagging behind in Systemic Transition Technologies PCT application EU-27 North America Asia Energy 31% 48% 19% Green energy 32% 37% 36% Environment 34% 36% 27% Biofuels 30% 46% 22% Electrical machinery 35% 28% 35%
18 and is less specialised in Systemic, Enabling and Pervasive Technologies
19 Policy prioritisation and Cluster implementation Four top themes shared by almost all EU MS can be identified: Energy, Environment and sustainable development Health and Biotechnology ICT, Telecommunications and Electronics Nanoscience/-technology and material research but, Cluster approach needed Energy scientific publications Energy patents by inventor EPO
20 Framework conditions for innovation in firms Matching Supply with Demand-side innovation policies such as innovationfriendly procurement, standards, long-term target and legislation World-class clusters of inter-firm competition and cooperation Framework conditions promoting entrepreneurship and innovative people Venture capital and risk funding to growing and innovative enterprises Direct and indirect support (e.g. tax credits) to business R&D and innovation continues to increase Support for non-technological and user-driven innovation, including in services, is increasing in some countries Source: OECD
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