Presentation CESAER seminar, TrondheimEva CamererPolicy Officer, Industrial Innovation Policy DevelopmentDG Enterprise and Industry 15 October 2010

Why Innovation Union?

A cornerstone of Europe 2020 strategy

Three aspects:

- Globalisation of knowledge production and innovation capacities

- Impact of the crisis on public and private finance, survival of innovative SMEs

- Major challenges to address with reduced means

Innovation emergency!

Figure Private Expenditure on R&D as % of GDP (1) - average annual

growth (%) in the major economies, 2000-2007 (2)

-0,2-0,7

2,5

5,0

9,8

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

EU-27 US Japan South Korea China

%

Declining EU share of knowledge productionEvolution of World R&D expenditure in real terms, PPS€ at 2000 prices and exchange rates, 1995-2008EU-27

US

Japan

ROW

0

100

200

300

400

500

600

700

800

900

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

PPS€2000 (billions)

Stagnating business R&D

Average annual growth as % of GDP, EU-27, US, Japan,

South Korea & China, 2000-2007

Globalisationof knowledge

SANCHES Luisa (REGIO)

US

Economic and financial crisis

EU lost six million jobs, €1000 Bn annual GDP due to crisis

Invest in future growthEU target of 3% of GDP for R&D in 2020 could create a net 3.7 million jobs and close to €800 Bn annual GDP by 2025

Make the most of available resources through leverage effects, integration and cooperation

”(..)the evident need to align research activities more closely with the resolution of major societal challenges(..)

”no single member state can solve these challenges alone”

”Societal challenges dimension adds a new objective to public policy whereby research and innovation are not seen as a ends in themselves but as a means to a wider goal, defined as a social benefit.”

Expert Group chaired by Prof Luc Soete 2010

Societal challenges• Climate change

• Health and ageing

• Use of natural resources

• Energy security

• Clean transport

• Land use

• ….

• Powerful drivers of change in economy and society

• Major global market opportunities

• Requiring EU-scale approaches

• From research to market

New needs new ideas new markets

What is Innovation Union?Strategic approach • Partnership with Member

States• From idea to market

Tackling weaknesses• Under-investment • Fragmentation • Framework conditions

Building on strengths• Focus on societal challenges• Broad concept of innovation• Involving all actors

A distinctive European approach to innovation

Strengthening the knowledge base

Getting good ideas to market

Maximising social and regional benefits

Collaborating internationally

Key measures of Innovation Union

Pooling efforts for breakthroughs

• European Innovation Partnerships• European Research Area framework• Streamlined EU programmes• New financial instruments• Reform of standardisation system • Public procurement of innovation• Social innovation pilot• Stronger monitoring• Innovation Convention

Innovation Union: Highlights

European Innovation Partnerships

• Issues Major societal challenges Many actions, uncoordinated

- R&D programmes / demand-side actions

- EU / national / regional (and global)

• To address these issues,

European Innovation Partnerships will be: Not a new instrument alongside the others; but Frameworks bringing together main actors, policies and

actions at EU and national levels, from research to market, around common objectives and targets

European Innovation Partnerships2010– Pilot on active and healthy ageing

Aim: two additional healthy life years by 2020– Council, Parliament to discuss the concept– Member States and stakeholders invited to join

2011– Others to follow pending discussions and building

on pilot experience– Topics considered: smart cities, water, raw

materials, mobility, agriculture,

Making it happen!A priority for EU Institutions

– European Council dedicated discussion in December– Council invited to meet as “Innovation Council”– European Parliament discussions– Innovation Group of Commissioners

Accelerating national reforms– Self assessments of R&I systems under Europe 2020

Tracking progress– EU target of 3% of GDP on R&D and national targets– New indicator on fast-growing innovative firms– New Scoreboard of 25 indicators

Annual Innovation Convention

Next steps

Oct. 12, Nov. 26: Competitiveness Council conclusionsDec. 16: European Council

European Parliament debate

Implementation•Launch of European Innovation Partnerships, …

•Proposals for future EU programmes, European Research Area, ..

•Implementation in Member States, regions…