Innovation Europe > News > Innovation EU Vol1-1 > A Broad-based Innovation Strategy for the EU

The 2005 Lisbon Strategy for Growth and Jobs set out policies and reforms to make Europe’s regulatory and economic framework more innovationfriendly. The European Union has since taken the following significant steps:

The National Reform Programmes

Based on the Integrated Guidelines of the 2005 Lisbon Strategy, the National Reform Programmes encourage member states to take targeted measures to promote innovation, using the Structural Funds.

The Commission Communication of October 2005

“More Research and Innovation” set out a programme of 19 fields of action for the EU and its member states, including identifying new areas for action and introducing a strategy to enable the creation and marketing of new innovative products.

The Broad-based Innovation Strategy

This prioritises 10 actions:

• Creating innovation-friendly education systems, by increasing public spending on education and innovation promotion within the member states, via the education system and by modernising universities.
• Setting up the European Institute of Technology, which is now operational.
• Developing a strategy within the Community and its member states to create an open European labour market for researchers.
• Promoting knowledge transfer between universities, public research organisations and industry.
• Mobilising the EU’s cohesion policy for 2007 – 2013 supporting innovation, including earmarking an ambitious proportion of the available funds.
• Adopting a new framework within the Commission for state aid for research, development and innovation, enabling state aid to be redirected and targeted at these objectives.
• Presenting a new patent strategy within the Commission, as well as preparing a more comprehensive intellectual property rights strategy.
• Developing an initiative on copyright levies to provide a legal framework that is more conducive to the development of new products and services.
• Introducing a strategy to aid the emergence of lead markets.
• Stimulating innovation through public procurement.

Regulatory environment

Innovation calls for predictable, flexible, simple and effective regulation that reinforces consumer confidence, protects intellectual property and provides open and interoperable standards. The worldwide success of European business depends on the rapid adoption of such standards. The adoption of a Community patent that is effective and affordable for business is an important step. In the meantime, implementing the London Protocol will help to improve the situation for business as regards intellectual property rights (IPRs), as well as enforcing IPRs on foreign markets.

Co-operation

All public and private stakeholders (business, the public sector and consumers) must be involved in the innovation process. Co-operation between them needs to be encouraged, in particular in the following forms:

• Clusters, in which businesses form just part of a whole and interact with one another, enhancing productivity, promoting research and becoming a focus for developing skills. Major transnational European co-operation across national borders should help to generate world-class European clusters.
• Knowledge transfer between the public research base and industry.
• Strategic partnerships between business and universities, which bridge the gap between university research and business needs.
• Financial support.

Innovation and research often need major financial input. There are several Community measures designed to provide better funding for research and innovation:

• The Seventh Framework Programme, which will boost the funding for collaborative research from 2007 until 2013.
• Joint Technology Initiatives, which will provide a new funding framework for implementing research and technological development in industrially competitive sectors.
• A large proportion of the Structural Fund’s E308bn is earmarked for investment in knowledge and innovation.
• The Competitiveness and Innovation Programme has allowed for an increase of 60% in the financial instruments available to support entrepreneurship and innovation.
• The Risk-Sharing Financial Facility will support private investment in high-risk research, technological development and demonstration projects via loans and guarantees.
• The JEREMIE Initiative (Joint European Resources for Micro-to-Medium Enterprises) will help member states develop financial incentives to assist SMEs.
• The new state aid guidelines for venture capital will enable member states to target state aid in areas where the provision of venture capital is lacking.
• The new framework for state aid for R&D and innovation will enable member states to channel spending into aid for young, innovative businesses, innovation advisory and support services, the loan of qualified personnel, process and organisational innovation, and clusters.
• Tax incentives are available for R&D and innovation.

Lead markets

To enable the marketing of innovative goods and services in promising areas which are fuelled by consumer demand, the EU is promoting the emergence of lead markets. The Lead Market Initiative (LMI) for Europe was launched in 2008, which puts in place action plans for six markets (eHealth, sustainable construction, bio-based products, recycling, renewable energy and protective textiles) that will remove barriers as well as promote the creation of new markets. Many stakeholders, such as the Europe INNOVA Initiative, the European Technology Platforms, member states and regions, are involved in putting the action plans in place.

For more information, visit: www.europa.eu