European Commission

Preparation of the Innovation UnionFlagship Initiative

European Commission

Presentation to ERAC11 June 2010

European Commission

Why Innovation Union?

• Crisis

• Societal challenges

• New global competition• Framework conditions• Fragmentation of efforts

• A distinctive European approach to innovation Societal challenges, role of public sector Europe’s strengths in creativity and design Involving everyone: SMEs, citizens, cohesion

Europe 2020:answer is innovation

We must do much better!

European Commission

State of preparations

• Intensive work steered by Innovation Group of Commissioners

• Building on consultations and dialogue with Member States and stakeholders, including: 2009 Innovation public consultation Innovation Business Panel 2009 ERA Conference Ongoing ERA Partnerships / groups Dialogue in context of Europe 2020 Dialogue with EP, Council, ERAC, EPG...

European Commission

Timeline

15/7: Informal Competitiveness Council

~15/9: Adoption of Flagship Initiative

28/10: Informal European Council

26/11: Competitiveness Council (conclusions)

European Commission

Scope of Innovation Union

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Principles for

• Member State policies

• International cooperation

• Governance

From Idea to Market

Knowledge foundation

Breakthrough ideas

Access to finance

Innovation market

European Commission

From Idea to Market

Knowledge foundation

Breakthrough ideas

Access to finance

Innovation market

European Commission

Knowledge foundation

• Issues Insufficient supply & quality of research & innovation skills Limited reforms in universities Barriers to cross border flow of people, funding Limited investment in strategic infrastructures

• Areas of action ERA framework to remove obstacles to cross border flow of

people and funding Modernisation of universities, research training and

careers Launch of priority research infrastructures

European Commission

Breakthrough ideas• Issues

Underinvestment in knowledge triangle Complex funding landscape Costly EU patent system and unused patents Little recognition of EU design strengths

• Areas of action Streamlining and simplification of EU programmes EU patent EU knowledge markets (DK and FR examples) Recognition of excellence in design

European Commission

Access to finance

• Issues Lack of finance is main constraint on innovative companies Few European SMEs grow into major companies Specific market gaps for start ups, high growth companies,

major research and innovation projects Current EU instruments (RSFF, CIP Financial Instruments)

under funded.

• Areas of action Cohesion Funds for R&I and smart specialisation EU financial instruments to address market gaps, notably

through EIB/EIF State Aid framework

European Commission

A Single Innovation Market

• Issues Lack of harmonised regulations for innovations (e.g. type

approvals of green vehicles) EU standard setting too slow Public procurers lack incentives, knowledge or scale to benefit

from innovation

• Areas of action Regulatory frameworks linked to Partnerships Review of EU standardisation system Procurement for innovation

European Commission

European innovation partnerships

European Commission

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 Commission

Principles for • National policies

• International cooperation

• Governance

European Commission

Principles for national policies

• Issues National policies essential for establishing a single market for

research and innovation National research and innovation systems more effective if they

share some broad characteristics, recognised as common to well-performing systems

« Integrated guidelines » under Europe 2020 are too general for this purpose.

• To address these issues, common benchmarks for national research and innovation systems could be developed and agreed with the Member States

European Commission

International cooperation

• Issues Need to attract best talents from abroad. Need for stronger cooperation, notably on global challenges, but

with level playing field on reciprocal access, intellectual property, interoperable standards, lifting trade barriers.

EU and MS weakened by their lack of coordination.

• Areas of action Make the most of visa directive and Blue Card Establish level playing field Common EU-national policy orientations for international

cooperationMajor global research infrastructures

European Commission

Implementation and governance

Commitment at all levels

European Council Overall steering

EU Council Policy orientations, codecision

Eur. Parliament Policy orientations, codecision

Member States Apply benchmarks, specialise smartly

Regional and local authorities Specialise and develop potential

All actorsFrom business to citizens

European Commission

Implementation and governance

Commission support

Initiative of proposals

Annual Progress Report (Europe 2020)

with Country Specific Recommendations

Independent peer reviews

of national systems

Technical assistance

for smart specialisation and use of structural funds

Innovation Convention on state of Innovation Union (yearly)

Scoreboard on research and innovation