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4 May 2011, 4 May 2011, OhridOhrid

4th International Conference for Entrepreneurship, Innovation and Regional Development (ICEIRD)

Innovation Union and Innovation Union and Common Strategic FrameworkCommon Strategic Framework

Dr Antonio BALESTRIERIDr Antonio BALESTRIERI

EUROPEAN COMMISSIONEUROPEAN COMMISSIONRegional Dimension of Innovation Regional Dimension of Innovation -- C5C5

DG Research and InnovationDG Research and Innovation

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R&DR&D InvestmentsInvestments

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0,50

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1,50

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R&

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Japan South Korea USA EU-27 China

2000 2009

EU-27

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Europe 2020: 3 pillars, 7 flagshipsEurope 2020: 3 pillars, 7 flagships

Smart GrowthSmart Growthdeveloping an economy based on knowledge and

innovation

Sustainable Sustainable GrowthGrowth

more efficient, greener and more competitive economy

Inclusive Growth Inclusive Growth fostering a high-

employment economy delivering social and territorial cohesion

Innovation

« Innovation Union »

Climate, energy and mobility

« Resource efficient Europe »

Employment and skills

« An agenda for new skills and jobs »

Education« Youth on the move »

Competitiveness« An industrial policy for the globalisation era »

Fighting poverty« European platform

against poverty »Digital society

« A digital agenda for Europe »

• Europe 2020 Headline indicator:3% GDP for R&D

• Proposed new indicator for innovation: Share of fast-growing innovative firms

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Europe 2020: 3% objective can Europe 2020: 3% objective can still deliverstill deliver

•• meeting the Europe 2020 target of increasing meeting the Europe 2020 target of increasing R&D investment to 3 percent of GDP could create R&D investment to 3 percent of GDP could create 3.7 million jobs and increase annual GDP by up to 3.7 million jobs and increase annual GDP by up to €€795 billion by 2025. One million extra 795 billion by 2025. One million extra researchers will be needed.researchers will be needed.–– Source: P. Source: P. ZagamZagaméé, (2010) The cost of a non, (2010) The cost of a non--innovative innovative

Europe, Europe, http://ec.europa.eu/research/socialhttp://ec.europa.eu/research/social--sciences/policysciences/policy--briefsbriefs--researchresearch--achievements_en.htmlachievements_en.html

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•Under investment in knowledge foundation

•Unfavourable framework conditions (Poor availability of finance, costly patenting, market fragmentation, outdated regulations and procedures, slow standard-setting, failure to use public procurement strategically

•Fragmentation of efforts and cost duplication

WhatWhat’’s wrong with Europe for s wrong with Europe for innovation ?innovation ?

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What is Innovation Union?What is Innovation Union?

Strategic approachStrategic approach

•• PartnershipPartnership with Member Stateswith Member States

•• WholeWhole cycle of innovation: cycle of innovation: fromfrom blueblue skysky to to marketmarket

Tackling weaknessesTackling weaknesses

•• UnderUnder--investment investment

•• Fragmentation Fragmentation

•• Framework conditionsFramework conditions

A distinctive European approach to innovation

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

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Key measures of Innovation UnionKey measures of Innovation Union

Strengthening the knowledge base & reducing fragmentation– Education and skills– European research area– EU financing instruments

Getting good ideas to market–Access to finance–Single innovation market–Openness and creative potential

Social and territorial cohesionEuropean Innovation PartnershipsInternational cooperation

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Excellence in Excellence in educationeducationand and skillsskills

Key issuesKey issues-- Europe Europe needsneeds atat least least one million more one million more researchersresearchers-- UniversitiesUniversities needneed reformreform and and closercloser links links withwith business to business to

train top talents for innovation jobstrain top talents for innovation jobs

Key Key measuresmeasures-- MemberMember StatesStates invitedinvited to to establishestablish national national strategiesstrategies on on

training and training and careerscareers of of researchersresearchers (2011)(2011)-- Independent Independent rankingranking system system to benchmark to benchmark universitiesuniversities

(2011)(2011)

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Delivering Delivering European Research AreaEuropean Research Area

Key IssuesKey Issues

-- Fragmentation and overlaps Fragmentation and overlaps between national research and between national research and innovation systemsinnovation systems

-- Need for a unified European Research Area where all actors Need for a unified European Research Area where all actors move and operate as easily as within national bordersmove and operate as easily as within national borders

-- Urgent need for worldUrgent need for world--class research infrastructuresclass research infrastructures

Key MeasuresKey Measures-- European Research Area framework European Research Area framework (2012) to remove cross(2012) to remove cross--

border obstacles by 2014 border obstacles by 2014 -- EU and Member States to complete or launch EU and Member States to complete or launch 60% of priority 60% of priority

European research infrastructuresEuropean research infrastructures by 2015.by 2015.

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Focusing EU funding Focusing EU funding instrumentsinstruments

Key IssuesKey Issues

-- Too many instruments Too many instruments pursuing different objectivespursuing different objectives

-- Complexity of accessComplexity of access, particularly for , particularly for SMEsSMEs

-- Need to support the whole innovation chain, from research to Need to support the whole innovation chain, from research to marketmarket

Key MeasuresKey Measures-- Focus future EU R&I programmes Focus future EU R&I programmes on EU2020 and Innovation on EU2020 and Innovation

Union priorities: societal challenges, with streamlining / Union priorities: societal challenges, with streamlining / simplification (2014)simplification (2014)

-- Ensure strong involvement of Ensure strong involvement of SMEsSMEs with high growth potential with high growth potential (2014)(2014)

-- European Institute of Innovation & TechnologyEuropean Institute of Innovation & Technology to set out a to set out a strategic innovation agenda (2011)strategic innovation agenda (2011)

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Positive benefits from FP7Positive benefits from FP7(interim evaluation and (interim evaluation and

other sources)other sources)•• Enables crossEnables cross--border border pooling pooling of resources to achieve of resources to achieve

critical masscritical mass and and diffusion of knowledgediffusion of knowledge•• Promotes Promotes competitioncompetition in research, thereby raising levels of in research, thereby raising levels of

excellenceexcellence•• Offers a wide range of Offers a wide range of training possibilitiestraining possibilities and enhances and enhances

EuropeEurope’’s research capacitys research capacity•• Provides a way to deal with Provides a way to deal with panpan--European policy European policy

challenges challenges and link to EU market frameworksand link to EU market frameworks•• Raises the Raises the international attractivenessinternational attractiveness of EU research and of EU research and

innovationinnovation

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But concerns about FP7 and But concerns about FP7 and other programmesother programmes

•• ComplexityComplexity -- too many instruments and funding too many instruments and funding mechanisms, complex landscapemechanisms, complex landscape

•• Further simplificationFurther simplification-- less variation in rules, simpler less variation in rules, simpler audits and controls, avoid duplicate informationaudits and controls, avoid duplicate information

•• Better strategy for innovation Better strategy for innovation –– how to commercialise how to commercialise results, generate impactsresults, generate impacts

•• Need to focus resourcesNeed to focus resources –– with critical mass to address with critical mass to address the grand challengesthe grand challenges

•• Broaden participationBroaden participation –– new Member States, womennew Member States, women•• Clearer agendas Clearer agendas -- driven by scientific, industrial, social driven by scientific, industrial, social

objectivesobjectives

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Common Strategic FrameworkCommon Strategic Framework

Bringing togetherBringing together

•• The 7The 7thth Framework Programme for research, technology Framework Programme for research, technology development and demonstrationdevelopment and demonstration

•• The Competitiveness and Innovation Framework ProgrammeThe Competitiveness and Innovation Framework Programme

•• The European Institute for Innovation and TechnologyThe European Institute for Innovation and Technology

andand

Strengthening complementaritiesStrengthening complementarities with the Structural Fundswith the Structural Funds

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Why a Common Strategic Why a Common Strategic Framework (1)?Framework (1)?

Simplifying the programmes:Simplifying the programmes:•• FROM FROM different rules in each programme and initiative different rules in each programme and initiative

TOTO more standardised rulesmore standardised rules across all initiativesacross all initiatives

•• FROMFROM a large number of funding schemes within and a large number of funding schemes within and between programmes between programmes

TOTO a rationalised toolkita rationalised toolkit of schemes that are common to of schemes that are common to all programmesall programmes

•• FROMFROM multiple websites, guidance documents, applicationsmultiple websites, guidance documents, applicationsTOTO common entry pointscommon entry points, one stop shops, common IT , one stop shops, common IT platformsplatforms

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Why a Common Strategic Why a Common Strategic Framework (2)?Framework (2)?

Greater impact:Greater impact:•• FROM FROM fragmented calls where projects cannot go from one fragmented calls where projects cannot go from one

stage to the next (R&D, demonstration, market take up, etc)stage to the next (R&D, demonstration, market take up, etc)TO TO support for projects and organisations from research to support for projects and organisations from research to marketmarket

•• FROM FROM research results sitting on the shelfresearch results sitting on the shelfTOTO stronger support across the whole innovation cyclestronger support across the whole innovation cycle

•• FROM FROM different priorities in each programme and initiativedifferent priorities in each programme and initiative•• TOTO common strategic priorities, focusing on societal common strategic priorities, focusing on societal

challenges, competitiveness and research excellence.challenges, competitiveness and research excellence.

16EUROPEAN COMMISSION -

CSF CSF TimelineTimeline

Oct 2010: Innovation UnionBudget ReviewFP7 interim evaluation

Feb 2011: FP8 CommunicationMar –Jun 2011: Stakeholder consultationMid 2011: MFF proposalDec 2011: Commission proposals FP8

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Access to financeAccess to finance

Key IssuesKey Issues-- Lack of finance is main constraint on innovative companiesLack of finance is main constraint on innovative companies-- Few European Few European SMEsSMEs grow into major companiesgrow into major companies-- Specific market gaps for start ups, for high growth companies, Specific market gaps for start ups, for high growth companies,

and for financing major research and innovation projectsand for financing major research and innovation projects

Key Key MeasuresMeasures-- New New generationgeneration of Financial instruments of Financial instruments withwith EIB (by 2014)EIB (by 2014)-- RegimeRegime for for cross border Venture Capitalcross border Venture Capital fundsfunds (2012)(2012)-- StrongerStronger brokeragebrokerage betweenbetween innovativeinnovative SMEsSMEs and and investorsinvestors-- ReviewReview State State AidAid frameworkframework, to , to enableenable support to all support to all formsforms of of

innovation (2011)innovation (2011)

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A Single Innovation MarketA Single Innovation MarketKey IssuesKey Issues-- Costly EU patent system Costly EU patent system -- EU standard setting too slow EU standard setting too slow -- Public procurers lack incentives, knowledge or scale to Public procurers lack incentives, knowledge or scale to

benefit from innovationbenefit from innovation

Key Key MeasuresMeasures-- RapidRapid agreement on EU patentagreement on EU patent-- ReformReform EU standardisation system (2011) EU standardisation system (2011) -- MS MS invitedinvited to set to set asideaside procurementprocurement budgets for innovation, budgets for innovation,

withwith EC EC technicaltechnical/ / financialfinancial support (2011)support (2011)-- New New ecoeco--innovation action plan (2011)innovation action plan (2011)

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OpennessOpenness and and creativecreativepotentialpotential

Key issuesKey issues

-- Growing importance of Growing importance of different forms of innovationdifferent forms of innovation

-- EU strengths in EU strengths in design and creativity design and creativity not recognised in policynot recognised in policy

-- Dormant knowledge and intellectual propertyDormant knowledge and intellectual property

Key measuresKey measures

-- Establish Establish Design Leadership BoardDesign Leadership Board & & Creative Industries AllianceCreative Industries Alliance(2011)(2011)

-- Open accessOpen access to EU Research publicationsto EU Research publications

-- Develop Develop European knowledge market European knowledge market (2011) based on national (2011) based on national experiences (e.g. patent pools) experiences (e.g. patent pools)

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Regional Regional Innovation Innovation Performance Performance taxonomytaxonomy

Source: Source: Regional Regional Innovation Innovation Scoreboard, Scoreboard, 20092009

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Innovation in the EU-27 and other countries

Note : colour coding matches the groups of countries: green are the Innovation leaders, yellow are the Innovation followers, orange are the Moderate innovators, blue are the Catching-up countries. Average annual growth rates as calculated over a five-year period. The dotted lines show EU27 performance and growth.

SI

TR

NO

UK

SEFI

RO

PT

PL

AT

NL

HU

LU

LT

CY

IT

FR

ESGR

SK

IE EE

DE

DK

CZ

BG

BE

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CH

IS

LVHR

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0.600

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0.700

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0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

Average annual growth in innovation performance

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EU27 innovation performance in 2009

EU27 average growth rate in 2005-09

Innovation leadersDenmark, Finland, Germany,

Sweden, UK

Innovation followers

Austria, Belgium, Cyprus, Estonia, France, Iceland, Ireland,

Luxembourg, Netherlands, Slovenia

Moderate innovatorsCzech Republic, Greece, Hungary, Italy, Lithuania, Malta, Norway,

Poland, Portugal, Slovakia and Spain

Catching up Bulgaria, Croatia, Latvia, Romania, Serbia and Turkey

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Innovation Performance Innovation Performance in the EUin the EU--27 27 and other countriesand other countries

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““Regional Policy contributing to Regional Policy contributing to smart growth in Europe 2020smart growth in Europe 2020””

Regional Policy is a key delivery mechanism for EU2020innovation strategy

Regions to develop of smart specialisation strategies

Structural Funds R&I investments to be based on such strategies

More ERDF for education, research, innovation

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SmartSmart SpecialisationSpecialisation

• Regions are encouraged to play to their strengths by giving priority to investment in research and innovation programmes that complement their productive assets.

• avoid tending towards strategies that just happen to coincide with the high-profile research topics of recent years unless this is justified.

• concentrate on research relating to an existing, or emerging, area of regional economic strength.

• Joint S3 Platform being established in Seville through joint efforts by REGIO, RTD, ENTR

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Make more effective and synergetic use of public funds (Structural Funds, own funds).

Make more extensive use of financial engineering(venture/risk capital, loans, guarantees)

Use more peer-review and independent experts for ERDF-funded research projects

Use ERDF to fund shortlisted FP7 and CIP projects

Make more use of peer learning via platforms and networks for improving regional innovation policy

General recommendationsGeneral recommendations

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ExamplesExamples of recommended actionsof recommended actions

Support to innovation clusters, science parks, incubators, voucher schemes

SME support services encompassing the whole innovation cycle from idea through R&D to exploitation and commercialisation

Promotion of entrepreneurship education and training and transversal competences such as creativity

Support to knowledge triangle and university-enterprise cooperation

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Support to financial engineering: e.g. Jeremy holding funds in the regions

Development of attractive regional research infrastructureand/or supporting researchers to link into/make use of excellent research facilities (e.g. ESFRI – European Strategy Forum on Research Infrastructures)

Integration of cultural and creative industries as well as design into development strategies,

Investment in ICT, e.g. high-speed internet access

Use of pre-commercial type of public procurement for innovative products and services

ExamplesExamples of recommended actionsof recommended actions

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What national and regional What national and regional authorities can do authorities can do right nowright now !!

•• Raise awarenessRaise awareness of all actors involved in planning at of all actors involved in planning at national and regional level about the about the importance of research and importance of research and innovation investment strategiesinnovation investment strategies

•• Raise awarenessRaise awareness of local R&D and Innovation communities in business and academia about the investment opportunities in the future CSF RI and the Structural Funds

•• Align to the maximum extent possibleAlign to the maximum extent possible future Development and research and innovation priorities to EU Research and Innovation strategic ones (in line as much as possible with National Reform programmes)

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Social and territorial Social and territorial cohesioncohesion

Key issuesKey issues

-- Avoid an Avoid an «« innovation divideinnovation divide »»

-- Make best use of Make best use of €€ 86 86 BnBn Structural Funds Structural Funds earmarked for earmarked for research and innovation until 2013research and innovation until 2013

Key measuresKey measures

-- Member States and regions invited to use Structural Funds Member States and regions invited to use Structural Funds within within smart specialisation strategies smart specialisation strategies (2011)(2011)

-- Support Innovation through Structural FundsSupport Innovation through Structural Funds

-- Social innovation Social innovation pilot programme (2011) pilot programme (2011) and research and research programmeprogramme on social and public sector innovationon social and public sector innovation

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EuropeanEuropean Innovation Innovation PartnershipsPartnerships

Key issuesKey issues−− Major Major societal challengessocietal challenges require require joint responsesjoint responses

across policies and across EUacross policies and across EU−− Numerous Numerous subsub--critical, uncoordinated initiatives:critical, uncoordinated initiatives:

−− between EU / Member States / Regionsbetween EU / Member States / Regions−− R&D / MarketR&D / Market--side actions (public procurement, standards, side actions (public procurement, standards,

regulation)regulation)

EuropeanEuropean Innovation PInnovation Partnershipsartnerships are:are:Frameworks bringing together main actors and actions Frameworks bringing together main actors and actions

-- At EU and national levelsAt EU and national levels-- From research to marketFrom research to market-- Around common objectives and targetsAround common objectives and targets

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International International cooperationcooperationKey issuesKey issues

-- Third countries seeThird countries see 27+1 small/medium parties, not one major 27+1 small/medium parties, not one major partnerpartner

-- EuropeEurope’’s s openness is not always reciprocatedopenness is not always reciprocated

-- Global challenges Global challenges require a global responserequire a global response

Key measuresKey measures- Attract high skilled third country nationals

-- Joint EU / national priorities Joint EU / national priorities for cooperation with third for cooperation with third countries (2012)countries (2012)

-- AgreeAgree international infrastructures international infrastructures with world partners (2012)with world partners (2012)

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Main linksMain links

Europe 2020http://ec.europa.eu/europe2020/

Innovation Unionhttp://ec.europa.eu/innovation-union/

Common Strategic Frameworkhttp://ec.europa.eu/research/csfri/

EU Regional Policyhttp://ec.europa.eu/regional_policy/index_en.htm

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Thanks for your attention!Thanks for your attention!

Antonio BalestrieriEuropean CommissionDG Research Unit C5

email: antonio.balestrieri@ec.europa.eu