EU innovation policy:

current issues and next steps – essentials for regional policy makers

Tomasz JERZYNIAK European Commission

DG Enterprise and Industry Policy Development for Industrial Innovation

Email: tomasz.jerzyniak@ec.europa.eu

1.Innovation: where is Europe? Where is my country? Where is my region?

2.Strategic position of EU innovation policy;3.Evidence-based innovation policy: monitoring,

benchmarking, analysing;4.EU Innovation policy: Current issues and next

steps

Main issues

Innovation: where is Europe?

BrazilI ndiaRussia

J apanUS

China

-80

-60

-40

-20

0

20

40

60

-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

Average annual growth rate of performance lead/ gap

Perf

orm

an

ce l

ead

/g

ap

to

EU

27

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

LV BG LT RO SK PL HU MT GR ES CZ IT PT EE SI CY EU FR LU IE NL AT BE UK DE FI DK SE

MODEST INNOVATORS MODERATE INNOVATORS INNOVATION FOLLOWERS INNOVATION LEADERS

Innovation: where is my country?Innovation Union Scoreboard 2010

Innovation: where is my region?Regional Innovation Scoreboard, 2009

EU innovation policy in Europe 2020

Smart GrowthSmart Growthdeveloping an economy based on knowledge and

innovation

Sustainable Sustainable GrowthGrowth

more efficient, greener and more competitive economy

Inclusive Inclusive Growth 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 »

Key messages of Innovation UnionAltogether 34 commitments

• Strengthening the knowledge base: ERA: mobility, infrastructures, skills, EU funding instruments

• Getting good ideas to market: financial instruments, VC, state aid, patent, standards, procurement, design, creativity, open access, model grant agreements and IP marketplace

• Maximising social and regional benefits: “smart specialisation”, social innovation pilot

• Pooling efforts for breakthroughs: European Innovation Partnerships

• Collaborating internationally: attract international talent, research infrastructure

• Accelerate national reforms & track progress: self-assessment, 3% target + Innovation indicator (fast-growing innovative firms)

Policy based on evidence:monitoring, benchmarking, analysing.

• Innovation Union Scoreboard • Regional Innovation Scoreboard• Regional Innovation Monitor• GRIPS (Global Review of Innovation

Policy Studies)• Innovation Policy Trendchart

Innovation Union Scoreboard & Regional Innovation Scoreboard

Regional Innovation Monitor

GRIPS: Global Review of Innovation Policy Studies

Supply- vs. demand side policy

Supply-side measures

Demand-side measures

- regulation- procurement

- R&D fu

nding

- Equity

support

- Fis

cal m

easu

res

for R

&D

…

- standardisation

- Fiscal measures for buyers- Clusters

Public procurement of innovation• Public procurement in Europe: around

18% of EU GDP, i.e. € 2,000 billion;• Using public procurement for

innovation: new challenge for national, regional and local authorities;

• EU: new framework conditions

StandardisationLabelling

CertificationLegislation

Public Procurement

Complementary Actions

e-Health

Sustainable constructio

n

Protective textiles

Bio-based products

Recycling

Renewable energies

Lead

Mark

et

Are

as

eHealth action plan Sust. Construction action

plan Protective Text. action plan

Bio-based products action plan

Recycling action plan Renewable Energies action

plan

Lead Market Initiatives in 6 sectors

New networks

Final evaluation of the Lead Market Initiative• LMI's novel architecture was an innovation in itself.

• Choice of instruments (public procurement, standards, regulation and 'complementary actions') was right and gave EU-added value.

• Action plans have mostly delivered. Impact found in 4 out of 6 sectors.

• LMI did not have a dedicated budget, but achieved with limited funds (total of € 153 m from FP7 and CIP in 4 years).

• Great involvement of industry and other stakeholders particularly in 3 sectors (bio-based products, eHealth and protective textiles).

4 key lessons learnt in the Lead Market Initiative:

1) Building bridges takes time

2) In practice, few tools for demand-side policy exist

3) Greatest impact may be medium-long term

4) Obtaining good visibility is essential for success

Next steps in demand-side policies (not mutually exclusive):

• Continue LMI approach: In innovation, industry (sector) and other policies Linking regional and national demand-side policies

• Connect demand-side and supply-side tools: Innovation Partnerships: aging, raw materials, agriculture, water Set up looser cooperation/ alignment forms (JTI+, LMI+ ?) Prioritise ‘societal goals’ or specify challenges (what level of granularity?)

• Further develop our demand-side toolkit in Innovation Union and Horizon2020: New forms of supporting public procurement of innovations Broaden to private demand: procurement, supply-chains, end-users

• Worry: Demand-side policies do not cost much, but need good human resources

Public sector innovation

• Mix of innovation actors: private vs. public

• Innovative public sector

• European Public Sector Innovation Scoreboard

Horizon 2020: € 80 billion for research and innovation

Creating Industrial Leadership and Competitive Frameworks

Leadership in enabling and industrial technologies

Access to risk finance

Innovation in SMEs

Excellence in the Science Base Frontier research (ERC) Future and Emerging Technologies (FET) Skills and career development (Marie Curie) Research infrastructures

Shared objectives and principles

Common rules, toolkit of funding schemes

Europe 2020 priorities

European Research Area

Simplified access

International cooperation

Coherent with other EU and MS actions

Tackling Societal Challenges Health, demographic change and wellbeing Food security and the bio-based economy Secure, clean and efficient energy Smart, green and integrated transport Supply of raw materials Resource efficiency and climate action Inclusive, innovative and secure societies

EIT and JRC will contribute to addressing these challenges

European Design Innovation Initiative

The goal of the initiative is to:• raise the awareness of design as a driver of

innovation in Europe • enhance its role as a key discipline to bring ideas to

market transforming them into user-friendly and appealing products, processes or services by enterprises and public services in the EU.

Social Innovation

• Social innovation produces innovations that meet a social need by Workplace innovation: empowering people

Connect social economy, social entrepreneurs, business, charities, public sector, finance

Multiannual Financial FrameworkCOMPARISON MFF 2007-13/2014-20

Billion € in 2011 pricesDifference (in %)

2007-2013 2014-2020

1. Smart and Inclusive Growth 445.5 490.9 10.2%

Of which Cohesion Policy 354.8 336.0 -5.3%

Of which infrastructure (Connecting Europe Facility) 12.9 40.0 209.7%

Of which Competitiveness (CSF research & innovation; Education; Galileo etc)

77.8 114.9 47.7%

2. Sustainable Growth: natural resources 421.1 382.9 -9.1%

Of which Market related expenditure and direct payments 322.0 281.8 -12.5%

3. Security and Citizenship 12.4 18.5 49.9%

of which Freedom, Security and Justice 7.6 11.6 53.0%

of Citizenship 4.8 6.9 44.9%

4. Global Europe 56.8 70.0 23.2%

5. Administration (including pensions and European schools)

56.9 62.6 10.1%

Of which administrative expenditure of EU institutions 48.4 50.5 4.2%

6. Compensations 0.9    

Total commitment appropriations 993.6 1 025.0 3.2%

In % of EU-27 GNI 1.12% 1.05%  

Thank you very much for your attention!

Tomasz JERZYNIAK DG Enterprise and Industry

Policy Development for Industrial InnovationEmail: tomasz.jerzyniak@ec.europa.eu