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Leap-frogging in policy making? Ulric Fayl von Hentaller Adviser to the President :

The Future of European Regions Warsaw 1 st – 2 nd June 2007. Leap-frogging in policy making? Ulric Fayl von Hentaller Adviser to the President : European Academy of Sciences and Arts www. european-academy.at. Do we prefer the evil we know ?. Path dependency

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Leap-frogging in policy making? Ulric Fayl von Hentaller Adviser to the President :

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  1. The Future of European Regions Warsaw 1st – 2nd June 2007 Leap-frogging in policy making? Ulric Fayl von Hentaller Adviser to the President : European Academy of Sciences and Arts www.european-academy.at

  2. Do we prefer the evil we know ? • Path dependency • let us not re-invent the wheel • Path creation • is the wheel really the best solution ? Do we need to burn our fingers first ?

  3. US Constitution (+ 62 pages) …. Including IPR protection • EU Constitution (+300 pages) What is the thing we all agree on ? Mission Statement ?

  4. Concepts in action • Lisbon “knowledge-based society” • 3 % “Barcelona target” • Investment in “risky research” Excellent scientists should be encouraged to conduct risky projects. An unavoidable side-effect may be more European Nobel Laureates.

  5. Realities in the field • Innovation is complex/chaotic • There is no direct positive causality between spending and success • There IS a negative causality in spending too little

  6. European strategic thinking is necessary • No single market – 27 fragmented markets • More than 25 million unemployed • Large companies are making this trend worse What is the point of differentiation ?

  7. “Answers to Global challenges lie at Regional level” • Jobs are needed • Look for growing sectors in the economy • Dynamic/Innovative SMEs • Regions will need new critical skills

  8. Only 3% of European SMEs are acting outside of their own region

  9. SMALL COMPANIES • MEDIUM SIZED COMPANIES • LARGE COMPANIES 8 Yrs 5 Yrs ASIA, USA EUROPE 12 Yrs 7 Yrs Are we really lagging ?

  10. Current Challenges for Europe • Misuse of technological advances: • price pressure vs. quality consistency • The European Economy: • structural challenges • but, no single universally applicable solution • The trend of job-loss must be reversed

  11. Path Dependency or Creation? • European agriculture: first system in history making an industrial revolution possible • Basic philosophy of industrial revolution: • quality consistency • not cheap mass production • Quality - a unique societal feature in Europe: • intellectual, industrial, agricultural or societal • In search for a quality society in Europe: • we are driven by equity rather than equality This is uniquely European

  12. Political EntrepreneurshiporPolitical Path Creation • Pursuing/exploiting opportunities • Willingness to deal with risk • Ability to learn from failure • Try creative and/or innovative actions Take political responsibility ?

  13. Is it all bad news? • There are more than 25 million SMEs in EU • Employing over 105 million people • Account for more than 50% of EU GDP • The only growing employment sector What if each SME could employ one more person?

  14. So where do SMEs need help ? • Finance • Venture Capital, Seed money • Equitable Partners • Upstream and Downstream • Markets • Using opportunities optimally

  15. Help should be • Useful • Give me what I need • Timely • Give it when I need it • Accessible • Can I understand it? • What will it cost ? And it needs to be perceived as such by the recipient

  16. In all its complexity

  17. Thank you for your Attention ulric.fvh@european-academy.at

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