EU innovation policy: current issues and next steps – essentials for regional policy makers

1. 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

2. Main issues • Innovation: where is Europe? Where is my country? Where is my region? • Strategic position of EU innovation policy; • Evidence-based innovation policy: monitoring, benchmarking, analysing; • EU Innovation policy: Current issues and next steps

3. Innovation: where is Europe?

4. Innovation: where is my country? Innovation Union Scoreboard 2010

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

6. EU innovation policy in Europe 2020

7. 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)

8. 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

9. Innovation Union Scoreboard & Regional Innovation Scoreboard

10. Regional Innovation Monitor

11. GRIPS: Global Review of Innovation Policy Studies

12. Supply- vs. demand side policy Demand-side measures - regulation - procurement • standardisation- Fiscal measures for buyers- Clusters - Fiscal measures for R&D - Equity support - R&D funding … Supply-side measures

13. 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

14. Lead Market Initiatives in 6 sectors Standardisation Labelling Certification Legislation Public Procurement Complementary Actions eHealth action plan e-Health Sust. Construction action plan Sustainable construction Lead Market Areas Protective Text. action plan Protective textiles Bio-based products action plan Bio-based products Recycling Recycling action plan Renewable Energies action plan Renewable energies New networks

15. 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).

16. 4 key lessons learnt in the Lead Market Initiative: • Building bridges takes time • In practice, few tools for demand-side policy exist • Greatest impact may be medium-long term • Obtaining good visibility is essential for success

17. 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

18. Public sector innovation • Mix of innovation actors: private vs. public • Innovative public sector • European Public Sector Innovation Scoreboard

19. Horizon 2020: € 80 billion for research and innovation Europe 2020 priorities European Research Area International cooperation Shared objectives and principles 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 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 Coherent with other EU and MS actions Simplified access Common rules, toolkit of funding schemes

20. 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.

21. 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

22. Multiannual Financial Framework

23. Thank you very much for your attention! Tomasz JERZYNIAK DG Enterprise and Industry Policy Development for Industrial Innovation Email: tomasz.jerzyniak@ec.europa.eu