Second EU Innovation Barometer Takes Temperature of European Innovation

The publication today of GE’s 2nd EU Innovation Barometer provoked good debate on the progress and direction of the EU’s Innovation Policy with an emphasis on what concrete measures are and can be taken to deliver on the expectations set in the Innovation Union Strategy. In a roundtable session hosted in the European Parliament by MEP Sean Kelly (EPP/Ireland) the results of the findings of the report, conducted by independent research company StrategyOne were outlined.

The GE EU Innovation Barometer is an independent survey of 260 Brussels influencers supplemented by several interviews and a review of media coverage and public reports on Innovation in the EU.

At the launch there were calls from MEP Sean Kelly (EPP) for the safeguarding of the Horizon 2020 €80billion budget which has been proposed by the European Commission in the current and upcoming negotiations. Speaking at the launch he appealed to Member States to ensure, at a minimum, that the €80billion budget should be secured at a time when we need to look at kick starting the economy and driving innovation, competitiveness and ultimately jobs. MEP Kelly’s remarks were supported by GE’s Vice President of European Affairs Hendrik Bourgeois who emphasised the need for concrete actions in innovation which he said was in danger of becoming just another ‘buzz word’.

In his remarks Sean Kelly was quite forthright in his opinions in relation to putting in place the conditions and environment which will allow Europe to be more innovative. “Europe remains in the depths of a severe crisis. While we clearly need to be focussed on bringing about stability and tackling this, we need also to be focussed on the future growth, renewal and competitiveness of the EU. Innovation has been identified by the European Commission as one of the key platforms in its 2020 Strategy and in my view it can be the catalyst to drive sustainable growth and employment.

The sudden decline in previously leading sectors reinforces the need to diversify into alternative sources of prosperity. The opportunity exists to broaden the base of future economic growth – green energy, agri-food, environmental sciences, biotech, health will all be important. Innovation will be at the heart of all of these. We need to ensure that we build, across Europe, an innovation eco-system that facilitates innovation right along the chain from ideation to commercialisation.

This Innovation Barometer clearly identifies some of the barriers and also the changing model for innovation. Collaboration is identified as a key driver.

As the institutions debate the next Multi-Annual Budget I would encourage them to protect the €80billion earmarked for research and innovation under the Horizon 2020 programme”, Sean Kelly added.

GE’s Vice President of European Affairs Hendrik Bourgeois, focused on the need for Europe to become more competitive stating that companies investment decisions were now being stalled on the basis of the current economic crisis and its perception globally. “Economic globalisation has led to a shift in the economic order and that poses both an opportunity and a challenge for the EU. If Europe is to compete and maintain its position as a major economic force it needs to become more innovative and respond to the changing market conditions.

We believe that innovation can be the catalyst for Europe’s economic renewal but that will not happen in a vacuum. We need to create an environment that promotes, incentivises and rewards innovation in its broadest sense, by both the public and private sectors.

GE believes strongly that those companies and economies that invest in innovation today will emerge from the current economic difficulties strongly positioned for growth.”

The research findings once again confirm that innovation is perceived as a key driver of the EU’s future competitiveness. However the EU has significant challenges when it comes to commercialisation of its innovation and driving growth and employment.

Investing in Innovation

Likely tied to the impact of the economic and financial crisis, expectations are high that innovation can become the key driver in placing Europe back on the path of sustainable economic growth.

The 2012 Barometer shows that respondents believe the EU has been more successful in allocating its policies, resources and budget to support research & innovation with an 8% increase over the 2010 Innovation Barometer edition. 93% of respondents – a 7% rise from 2010 – believe that investing in innovation is one of the best ways to create jobs in Europe. Furthermore, benefits of a strong innovation policy on the energy and healthcare industries are on the rise – up 6% for the latter.

Beyond economic performance, a large majority of respondents expect that successful innovation policies would provide tangible benefits for many dimensions of EU citizens’ lives, generally improving their well-being particularly in environmental quality, health quality and both quality of and access to education.

64% believe that fighting bureaucracy for companies trying to access EU funds for innovation should be a top priority for EU Innovation Policy to focus on in the coming years. The issue of funding stands out as a concern raised by respondents; 92% feel that providing additional funding for research and innovation within the EU is important to support innovation. This was a point emphasised by Polish MEP Jan Olybrycht who made a number of interesting interventions during the discussions.

The overriding consensus among innovation stakeholders is that European mentality needs to change if innovation is to become embedded in European society. European culture is seen as an innovation deterrent by respondents who repeatedly mention culture and education when talking about the issues to tackle in order to unlock Europe’s innovation potential. In this field, respondents expect a clear commitment from the EU to help promote the value of innovation among EU students;

Within Europe, some countries, notably Germany, Sweden and Finland are perceived to be more successful than other member states in creating a framework conducive to innovation. Part of this positive assessment made by Brussels’ influencers can be explained by the willingness and ability to take innovations to market, higher expenditure by both state and business in R&D and good linkages between academia and industry. Respondents feel the EU should take inspiration from these factors and promote them in its innovation related policies and decision making.

Also, follow me on Twitter @hughgillanders.

About the Author: Hugh Gillanders is the Director of Public Affairs for GE Europe (General Electric Company). Mr. Gillanders is responsible for the development and implementation of the Public Affairs and engagement strategy for GE in Europe and the EU.

Author : ge_europe
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