European R&D and innovation policy: state of the art and perspectives
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1 INGINEUS meeting Cape Town, 1-3 September 2010 European R&D and innovation policy: state of the art and perspectives Domenico ROSSETTI European Commission, DG Research* * Personally speaking 1
2 Turning the eyes Most of the efforts these last 30 years in R&D were directly linked to industrial policies. In Europe: In the eighties, the eyes were turned towards Japan: technology push (cf. Framework Programme ) In 2000, the eyes were turned towards USA: competitiveness push (cf. Lisbon Strategy) Today: importance of ICT, sustainability, social innovation and demand-pull measures (cf. Europe 2020) 2
3 New technological change Shift in the nature of knowledge accumulation: from industrial to more undetermined outcomes, trial and error S&T Links among various disciplines and technologies (nano, bio, infso, social) Traditional industrial R&D was based on clear criteria (ability to evaluate ex post - ability to replicate) New technological change appears more based upon: Flexibility, hence difficulty in establishing replication Trial and error elements in research with difficulty to evaluate ex post Problems of continuously changing external environments: over time, across sectors, in space Source: EU Expert Group (L. Soete) 3
4 Beyond technologies What about innovation in services? What role of intangibles? What is the weight of infrastructures? What are the emerging markets? What is answering to societal needs (cf. education, healthcare, mobility)? 4
5 Socio-economic aspects 5
6 World (ageing) population Source: EU VLEEM project (B. Chateau) 6
7 Urbanisation Year World population (billion) Urban population (billion) Urban population (%) Source: UN-Habitat 7
8 8
9 Europe 2020 Strategy Moving out of the crisis, facing the immediate challenge of the recovery and avoiding the reflex to try to return to the pre-crisis situation To put EU on an upward path of prosperity and able to face the long term challenges globalisation, pressure on resources, ageing Without ambition, risk of ending up with permanent loss in wealth, sluggish recovery leading to high levels of unemployment and social distress as well as a relative decline on the world scene 9
10 Europe 2020 Strategy Smart growth: developing an economy based on knowledge and innovation Sustainable growth: promoting a more resource efficient, greener and more competitive economy Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion 10
11 EU headline targets for % of the EU's GDP should be invested in R&D 75 % of the population aged should be employed The "20/20/20" climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right) The share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree 20 million less people should be at risk of poverty 11
12 The European research and innovation universe FP7 Source: EU FARHORIZON project (L. Georghiou) 12
13 European Research European Research Area Lisbon, Barcelona, Europe 2020 Freedom of knowledge: The fifth EU freedom free circulation of researchers, knowledge and technology in Europe Ljubljana process RTD: Third EU policy in budgetary terms (after CAP and Structural funds, including RTD&I) Competitiveness and Innovation Programme (CIP) FP7: Major tool for incentivising European research collaboration although it represents less than 10% of EU public research budget Societal / Grand challenges 13
14 Innovations Technological innovation But the value of manufactured products is increasingly based on intangibles Social innovation Importance of customer s-employee interface, marketing and organisational innovation; cf. EU lead market Open innovation Firms do not develop innovation in a closed system Global innovation Not only the production but also the innovation networks are now globalized 14
15 Role of R&D and Innovation ( 3% target ) Evolution of GDP (Billion 2000) (1) (3) (2) Forecast before Crise New forecast Counter-cyclical scenario Source: EU DEMETER project using the NEMESIS model (P. Zagamé) 15
16 R&D intensity 3,5 Japan 3,0 US R&D intensity (GERD as % of GDP 2,5 2,0 1,5 1,0 China EU-25 0,5 0, Source: Eurostat and OECD 16
17 Innovation gaps EU27-US EU27-Ja pan Performance for each reference year is measured using, on average, data with a two-year lag (e.g. performance for 2009 is measured using data for 2007). Source: European Commission, European Innovation Scoreboard
18 Innovation gaps Strong and stable lead to Brazil Declining lead to China 0 EU27 - BRAZIL 0 EU27 - CHINA Strong but slowly declining lead to India Stable lead to Russia 0 EU27 - INDIA 0 EU27 - RUSSIA Source: European Commission, European Innovation Scoreboard
19 Firms having introduced a marketing or organizational innovation ( , in % of all firms) Non-technological aspects of the innovation process are increasingly important to getting more innovative products and services in the marketplace European Commission, COM(2009)442 Source: OECD, 2008 Innovation Micro-Data project 19
20 Convergence and catch-up in Innovation Innovation performance (SII 2009) UK DK SE AT LU BE FR IE NL NO ES IT HU HR FI DE IS PL LT CH SK SI CZ LV EE PT GR TR CY M T BG RO Innovation leaders Innovation followers Moderate innovators Catching-up countries % 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% Average annual growth in innovation performance Source: European Commission, European Innovation Scoreboard
21 80 70 Milliards EUR Billion Budget of the European Framework Programmes? 70, ,75 5,39 13,22 14,96 17,5 6,6 13,2 15 5,4 6,6 17, , Source: European Commission, DG RTD 21
22 FP7 Call and evaluation New call for proposals: FP7-SSH-2011(deadline 2/2/2011) on Evaluation criteria and threshold (min. 10/15) S&T Quality (min. 3/5) Efficiency of Implementation (min. 3/5) Impact (min. 3/5) Evaluation by peer review (independent experts) Public / Private partnership is encouraged through for eg. collaborative research projects, Technology platforms and JTI 22
23 Conclusions RTD target (3% of GDP dedicated to research) and crisis? Research is a crucial but very uncertain- tool to push for new sustainable technological and socio-economic development ( breakthroughs ) Public and private, EU and MS (cf. Joint Programming), international partners should better combine their R&D efforts Framework conditions for private sector investment in R&D: Tax incentives for R&D, public procurement for innovative products and services, cooperation and TT between universities and business Seneca: Ignoranti quem portum petat nullus ventus suus est («There is no favourable wind for those who do not know which harbour to reach») 23
24 More information EU research: 24
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