EU Innovation strategy

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Buck Eugene King
6 years ago
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1 EU Innovation strategy In principle fine, in particular recognising EU s limited powers Much is left to Member States, but they disappointed in Finland Good points: Links between research and markets Education and innovation Lead markets - if willingness to really let the market work. Governments should be careful in picking winners

2 EU Innovation strategy Bad points: Too little focus on innovation of processes, including public sector Better IPR in practice (European Patent) Nothing on growing SMEs and risk capital Government intervention can give a kick, but it will only last if the market conditions are there. Trying to keep brains in Europe through a European Institute of Technology could help, but will not give the whole solution Risk for additional brain drain due to demographic development

3 EU Innovation Index ,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 Mal Gre Pol Lit Cyp Hun Est Nor Lux Fra Net Aus Den Swe

4 Reforms in Europe Leading Average performance Catching up Losing ground

5 Reforms in Europe Success stories Strong need for reform

6 World Economic Forum scoreboard 2005 GLOBAL: 1. Finland 2. USA 3. Sweden 4. Denmark 5. Taiwan 6. Singapore 7. Iceland 8. Switzerland 9. Norway 10. Australia 11. Netherlands 12. Japan 13. UK 14. Canada 15. Germany EU: 1. Finland 2. Sweden 3. Denmark 4. Netherlands 5. UK 6. Germany 7. Estonia 8. Austria 9. Portugal 10. Luxembourg 11. Ireland 12. Spain 13. France 14. Belgium 15. Slovenia 16. Cyprus 17. Malta 18. Czech Republic 19. Hungary 20. Slovakia 21. Lithuania 22. Latvia 23. Greece 24. Italy 25. Poland Based on broad concept. Results very similar to Lisbon benchmarking

7 Economic policies Monetary Policy Fiscal Policy Structural Policies The introduction of the Euro put focus on Structural Policies Lisbon was an answer, and innovation policy an important element Did politicians listen?

8 There is a European Economic and Social Model and it is characterised by large public sector, focus on welfare state and emphasis on the environment. Taxes as % of GDP: Japan: 26% USA: 25% EU-15: 40-55% China: 16% India: 17%

9 European Economic and Social sub models Anglo-Saxon Northern Continental Eastern? Southern

10 European Economic and Social sub models Anglo-Saxon Similarities: Hands-off approach to markets Differences: Size of welfare state Nordic model combines a liberal approach to markets with high quality welfare sector and provides flexicurity Northern Similarities: Large welfare sector Differences: Approach to market Continental

11 Attitudes towards globalisation in Europe Fra Pol Ita Spa CR Bel Ger UK Fin Swe Ire Net Den Source: IMD survey Index 0-10.

12 The Polish Plumber I stay in Poland. Do come over in numbers.

13 Innovation gap 0,2 0,18 0,16 0,14 0,12 0,1 0,08 0,06 0,04 0, EU-15 USA Jap

14 Public sector and competitiveness WEF score 6 Fin Swe Den UK 5 Spa Ger Bel Fra Ita 4 Tax of GDP 30% 40% 50%

15 Public sector and competitiveness Public sector reforms are essential for competitiveness agenda: Value for money Combat corruption Modernisation (egovernment) Good infrastructures Drive innovation in public sector and markets

16 Level of corruption Pol Slova Lat CR Gre Lit Hun Ita Est Slove Cyp Por Spa Fra Ire Bel Ger Aus Lux UK Net Swe Den Fin Transparency International 2003 US: 7.5 Canada: 8.5

17 Regulation Is regulation always bad for business or can it be a driver for innovation?

18 EU energy demand European Commission, 2006 Oil Gas Electricity/heat Solids Renewables

19 What do we use energy for in EU 25? (Mtoe) Services Houselholds Transport Industry European Commission, 2006

20 Energy intensity of the economy Consumption of energy divided by GDP. Kg of oil equivalent per 1000 Euro Den Aus Ire Ger Ita Fra Lux Net UK Swe Bel Spa Por Gre Fin Cyp Slove Hun Pol Lat CR Slova Est Lit

21 Rational use of energy is a win-win strategy that: Reduces dependency of rough states Limits emissions Saves money for the individual Improves balance of payments Is a source of innovation, entrepreneurship and employment

22 From the industrial society to today IT Production R&D

Globalisation and flexicurity

Globalisation and flexicurity Torben M Andersen Department of Economics Aarhus University November 216 Globalization Is it Incompatible with High employment Decent wages (no working poor) Low inequality