Proposals to strengthen competitiveness and innovation "made in Europe"
ERT a group of business leaders from around 60 of Europe´s largest employers released a report entitled” Innovation made in Europe”, sharing insights on policy choices that are the building blocks to creating a more innovation-friendly environment across the EU-27. The report warned that Europe has fallen behind its global peers in terms of technological advancement and key infrastructure and highlight that if Europe wants to reclaim its competitiveness, it must restore the business case for innovation. According to the report, the EU's "Green Deal Industrial Plan" could be a great opportunity to improve the EU's innovation support system and competitiveness.
Main takeaways from the report:
- The paper sets out ERT Members’ views on where Europe can and has to do better to remain an innovative powerhouse, a leading industrial base and a prosperous continent:
- Compared to our global peers and competitors, Europe’s investment in R&D is relatively low. With a few exceptions, we are far behind in the tech race in the ICT (information and communication technology) area.
- In the European R&D mix experimental development – which is ‘high-risk, high-return’ – plays a much smaller role than for other innovation leaders, such as Israel, South Korea, the US – and also China.
- Innovation increasingly builds on collaboration – whether cross-sectoral or between different types and sizes of companies. This makes triggering innovation even more complex.
- Three priority policy messages to help unleash innovation made in Europe:
- Rethink regulation. Europe can only be a frontrunner in innovation if EU decision makers put the business case for innovating and investing in Europe at the core of EU regulation. This requires a regulatory framework that is coherent with political goals and that is kept up to date to accommodate innovation timely enough for quick commercialization.
- Re-focus on robust intellectual property (IP) rights and international standardization. Solid globally competitive IP. This will be key for the digital and green transition and to avoid delays and disadvantages in innovation and commercialization.
- Realise the scale-up of investment-intensive innovation. To move forward with the green and digital transition, public-private investment agreements and innovation-oriented public funding should be encouraged.