This project is co-funded by the European Union I3U “Investigating the Impact of the Innovation Union“ Kick off meeting - 10 March 2015 Venue: ISIS – Institute of Studies for the Integration of Systems Largo dei Lombardi, 4 00186 Rome, Italy This project is co-funded by the European Union

Workpackage 4: Creating a Single Innovation Market C14: Deliver the EU Patent (including unified system of dispute settlement) C15: Screen the regulatory framework in key areas (starting with those linked to eco-innovation and European Innovation Partnerships) C16: Speed up and modernise standard-setting C17: Set aside dedicated national procurement budgets for innovation. Set up a EU level support mechanism and facilitate joint procurement C18: Present an eco-innovation action plan Commitment 14: Deliver the EU Patent: “The European Parliament and Council should take the necessary steps to adopt the proposals on the EU patent (at present European patent with unitary effect or unitary patent), its linguistic regime and the unified system of dispute settlement.” Commitment 15: Screen the regulatory framework in key areas: “Starting in 2011 EU and Member States should undertake a screening of the regulatory framework in key areas, starting with those linked to eco-innovation and to the European Innovation Partnerships. This will identify the rules that need to be improved or updated and/or new rules that need to be implemented in order to provide sufficient and continuous incentives to drive innovation. The Commission will provide guidance on how best to organise this screening exercise.” Commitment 16: Speed up and modernise standard-setting: “In early 2011, as a first step, the Commission will present a Communication accompanied by a legislative proposal on standardisation, which will inter alia cover the ICT sector, in order to speed up and modernise standard-setting to enable interoperability and foster innovation in fast-moving global markets. This will be combined with a multi-annual programme to anticipate new standardisation needs and integration of standards into R&D projects in the research Framework Programme. The Communication will also examine options for ensuring in a longer term perspective that the standardisation system is able to adapt to the quickly evolving environment and to contribute to Europe’s strategic internal and external objectives (relating, among others, to innovation and technological development), including through the launch of an independent review.” Commitment 17: Set aside dedicated national procurement budgets for innovation. Set up a EU level support mechanism and facilitate joint procurement: “From 2011, Member States and regions should set aside dedicated budgets for precommercial procurements and public procurements of innovative products and services (including those defined by the Innovation Partnerships). This should create procurement markets across the EU starting from at least €10 billion a year for innovations that improve the efficiency and quality of public services, while addressing the major societal challenges. The aim should be to achieve innovative procurement markets equivalent to those in the US. The Commission will provide guidance and set up a (financial) support mechanism to help contracting authorities to implement these procurements in a non-discriminatory and open manner, to pool demand, to draw up common specifications, and to promote SME access. In addition, the Commission will offer guidance on implementing joint procurements between contracting entities under the current public procurement directives and use the ongoing general evaluation of the current directives to examine the opportunity to introduce additional rules to make cross border joint procurements easier.” Commitment 18: Present an eco-innovation action plan: By early 2011, the Commission will present an eco-innovation action plan building on the Innovation Union and focusing on the specific bottlenecks, challenges and opportunities for achieving environmental objectives through innovation.

WP4: Objectives Linking the committments in this workpackage to drivers of value added growth, employment growth and well-being Assessing the link to macro-level analytics Four themes Cheaper patent application and enforcement system (incentive effect especially for the perspective of SMEs) Smart regulatory framework and modernisation of standardisation (selected past regulation and their impact on innovation; derivation of principles for innovation-friendly regulation; case study evidence on growth effects of standardization Public Procurement (trade of between its potential as innovation incentives and competition enhancing clear, equal and transparent rules) Eco-innovation challenge (using CIS data to shed light on the key assumption of the Ecoinnovation Action Plan)

Task 4.1: Unitary Patent & Dispute Settlement System Summary of literature on likely outcomes of the introduction of this new system (economics, managerial, and legal perspective). We will reflect this in comparison with the existing patent framework . Analytical analyses of patent application for the unitary patent especially with respect to differences in application behaviour of SME taking the PCT and EPO direct application as a reference. Using focus groups and/or interviews with experts in the field (e.g. patent lawyers, IP economists, judges at patent courts) to shade some light in the pros and cons of the new enforcement system. We will use data gathered from a recent research project on patent law suits in Germany and UK conducted by ZEW and partners

Task 4.2 Regulatory Framework and Standardisation Literature review looking at the innovation impact of economic, social and institutional (following the OECD taxonomy of regulations). Existing empirical analyses are characterised by rather heterogeneous methodological approaches, data bases and results. Case studies on recent changes of the regulatory framework conductive to innovation Using community innovation survey data (e.g. CIS at the Eurostat safe center) to produce some quantitative insight (e.g. linking eco-innovation to the impact on the regulatory frame for green innovation). Case studies on the progress made in reconfiguring the EU landscape of standardisation organisation (see e.g. the new Framework Framework Partnership Agreements between Commission and the European Standardisation Organisations; details are expected from the ongoing review process) Using CIS data to look at standardisation as source of information for innovation.

Task 4.3 Innovative Public Procurement Public procurement takes significant share of EU GDP; hence strong potential for use as innovation incentive But potentially conflicts with use of competition as selection device in public procurement through clear and foreseeable regulation Theory-driven analysis of recent reforms of public procurement in Europe Build on recent surveys on Public Procurement framework (Bianchi and Guidi 2010) Focus on reform in state-aid rules Analyse role of SMEs in EU-wide government tenders Combine Official Journal with firm level data Analyse innovation potential of public procurement Extend Aschoff and Sofka (2009) using German CIS; 2013 CIS wave includes relevant questions Impact on innovation, comparison with innovation subsidies

Task 4.4: Bottlenecks, Challenges and Opportunities for Eco-Innovation Drivers Environmental policies responding to challenges (air and water pollution, solid waste management, resource scarcity, ...) Ressource scarcity and increasing costs of inputs Eco-Innovation Effects Expected positive socio- economic and environmental impact Impact on competitiveness unclear Likely positive for eco-industry and when related to material efficiency Likely negative for other industries when responding to policies => lobbying & public support Higher innovative activity

Task 4.4: Bottlenecks, Challenges and Opportunities for Eco-Innovation Analysis of Eco-Innovation at the aggregate level (wiiw) Descriptive Analysis of social attitudes, drivers, policies, input, output and environmental impact Drivers, barriers and public support measures are linked to output measures of eco-innovation Eco-innovation at the firm level Determinants of different kinds of Eco-innovation Impact of Eco-Innovation on sales of new products and employment

WP 4: Deliverables D4.1 - Literature Review and Data Collection (M10) D4.2 - State of Implementation and Direct Impact Assessment (M22) D4.3 - Integration in the Eco-System (M30)

WP4: Resources Person months per partner: UM-MERIT: 1.5 SEURECO: 2 WIIW: 10 ZEW: 20 WIIW: Johannes Pöschl, Sandra Leitner, Rumen Dobrinsky (overlap commitment 29) ZEW: Georg Licht, Bettina Peters, Vanessa Behrens, Maikel Pellens Task allocation: Task 4.1 ZEW Task 4.2 ZEW with contribution from wiiw Task 4.3. ZEW Task 4.4. WIIW with contribution from ZEW

WP 4: Relation with other workpackages (preliminary) C14 <-> C22; C23; C15 <-> C28; C16 <-> C22; C23; C17 <-> C13; C11; C33; C28 C18 <-> C6; C33 Links of WPs to WP9 and WP10 needs to be discussed

WP4: Immediate actions State of implementation process for unitary patent and settlement system Selection of case studies for task 4.2. and task 4.3 Access to CIS data in EU safe center Literature review

WP4: Open points Linkages with other work packages Linkages with macro-economics modelling

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