Institute for World Economics European competitiveness in key enabling technologies Remarks to Chapter Four of the 2010 European Competitiveness Report.

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Institute for World Economics European competitiveness in key enabling technologies Remarks to Chapter Four of the 2010 European Competitiveness Report Andrea Szalavetz Budapest, 25th January, 2011

2 What I particularly liked… 1.Multiplicity of research approaches: statistical analysis & extensive literature survey combined with cluster case studies 2.Has gone beyond the usual supply-oriented studies 3.Dedicates substantial space to the analysis of demand factors (lead firms; factors that facilitate technology transfer and commercialization, technology adoption and diffusion; market potential

3 But… Some key enabling technologies are badly missing: e.g. energy technology, health technology and green technology ↓↓↓ These KETs are all related to the major social challenges Europe and its competitors are facing

4 An important lesson of this chapter Astonishing East Asian performance In a way this is not new, but … Current data, comparisons about volume speed of catching-up with respect to science, technology, and innovations

5 Should Europe be afraid? Be at least aware of these tendencies ! Europe should engage in systematic cooperation with Asian players: monitor their efforts and initiate technology-seeking acquisitions. Europe should now take the role, East Asia used to perform so successfully for decades!

6 Is the metric adequate? In principle, patenting activity is a key metric of technology generation… The question, we need to tackle is not whether patenting is a good proxy of technology generation, but rather whether new fundamental discoveries proxied by patenting can be applied as an adequate metric of competitiveness! If a region is world leader in patenting in a selected technological field, does that imply that it is the most competitive?

7 “Competitiveness in a key enabling technology” is broader than patenting performance ! We have to refine and detail what we mean by European competitiveness in key enabling technologies. What do we want to achieve, and what do we want to improve?

8 Policy implications Fumio Kodama’s 1995 book: Emerging Patterns of Innovation – Sources of Japan’s Technological Edge