1. Arbeitskreis Bau 3. April Peter Dröll Referatsleiter, Weiterentwicklung der Innovationspolitik, DG Unternehmen

2. Overview of presentation: 1.Current situation: innovation in Europe 2.What is the Lead Market Initiative? 3.Sustainable construction/ Eine Leitmarktinitiative für Europa nachhaltiges Bauen 4.Next steps in innovation policy in Europe

3. 1. Overall innovation performance summary innovation index of 29 indicators (2007 & 2006 data) Summary innovation performance EU Member States (2008 SII) Germany is one of the Innovation leaders Relative strengths: Innovators and Economic effects Relative weaknesses are in Human resources, Finance and support and Throughputs. Performance in Innovators has slightly worsened, due to a decrease in SMEs introducing product or process innovations

4. The basis Commission 2005: « More Research and Innovation – Investing for Growth and Employment » 2006: « A broad-based innovation strategy for Europe: putting knowledge into practice » 10 actions Council integrated approach, structural funds, state aid, industry-academia cooperation, services 9 Priorities: IPR, Standardisation, Public procurement, JTIs, Lead markets, EIT, Clusters & Cohesion, Services, Risk capital

5. The idea…. 2. Demand side policy in practice: Lead Market Initiative

6. Supply-side measures Demand-side measures - regulation - procurement - R&D funding - Equity support - Fiscal measures … - standardisation - clusters? Package = LMI Complementing supply-side innovation policy

7. Lead Market Initiative = coherent, short-term, demand-side instrument mix + 6 sectors (including sustainable construction) + governance structure

8. 3. Main barriers to innovation addressed in the action plan of the lead market of sustainable construction (4):

9. Public procurement (1/4): Too much focus on initial costs: many key decisions are taken on the basis of the lowest costs instead of quality, safety and environmental criteria and life-cycle costs. Action: Establish a network between public authorities in charge of procuring sustainable construction

10. Legislation (2/4) Highly fragmented landscape of national and EU legislation Policy coherence: a more strategic and integrated approach in EU legislation in the areas of energy, environment, internal market and health Action: Screening of national building regulations

11. Standardisation/ certification (3/4) Over 3000 standards in EU apply to the construction sector, whereby only 300 are commonly used. Actual standardisation process is very fragmented and adapting slowly to technological progress and market development. Action: Widening the scope of Eurocodes (2nd generation)

12. Other issues (examples) (4/4): Fragmentation of the supply chain Lack of adequate education and skills for innovation uptake Liability issues and risks linked to the long-term consequences of failures (insurance industry) Actions: SMEs guide on collaborative working schemes in construction projects Alternative warranty/label schemes related to construction insurance EU-wide strategy to facilitate the up-grading of skills and competencies in the construction sector

13. How can I get involved? EEN network (Sector Groups) Steering Group of the sustainable construction lead market (contains most European federations) Member State members of the Enterprise Policy Group (led by DG Enterprise)

14. 4. Next steps in innovation policy in Europe

15. Development of a European Plan for Innovation – next steps Commission Communication (before summer 2009) Assessing progress under Broad Based Innovation Strategy Policy papers on: Mid-term progress report of Lead Markets Initiative Service innovation Effectiveness of innovation support Financing innovation in SMEs European Plan for Innovation (end 2009), linked to Lisbon Strategy post-2010 Stakeholder consultations, workshops, supporting studies and analysis

16. Development of a European Plan for Innovation: Some challenges

17. Challenge: Bridging demand (emerging social needs) with supply (of innovations)

18. mobility Active ageing security environment Challenge: how can innovation policy address societal challenges?

19. A final word on innovation and economic crisis

20. Innovation and economic crisis Darwin: It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.

21. Impact of financial crisis and economic downturn does not yet show in indicators, but: Countries with higher innovation capacity better placed to recover faster. Hence EU better placed than 5 years ago but still behind US. EU firms under investment in research and innovation is a particular concern.

22. References: Homepage DG enterprise: http://ec.europa.eu/enterprise/index_en.htm http://ec.europa.eu/enterprise/index_en.htm Homepage European innovation policy: http://ec.europa.eu/enterprise/innovation/index_en.htm Homepage Lead Market Initiative: http://ec.europa.eu/enterprise/leadmarket/leadmarket.htm Contact address LMI/ Henriette van Eijl: ENTR-LMI@ec.europa.eu Thank you for your attention