1. Presentation CESAER seminar, Trondheim Eva Camerer Policy Officer, Industrial Innovation Policy Development DG Enterprise and Industry 15 October 2010

2. Why Innovation Union? A cornerstone of Europe 2020 strategy Three aspects: -Globalisation of knowledge production and innovation capacities -Impact of the crisis on public and private finance, survival of innovative SMEs -Major challenges to address with reduced means  Innovation emergency!

3. Declining EU share of knowledge production Evolution of World R&D expenditure in real terms, PPS€ at 2000 prices and exchange rates, 1995-2008 EU-27 US Japan ROW 0 100 200 300 400 500 600 700 800 900 19951996199719981999200020012002200320042005200620072008 PPS€2000 (billions) Stagnating business R&D Average annual growth as % of GDP, EU-27, US, Japan, South Korea & China, 2000-2007 Globalisation of knowledge SANCHES Luisa (REGIO) US

4. Economic and financial crisis EU lost six million jobs, €1000 Bn annual GDP due to crisis  Invest in future growth EU target of 3% of GDP for R&D in 2020 could create a net 3.7 million jobs and close to €800 Bn annual GDP by 2025  Make the most of available resources through leverage effects, integration and cooperation

5. ”(..)the evident need to align research activities more closely with the resolution of major societal challenges(..) ”no single member state can solve these challenges alone” ”Societal challenges dimension adds a new objective to public policy whereby research and innovation are not seen as a ends in themselves but as a means to a wider goal, defined as a social benefit.” Expert Group chaired by Prof Luc Soete 2010

6. Societal challenges Climate change Health and ageing Use of natural resources Energy security Clean transport Land use …. Powerful drivers of change in economy and society Major global market opportunities Requiring EU-scale approaches From research to market New needs  new ideas  new markets

7. What is Innovation Union? Strategic approach Partnership with Member States From idea to market Tackling weaknesses Under-investment Fragmentation Framework conditions Building on strengths Focus on societal challenges Broad concept of innovation Involving all actors  A distinctive European approach to innovation

8. Strengthening the knowledge base Getting good ideas to market Maximising social and regional benefits Collaborating internationally Key measures of Innovation Union Pooling efforts for breakthroughs

9. European Innovation Partnerships European Research Area framework Streamlined EU programmes New financial instruments Reform of standardisation system Public procurement of innovation Social innovation pilot Stronger monitoring Innovation Convention Innovation Union: Highlights

10. European Innovation Partnerships Issues  Major societal challenges  Many actions, uncoordinated - R&D programmes / demand-side actions - EU / national / regional (and global) To address these issues, European Innovation Partnerships will be:  Not a new instrument alongside the others; but  Frameworks bringing together main actors, policies and actions at EU and national levels, from research to market, around common objectives and targets

11. European Innovation Partnerships 2010 – Pilot on active and healthy ageing Aim: two additional healthy life years by 2020 – Council, Parliament to discuss the concept – Member States and stakeholders invited to join 2011 – Others to follow pending discussions and building on pilot experience – Topics considered: smart cities, water, raw materials, mobility, agriculture,

12. Making it happen! A priority for EU Institutions – European Council dedicated discussion in December – Council invited to meet as “Innovation Council” – European Parliament discussions – Innovation Group of Commissioners Accelerating national reforms – Self assessments of R&I systems under Europe 2020 Tracking progress – EU target of 3% of GDP on R&D and national targets – New indicator on fast-growing innovative firms – New Scoreboard of 25 indicators Annual Innovation Convention

13. Next steps Oct. 12, Nov. 26: Competitiveness Council conclusions Dec. 16: European Council European Parliament debate Implementation Launch of European Innovation Partnerships, … Proposals for future EU programmes, European Research Area,.. Implementation in Member States, regions…