1. Industrial policy in Europe Primary aim: A down-to-earth description of ip in the European integration The new notion of comparative advantages and competitiveness? The regulatory agency?

2. Lisbon strategy from 2000: EU sets itself the goal to become the most dynamic and competitive knowledge-based economy in the world. Sustainable economic growth with greater social cohesion and respect for the environment Faster growth is ….paramount for the sustainability of the European model, which puts a high premium on cohesion (the Sapir report 2004)

3. European capitalism with a social model outcompetes liberal market capitalism (the US)? Important complementarities when economic knowledge becomes the key determinant of competiveness: Between the following institutional areas 1) Traditional competition policies 2) Education and employee protection (social policy) 1) has a positive impact on innovations and 2) on human capital, which is necessary for innovative activities

4. The Lisbon strategy and ip-governance: From Intergovernmentalism before SMP Policy–coordination among sovereign states to Multi-level governmentalism after SMP Multi-centric system for exercising authority The Open Method of Coordination (OMC): voluntary cooperation in areas, where competence remains with the states /Lisbon strategy/ Devolution, where responsibility moves from national to sub- national level /Renewed Lisbon agenda/

5. Multi-level governance in European ip: Competition policy - the supra-national (EU) level Social policy - the national (governmental) level Cluster policies (R&D, innovation) - the regional level. This multi-centric system of authority is coordinated by the European Commission

6. Historical background of Lisbon strategy: The end of the 1970s:all industrialised countries stagnated. Support of traditional industries (textile, shipyards….) (“Saving the looser”) EU “a laggard”: French government initiates the Single Market Programme Single Market Act from 1987: Community competence to pursue policies on R&D (the Framework Programmes) The end of the 80s: new sectoral policy directed to technological advanced IT and bio-technological industries Social cohesion in Europe: SMP makes clear that the community shall aim at reducing the backwardness of the least favoured regions and rural areas

7. Reform of Structural Funds 1988: Two institutional innovations: 1.Technological development became one of the main instruments of the Structural funds (complementarities between Structural funds and Framework Programme) 2.‘Partnership' that ensures the regional authorities a role in the EU: “Community operations shall be established through close consultations between the Commission, the Member State concerned and the competent authorities designed by the Member State at the national, regional, local or other level" (Ansell et. al. 1997 pp 354, 355).

8. R&D as percentage of GDP 1980198519901995 Germany2.502.75 2.28 France1.822.252.412.34 Finland1.191.581.912.36 Sweden2.222.882.853.45 EU121.601.902.031.84 Greece0.200.280.360.48 Portugal0.29--0.570.59 The new member countries in ECE?

9. World shares of patents: EPO 1985 1995 USPTO 1985 1995 EU-1550.0 42.421.4 16.0

10. Social cohesion and the new ip-paradigm: Strengthening of the Firms capability to understand and absorb new technologies important