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1 Intangibles in the European growth and innovation policy Marianne Paasi, DG Research and Innovation, Unit B5 Brussels 23 February 2011 INNODRIVE final conference 23/02/2011
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Intangibles in the European growth and innovation policy
Marianne Paasi, DG Research and Innovation, Unit B5
Brussels
23 February 2011
INNODRIVE final conference
23/02/2011
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23/02/2011
Intangibles matter for innovation and growth
● Economic performance/competitiveness/TFP depend strongly on intangibles
● Relative importance is shifting from tangibles towards intangibles (in service and knowledge economies)
● Innovation is more than R&D (HR, skills, design, organisation…)
● Intangibles create value and need to be consider as capital rather than costs – but we do not measure them properly
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Intangibles in European policy making
● Europe 2020 and its Flagships
● Non-technological innovations, design: DG Enterprise,
● Innovation Union Scoreboard: DG Enterprise,
● R&D target, societal challenges, European Research Area (ERA): DG Research and Innovation
● ICT and software: DG Infso
● Internal Market: Service Directive, IPRs incl. Trademarks
● Creativity and culture (design): European year of Creativity and Innovation 2009; Unlocking the potential of cultural and creative industries; Regional policy contributing to smart growth: DG EAC, RG Regio
● Human capital, skills, Life long learning: DG EAC, DG Employment
● Trade policy
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Lack of data on Intangibles: reasons
● Weakens economic research and analysis and economic policy making
● Important estimation work and research is needed (SSH programme)
● Methodological differences
● Common definitions
● Experiences in work like Community Innovation Survey/ ES/OECD
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INNODRIVE contributes to European policies
New data on intangibles and on the capacity of intangibles to generate growth:
- Measuring the amount of capital embodied in human capital, R&D, patents, software and organisational structures– and geographical proximity as asset; incl. Architectural and Engineering Design
- Macro-level and micro-level
- According to the CHS concept
=> We have a starting point with our projects and with collaboration with others we can progress
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Europe 2020 growth strategy
Smart, sustainable and inclusive growth and exiting the crisis:
Smart growth: knowledge and innovation
Sustainable growth: resource efficient, green, competitive economy
Inclusive growth: high-employment economy with economic, social and territorial cohesion
Exiting crisis
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Europe 2020 Headline targets
Shared objectives guiding action of MS and of the Union/to measure progress towards Europe 2020
Employment rate of 20-64 aged: 75%
3 % R&D target
Greenhous gas emissions: 20/20/20
Education: early school leavers under 10%
Reducing poverty: 20 mio less people at risk of poverty
These targets are interrelated.
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Europe 2020 Flagships
EC to catalyse growth through implementing Flagships
Smart growth
Innovation Union
A Digital Agenda for Europe
Youth on the move
Sustainable growth
Resource efficient Europe
An industrial policy for the globalisation era
Inclusive growth
An Agenda for skills and jobs
European Platform against Poverty
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Innovation Union Flagship
●Crisis, growth and societal challenges: Innovation
● Innovation cycle: from ideas to market
●Role of intangibles goes beyond R&D (investment
and efficiency at the EU level): human capital/education/universities; innovation, IPRs, entrepreneurship/SMEs; design and creativity
● Action about establishing European Design Leadership Board
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Of course also the other Flagships include intangibles
●A Digital Agenda for Europe: ICT, software
●Skills….
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Indicators measuring progress towards Innovation Union
●R&D investment target
● A new innovation indicator: high growth innovative companies
● Innovation Union Scoreboard:
along with R&D, human resources etc. also Intellectual
assets like patents, Community Trademarks, Community Design
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Europe 2020 Exiting crisis vs. Long term growth objectives
● Exiting crisis: fiscal consolidation, macroeconomic surveillance, financial sector reform
● Smart, sustainable and inclusive growth demand (intangible) investment for higher growth and employment; solving societal challenges
● Simultaneous policy/ policy coordination to avoid long term low growth path in Europe
Already Sapir et al 2003 “Agenda for Growing Europe”
Don’t cut intangibles: INNODRIVE project supports this important policy
message in Europe
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Economic policy coordination
European Semester: SGP and Europe 2020 are alligned (under their legal specificities)
● Annual growth survey (input to European Council Spring meeting)
● National reform programmes (contain national targets) along with Stability/ convergence programmes
● Country specific recommendations and opinions
● EU level support: Internal market etc., monitoring
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THANK YOU FOR YOUR ATTENTION
