Fixing Innovation in Europe

Other deterrents to innovation include lack of clarification on important policies, and the inability of public officials to identify projects.

GE released the survey on the current state of innovation policies in the EU in Munich today (July 15), at the European launch of its $200 million private sector bid to speed the development of smart electricity grids.  

The project, “GE ecomagination Challenge: Powering the Grid,” unveiled in San Francisco on Tuesday, pioneers open innovation in energy technology on a global scale.

But GE’s open innovation competition will not involve government funds, despite the billions of euros set aside by national governments over the past two years for clean technology R&D.

GE executives acknowledge the importance of public sector initiatives to drive new standards and create the framework conditions for innovation in smart electricity grids, but insist on the need for industry to step up the pace.  “We have to start developing the technology solutions right now,” says Carlos J. Haertel, Director of GE Global Research, Europe.

Overall, EU opinion leaders who took part in the survey are lukewarm about innovation policies, saying they are “somewhat successful.” Many challenges remain, with respondents citing better coordination, more efficient implementation and public-private partnerships, as vital to boosting innovation in Europe. Channelling structural funds to research and innovation is also high on the list of changes they would like to see.  

Member country representatives feel the strongest about public-private partnerships, and the need for additional funding to support innovation.  

The EU opinion leaders surveyed believe a more successful innovation policy will bolster the energy, healthcare and telecommunications sectors, improve EU citizens’ lives and promote job creation.  Eighty per cent of respondents agree innovation is, “one of the best ways to create jobs in Europe,” and to increase profits.  Respondents also are convinced that innovation can deliver a greener European economy.

While retailing and distribution have been revolutionised by the Internet, only 14 per cent of those surveyed believe innovation can impact this sector – the lowest ranking for any sector. And only 22 per cent think innovation will boost financial services and banking.

Those in the survey who are private sector employees from business, academia and the media are more sceptical about the EU’s ability to support innovation than those from EU institutions.  

“Access to Health” is the only area where the private sector respondents believe more strongly than those employed in EU institutions that innovation policy would have a positive impact. By contrast, those employed in public sector institutions think a more innovative economy would improve citizens’ security, while those in the private sector are not convinced.

Seventy-four per cent of the Brussels elite in the poll agree there is a big hurdle to be overcome in dismantling the bureaucratic procedures that are slowing the deployment of structural funds to support innovation. Lack of expertise is also cited as a significant negative influence.

The research sample for the survey included 150 private sector respondents from business, non-governmental organisations, think tanks and the media.  It also polled 135 institutional respondents, including employees from the European parliament, the European Commission, European agencies and member states.

Respondents all had a strong awareness and interest in EU policies, a high awareness of the EU 2020 strategy, five years of professional experience and active media consumption. The GE survey was conducted by StrategyOne and carried out between March and June 2010.