Heads of state call for “strategic and integrated approach to innovation”

The Commission’s Innovation Union proposals were endorsed by the EU27 heads of state at their council meeting on Friday (4 February). The time available to discuss the plan was cut short by the more pressing issues of energy security, stabilising the Euro, and unrest in Egypt. But it is clear that measures to promote innovation are now seen as central to attempts to revive national economies and increase Europe’s competitiveness.

This was billed as the first time ever that innovation had made it onto the agenda at an EU Council meeting, but in the end the topic was squeezed into the late afternoon, as EU heads of state dedicated the morning to energy, had a long lunch break in which the 17 members of the single currency discussed governance of the Euro area, and then made time to exchange views on the unrest in Egypt and Tunisia.

As a result, EU leaders focussed only on the headline innovation issues, including the single European patent, completing the European Research Area, joint research programming, moves to create a single European market for venture capital, effective standardisation and using public procurement as a driver of innovation.

Despite the short time available, the EU Council reached, “very important conclusions on innovation,” according to José Manuel Barroso, President of the European Commission, speaking at a press conference after the meeting. Barosso is increasingly presenting innovation as an overarching concern that should steer what happens in other areas, saying before the summit that, “Innovation needs to be part of our economic policy, not simply a research instrument.”

Deploying Europe’s intellectual capital

The European Council backed this view, calling for the implementation of a “strategic and integrated approach” to boost innovation and take full advantage of Europe’s intellectual capital.

One of the ways that the Innovation Union proposes to achieve this is through a supercharged form collaboration, the European Innovation Partnerships, which will bring together the public and private sectors to tackle particular and pressing problems, with a promise of direct access to political backing to steer programmes though bureaucratic obstacles.

EU leaders gave their support for the pilot partnership, which aims to reduce the cost of healthcare by extending the healthy lifespan of all Europe’s citizens by two years. The Council said the partnership would allow Europe’s expertise and resources to be “mobilised in a coherent manner” and for “synergies between the EU and the Member States, to be fostered in order to ensure that innovations with a societal benefit get to the market quicker.”

Push to complete the European research Area by 2014

The Council also called for renewed effort to complete the European Research Area (ERA), saying, “Remaining gaps must […] be addressed rapidly and ERA completed by 2014, to create a genuine single market for knowledge, research and innovation.” Particular efforts should be made to improve the mobility and career prospects of researchers, the mobility of graduate students and the attractiveness of Europe for foreign researchers.

To reinforce the benefits of ERA, information about publicly financed R&D needs to be better disseminated, whilst respecting intellectual property rights. To do this, the Council endorsed the setting up of an inventory of EU-funded R&D. This database should be linked to similar inventories of R&D programmes funded at national level.

Turning to the shortage of funding for technology transfer and commercialisation, the Council called for work to lift legal and administrative obstacles to the cross-border operation of venture capital, asking the Commission to come up with concrete proposals to do this by the end of the year. This will include putting in place an EU-wide venture capital scheme that builds on the European Investment Fund and other relevant financial institutions. The Commission was also asked to explore the feasibility of setting up a European Small Business Innovation Research Scheme.

Single European patent remains an objective

The Council backed other measures to increase private sector investment in innovation, calling for moves to accelerate, simplify and modernise standardisation procedures, and in particular to allow industry standards to be turned into European standards under certain conditions. It is also in favour of using public procurement to create greater demand for innovative goods and services, and told the Commission to keep plugging away at the creation of a single European patent.

Energy needs innovation too

Innovation may have been squeezed into the end of the afternoon, but the way in which innovation policy is now colouring what happens in other areas was evident in the morning session, in which heads of state discussed the need to create an interconnected and integrated internal energy market, modernise Europe’s energy infrastructure and renew efforts to meet energy efficient targets.

EU leaders called on member states to work with European standardisation bodies and industry, to speed up the adoption of technical standards for electric vehicle charging systems by mid-2011, and for smart grids and meters by the end of 2012.

There is concern that the EU27 is not on track to achieve the 2020 target of a 20 per cent increase in energy efficiency, and EU leaders called for “determined action” to tap the potential for higher energy savings from buildings, transport, products and processes. By January 2012, all member states should include energy efficiency standards in public procurement for relevant public buildings and services.

The European Strategic Energy Technology plan was discussed, with the Commission given the go-ahead to table new initiatives on smart grids that will link into the development of clean vehicles, increasing Europe’s energy storage capacity, sustainable biofuels and energy-saving measures for cities.