In addition to beefed-up intellectual property protection, SMEs also want EU member states to promote innovation through state aid, public procurement and the creation of lead markets.
Responding to the review of innovation issues published by the Commission's enterprise directorate, UEAPME – a leading SME lobby group – called for progress on a single Community patent, "which would dramatically boost innovation in SMEs".
UEAPME Secretary-General Andrea Benassi said the document showed "a better and refined understanding" of innovation issues.
He said the document identifies the right challenges to fill the innovation gap between Europe and its main competitors, namely the protection of intellectual property rights, access to finance and better cooperation between science and business.
The Commission's broad summary of current thinking on innovation in Europe ticks all the usual boxes, including the need for a Community patent, a greater role for SMEs, the importance of the internal market, and improving education and skills.
Replacing the Lisbon Agenda
Although there were no startling revelations, it may provide considerable insight into the Commission's thinking on how the Lisbon Agenda will be replaced. Perhaps surprisingly, the document makes no reference to creativity, despite 2009 being the European Year of Creativity and Innovation (EYCI). However, this in itself suggests innovation policy will be steered by the enterprise agenda once the EYCI has passed.
The Commission said the innovation gap between the EU and its key competitors, the US and Japan, has narrowed since the re-launch of the Lisbon Strategy in 2005, but that scope remains for further improvement.
The Lisbon Strategy for growth and jobs aimed to make Europe's economy the most competitive in the world by 2010 and is seen by many as unlikely to meet its goals.
According to the Commission, costs for European trademark registration have been lowered, but there is an acceptance that protection of intellectual property rights remains key.
"The EU can in particular no longer afford to remain with a too costly and fragmented patent situation. Innovation in services and the use of ICT will also have to be strengthened further."
Venture capital lacking
While European funds are more focused on innovation than at any time in the past, the procedures for accessing finance must be simplified, particularly for SMEs. The new document also accepts that the provision of venture capital remains an issue for Europe's innovative companies.
"Financial investors should be more prepared to invest in innovative enterprises with a longer term return horizon, going beyond short-term profit expectations," according to the Commission.
The promotion of innovation will remain a key policy priority at all levels within the EU, according to the document, and the EU will examine the feasibility of devising a European Innovation Act. It will look at making a formal proposal by spring 2010.
