Barroso II seeks to streamline innovation policy

European Commissioner for Enterprise and Industry Günter Verheugen told European Year of Creativity and Innovation debate in Brussels that now is the right time to review the EU's innovation strategy, adding that he will publish a detailed analysis of policies in this area by the end of his term. He said progress on innovation has been "insufficient". 

The commissioner said the results of the Lisbon Agenda have, "to put it mildly, been very mixed". "Despite all our action, clear short-comings remain and we need to turn this around." 

He said the internal market remains incomplete, and innovative SMEs still struggle to access venture capital. Verheugen also pointed to the ongoing failure to introduce a community patent. 

He revealed that he will bring forward a draft communication on "key enabling technologies" by the end of October. These will focus on nanotechnology, advanced materials, photonics, biotechnology, and micro- and nanoelectronics. 

Also speaking at the event was Ulrika Stuart Hamilton, vice-president of the  Swedish Entrepreneurship Forum . She said there is great expectation that SMEs will help solve Europe's problems of job creation and innovation. She said this faith was well founded as "almost all radical inventions" in the last few decades were made by small firms. 

She said research shows that most new jobs are generated by Europe's smallest businesses, while larger firms have been inclined to reduce staff numbers. 

In addition, there is strong evidence demonstrating that SMEs engaged in cross-border trade are more productive than those acting only in their local markets. Stuart Hamilton said progress on the Services Directive, implementation of the Small Business Act and a breakthrough on the Community patent would be a major boost for the economy. 

Ian McCoull, director of innovation support at  Scottish Enterprise, said innovation is essential at a time of economic downturn. He stressed that innovation is about more than just "technology, product and process," adding that policymakers should focus on helping exploit new ideas and turn them into marketable products. "It's not just about research and development," he said. 

He said traditional definitions of innovation would suggest that around 20% of Scottish firms are engaged in producing innovative products, but this rises to 60% if you include companies applying innovation in the services sector and those with innovative business models. 

"Scotland is incredibly successful in knowledge production but the challenge is turning that into sustainable economic growth," he said. 

Luc Hendrickx, director of enterprise policy and external relations at EU SME organisation  UEAPME, agreed that a broad definition of innovation is required. "The EU and member states see only as high-tech innovation when in fact, at SME level, it happens at the low and intermediate level. Some innovation in not technological at all," he said. 

Hendrickx was critical of the EU for channelling spending towards companies with an international dimension because there is a focus on competing with the United States and China. However, he said most innovation happens in SMEs, but better data is needed to understand where and how this happens. 

On the question of how innovation policy should be organised, Hendrickx said he would not like the research commissioner to be responsible for innovation because they would tend to ignore smaller players. He noted that several EU funding programmes, including Eurostars, are not open to SMEs because they do not spend enough on development. What smaller companies need most is access to advice and support to help them navigate complex legal areas such as intellectual property rights protection. 

Erik Spiekermann, a typography designer and ambassador for the European Year of Creativity and Innovation, said creativity should not be lost in the debate on innovation. He said more use should be made of designers in solving challenges as they can help visualise problems. "Designers are fundamental to defining problems and finding solutions," he said. 

Spiekermann said most people remain fearful of innovation as they see change as a threat to their existence. He remarked that most people involved in the innovation debate in Brussels have permanent, pensionable jobs rather than being engaged in creative or entrepreneurial work.

Žiga Turk, a former minister and national coordinator for Slovenia on the EU's Lisbon Strategy, said innovation in every field "is the single most important internal strategic issue that the next Commission needs to tackle". Writing in New Europe, Turk proposed the introduction of "a super commissioner […] to coordinate innovation policies across the sectors of the Commission".

According to Turk, "he or she should have a strong mandate from the president of the Commission" and be responsible for the "2020 vision" presented by President Barroso in his political guidelines. With the economic crisis putting the spotlight on short-term challenges, Turk says the Commission needs to keep an eye on long-term challenges which are about "dumping coal and steel and embracing the sun [solar power] and the digital economy".