Transcript Building Europe Knowledge: Towards the Seventh Framework

The European Research Area in
the Age of Globalisation
Conference on Knowledge and Innovation
11 January 2007
Henri Delanghe
DG RTD, C4 (Economic and Prospective Analysis
FP7 - April 2005 1
The Lisbon Agenda
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Broad consensus …
– Lisbon European Council (2000)
– Subsequent European Councils [Göteborg (2001), Barcelona
(2002), etc.]
– Senior expert reports (Sapir, Strauss-Kahn, Kok, Aho)
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… on fact that
– Europe faces many economic, social and environmental
challenges
– Europe should turn itself into a knowledge-based economy
– More and better investment is needed in the knowledge triangle
of research, education and innovation
FP7 - April 2005 2
The European Research Area
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Not a new concept
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A somewhat confusing concept
– Geographical scope?
– Conceptual scope?
– Final objective?
– Underlying assumptions?
– Etc.
FP7 - April 2005 3
The European Research Area
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Yet 3 specific objectives
– To increase the funding for research
– To promote the exploitation of research results
– To reduce the fragmentation and dispersal
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FP7 - April 2005 4
“3 percent objective”
The 3 Percent Objective
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Context
– Economic growth depends on R&D and innovation
– Low level of R&D expenditure in Europe
 Low R&D intensity, especially private
 Large absolute gap with US
 Triadic R&D competition logic
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Barcelona European Council (2002)
– “Overall spending on R&D and innovation in the Union should be
increased with the aim of approaching 3 percent of GDP by 2010.
Two thirds of this new investment should come from the private
sector”
FP7 - April 2005 5
The 3 Percent Objective
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Recognition of importance horizontal policy coordination
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More effective use of public financing for business R&D …
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… but also more attractive framework conditions
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FP7 - April 2005 6
Direct support measures
Fiscal incentives
Guarantee mechanisms
Public support for risk capital
Sufficient and high quality human resources
Strong public research base with improved industry links
Entrepreneurship for and through R&D
Effective adaptation and use of intellectual property rights systems
Research and innovation friendly regulations
Competitive environment
Supportive competition rules
Supportive financial markets
Macro-economic stability
Favourable fiscal conditions
Implementation
of the Lisbon Agenda

Many goals, in many policy fields, legal competence for action
different according to field
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Full range of existing policy instruments used
– EC legislation
– Programmes and funding
– Actions plans
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In addition, “Open Method of Coordination”
– To spread best practice and to achieve greater convergence towards the
main EU goals
– Inter-governmental
– Soft
FP7 - April 2005 7
Implementation
in the Field of Research
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EC legislation (e.g. Community Patent)
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Framework Programme
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Action plans (e.g. 3 percent)
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Open Method of Coordination (e.g. 3 percent)
FP7 - April 2005 8
The Lack of Progress since 2000

In the implementation of the Lisbon Agenda
– “Disappointing delivery”
– “Far from achieving the potential for change”
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Towards the 3 percent objective
– Overall R&D intensity
– Private R&D intensity
– Gap
– Share of world R&D
FP7 - April 2005 9
Explaining the Lack of Progress
towards the 3 percent objective
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Objective itself
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Horizontal policy coordination
– Understanding of horizontal policy coordination
– Implementation of horizontal policy coordination
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Exposure to foreign stock of knowledge
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Governance
FP7 - April 2005 10
Explaining the Lack of Progress
towards the 3 percent objective
Growth
Growth
Innovation
Innovation
New Knowledge
FP7 - April 2005 11
Domestic
Innovation
Climate
New
Knowledge
EU
Domestic
Foreign
Research
Research
Research
System
System
Public
Public
Policy
Policy
The other two ERA objectives (better
exploitation, less fragmentation)
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Objectives
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Implementation
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Progress
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Explanations
FP7 - April 2005 12
Implications for ERA
FP7 - April 2005 13
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Objectives
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Horizontal policy coordination
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Openness
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Governance
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Evidence