Transcript Research & Innovation Policy

RESEARCH & INNOVATION POLICY
Valanta Milliou
[email protected]
http://www.aueb.gr/users/milliou/teaching.html
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1. Introduction
2. Theoretical Support
3. Practice
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1. INTRODUCTION
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Research & Innovation
Scientific research gives us new knowledge about the world
and leads to inventions/innovations that change our lives.
The application of the results of research in the production
process increases the competitiveness of the firms and of
the economy in general.
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Research & Innovation in Europe
Europe has a proud history of discovery and invention.
Two centuries ago it launched the industrial revolution.
More recent examples:
- Mobile phone
- Airbus planes
- Worldwide web (European Centre for Nuclear Research CERN)
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Research & Innovation in Europe
Individual firms and national research centres in Europe do
not always have the resources they need to compete in
today’s global economy.
They face particularly tough competition from rivals in the
United States and Asia (2001: 1,9 % GDP of EU, 3,1 % of
Japan, 2,8 % of the U.S.)
→ Collectively, the EU and its member states must do more
to boost European research.
→ The EU has developed the Research & Innovation Policy.
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Research & Innovation Policy
With this policy, the EU:
- Promotes research programmes
- Funds joint projects
- Breaks down the barriers which, until now, have hindered
cooperation between scientists in different countries.
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Research & Innovation Policy
At their Lisbon Summit in March 2000, EU leaders agreed
that the European Union should aim to become the world’s
most competitive economy by 2010.
Research and new technologies have a vital role to play in
achieving this goal.
→ The importance of the Research & Innovation Policy has
significantly increased.
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2. THEORETICAL SUPPORT
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“Technological ”Gap
The starting point of the policy is that Europe is not taking
full advantage of its research and technology abilities
because the research attempts that take place are
dispersed and duplicated.
There is a “Technology Gap” between Europe and the U.S.
and Japan. This is demonstrated in many statistical data of
the European Commission.
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Kenneth Arrow
He applied economic analysis to advocate government
financial support for “basic research”.
Basic research: The bedrock of technological progress.
Experimental or theoretical work undertaken primarily to
acquire new knowledge of the underlying foundations of
phenomena and observable facts, without any particular
application or use in view (e.g. nanotechnology).
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Kenneth Arrow (συν.)
There are 3 categories of economic problems which make
inadvisable to leave the allocation of resources for invention
to the market mechanism:
1. Uncertainty
Uncertainty about financial gain.
Risks of failure are high, both because the research might
lead to a dead end and because there is a risk that, even if it
were fruitful, a speedier rival might beat them to the harvest.
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Kenneth Arrow (con.)
2. Indivisibility
Where markets are indivisible, there are problems both in
assessing demand and securing payment.
Indivisibilities in the process of research itself (e.g. atomistic
industry)
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Kenneth Arrow (con.)
3. Inappropriability
The originator of the invention may be unable to gain due
reward.
Ideas are easily stolen.
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Imperfect Private Capital Markets
The bankers are unappreciative of the full value of
technological opportunities.
In response to this, governments have from time established
mechanisms targeted at the provision of funds for
technology.
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3. PRACTISE
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History Review
1957: Treaty of Rome did not include any clear provision for
the Research and Innovation Policy.
Foundation of the Joint Research Center as part of the
European Commission.
1980s: With the creation of the common market, the EU
took more responsibilities in this area and in the
coordination among the member-states.
Creation of the Framework Programmes.
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History Review (con.)
1986: A new treaty (the Single European Act) confirms that
science is now an EU responsibility.
1992: Treaty of Maastricht increases the role of the EU in
this area.
2000: Lisbon summit.
They call for the creation of the European Research Area.
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History Review (con.)
2003: EU leaders agree to raise spending on R&D to 3% of
GDP by 2010.
2005: During discussions for the last framework
programme, the creation of the European Research Council
was decided.
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Joint Research Center (JRC)
The JRC is the EU’s own research body. In addition to
providing independent advice and technical support for the
European Commission, it carries out its own scientific
research – helping to create a safer, cleaner, healthier and
more competitive Europe.
Two of the JRC’s top priorities are ensuring the safety of
nuclear reactors, particularly in central and eastern Europe,
and managing nuclear waste.
With an overall staff of 2 100, the JRC operates at seven
sites across the EU.
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Framework Programmes
Since 1984, the EU has run its research and technological
development policy on the basis of multiannual framework
programmes.
The first framework programme covered the period 19841987. The sixth covered the period 2002-2006 and the
current one, the seventh, covers the period 2007-2013.
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7th Framework Programme
Some important differences from the 6th Framework
Programme:
- Increase 63% in the budget.
- Focus on research areas (e.g. health, space)
- Creation of the European Research Council: For the
funding of the most ambitious and innovative research
projects that involve more risk and might have long run
benefits.
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7th Framework Programme (cont.)
Its main programmes include:
1.Cooperation
Programme aims to stimulate cooperation and improve
links between industry and research within a transnational
framework.
2. Ideas
The Programme is intended to enhance exploratory
research in Europe, i.e. aimed at discovering new
knowledge that fundamentally changes our vision of the
world and our way of life (European Research Council)
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7th Framework Programme (cont.)
3. People
The Programme will harness significant financial resources
that can be used to improve the career prospects of
researchers in Europe and attract more high-quality young
researchers. The EU hopes to encourage training and
mobility so that European researchers can realise their full
potential (e.g. "Marie Curie" actions).
4. Nuclear Power
Nuclear fission and radiation protection.
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