Transcript EU Innovation Policy and SMEs
EU Enterprise and Innovation Initiatives
Carl James
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Competitiveness of EU enterprises
European enterprises face strong competition from global competitors Pressures on employment Social consequences
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Europe 2020 strategy
• • • The Europe 2020 strategy is about growth that is: •
Smart
- education, research &innovation
Sustainable Inclusive
- a low-carbon economy - job creation and poverty
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Governance
To ensure that the Europe 2020 strategy delivers • An effective system of economic governance to coordinate policy actions between the EU and national levels.
• Enterprise and innovation are linked
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
EU and member states
EU importance is in: • • • • Regulation and legislation Coordination Demonstration actions Programmes in a very few areas
Member states have far more resources
EU budget is between 1.10% and 1.05% of Gross National Income of the 27 member states.
The expenditures of the large states like France, Italy and UK is six to seven times that of the EU. Education, health and social security are member state responsibilities
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39.44%
EU Budget Distribution
5.14% 3.16% 1.98% 1.10% 5.32% 43.85% economic management innovation research education & culture structural funds agriculture and rural external
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Enterprise and Innovation
EU policy has divided into two aspects – Innovation policy • Supporting radical innovations • In a global market • With a strong science base – Enterprise policy • Supporting improvements in enterprises • Dealing with market problems • Supporting technology diffusion and skills They are governed differently
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Hurdles for new member states
• Characteristics – Weak performance on innovation – Lack of strong linkages between science and enterprises – Deficits in entrepreneurial culture – Undeveloped and inexperienced support bodies – Lack of internal purchasing power and access to broader markets • Challenge to balance – Innovation support for long term leading edge growth – Overall support to enterprises for optimum medium term economic returns
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
EU Innovation Policy
9 strategic priorities – Intellectual property rights – Public procurement – Joint technology initiatives – Lead markets – European Institute of Innovation and Technology – Clusters – Innovation in services – Risk capital markets Recognition that there is a huge gap between the performance of different member states
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
EU Enterprise Policy & SMEs
Small Business Act – Deal with framework enterprise conditions • Education and training for entrepreneurship; • Better legislation and regulation; • Strengthening the technological capacity of small enterprises; • Making use of successful e-business models and developing top class small business support; – Also moves toward innovation • Fostering eco-innovation and energy efficiency in SMEs • Fostering creativity in entrepreneurship
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Governance of the two aspects
Innovation
EU sets framework conditions for member states Commission has its own initiatives, in which states and regions participate
Enterprise
EU sets framework conditions States carry out support actions with assistance through agreed programmes
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Differences
Innovation
• 3% of budget on enterprise • Additional 5% on research • Also member state initiatives
Enterprise
Through structural funds with 39% of budget Managed and delivered by member states & regional bodies
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Innovation policy
Competitiveness and Innovation Programme will become part of Horizon 2020
Run through the Commission.
It Includes elements on: • Innovation financing • Energy • Eco innovation • Europe Enterprise Network Participation of member state bodies in the programme
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
How the innovation programme works
CIP facilitates national actions in finance, networking, eco-innovation, energy, application of ICT.
Intermediary institutions in member states apply. These include regional governments and banks.
Member state bodies deliver to the SMEs. They provide 'Match funding', i.e. the initiative depends on a combination and agreement of the regional bodies to enter the programme
Enterprises
Enterprises can apply to one or two measures directly. The research programme (Framework 7) takes direct applications There are also programmes for the creative industries – media and culture programmes, where enterprises can apply.
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Assistance to enterprises
• Through structural fund instruments • As part of economic development initiatives managed at a regional level • Some transnational initiatives • Includes enterprises at all levels, depending on regional programme and project – from social to traditional to leading edge
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
Assistance through the structural funds
These programmes are agreed between EU and member state and jointly funded EU contribution depends on wealth of state & region Follow EU priorities Delivered by member state bodies Targeted at economic development Enterprises are a principal beneficiary
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Typical programme priorities
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Priority 1: Business competitiveness, commercialisation and innovation
Finance and advice for new businesses ‘ Greening ’ businesses Support for potential high-growth firms -
Priority 2: Key drivers of sustainable growth
Development of research centres of excellence E-learning and training facilities Developing new products and services to make use of natural/historical/cultural assets -
Priority 3: Peripheral and fragile communities
Support for regeneration projects Local business incubator and e-business facilities Transport links to local communities ICT/broadband links Renewable energy production
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU
An enterprise development programme
• Negotiated and agreed at EU, national and regional levels • Jointly funded • With agreed governance • With a set of indicators for success • With external evaluation procedures • Subject to audit and repayment
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Approaches respond to local or regional initiatives
• With regard CIP, intermediary bodies apply for support, but must have some of their own resources • With regard to research and some other programmes, enterprises and universities apply direct • With regard to structural funds, these are delivered to enterprises following an agreed programme, but still need local project leaders
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Examples of initiatives Innovation Programme
• Smart Grid initiatives among Belgian, and French electricity distributors • 12 Italian banks involved in loan guarantee schemes for SMEs • Smart Home initiative in Germany • Creative Cluster in Barcelona
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Examples of initiatives Structural funds
Usually operate at a regional level • Steinbeis foundation – non profit making technology transfer body in Germany working in cooperation with local government to develop clusters across member state borders • University of Karlsruhe, Germany - The online course for female entrepreneurs • University of Hassalt in Belgium developing a renewable energy incubator • • EUROCEI in Spain introducing marketing through social networks to the craft sector TRIESTE in Italy – incubator in science park
Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU