INNOVATION AND GROWTH SPECIAL SECTION

Spring 2013

by Máire Geoghegan-Quinn

Amid all the gloom about Europe’s growth prospects, we should remember that the EU is home to some of the world's most innovative countries. In the global innovation league table, the EU has been catching up with the U.S. and Japan, and other than China is either maintaining or increasing its lead over emerging economies.

But it is true that Europe has been missing out on some cutting-edge technologies, which is why the EU has fewer fast-growing innovative enterprises than the U.S. It is also true that this situation is in danger of deteriorating; on a worst-case scenario, the EU’s share in the global economy could halve by 2050. We nevertheless still have the power to prevent this decline and the key is investing in our own potential.

This potential for innovation is Europe’s strongest asset in a competitive world, which is why the European Commission has developed the Innovation Union, a flagship initiative that is designing top-class incentives and framework conditions for entrepreneurs. Among its main action points there is an EU-wide unitary patent which will reduce the cost of protecting inventions by as much as 80%. Swifter access to standard-setting will speed the process of bringing new ideas to the marketplace, while public procurement will be used more intelligently to support innovative solutions. In addition, Europe will soon have an EU-wide venture capital passport, and is on the right track to complete the single market.

Concrete measures to foster research and innovation are also high on the European growth agenda. The future EU framework programme, Horizon 2020, will help innovators turn great ideas into tangible products and services that will in turn contribute to more and better jobs. The planned European Research Area will also help to make national research systems more effective and stimulate more transnational competition.

But Europe's position in the world is not just a matter of economics; it also depends on our capacity to tackle social and environmental challenges. That is why we are setting up European Innovation Partnerships to pool the necessary expertise, and combine supply- and demand-side measures, to address problems as diverse as ageing populations and the sustainable management natural resources. Taken together, these steps are putting Europe on the right track towards a prosperous future.