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Intangibles in the European growth and innovation policy Marianne Paasi, DG Research and Innovation, Unit B5 INNODRIVE final conference Brussels 23 February 2011 23/02/2011 1 Intangibles matter for innovation and growth Economic

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Intangibles in the European growth and innovation policy

Marianne Paasi, DG Research and Innovation, Unit B5

Brussels 23 February 2011

INNODRIVE final conference

23/02/2011

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Intangibles matter for innovation and growth

  • Economic performance/competitiveness/TFP depend

strongly on intangibles

  • Relative importance is shifting from tangibles towards

intangibles (in service and knowledge economies)

  • Innovation is more than R&D (HR, skills, design,
  • rganisation…)
  • Intangibles create value and need to be consider as capital

rather than costs – but we do not measure them properly

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Intangibles in European policy making

  • Europe 2020 and its Flagships
  • Non-technological innovations, design: DG Enterprise,
  • Innovation Union Scoreboard: DG Enterprise,
  • R&D target, societal challenges, European Research Area (ERA): DG

Research and Innovation

  • ICT and software: DG Infso
  • Internal Market: Service Directive, IPRs incl. Trademarks
  • Creativity and culture (design): European year of Creativity and Innovation

2009; Unlocking the potential of cultural and creative industries; Regional policy contributing to smart growth: DG EAC, RG Regio

  • Human capital, skills, Life long learning: DG EAC, DG Employment
  • Trade policy
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Lack of data on Intangibles: reasons

  • Weakens economic research and analysis and economic policy

making

  • Important estimation work and research is needed (SSH programme)
  • Methodological differences
  • Common definitions
  • Experiences in work like Community Innovation Survey/ ES/OECD
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INNODRIVE contributes to European policies

New data on intangibles and on the capacity of intangibles to generate growth:

  • Measuring the amount of capital embodied in human capital, R&D,

patents, software and organisational structures– and geographical proximity as asset; incl. Architectural and Engineering Design

  • Macro-level and micro-level
  • According to the CHS concept

=> We have a starting point with our projects and with collaboration with others we can progress

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Europe 2020 growth strategy

Smart, sustainable and inclusive growth and exiting the crisis:  Smart growth: knowledge and innovation  Sustainable growth: resource efficient, green, competitive economy  Inclusive growth: high-employment economy with economic, social and territorial cohesion  Exiting crisis

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Europe 2020 Headline targets

Shared objectives guiding action of MS and of the Union/to measure progress towards Europe 2020

 Employment rate of 20-64 aged: 75%  3 % R&D target  Greenhous gas emissions: 20/20/20  Education: early school leavers under 10%  Reducing poverty: 20 mio less people at risk of poverty These targets are interrelated.

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Europe 2020 Flagships

EC to catalyse growth through implementing Flagships

Smart growth  Innovation Union  A Digital Agenda for Europe  Youth on the move Sustainable growth  Resource efficient Europe  An industrial policy for the globalisation era Inclusive growth  An Agenda for skills and jobs  European Platform against Poverty

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Innovation Union Flagship

  • Crisis, growth and societal challenges: Innovation
  • Innovation cycle: from ideas to market
  • Role of intangibles goes beyond R&D (investment

and efficiency at the EU level): human

capital/education/universities; innovation, IPRs, entrepreneurship/SMEs; design and creativity

  • Action about establishing European Design

Leadership Board

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Of course also the other Flagships include intangibles

  • A Digital Agenda for Europe: ICT, software
  • Skills….
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Indicators measuring progress towards Innovation Union

  • R&D investment target
  • A new innovation indicator: high growth

innovative companies

  • Innovation Union Scoreboard:

along with R&D, human resources etc. also Intellectual

assets like patents, Community Trademarks, Community Design

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Europe 2020 Exiting crisis vs. Long term growth objectives

  • Exiting crisis: fiscal consolidation, macroeconomic

surveillance, financial sector reform

  • Smart, sustainable and inclusive growth demand

(intangible) investment for higher growth and employment; solving societal challenges

  • Simultaneous policy/ policy coordination to avoid long

term low growth path in Europe

 Already Sapir et al 2003 “Agenda for Growing Europe”  Don’t cut intangibles: INNODRIVE project supports this important policy message in Europe

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Economic policy coordination

European Semester: SGP and Europe 2020 are alligned (under their legal specificities)

  • Annual growth survey (input to European Council Spring

meeting)

  • National reform programmes (contain national targets)

along with Stability/ convergence programmes

  • Country specific recommendations and opinions
  • EU level support: Internal market etc., monitoring
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THANK YOU FOR YOUR ATTENTION