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© Catherine LEDIG cl@adec.fr www.adec.fr
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Presentation by Alsace of the instruments available within the region to support awareness raising activities and the development of SMEs towards innovation
Catherine Ledig, director of the Association pour le Développement des Entreprises et des Compétences, Brussels: 11th October 2005cl@adec.fr www.adec.fr
OPEN DAYS : Innovation the role of, and challenges facing SMEs
© Catherine LEDIG cl@adec.fr www.adec.fr
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Contents
1.Definitions
2.Alsace key figures and context
3. Alsace innovation policy- Framework - Actors- Challenges - Questions and recommendations
4.Conclusions
5.Bibliography
© Catherine LEDIG cl@adec.fr www.adec.fr
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Contents
1.Definitions-Innovation-Knowledge economy-SME’s
2.Alsace key figures and context
3. Alsace innovation policy- Framework - Actors- Challenges - Questions and recommendations
4.Conclusions
5.Bibliography
© Catherine LEDIG cl@adec.fr www.adec.fr
4 Source 4 pages du SESSI n°168 déc 2002
The Oslo Manual: The measurement of scientific and technological activities
The concept of innovation is defined by the OECD’s Oslo ManualIt allows international comparisons.
Its definitions of innovation are strictly technology basedBut they can equally be the result of improvements or the provision of new product associated services (service-sector innovation)
The innovation of a product is characterised by the introduction on the market of a new product (goods or services) that clearly modifies its fundamental characteristics, its technical specifications, its incorporated software or any other immaterial element as well as its foreseen usage or the ease with which it can be used.The innovation of a process is defined by the introduction into an enterprise of a production process, a new or clearly modified method for service provision or the delivery of products.The result must be significant in terms of production, product quality, or the cost of production and distribution.Purely aesthetic changes such as design or fashion phenomenon, organisational changes or packaging modifications are excluded from the definition. These changes are taken into account in the overall innovation.Innovation can result in a new product or process for an enterprise but not for the market. This is the case when an enterprise adopts a technology that has already been implemented by a competitor.
© Catherine LEDIG cl@adec.fr www.adec.fr
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Innovation is an essential factor of growth.It can be of two types : the innovation of a product and the innovation of a process.
Bringing to the fore a new product for sale comes under the first category. Using new machines, new sources of energy, new raw materials or organising the production differently comes under the second one.Innovation can be the result of a prior invention.
Thanks to innovation, an enterprise can differentiate itself from its competitors and obtain higher profits, especially if the company has taken care to patent the innovation.
Innovation is a process through which economic and social value is extracted from knowledge through the generation, development and implementation of ideas to produce new or improved products, services, or processes. Source: Innovation Fund, Projects and Innovation (P&I) Section CanadaSource: Innovation Fund, Projects and Innovation (P&I) Section Canada
Definitions of Innovation
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Knowledge economy: economy characterised by an accelerated rhythm of innovation, by a constant increased use of knowledge and competences and by a massive increase in their diffusion thanks to ICT.
Or: economy founded on knowledge and technological innovation, which allows the constitution of a network of know-how.Source CETECH CA
Definition of the general context: Knowledge economy
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TITLE IDEFINITION OF MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES ADOPTED BY THE COMMISSIONArticle 1EnterpriseAn enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal form. This
includes, in particular, self-employed persons and family businesses engaged in craft or other activities, and partnerships or associations regularly engaged in an economic activity..
Article 2Staff headcount and financial ceilings determining enterprise categories1. The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which
employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.
2. Within the SME category, a small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet does not exceed EUR 10 million.
3. Within the SME category, a microenterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million.
Source OJEU 6 May 2003 (2003/361/EC)
Definition of micro, small and medium-sized enterprises
© Catherine LEDIG cl@adec.fr www.adec.fr
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Science and technology contribute to innovation and to industrial performances as never before.
What measures do countries and regions take to reinforce their scientific and technological capacities and their strength of innovation ?
How can public authorities collaborate better with enterprises in order to create, diffuse and exploit knowledge in all sectors of an economy that is more and more world-wide and competitive?
Questions and numerous challenges
© Catherine LEDIG cl@adec.fr www.adec.fr
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Contents
1.Definitions
2.Alsace key figures and context-Map-Alsace key figures
3. Alsace innovation policy- Framework - Actors- Challenges - Questions and recommendations
4.Conclusions
5.Bibliography
© Catherine LEDIG cl@adec.fr www.adec.fr
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Some examples of instruments in Alsace for the support, awareness and the development of SMEs towards innovation
How has Alsace faced these challenges
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Alsace : geographical context and its borders for proximity cooperation
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ALSACE key figures
GENERALSurface area : 8280 Km²PopulationTotal in 2002 : 1768 079 inhabitantsDensity : 209 h /km²
GDP in 2002:3% of GDP of France GDP 44 268 M eurosGDP by inhabitant: 24 804 E
Employment: segmentation -Agriculture 1%-Industry 25%(7 industrial jobs out of 10 are within groups who have their headquarters outside Alsace)
-Construction 6%-Tertiary 68 %
Unemployment: Highest increase in France:rate 5,3% beginning 2001 to 8,5% end 2004 (French average 9,9%)
EDUCATION AND RESEARCH
5,7 ME budget 200465000 students4 universities70 training courses for higher level technicians32 university and technological diplomas 9 engineering schools
6,7 M Euros budget 20043rd French scientific pole 3000 engineers 2200 researchers126 research centres2500 PhD students
Alsace SMES
RCS : 45 000 (<250 employees)
© Catherine LEDIG cl@adec.fr www.adec.fr
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The R&D of enterprises in the French Regions in 2000
© Catherine LEDIG cl@adec.fr www.adec.fr
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Contents
1.Definitions
2.Alsace key figures and context
3. Alsace innovation policy- Framework - Actors- Challenges - Questions and recommendations
4.Conclusions
5.Bibliography
© Catherine LEDIG cl@adec.fr www.adec.fr
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Five action lines for a regional policy that develops innovation
1.Bring closer together research and enterprises in order to favour public-private partnerships
2.Develop the transfer of knowledge and competences through facilitating the insertion of graduates into enterprises
3. Support the structures transferring the technologies through helping the CRITT (Centres régionaux d’innovation et de transfert téchnologique) and PFT (Plate-Formes technologiques) 4. Create an environment favouring innovation through developing technological help networks
5. Favour the creation of innovative enterprises with expertise and support for the project holders
Alsace regional policy
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Incubators &Business CentresSEMIAADEC Site…IEEPI & CEIPI2 competitive poles: « Therapeutic Innovations »« vehicle of the future »Technopole de Mulhouse Parc d’innovationd’Illkirch BioPôle Colmar Campus UHA
Technical & ScientificInfrastructures
Alsace Technologie
BioValleys
ASTRID
ICONOVAL
6 CRITTsCentres de transfert de technologies
6 PFT Plateformes
Technologiques
ULP IndustrieCentre for university
development…
Support structures
STATEOSEO-ANVAR
DRRTDRIRE
Alsace RegionalCouncil
County Councils
Local authorities of proximity
Financers
RTARéseau technologiqued’alsace
CEEI
Rhénaphotonics
Association Pôle d’extrusion d’Alsace
Réseau OCRE
CCI CRCI…
Networks & Prof. associations
Among the main actors in Alsace
Project holders
Belonging tothe public sector250 laboratoriesUniversitiesCNRSINSERMENGEES
& the private sectorthe SME
Structures :FORENAPIRCADPôle textile Pôle Vignes & vins de INRA…
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Incubators&Business centres
SEMIAADEC Site
…IEEPI &CEIPI
2 competitive poles:
« TherapeuticInnovations»
« vehicle of the future »Technopole de
Mulhouse Parc d’innovation
d’IllkirchBioPôle Colmar
Campus UHA …
Technical& ScientificInfrastructures
Alsace Technologie
BioValleys
ASTRID
ICONOVAL
6 CRITTsCentres de transfert de technologies
6 PFT Plateformes Technologiques
ULP IndustrieCentre for university development
…
SupportStructures
STATEOSEO-ANVAR
DRRTDRIRE
Alsace RegionalCouncil
County councils
Local authorities of proximity
Financers
RTARéseau technologiqued’alsace
CEEI
Rhénaphotonics
Association Pôle d’extrusion d’Alsace
Centre relais Innovation
Réseau OCRE
CCI /CRCI…
Networks & Prof. associations
Some actors in Alsace
Project holders
Belonging tothe public sector250 laboratoriesUniversitiesCNRSINSERMENGEES
& the private sectorthe SMEs
Structures :FORENAPIRCADPôle textile Pôle Vignes & vins de INRA…
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Director : Carmen MULLER-REITHLERParc d’Innovation 9, Bld G. d’Andernach F67400 IllkirchTel : +33-3 88 65 54 68Staff: 7 persons
Association created in: 1995 Its mission : Favour the transfer of technology towards enterprises through developing the relations between the technical centres, the public or semi-public research laboratories and the regional enterprises.Its resourcesA team of engineers, the «Technological development advisers » The implementation of financial grants: CORTECHS and PRISME A federative network of competences: the Réseau Technologique d’Alsace (RTA)Its activities: Support SME in implementing their development projects,
in integrating the technological dimension into their development strategy,to express their associated requests and needs, to mobilise public and private centres of competence that can most adequately respond to their needs
Its tools:Directory of competences, Extranet: CATALISE, Training courses, Technological forumsFinancial grants : PTR Technological network services …For more information www.alsace-technologie.fr
Alsace Technologie www.alsace-technologie.org
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RTA: réseau technologique d’Alsace http://www.rdt-alsace.org/
76 Members – 25 Organs coordinated by Alsace Technologie76 Members – 25 Organs coordinated by Alsace Technologie
http://www.rdt-france.org/
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AERIAL Multi-sectoral applications of ionisation and improvement of physical- chemical properties of materialsLyophilisation techniques
Illkirch
CETIM CERMATMetallic and alloy materials Synthetic materials
Mulhouse
CRITTMATERIAUX Characterisation of materials(glass, ceramics,..)polymers
Schiltigheim
HOLO3Vibratory analysis Constraint measurements Dimensional measurements
St Louis
IREPA LASERIndustrial laser demonstration (cutting, solderingmarking, cleaning…
Illkirch
RITTMO Fertilisation of organic mattersAdvice and agriculturesector services
6 CRITT: regional centres for innovation & technology transfer
© Catherine LEDIG cl@adec.fr www.adec.fr
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CRITT: AERIAL www.aerial-crt.com
AERIAL Multi-sectoral applications for ionisation and improvement of physical- chemical properties of materialsLyophilisation techniques
Illkirch
Director : Alain Strasser Centre de Ressources Technologiquesrue Laurent Fries - Parc d'Innovation67400 IllkirchStaff: 17 persons Association created in: 1985
Its mission Applied research on the theme of the ionisation of food Multi-sectorial applications for ionisationStudies and technical assistance for the agro-food industryLyophilisation for bio-industries
Its resources- Laboratory of microbiology- Laboratory of physical-chemistry- Laboratory of Sensorial analysis- An ionisation experimental station equipped with an electron accelerator and x-ray source- Laboratory of dosimetry- Laboratory for experimental lyophilisation: thermal analysis, lyophilisation pilots,
In order to meet the most diverse industrial requests, Aérial is equipped with high performance analytical tools in its different laboratories (dosimetry, microbiology, physical-chemistry, sensorial analysis, lyophilisation), as well as an experimental station.
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Director : Alain CARBONIDépartement ULP-Industrie11 rue SilbermannF-67070 Strasbourg CedexTél. +33 3 90 41 17 61Vice President enterprise relations and development Alain BERETZ
http://www-ulp.u-strasbg.fr and http://www-ulp.u-strasbg.fr/relations-industrielles/index.php
ULP Industrie development centre of the University Louis Pasteur
Université Louis Pasteur Overall budget 2005:191,4 millions euros Students: more than 18 000Staff: more than 2 888 (of which 1400 researchers and 1100 technical engineers ) Research centres: 71Research contracts: more than 300/year for 12 M E ( 30 % in the private sector, 27 % in the public sector and 43 % european contracts)Real-estate: 100 buildings > 400 000 m2(ranked 1st university outside Paris and 3rd French university in the Shanghai University 2004 ranking)
ULP INDUSTRIE Strong collaboration with the major research organs:CNRS, INSERM, INRA with an interdisciplinary logicA driving force for the economy: 19 major patents filed in their own name or in joint-ownership1 Service for industrial and commercial activities (SAIC) 1 subsidiary: The Centre for Analysis and Research (CAR) 45 “start-up” created in 15 years,leading to more than 800 jobs in the enterprise incubator SEMIA
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6 PFT Technological platforms
HAGUENAUHigh speed industrial automation and manufacturing
ST LOUIS Metrology
OBERNAI Hydraulics
SAVERNEPlastics
MULHOUSE Textile
REICHHOFFENCrash test Railway material
These platforms are intended to strengthen the links education – enterprisesThrough using on a local level national education resources in order to benefit the fabric
of regional SMEs.
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The main task of ADEC is to contribute to the attractiveness of the Lower Rhine area not only through participating in the development of ICT activities and stimulating local excellence, but also through the benchmarking and implementation of these new technologies.
ADEC’s mission’s focus on the following activities:Coordination of the La Walck site and the development of economic activities linked to ICT in the Lower Rhine area, (prospecting to enterprises, support to young companies…), Constitution and management of business cluster from the ADEC site
Participation in European projects, linked to ICT, and also give support in project development and in the constitution of European networks driven by Lower Rhine actors,
Technological foresight and the diffusion of technologies for the benefit of the local economic area.
ADEC: Association pour le Développement des Entreprises et des Compétences
Director: Catherine Ledig Site ADEC37 rue d’Engwiller F 67350 LA WALCK www.adec.frAssociation created in 1993
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La Grappe d’Affaires
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Conseil, accompagnementintégration
AriasAssociates
P&I
RTAConseil
Corteam
IPI
SwConseil
AwConseil
Omnipartners
Me Bouvier
Me Hassler
Me Begeot
Sudefi Avocat
IDFF. Muller
JuridiqueJuridique OutputGroup
AfilexFrance
ACE
CommerceCommerce
Sudefi
JCGassurance
Novovitae
GalerieDumont
Aproxys
EvaloysHaussmann
assureur
Finances, patrimoine,intangibles
Édition de logicielsÉdition de logiciels
Kaluun
Advensis
ULPmultimédia
Myde
IP Anto
CabinetCharpilloz
Actais
AdministrationComptabilité
InfoProjet
DLF Formation
GIPFCIP
FormationFormation
Uniwealth
Unicréa
UniEst
CommunicationMarketing
Adelis
AbasFrance
AirBox
CDM
Regesta
Infotechnique Alogia
Thor
Kaliasis
KeepLinks
Activis
AVSGroupAgilis
Systèmes d’information,TIC, plates-formes techniques
ADEC business cluster
© Catherine LEDIG cl@adec.fr www.adec.fr
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Competitive poles: the pole «Therapeutic innovations »
Competitive poles are networks of actors (enterprises, research laboratories, training centres) brought together around common R&D projects within a defined geographic zone.
The pole «Therapeutic Innovations » relies on world-wide competitive research and a strong industrial fabric of 300 enterprises and 27 000 jobs.
The original strategy of the pole is built on the acceleration of innovation: the young enterprises of the pole are in good health because they benefit in Alsace from the complete chain of innovation. Two projects illustrate this theme « Future therapies » : • The first, under the patronage of the professors Pierre CHAMBON and Jean-Marie LEHN, is called « from chemistry and genetics to drugs» and is in particular interested in the research for innovative molecules for the pharmaceutical industry,• The second one, under the patronage of the professor Jacques MARESCAUX, is concerned with « innovative tools for medicine » and in particular looks at the technological part of medical innovation.
Alsace BioValley – Sylvie DEBRA Parc d’Innovation 9, bd Gonthier d’Andernach
67400 Illkirch Tel. : 0390403000www.alsace-biovalley.com/dn_pole_competitivite
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The competitive pole « vehicles of the future »
Its assets Training: Nearly 200 higher education training courses linked to the theme of the polePublic research: 26 public research teams 4 universities including ULP 7 engineering schools INEVA/CNRTPrivate R&D:1st region, outside Ile-de-France, for private R&D (Source : OST) 445 millions € private automobile R&D6100 persons employed in R&DPresence of the largest automobile development centre outside Ile-de-FranceIndustrial basin :3 constructors/ 58 equipment providers400 supplier enterprises90.000 employees that is 21% of the staff count for automobile in France.1 million vehicles produced.
The themes•Clean vehicles, respecting the environment, New energies, recycling possibilities•Intelligent vehicles and intelligent networks•Excellence of the branch
www.vehiculedufutur.com
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Inventory
A point of view:
An alarming general state of affairsA continuous degradation of the job marketThe crisis of traditional manufacturing industries continues. The industrial jumpstart of the regional economy can only come about through strong investment in innovation and the development of research for all categories of enterpriseAnd an opening up of Alsace to others A weakness in the integration of ICT in the Alsatian SMEs
HoweverStrong public research but a deficit of private researchIndustrial research is more an activity of smaller enterprises (compared to nationally)Will Alsace be part of those territories that excel (based on knowledge) that the EU so dearly wishes? Source: Jean Alain Héraud Forum de l’Économie Alsacienne
The needs More exchanges and inter-enterprise collaboration More collaboration in order to innovate within the framework of local public-private partnershipsReinforce Alsace attractiveness for international brain powerCommercialisation of a technology or innovative product needs to be learned.
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Actions
Actions and tools that favour innovation
The Alsace Region launched last October « economic workshops », places for debate and reflection on the development of the economic and industrial potential.
Complementary to the economic prospective approach PETRA (Prospective Economique Territoriale en Région Alsace) which privileges an approach by branch,
The « economic workshops » have as their objective to bring forward concrete proposals, through the federation of those actors the most directly concerned.
Four themes have been retained : Transfer, takeover and help for the creation of enterprises; Innovation, development and technology transfer; Creation of service activities for enterprises;
Sustainable development and regional economic development.
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Several actions and tools that favour innovation Tools: convergence of financial grant; CRA Conseil Régional Alsace, DRRT Délégation régionale pour la recherche et la technologie, Anvar Agence Nationale pour la Valorisation de la Recherche and associated partners Enterprise creation is at the heart of innovation: Grants linked to the act of enterprise creation/takeover to employment ADIE,PFIL, Alsace création, Alsace Entreprendre, Seed funds, AIRFI Creation of a FCPR (Fonds communs de placement à risque) and a FIP (Proximity investment fund)
Instrument for development participation loans and reinforcement of guarantee funds SOFARIS, concluded by the Region with the SME Development bank (BDPME), offered in all banks, Regional Initial Financing Funds (FRFI),
Grants for employment ATI@, ,jobs linked to ICT Grants CORTECHS, PRISME, post-Phd research (since 1998 more than 12- Cortechs and 110 Prisme have been financed) CIFRE Industrial training convention for research
Favourable tax incentives JEI Young innovative enterprises tax relief Research tax credits
AFPTI Grant for international technological partnership feasibility (ANVAR)
PTR Prestation Technologique Réseau: grant for a first approach to research and technological innovation (AT)
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Recommendations following the Workshops held between Oct 2004 and Feb 2005Innovation, development and technology transfer
How to improve the innovation chain which links research and enterprise ?
Action 1: launch a regional project call « research and development » not only for the public laboratories but also for private enterprises
Action 2: diffuse knowledge about intellectual property
Action 3: create a cell of demonstrators through the launching of a project call for laboratories.
Action 4: coordinate the existing technological platforms and create new ones
Action 5: train and encourage the employment of technology marketing engineers in the laboratories.
Action 6: create a development prize.
Action 7: create and coordinate a regional development club
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Reinforcement of current instruments
How to improve the innovation chain which links research and enterprise ?
- How to ensure the continuation of investment effort of structures with a technological offer?
- Is it not necessary to improve the readability of the technological offer for SME through supporting the communication of the CRITT, by paper and on-line documents and by events?
- How to reinforce the insertion of the CRITT within networks?
- Within the context of the Bologna process reforms, how to build a high level technological training offer by reinforcing the professional and continuous training offers, via the universities, the engineering schools and the CRITT… ?
- How to fit the diffusion of economic intelligence practices into the centre of SME innovation strategies?
- How to structure better the technological offer on a cross-border basis, even European, within the perspective of the 7th Framework Programme?
- How to reinforce the links between the technological networks and the universities, engineering schools, and the high schools via the PFT and the future competitive poles?
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Areas to be investigated
How to improve the innovation chain which links research and enterprise ?
- How to develop competences in technological project management?
- How to structure a training offer for innovation, intellectual property and marketing of technologies?
- What means are needed to reinforce the financing of seed capital?
- How to support the diffusion of economic intelligence, knowledge management and technological foresight?
- Can we follow the German example and develop partnerships with innovation actors on the other side of the Rhine: institutes Fraunhofer, foundations … ?
- Is it necessary to reinforce Practical Science for Engineers (SPI) in Alsace and the networking of engineering schools?
- Is it necessary to engage ourselves on the path of technological campuses?
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Contents
1.Definitions
2.Alsace key figures and context
3. Alsace innovation policy- Framework - Actors- Challenges - Questions and recommendations
4.Conclusions
5.Bibliography
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Conclusions: what we need to create a innovative environment
For SMES we can observe that : Often innovative projects are left to one side, or are seriously delayedOr there are no projects at all Because for them the main obstacle is economic; they have difficulties raising finances and they have a lack of qualified staff And they must be more attractive for international high flyers The role of the public partners is to encourage and to stimulate the region to create an innovative environment In order
- to develop and reinforce external collaboration of the SMES with their usual partnerswith their customers with their competitors and with the universities and public research organisations
-
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Conclusions: what we need to create a innovative environment
-to allow SMES to invest up to 13% of their added value in internal R&D expenditure- to manage better the access to innovation grants at the regional,
national, European level and make them work coherently together.
- to foster and promote work in clusters and networks to get faster innovation
- to help SMEs prepare their participation in the 7th Framework Programme especially the CIP ( Competitiveness and Innovation Programme ) from 2007 to 2013 and the programme EIP: Entrepreneurship and Innovation Programme
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Conclusions: what we need to create a innovative environment
To achieve and structure this:
It is necessary to build a clear, simple and efficient roadmap of innovation in Alsaceto elaborate an action plan with indicators of success and failureto create a one stop shop for innovation for smesto establish a regional observatory built on international and national indicators to benchmark the regional innovative activitiesAnd make regular evaluation of public regional policy to allow quick and reactive adaptations
Because “political time and issues” and “innovation and economic time”are not easy to fit and coordinate together .
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Contents
1.Definitions
2.Alsace key figures and context
3. Alsace innovation policy- Framework - Actors- Challenges - Questions and recommendations
4.Conclusions
5.Bibliography
© Catherine LEDIG cl@adec.fr www.adec.fr
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Oslo Manuel /Eurostat 1997 Proposed guidelines for collecting and interpreting Technological innovation data OCDE
Comparing the innovation Performance in Canadian french ans german manufacturing EnterprisesPierre Mohren Pierre Therrien 2005-02_ MERIT
STI Outlook 2004 policy questionnaire OECD (OECD Information technology outlook 2004)
Indicateurs des sciences et technologies OST 2004 Ed Economica
Tableau de bord de l’Innovation en France n°13 juillet 2005 sessi
Annual competitiveness report 2005 (National competitiveness council of Ireland) FORFAS
Investment in ICT research Comparative study, Idate 2002 « I 2010 ne société de l’information pour la croissance et l’emploi » COM 2005 229 final
The european Innovation score board 2002 (EIS) The Enterprises policy scoreboard
EITO 2005 European Information Technology observatory
Promoting Entreprenership and innovative SMES in global economy OECD june 2004
Benchmarking countries in the knowledge economy World Bank Institute 2004
Bibliography 1)
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Bibliography 2)
www.cordis/luwww.cordis/lu/innovationwww.europa.eu.intwww.cordis.lu/innovation-smes/src/innobarometer2004.htmhttp://trendchart.cordis.lu/annualreports/reports/report2004/www.gate2growth.comhttp://irc.cordis.luwww.ueapme.comhttp://europa.eu.int/comm/enterprise/enterprise_policy/cip/index_fr.htm
www.oecd.orgwww.02.imd.ch/wcc/yearbook/
www.idate.frwww.minefi.gouv.frwww.oseo.fr
www.cr-alsace.fr
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Annex 1: Stagnation of European R&D juillet 2005
The European Commission presents a new publication on Europe’s position in research and innovation. The “Key figures 2005 for science, technology and innovation” show worrying trends in R&D investment and innovation in Europe.
The growth rate of R&D intensity (R&D expenditure as % of GDP) has been declining since 2000 and is now close to zero. One of the reasons for this has been a slow-down in business funding of R&D.
Europe devotes a much lower share of its wealth to R&D than the US and Japan (1.93% of GDP in the EU in 2003, as compared to 2.59% in the US and 3.15% in Japan). While China has lower R&D intensity (1.31% of GDP in 2003) it grew at about 10% per year between 1997 and 2002. If these trends in the EU and China continue, China will be spending the same amount of GDP on research as the EU in 2010 – about 2.2%. Europe is on track to miss the objective it set itself to boost spending on R&D from 1,9 to 3% by 2010.
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