research and innovation research and innovation european semester: 2013 erac mutual learning seminar...

Research and Innovation


European Semester: 2013 ERAC Mutual Learning Seminar

ERAC meeting, 19.04.2013DG RTD, Unit C6

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Outline

Objectives & settings

Highlights of Session I

Highlights of Session II

Highlights of Session III

Next steps

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Objectives

stimulate discussion amongst MS about some specific subjects closely linked to the implementation of the CSRs on R&I adopted by the Council in July 2012 and about main policy orientations in the field of R&I in the context of Europe 2020

be a source of inspiration to MS when finalising their NRP due for submission in April

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Settings

Three themes, broadly covering the scope of the CSRs:

Effectiveness of national research systems

Innovation strategies (with focus on demand side)

Policies for High Growth Innovative Enterprises (HGIE)

Introduced by background papers and lead questions

Moderated by high-level external experts

Short presentations of MS on specific policy aspects

Final report circulated to ERAC delegates (see also http://www.consilium.europa.eu/policies/era/erac/erac-mutual-learning-seminars-2013)

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Session I: effectiveness of research systems

What is the optimum balance between competitive and block funding in a research system?

Competitive funding = grants + some institutional funding Main instruments are grants (40% of GBOARD on average) Share of performance-based institutional funding is low but

increasing (e.g. SE, NL) Overall trend is towards more competitive funding, with some

marked exceptions (e.g. NZ, Korea reinstating core funding) Balance is a matter of national context Clear advantages associated with more competition, but also

some drawbacks (e.g. transaction costs) Policy design matters

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What measures can be taken to improve national approaches to peer review [and more broadly 'research evaluation']?

Evaluation = mix of (international) peer review and indicators Multiple use:

allocation of institutional funding selection of projects recruitment/careers of researchers selection of joint/collective research institutes (e.g. centres of

Excellence)

Criteria increasingly take into account socio-economic benefits Both peer review and indicators involve issues which can

(partly) be addressed by funding agencies

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What is the most effective way to incentivise institutions to improve their research performance?

Overall trend towards assessing institutions as a whole, in relation with their increased autonomy

Increase of performance-based institutional funding drives better quality, accountability, stronger profiling and more collaboration (through e.g. strategic alliances)

Concentration of funding in some MS on top performers likely to spread throughout the EU

However, ERA is not only about the top end of the distribution but also the average

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Session II: innovation strategies

When designing innovation strategies are demand and supply side aspects equally taken into consideration?

In the past, national strategies heavily leaned on supply-side Risk averseness, lack of awareness and long lead times

deterred launching demand-side policies Relevance of demand-side policies (leverage effect, new

markets) is now better acknowledged Now part of national strategies in some MS and of strategic

discussions in most MS Higher awareness and higher willingness to experiment but

still risk/fear of substituting market failure by gov. failure

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How are demand side aspects implemented in connection with strategic priorities?

Where in place, demand-side policies remain often disconnected from national research strategies

Further efforts needed to articulate demand-side and supply-side policies in integrated R&I strategies

Combining supply- and demand-side policies requires strong governance and policy coordination

More data collection and policy evaluation is needed, in particular from a systemic perspective

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What are the experiences with demand side instruments?

Rapidly increasing number of demand-side policies, many MS have gained some experience with demand-side policies

Variety of instruments: Public procurement of innovation (e.g. in DE)

Pre-commercial procurement (e.g. UK SBRI, new IT initiative)

Support to Lead markets (e.g. EE electro-mobility programme)

Inducement prizes related to societal challenges (e.g. in the UK)

Regarding procurement, the main demand-side instrument: the successful US SBIR programme is a source of inspiration in Europe

Need for more data, evaluation and comparison of impact at different levels (firm, industry, society)

Need to ensure high level of competence/skills in procurement bodies

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Session III: policies for HGIE

Policies to support the fast growth of innovative enterprises:

• Policy importance?

ERAC survey

• Why?

US

impact on jobs

• How? access to private debt/equity finance targeted public support schemes Framework conditions

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What measures are particularly helpful or unhelpful to facilitate access to finance for high-growth innovative enterprises?

VC is important source of finance for HGIEs, but not the only one Other sources : national funds for seed funding, corporate VC,

business angels and crowd-funding Business angels networks and VC need to be further developed in

Europe in order to unleash its full potential to foster HGIE In particular, collaborative approaches and syndication is needed

for further developing VC in Europe National governments are recommended to base policies for

developing VC in their country on a careful analysis of the situation in their country

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What characteristics should targeted schemes for supporting high-growth innovative enterprises have?

There are indications that policies for HGIEs need to be different from policies for SMEs in order to succeed

These policies need to be selective, proactive, sustainable, professional and they need to be implemented in collaboration with the private sector

Examples: Coaching networks supporting the development of HGIEs (e.g. CH), support to internationalisation activities, public incubators, clusters, targeted tax incentives (e.g. FR)

However, there are no solid research results yet that would allow identifying particularly effective and efficient policies for HGIEs

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What framework conditions would most urgently need to be modified in order to support high growth of enterprises?

Framework conditions differ by country However, an effective policy requires addressing a broad range

of framework conditions Stability of tax regimes/incentives Reduction of administrative burden Valuation of IP assets as collaterals Earmarking of public procurement

Legislation preventing hostile take-overs could be important

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Next steps

Future mutual learning activities

Additional ad hoc workshops on specific policy issues: Strategies to train enough researchers to meet national R&D

targets and to promote attractive employment conditions in public research institutions

Use of PCP and procurement of innovative products

Link with the work of the new ad hoc WG on the European Semester and the monitoring of ERA

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Thank you!

http://www.consilium.europa.eu/policies/era/erac/erac-mutual-learning-seminars-2013

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