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The European Commission has
highlighted the importance of research and innovation (R&I) investments and
reforms for economic recovery in the European Union, and made proposals to help
EU Member States maximise the impact of their budgets at a time when many
countries still face spending constraints. Increasing R&I investment is a
proven driver of growth, while improving the efficiency and quality of public
R&I spending is also critical if Europe is to maintain or achieve a leading
position in many fields of knowledge and key technologies. The Commission has
pledged support to Member States in pursuing R&I reforms best suited to
their needs, including by providing policy support, world-class data and
examples of best practice.
Olli Rehn, Vice-President of the
European Commission responsible for Economic and Monetary Affairs and the Euro,
said: "The European economic recovery is gathering speed while
the pace of fiscal consolidation is slowing down, in line with the EU's
reinforced fiscal framework. Nonetheless, budgetary constraints will remain,
which is why.it is more important than ever that Member States target their
resources smartly. The EU budget is helping drive growth-enhancing investment
in research and innovation and today we are putting forward ideas to help
maximise the impact of every euro spent."
Máire Geoghegan-Quinn,
European Commissioner for Research, Innovation and Science,
said: "Fostering innovation is widely accepted as the key to
competitiveness and better quality of life, especially in Europe where we
cannot compete on costs. This is a wake-up call to governments and businesses
across the EU. Either we get it right now or we pay the price for years to
come."
The Communication published
today highlights three key areas of reform:
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Improving the quality of
strategy development and the policy-making process, bringing together both
research and innovation activities, and underpinned by a stable multi-annual
budget that strategically focuses resources;
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Improving the quality of R&I
programmes, including through reductions of administrative burdens and more
competitive allocating of funding;
-
Improving the quality of public
institutions performing research and innovation, including through new
partnerships with industry.
The Commission has also called
on Member States to prioritise R&I, as public authorities regain margins
for growth-enhancing investment. With current R&I spending across the
public and private sector worth just over 2% of GDP, the EU remains well behind
international competitors like the United States, Japan and South Korea, with
China also now very close to overtaking the EU (see graph). Increasing R&I
spending to 3% of GDP therefore remains a key target for the EU, but the
Communication shows that improving the quality of public spending in this area
is also essential in order to increase the economic impact of investment. The
Communication points equally to the need for the EU needs to put in place the
right framework conditions to encourage European companies to innovate
further.
Public and private R&D
intensity in 2012 in the EU and some third countries
Background
Innovation is central to
economic growth and business competitiveness, and is at the heart of the
EU'sEurope 2020 strategy. The proposals follow those of the 2014 Country Specific
Recommendations where a number of Member States received
recommendations to reform their research and innovation policies. The
Commission has also issued a State of the Innovation Union
report demonstrating progress against the 34 commitments made and
highlighting the need for further efforts.
The EU budget for 2014-20 marks
a decisive shift towards R&I and other growth enhancing items, with a 30 %
real terms increase in the budget for Horizon 2020, the new EU programme for
research and innovation. A further EUR 83 billion is expected to be invested in
R&I as well as SMEs through the new European Structural and Investment
Funds.
Innovation Union: http://ec.europa.eu/research/innovation-union/index_en.cfm
Horizon 2020: http://ec.europa.eu/programmes/horizon2020/
MEMO/14/405
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