Innovation directed towards small and medium-sized enterprises (SMEs), including non-technological innovation, was at the heart of debates by the 27 industry ministers, who met for an informal Competitiveness Council, on 14 and 15 July in Louvain-La-Neuve (Belgium). The meeting’s theme was the new industrial policy in the context of the ‘Europe 2020’ strategy for jobs and growth.

The ministers stressed the central role European innovation should play in the transition to a more competitive industry at global level. They called for the development of clear ties with other policies (trade, competition, employment, training). Innovation and Research Commissioner Máire Geoghegan-Quinn and Industry Commissioner Anonio Tajani participated in the meeting.

The Commission will present two flagship initiatives before the end of the year, one on innovation and the other on industrial policy, and will conduct a mid-term review of the Small Business Act (SBA), in October.

“There are good things in the SBA and they must not be undone. But it’s certain that there needs to be more emphasis on innovation, particularly at the level of organisation, governance and financing, to help foster innovation and the emergence of innovative SMEs,” declared Jean-Claude Marcourt, minister for the economy of the Walloon Region of Belgium, who chaired the meeting. Tajani added: “There is pressure from member states to put more emphasis on innovation in the SBA”. Clustering policies were mentioned as a useful tool for disseminating innovation. This involves encouraging collaboration to transform research findings into innovation in companies. In parallel, the ministers called for more creativity in financing innovation: “We discussed the role of the European Investment Bank and its European Investment Fund, which should be bolder than private operators,” explained Marcourt. Most delegations also pressed for more effective financing programmes and access to venture capital.

The 27 ministers also stressed the need to improve the environment in which SMEs operate by facilitating their access to international markets and simplifying administrative burdens. The costs resulting from the transition to a ‘green’ economy also need to be kept reasonable. Marcourt also spoke about the prospect of a political agreement on the late payment directive: “I have been instructed to conclude an agreement with the European Parliament on the directive on late payment,” which aims to reduce the frequency of late payments in commercial transactions and to shorten payment periods granted to public authorities. “This Council mandate has the consequence of authorising a rapid agreement, saving us six months to a year in the procedure.”

The meeting was set to continue during the afternoon of 15 July with the research ministers (who will meet on their own the following day).

“There needs to be more emphasis on innovation, particularly at the level of organisation, governance and financing”

Partnership with Africa

At the session on the transition to a more competitive industry at global level, the ministers called for giving special attention to access to raw materials and natural resources, “one of our competitors’ strengths and one of our key problems”. Antonio Tajani said that an agreement must be concluded with Africa. “We have an interest in defending stability and growth in Africa. […] We can also offer them the quality of our products,” he explained.