In the name of research and industry ministers, the Belgian EU Presidency issued a joint statement at the end of their informal Council, calling for an “ambitious and integrated” strategy for innovation in Europe. Only such a strategy, say the Belgians, can push forward the necessary evolution towards a new European economy with an “acceleration” of investments in R&D and innovation. The meeting of innovation and research ministers from the 27 EU countries as well as Norway and Iceland in Louvain-La-Neuve ended on 15 July with tail-end events in Brussels the following day.

Summarising the mood at the informal Council, the Belgians stated that spending on innovation and R&D must be seen as a “vital investment for the welfare of future generations”. The Presidency adds that emerging from the crisis means opting for a new type of growth. Engines of growth should then be knowledge and innovation and less the exploitation of limited natural resources. Europe further needs to look for shorter paths between research and the market.

STEALING MONEY FROM INNOVATION

Despite the ambitious words, a ‘nasty smell’ hung over the ministers’ meeting. On 12 July, the Council proposed reallocating some €1.4 billion destined for financing ‘Europe 2020’ goals, such as innovation, research and development. The EU Council adopted, without debate on 12 July, conclusions on the International Thermonuclear Experimental Reactor (ITER). To the dismay of the European Commission, the Council effectively refused the use of ‘fresh’ money to fill the huge financial gap faced by the ITER project.

The ITER debate shows the immense difficulties European innovation and research ministers face in times of budgetary hardship. Ignoring the contradictory message of innovation budget raiding to fill ITER’s financial hole, Brussels’ Research Minister Benoît Cerexhe and Walloon Economy Minister Jean-Claude Marcourt did, however, present several concrete ideas. Speaking alongside their Hungarian and Spanish trio counterparts, the two Belgian ministers thus talked of “rapid” improvement in the funding of R&D and innovation.

FUNDING FOR HIGH-RISK PROJECTS

Ideas proposed by the Belgian Presidency include the establishment of a European programme for the funding of high-risk projects and the creation of a European venture capital fund to invest at the pre-commercial stage for companies and in particular young innovative enterprises. There would be an increase in funding capacity for innovation loans from the European Investment Bank (EIB) and the European Investment Fund (EIF).

Other proposals include support mechanisms for eco-innovation, notably for SMEs, and a relaxation of state aid policy for publicly-funded venture capital investments in innovation. Structural Funds could be more intensively and better used for research and innovation. The Belgians also dream of promoting a convergence of fiscal measures and financial incentives at the European level for research and innovation expenses. Member states could even share best practice on funding mechanisms for innovation.

Brussels Minister Cerexhe is also keen to see the principle of more selective funding for research and innovation introduced. In difficult times, selectivity could lead to the current level of funding in favour of basic research being maintained or even increased. The Belgian Presidency would like to see the principle of ‘selectivity’ based on the great societal challenges facing the planet.

REMOVING OBSTACLES

The Presidency is also keen to remove what it sees as obstacles to a single innovation market. Ideas bandied about at the informal Council included, first and foremost, finally moving forward on the European patent issue. Europe additionally needs to progress on standards, particularly for electric cars and digital interoperability. EU member states must make better use of their buying power for innovation especially given that public procurement equates to some 17% of GDP in the EU. This could include promoting cross-border calls for tender for innovative products and services and providing EU co-funding.

Other suggestions discussed by ministers included developing specific innovation measures for SMEs and possibly creating a European fund facilitating access to patents. Finally, on simplification, Cerexhe was clear: the creation of any new instrument should only be possible by removing at least one existing instrument.

Background

At the informal Council, Research and Innovation Commissioner Máire Geoghegan-Quinn re-confirmed that she will officially present her research and innovation plan in September. One date mentioned is 7 September. The plan aims to implement the innovation-related elements of the ‘Europe 2020’ strategy. This notably includes the flagship action ‘Innovation Union’ re-focusing R&D and innovation policy towards challenges, such as climate change, energy and resource efficiency, health and demographic change. The Commission likes to talk of transforming the innovation chain from so-called ‘blue sky’ research to commercialisation.