Prodi calls for better cross-border diffusion of innovation

The President of the European Commission, Romano Prodi, has called for Europe to capitalise on its strong academic and fundamental research by improving the cross-border diffusion of innovation. Speaking at the Instituto de Emprese in Madrid, Spain, where he was awarded the t...

The President of the European Commission, Romano Prodi, has called for Europe to capitalise on its strong academic and fundamental research by improving the cross-border diffusion of innovation.

Speaking at the Instituto de Emprese in Madrid, Spain, where he was awarded the title MBA Honoris Causa on 7 February, Mr Prodi spoke of the 'rebirth of the entrepreneur', the barriers to entrepreneurship in the EU, and the consequent lower level of entrepreneurship in the EU than in the USA.

'The Union is particularly strong in academic and fundamental research, but European researchers and businesses do not capitalise sufficiently on their expertise in frontier technologies,' said Mr Prodi.

Mr Prodi went on to say that one of the causes behind the poor dissemination of innovation is the lack of financial market integration and venture capital. He added that the lack of a Community patent discourages entrepreneurial companies from taking up innovations.

In order to make Europe more entrepreneurial, education should be used to teach values such as creativity, risk taking and responsibility, said Mr Prodi. 'All levels of education should give more importance to entrepreneurial values,' he said.

Referring to the slow start-up rate of new businesses in the EU, Mr Prodi criticised government requirements which hamper the process. Citing a recent study, the Commission President said that in many EU countries, an entrepreneur has to wait more than 50 days and pay more than $4,000 (about 4,585 euro) in order to acquire all the necessary permits, whereas an entrepreneur in the USA can complete the process in only four days, paying only $200 (about 229 euro). He added that good practices also exist in the EU, highlighting Denmark, Sweden and the UK.

The Commission has a role to play in fostering the break up of national barriers and establishing new common rules, said Mr Prodi. He claimed that the Commission's economic mission is to 'foster the construction of a vast and vibrant economic space supportive of entrepreneurship.'

Mr Prodi spoke of the forthcoming Barcelona Council, to take place in March, where the Commission will push for increasing investment in knowledge and a more integrated approach to research and innovation. Other priorities are the further development of employment policies and further reforms and investment in key network industries.

'I strongly believe that this broad based strategy holds the prospect for strengthening Europe's entrepreneurial ambitions and turn them into reality,' said Mr Prodi, adding that he will 'call on Heads of State and Government to reach political agreement in Barcelona in these areas.'