What European business really thinks about innovation - Commission survey
Skilled staff, access to technology and a healthy customer attitude are the keys to increasing innovation in Europe, according to the European business community. These are some of the main findings of the first 'Innobarometer' survey on EU business leaders' attitudes towards innovation carried out by DG Enterprise of the European Commission. The survey aimed to sound out European managers' experience and priorities in the field of innovation. They were also asked for their views on the role of European integration in access to advanced technologies, mobilisation of human resources, protecting and sharing knowledge, access to funding and customer acceptance of new innovation. It is hoped that the survey will stimulate further public debate on issues surrounding EU innovation policy. The survey found that overall, new or updated products introduced within the last two years account for approximately one fifth of companies' turnover. There are, however, differences between the companies surveyed - although almost 12 per cent of companies interviewed have over half their turnover generated by new products, one in two of all those questioned said that less than 10 per cent of their turnover came from innovations made within the last two years. Companies also reported that building up market share and boosting profitability are the main driving forces behind innovation, with managers giving generally upbeat assessments of the innovation performance of their companies - only one in ten of those surveyed rated the performance of the company as below average compared to its main competitors. The survey found that for most companies, equipment acquisition plays the most important role in gaining access to advanced technologies, especially among SMEs (small and medium sized enterprises) and companies in the Mediterranean regions. Cooperation with suppliers comes in second place, ahead of in-house or external R&D (research and development), amongst ways to gain access to technologies. Overall, more than eight out of ten managers saw their company as having sufficient access to advanced technologies, although satisfaction was lowest in Portugal, Spain and France. Some 67.6 per cent of respondents said advanced technologies are most readily available within the European Union, with 28 per cent mentioning the USA and 12.7 per cent other countries, particularly Japan and the Far East. Companies in France, Germany, the Netherlands, Sweden and the UK, however, felt that access to advanced technologies was easier in non-Community countries than elsewhere in the EU. Managers stressed the role of their staff in making innovation a success, laying heavy emphasis on staff training and motivation in this process. Attracting staff with the skills and qualifications necessary for innovation is a problem throughout the EU - two thirds of managers rate it as a significant difficulty. For four countries, Denmark, Finland, Spain and Sweden, recruitment is less of a problem. With regards to the potential impact of staff mobility on company innovation, the study uncovered wide differences of opinion between countries. Respondents in Italy, Greece, Luxembourg, Portugal and Spain show the greatest belief in the potential positive impact of mobility, while feelings are mixed in Ireland and Denmark, with Germany and the Netherlands more sceptical. On a European level, many managers viewed knowledge-sharing and greater networking between innovative companies in the EU in a positive light, although marked differences between Member States were reported. Support for networking at a European level was highest in the Mediterranean countries, with more reservations from Denmark, Germany, Sweden and the UK. The study also revealed mixed attitudes to access to innovation funding, with managers' reactions to the diversification and widening of the European stock markets and greater access to venture capital varying widely from country to country. Again, the Mediterranean countries have higher expectations than other Member States. With the exception of Luxembourg, Ireland and the Netherlands, almost eight managers out of ten think that the tax system in their own country does not do enough to encourage innovation. An overwhelming 85.5 per cent of managers see European customers as crucial to driving innovation. This attitude is particularly strong in Denmark, Finland, Germany, Sweden and Luxembourg.