European Investment Bank lent record amount to innovation projects in 2003
The European Investment Bank (EIB) has released figures indicating that in 2003, the bank agreed to individual loans totalling 6.2 billion euro under the 'Innovation 2010 Initiative'. This figure is almost double the amount lent in 2002. Furthermore, in June 2003, the EIB, having initially pledged to support the Lisbon reforms from 2000 to 2003, extended its commitment until 2010. Under the 'Innovation 2010 Initiative', priority is given to financing projects in structurally weak regions in order to help them integrate the knowledge-based economy. The initiative is based on an integrated approach, focusing on the links between knowledge creation and the market. It covers all phases of the process, from education to research and development (R&D); the transformation of innovation into investment; generating productivity gains and enhancing the competitiveness of the European economy. The European Investment Fund (EIF) is supporting the 'Innovation 2010 Initiative' by taking equity stakes in venture capital funds. In 2003, it signed 17 operations worth 135 million euro, bringing its portfolio of participation up to 2.5 billion euro spread over funds in both the EU and in the future Member States. The EIF operates as a fund of funds, and specialises in the funding of high-tech start-ups. It is now one of Europe's largest venture capital providers in the sector. Until now, most of the capital it had invested had been provided by the EIB, with the remaining capital coming from the Commission under the scheme 'ETF start-up facility'. However, in 2003, the German Federal Ministry of Economics and Employment commissioned the EIF to invest venture capital on its behalf. This had never been done before. The German Ministry provided 250 million euro to be invested solely in venture capital funds focusing on German high-tech companies. While the 'Innovation 2010 Initiative' is the EIB's own programme, it also supports the European Commission's initiative, the 'European Initiative for Growth'. This action is aimed at mobilising investments in areas that will reinforce ongoing structural reforms, stimulate growth and create jobs. The objective of the action is to encourage investment in trans-European transport, telecommunications and energy networks (TENs), as well as in research, development and innovation, including environmental technologies. By offering innovative financing instruments better adapted to needs, the EIB aims at mobilising private capital and public resources to complement its loans. Under the 'European Initiative for Growth', the EIB plans to lend up to 40 billion euro for R&D and innovation between now and 2010. The bank will also pay particular attention to the Quick Start Programme. Lying at the heart of the 'European Initiative for Growth', this programme comprises a list of projects that are ready to commence in the immediate future. The EIB has set aside up to 20 billion euro for this programme alone between now and 2006.