Baltic Dynamics conference underlines EU commitment to knowledge economy
According to Renate Weissenhorn, Head of Unit for innovation networks at the Commission's Enterprise DG, 'Innovation is most effectively promoted at a local level, where links between actors are forged and entrepreneurial activities are formed.' Given that the concept of innovation itself remains a relatively new one in the Baltic States of the EU, however, it is clear that these countries require external resources and expertise in order to achieve the Europe-wide goal of building a globally competitive knowledge economy. One aim of the Baltic Dynamics 2004 conference in Riga, Latvia, on 10 and 11 September, therefore, was to identify effective means of EU support for the promotion of innovation in the region. The sharp economic downturn experienced by the Baltic countries following the collapse of the Soviet Union has been transformed in recent years into steady economic growth. However, much of this growth has been driven by the exploitation of commercial opportunities in newly open markets, rather than the creation and exploitation of new knowledge - the defining feature of a truly innovative economy. Some initial steps have already been taken towards building new economies in the Baltic region based on the innovation model - the Latvian government, for instance, has recently adopted the country's first national innovation strategy. Yet it is the implementation rather than the adoption of such strategies that presents the greatest challenge in a region where few people, including policy makers, are familiar with innovation theory and processes. According to Ms Weissenhorn, the contribution of a European initiative such as the innovation relay centre (IRC) and innovating regions in Europe (IRE) networks cannot be overestimated. 'SMEs [small and medium sized enterprises] in these countries are facing international competition for the first time, and their ability to find commercial and technical partners at home and abroad will help them to survive and grow.' The real value of such networks can be attributed to their dual nature - support services staffed by local experts with an intimate understanding of the region, its culture and key players, while at the same time being part of a European network providing access to expertise and opportunities from across the EU. 'Companies here are having to reorient themselves to the West, and having an established and trusted support network such as the IRCs in place is essential,' Ms Weissenhorn told CORDIS News. The primary impact of the IRE network, both in the Baltic region and the other new Member States of the European Union, is the development of regional innovation strategies in partnership with key political, professional and academic players. The existence of such strategies will be particularly important when it comes to securing cohesion funding in support of innovation activities, says Ms Weissenhorn. She explained that the EU has decided to integrate its cohesion policy into the Lisbon Strategy, and that as a result innovation will become a key aim of future cohesion funding. Indeed, those select few champions of innovation in the Baltic region have already considered the potential impact of cohesion funding and the EU Structural Funds. Dr Janis Stabulnieks, managing director of the Latvian Technological Center and chair of the Baltic Dynamics 2004 organising committee, is well aware that many elements of Latvia's economy and infrastructure still require strengthening, and his worry is that innovation, which he believes will be the driving force behind future economic growth, is in danger of being overlooked. 'The Latvian government still needs to solve everyday problems, like providing schools with new roofs, but it is equally important that Structural Funds go into development initiatives in support of innovation,' Dr Stabulnieks told CORDIS News. When asked how decision makers in Brussels could best support the development of the knowledge economy in Latvia, he said he would like the EU to put pressure on the government to fully outline its activities in the field of innovation. 'Unfortunately, the accession treaty to the EU didn't make explicit references to innovation, so you have to worry about the level of recognition within the government for it,' he added. Some attendees at the conference expressed concern that in the effort to integrate new Member States into the EU's overall economic strategy, local issues could be overlooked. Alasdair Reid, project manager for the Innovation Trend Chart, said: 'EU membership may lead to a 'Europeanisation' of local policies, and there is a risk that local problems and solutions may not be considered as fully as they need to be.' In support of his argument, Mr Reid pointed to the example of the EU target to increase research investment to three per cent of GDP by 2010. 'The Barcelona target would be a nice one to meet, but it is not necessarily the right target for all countries or regions. What we're discussing is not just about spending more money on research; it's about distilling the knowledge created by that investment throughout the economy, it's about the bigger picture,' he concluded. For now, though, the challenge is to convince decision makers in the Baltic region of the argument that innovativeness is a precondition for future economic growth, and it is a challenge that all exponents of the argument - in the Baltic countries and in the wider EU - must take up together to be sure of achieving.
Countries
Estonia, Lithuania, Latvia