Make Europe more innovative or face slow decline, says Verheugen
EU Enterprise and Industry Commissioner Günter Verheugen has made a plea for all players in the innovation chain to do their bit so that Europe can face challenges from the US and emerging economies confidently. Mr Verheugen called on all stakeholders to work together, on governments to now implement their national reform programmes and to give companies the scope to make the best of their entrepreneurial flair and know-how, and on the EU to ensure that funding mobilises the private sector. 'Either we achieve a more innovative growth path, or we face a slow decline,' he said, issuing an ultimatum. Individual Member States and regions, no matter how dedicated, cannot develop the necessary critical mass on their own that will enable the EU to produce the innovations needed to compete in the world market, said the Commissioner. European enterprises must therefore be able to build upon an effective internal market, whether in terms of selling their products and services, or accessing crucial capital, skills or resources. 'Fragmented markets are a structural deficit that is not easy to overcome. But the need to fulfil our innovative potential requires that reform be delivered,' he said. Member States have come way towards making the necessary changes by delivering national reform programmes. The plans are currently being assessed by the Commission, 'But I can already say that the future will not be won by delivering programmes, but by carrying them through,' said Mr Verheugen. The Commissioner pointed to the continued sluggishness of the private sector in terms of research investment. Increasing spending by industry on research has emerged as a 'key challenge', he conceded. But in theory EU and national innovation policies can do something about this. 'The right policy is not just permissive, but supportive,' he said. It should not only enable companies to find the technology, knowledge and finance that they need, but to encourage businesses to identify and develop new market opportunities. Mr Verheugen drew attention to the new Commission action plan for research and innovation, which, according to the Commissioner, has four central objectives: to support the continuous development of business clusters; to help regions to pull together; to improve access to venture capital; and to support the internationalisation of small technology companies through the Innovation Relay Centres (IRCs). The Commissioner concluded by looking to the future on a positive note. Europe has been laying the foundations for an overall innovation strategy for several years, he said, and has therefore already made important steps in developing a joint innovation strategy. 'If we bring that off - and that depends on how well we and our Member States work together in the years to come - we just might be able to provide a model which our American partners, who do not have a federal innovation strategy, would view with admiration.'