France's Strategic Council for Innovation and France Biotech call for specific and urgent European measures to boost innovation

Strategic Council for Innovation and France Biotech propose four measures to make Europe the best international environment for technology-based companies

Paris, February 19, 2003 - France's Strategic Council for Innovation (SCI) and SCI founding member France Biotech, the French biotechnology industry association, have delivered clear recommendations on measures to improve European innovation. The recommended measures will help member nations of the European Union meet their commitment to increase national R&D spending to three percent of gross domestic product by 2010 and catch up with international competitors such as the USA. The two bodies made their recommendations public today at a SCI debate attended by European Commissioner for Research, Philippe Busquin, and French government ministers, Nicole Fontaine, Minister for Industry and former president of the European Parliament, Claudie Haigneré, Minister for Research and New Technologies and Noelle Lenoir, Minister for European Affairs.
In addition to measures already promoted by the European Commission, such as increased funding, research networks and definition of strategic priorities, the two organizations identify four key components urgently required for a successful innovation policy. These are:
... A single pan-European stock market,... A special fiscal status for R&D-based companies across Europe making Europe the most attractive continent for entrepreneurs and investors,... The creation of a community patent and of one jurisdiction for settling patent disputes,... An intensive campaign to attract the best researchers and students from emerging countries, such as China and eastern European countries, to work in Europe and promote mobility of students and scientists within Europe.
Outlining the reasons for these recommendations, Dr Philippe Pouletty, president of the SCI and France Biotech, explained that consolidation of European stock markets to achieve liquidity and visibility, and harmonization of securities regulations are necessary to attract venture and growth capital and create a favorable environment for innovation. "With the failure of the Neuer Markt and EASDAQ, an anemic Euronext, and an LSE absent from continental Europe, we need a powerful European stock market that will provide fund raising, investment and exit opportunities for entrepreneurs and investors," said Pouletty. "The whole growth chain - funding of academic research, technology transfer, seed financing, venture capital, growth of successful companies - depends on this."
The second recommendation, the creation of the European Corporation for Innovation (EUCI), is similar to measures proposed by the SCI for France and recently announced by the French government. The SCI and France Biotech call for Europe-wide tax privileges for companies that spend at least 15 per cent of their expenditures on R&D, have less than 500 employees and are less than 18 years old. "We need to align the fiscal environment for young innovative companies with the policies implemented in the countries with the lowest taxation," said Pouletty. The alignment should cover all regimes including income tax, social costs, capital gains tax and tax on capital. Such tax harmonization for the innovation sector would make Europe the best place to invest and to start and grow a company. The resulting boost to economic growth would make these tax incentives excellent investments for European countries.
The creation of a Community Patent is a long overdue simplification of intellectual property protection. A single patent that will safeguard inventions across Europe must be created and a single authority should decide patent disputes, say the two bodies. This will help European researchers and companies file more patents and decrease patent costs.
The two organizations also strongly urge policy makers to encourage the brightest students and researchers from China, Eastern Europe and other emerging nations to spend time in Europe, along with a program of mandatory exchanges for European students and researchers within Europe. "This will ensure mutual cross-fertilization. China will be a major economic power within 20 years. Building human networks now will ensure strong economic networks tomorrow," said Pouletty.
The CSI and France Biotech underline studies showing that innovation is now a key driver of economic growth and prosperity. Without new efforts to improve the environment for innovation in Europe, its entrepreneurs will struggle to play in the top international division, and its population will not enjoy the benefits a thriving innovative economy will bring.,About the Strategic Council for Innovation:,Key figures from France's science, industry and financial community have formed the Strategic Council for Innovation. The Council's goal is to boost French and European efforts in the field of research and high technologies. Founding members of the Council include prominent French entrepreneurs and scientists, French as well as European investors, ex-government ministers, heads of major research institutes and banks, economists and lawyers.
About France Biotech,Founded in 1997, France Biotech is the industry representative for French biotechnology companies and their partners. A non-profit association, it interacts with the government, the pharmaceutical industry, research institutes, the media and financial communities. France Biotech has helped develop new legislation to better enable scientists start and join private companies, and attract larger resources to venture capital funds. France Biotech objectives include:,- Educating policy makers, the media and the general public on the scientific, medical and economic impact of biotechnology; ,- Surveying the French and international biotechnology industry and providing financial and economic forecasts; ,- Obtaining new legislation from French and European governments to accelerate the growth of the biotechnology industry, and assisting in the definition of new regulations in France and Europe; ,- Promoting networking of French research laboratories and biotechnology companies on an international basis.
For more information:,France Biotech ,Angelita de Francisco,Tel: [phone],E-mail: [e-mail]
Andrew Lloyd & Associates,Gilles Petitot,Tel: [phone],E-mail: [e-mail],

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