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International Seminar: The New Agenda for Innovation Studies and Policy Implications, IREIN, Madrid, March 14th 2014.
Outline
Start from a debate on March 4th with EC Commissioners Olli Rehn and Maire Geoghan-Quinn on conditions for growth. Follow-up from recent ERIAB Stress Test: Placing excellence at the centre of research and innovation policy presented at Innovation Convention earlier this week in Brussels. Divergence between international shifts in location of high-tech production and the value changes involved (see e.g. recent OECD study Interconnected Economies: benefiting from global value chains, 2013) and link with innovation versus international shifts in science. What are the policy implications of this divergence? And in particular what are the potential opportunities for new policy?
-50
-60 -70 -80
2.70
2.20
1.70
1.20 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Long-term commitment Austria, Denmark, Estonia, Finland, France, to R&I policies Germany, Ireland, Luxemburg, Netherlands, Norway, Sweden, Switzerland, UK Past commitment based on regional identity Belgium (Flanders)
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14
15
Direct funding of business R&D and R&D tax incentives, 2010 (As a percentage of GDP, 2011)
% 0.45
0.40 0.35 0.30 0.25 0.20 Direct government funding of BERD Indirect government support through R&D tax incentives Data on tax incentive support not available
0.15
0.10 0.05 0.00
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Conclusions
Today, we have in Europe a strong European commitment to both research and innovation with the new Horizon 2020 programme illustrating the ECs strong commitment to its own pattern of smart fiscal consolidation (within a declining overall budget, expenditures for research and innovation increased from 50 to 72 billion euros); And a diverging pattern in the public priority given to research in individual MS. Time hence for some more radical reflections on moving from the old open to more strict methods of coordination of joint programming of research. By contrast, in the area of European social cohesion policies aimed at achieving standard of living convergence, the EU is confronted for the first time with knowledge divergence. While the fact that the advantages accruing to certain MS (and regions) could be considered as an illustration of intraEuropean solidarity based, as in the case of development cooperation, their lack of effectiveness calls for more open differentiated regional strategies addressing policies as integral part of a new long term growth strategy.
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