Aligning Europe's R&D Strategy: A Comprehensive Plan for Global Competitiveness
Dr. Hermann Meyer
Elevating Leadership for New Mobility | Partner "Mobility&Advisory Services" | Ex CEO ERTICO and VP Continental | Former Speaker World Economic Forum and House of Lords
Introduction into Expert Group Report
The recent expert group report on strengthening European competitiveness through research and innovation offers a compelling and comprehensive vision for boosting the EU's R&D capabilities. With 12 detailed recommendations spanning the full spectrum of research, development and innovation (RD&I), the report provides a clear roadmap for enhancing Europe's global competitiveness, security, and sustainability.
As a start, I would like to provide you with this quote from the report showing the current situation in an excellent way:
"Europe is also failing to file and be granted important patents in key emerging and enabling technologies. The EU’s share of total world patent applications has been declining from 30% in 2000 to 17.3% in 2021. During the same period, there has been considerable growth from China, particularly in key technologies: in 2022, China accounted for 61%, the USA for 21%, and Europe for a mere 2% of global total granted patents in AI36. With regard to US utility patents granted in semiconductors in 2022, the USA held 22% (3,674), Taiwan, Japan, South Korea & China 68% (11,227), and Europe 8% (1,401)37
The EU has fewer and fewer knowledge and technology intensive companies in global top listings, and fewer new large companies. Compared to the US, the EU fails to scale new innovative companies to become global giants. Additionally, and partly as a result, the EU has developed undesirable dependencies in certain critical technologies, compounded by the above-mentioned decreasing share of global patents in key and emerging technologies.
At 2.2% of GDP, public and private investments in RD&I in the EU are significantly below the levels of main competing economies – South Korea 4.9%, USA 3.5%, Japan 3.3%, China 2.4%. Worryingly the RD&I investments from businesses in the EU are also the lowest (at 58% of total) compared to 76% in South Korea, 68% in the USA, 78% in Japan and 77% in China34. It is no surprise that the 2024 European Semester Report blamed the EU’s low R&D investment for its economic stagnation. If Europe wants to keep up with what it considers its peers, EU MS urgently need to boost both national and European Commission public investments in RD&I in a co-ordinated approach which incentivises, catalyses and leverages more private RD&I investments including addressing the persistent financing gap to scale up companies."
At the heart of the report is a call for a whole-of-government approach to align research and innovation policy with the EU's strategic agenda. This includes:
Take-Aways
The report's recommendations are well-grounded in evidence and aligned with recent high-level policy recommendations, including the Letta Report on the single European market and the Draghi Report on economic competitiveness.
A Bold Vision for European R&D
The expert group's analysis paints a clear picture of the challenges facing European R&D, including declining global share of publications and patents, difficulties in scaling innovative companies, and overall investment levels that lag behind global competitors. The report offers a bold and optimistic vision for addressing them. One of the most striking recommendations is the call to increase the budget for the next Framework Programme (FP10) to €220 billion. This represents a significant boost from current levels and demonstrates the experts' conviction that R&D is a critical investment in Europe's future competitiveness and prosperity.
The proposed focus on four "spheres" of action - competitive excellence, industrial competitiveness, societal challenges, and the R&I ecosystem - provides a holistic framework for addressing Europe's R&D needs. This approach recognizes the interconnected nature of research, innovation, and societal impact, and seeks to create synergies across different domains.
Embracing Excellence and Innovation
The report's emphasis on strengthening competitive excellence through programs like the ERC, EIC, and MSCA is particularly welcome. These initiatives have proven track records of fostering world-class research and innovation, and the recommendation to preserve their structure while increasing their budgets could significantly boost Europe's scientific and technological output.
The proposed "Choose Europe" initiative to attract and retain young research talent is an innovative approach to addressing Europe's brain drain challenge. By offering promising researchers early independence and a clear career path, this program could help make Europe a more attractive destination for top global talent.
Addressing Industrial Competitiveness
The recommendation to establish an Industrial Competitiveness and Technology Council is a forward-thinking proposal that could help bridge the gap between research and industrial application. By engaging eminent practitioners and experts, this council could ensure that EU research programs remain relevant to industry needs and help accelerate the commercialization of new technologies.
The report's recognition of the need to streamline and boost the European Innovation Council Fund is also crucial.
By attracting substantial private investment and improving governance, the EIC could play an even more significant role in scaling European deep-tech companies and closing the innovation gap with global competitors.
Tackling Societal Challenges
The proposed Societal Challenges Council represents an important step towards ensuring that EU research efforts are aligned with pressing societal needs. By engaging a wide range of stakeholders, including civil society and philanthropy, this council could help identify and prioritize research areas that have the greatest potential for positive societal impact.
Simplification and User-Orientation
The expert group's call for radical simplification and user-orientation in EU research programs is both necessary and welcome. By eliminating redundant programs, adopting a more agile approach to project funding, and reducing administrative burdens, the EU could create a more efficient and attractive research ecosystem.
International Cooperation and Dual-Use Technologies
The report's nuanced approach to international cooperation recognizes the complex geopolitical landscape while emphasizing the continued importance of global scientific collaboration. Similarly, the pragmatic stance on dual-use technologies acknowledges the reality of modern technological development while seeking to maximize the innovation dividend from increased defense spending.
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Thoughts
The recent expert group report on strengthening European competitiveness through research and innovation offers most important insights and proposes actions that align perfectly with the urgent need to boost EU R&D capabilities.
There are some observations which I would make for further reflections:
The expert group's recommendation to increase the Framework Programme budget to €220 billion is a step in the right direction. This aligns with the need to raise overall R&D investment to at least 3.5% of GDP to compete globally. However, more emphasis could be placed on incentivizing private sector R&D spending through tax credits and regulatory adjustments.
The report rightly identifies the need to strengthen the European Innovation Council (EIC) and attract more private investment. The proposed €30 billion EIC fund is a good start, but may not be sufficient to close the gap with the US. A more ambitious pan-European venture capital strategy, potentially involving a €100 billion scale-up fund, could be necessary to create global champions.
The report acknowledges Europe's declining patent share. A more comprehensive strategy to simplify patent processes, reduce costs for SMEs, and leverage AI for IP management could significantly boost Europe's competitiveness in this area.
The proposed "Choose Europe" initiative for young researchers is promising. I would to add that a broader strategy might be needed encompassing STEM education, lifelong learning, and policies to attract and retain global talent to ensure Europe has the skilled workforce required for future innovations.
The report's focus on industrial competitiveness and the proposed Industrial Competitiveness and Technology Council are positive steps. Building on this, Europe now needs more concrete plans for developing European champions in critical technologies like semiconductors and AI could further strengthen this aspect.
The report's nuanced approach to international cooperation is commendable. I see room for more specific strategies on leveraging trade agreements and forming joint R&D initiatives with global partners to accelerate innovation.
The proposed experimental unit and councils for industrial competitiveness and societal challenges are interesting concepts. Maybe a more comprehensive pan-European innovation agency with broader powers to direct investments and coordinate cross-border efforts could provide stronger leadership in key technology areas.
My Conclusion
The expert group's recommendations provide an excellent foundation for strengthening European R&D competitiveness. I can only applaud the members of the expert group and all the participating stakeholders for this impressive achievement!
Building on this report, I would like to encourage the European Union to be maybe even bolder in its approach to truly close the gap with global leaders. Europe may need to be even more ambitious in its investment targets, scale-up support, and strategies for developing critical technologies. By building on these recommendations and addressing remaining gaps, the EU can create a more robust innovation ecosystem capable of driving sustainable economic growth and global technological leadership.
What are your thoughts on these recommendations and how they align with Europe's R&D needs? Let's continue this crucial conversation on shaping the future of European innovation.
Elevating Leadership for New Mobility | Partner "Mobility&Advisory Services" | Ex CEO ERTICO and VP Continental | Former Speaker World Economic Forum and House of Lords
1 个月Please find the link to the Report by the Commission Expert Group: https://op.europa.eu/en/publication-detail/-/publication/2f9fc221-86bb-11ef-a67d-01aa75ed71a1/language-en . Very interesting indeed ??