Value of Research - European Commission

Improving the Framework. Conditions for R&D. Opening up to an ERA of Innovation. Brussels 22-23 June 2015. Luke Georghiou. Vice-President for Research & ...
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Improving the Framework Conditions for R&D Opening up to an ERA of Innovation Brussels 22-23 June 2015

Luke Georghiou Vice-President for Research & Innovation University of Manchester

C

Regulations & Standards Government

Public Procurement

Fiscal Environment

Sales & service improvements

WEALTH HEALTH WELFARE

INNOVATIONS

Taxes Finance

INNOVATION ECOSYSTEM

Research Funders Finance

Licences Finance Trained people

Universities Finance

Large firms

Knowledge Trained people

Sales

Knowledge

Finance Knowledge

Intellectual property

Venture capital & other finance

Finance Equity

Small firms including start-ups

Finance

Investment Finance Knowledge

Research and Technology Organisations

Source: Luke Georghiou, University of Manchester, cited in House of Commons Select Committee on Science & Technology Report Bridging the Valley of Death: improving the commercialisation of Research, March 2013

Framework conditions • An innovation ecosystem functions through effective flows of – Knowledge – People – Finance

• These flows are moderated by the framework conditions of – – – – –

Institutions Regulations and standards Business environment and entrepreneurship Demand – quantity and quality Infrastructure and services

10th Anniversary of the Aho Group report “Creating an Innovative Europe” • Mandated by Council and Commission • Before crisis warned of long, slow decline without action – Increasingly lagging productivity – Failure to capitalise upon application of ICT – Locked into unmodernised traditional sectors & underinvesting in services R&D – Losing out as firms globalise R&D

Recommended • To create in Europe an innovation-friendly market for businesses, requiring action on: – – – –

Regulation and standards Public procurement Intellectual property conditions A culture that celebrates innovation

• Increased resources for excellent science, industrial R&D & the science-industry nexus • Step change in mobility of people, finance and organisation & knowledge • Strategic initiatives in eHealth, pharmaceuticals, transport and logistics, energy, security, environment & digital content

Gap continues to widen Multifactor Productivity Growth – total economy % change at annual rate 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50

FIN

ITA

GBR FRA

1995-2013

ESP DEU JPN USA KOR

2001-2007

2007-2013 Source: OECD

Europe provides less later stage/growth capital than the US because the potential to IPO gives confidence to later stage investor and is more fragile in Europe (Investment by Stage US vs. Europe, Q1 2008 to Q3 2014)

Source: VentureSource with thanks to Anne Glover Amadeus Capital Partners

Stakeholders Survey Strengthening knowledge base

Making it happen

10 9 8 7 6 5 4 3 2 1 0

Leveraging policies externally

Ideas to market

Maximising cohesion

European Innovation Partnerships

Likes and dislikes - symmetry

Like

Dislike

Knowledge base

Horizon 2020

Too many initiatives

Ideas to market

Unitary patent but…

Incomplete Single Market

Cohesion

Conditionality in SSS

Duplication of SSS

EIPs

Strong structuring effect

Lack of coordination

International

Scientific visa

Mobility problems

Making it happen

Policy support facility

Not enough analy