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7th July, 2006

Preparation of the Informal Competitiveness Council of Ministers, Jyväskylä, 10/11 July 2006 –

MEMO/06/270

Brussels, 7th July 2006

Preparation of the Informal Competitiveness Council of Ministers, Jyväskylä, 10/11 July 2006 –

(Gregor Kreuzhuber, Oliver Drewes, Antonia Mochan )

The EU Competitiveness Council will meet in Jyväskylä on Monday 11 and Tuesday 11 July under the chairmanship of Mauri Pekkarinen, Finnish Minister of Trade and Industry. The European Commission will be represented by Vice President Günter Verheugen, responsible for Enterprise and Industry, and Charlie McCreevy, Commissioner for the Internal Market and Services and Janez Potočnik, Commissioner for Science and Research Policy.

Monday 10th July

Challenges for European Innovation Policy

The theme of the informal meeting of Ministers is the challenges for European Innovation Policy.

Innovation is where Europe appears to lag most behind its main competitors. The EU invests about a third less in research than the US, and the EU/US innovation gap has not narrowed in recent years. Meanwhile, emerging countries like China and India are fast becoming world-class centres of research and innovation.

To achieve sustainable global competitiveness, the EU has no choice but to become a vibrant knowledge economy. That is why, in launching the new Lisbon partnership for growth and jobs, the European Council singled out knowledge and innovation for growth as one of three main areas for action.

In October 2005 the Commission tabled an integrated innovation/research action plan, which calls for a major upgrade of the conditions for research and innovation in Europe. This plans includes ambitious initiatives to promote innovation and research, such as redeployment of state aid, improved efficiency of intellectual property protection, mobilisation of additional funds for research, creation of innovation poles, and improving university-industry partnerships. (see IP/05/1252)

The right policy can create conditions to stimulate innovation and research, so all firms, however big or small, can make the most of their entrepreneurial flair and know-how. Innovation is closely related to the willingness to take risks and test new ideas on the market, and the availability of venture capital is crucial.

Many instruments are already in place. These include the Framework Programme for Research and Technological Development, the European Structural Funds, measures to facilitate access to finance for small and medium-sized enterprises (SMEs), the Innovation Relay Centres and the Innovating Regions in Europe network. However, the Commission is actively reaching out to innovation communities to learn how to fine-tune policy to ensure the strategy is as effective as possible.

In the morning of the first day Vice President Verheugen and representatives of business and academia will make presentations to Ministers on the current challenges facing European innovation policy.

Lunchtime discussion 7th Frame work Programme

Commissioner Potočnik will brief ministers on the progress in the legislative process for the adoption of the Seventh Framework Programme, and outline the important contribution the Programme will make to the EU’s overall innovation and competitiveness policy.

In the afternoon there will be four break out sessions each chaired by a Minister on the following themes.

a.The need to broaden policy focus. Do you agree on the overall analysis of European innovation policies and the need to shift the current approach more towards demand-led innovation policies? How relevant is this challenge to different Member States, sectors or operational contexts?

b.Carrying the actions forward. Are the lines of action envisaged above sufficient, feasible and effective? How can they be integrated into the Member States’ policies and into the various on-going initiatives at EU level under the Lisbon Strategy for growth and jobs?

c.Policy frameworks differ between the Member States. In what ways can it be ensured that Member States that differ in terms of their innovation policy frameworks all receive the full benefit of the broadened perspective on European innovation policy?

d.The appropriate way to address this challenge. Which approach should be taken to strengthen European approach to Innovation Policy? What are the expected roles of the European Union, Member States and other actors in this process.

Tuesday 11th July

In the morning of Tuesday 11 the results of the breakout session will be reported to Ministers who will have an exchange of views on the conclusions in plenary.

 
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