INNOVATION - BUILDING A SUCCESSFUL FUTURE FOR EUROPE

Innovation, the process whereby new ideas are generated and turned into economic value, is a crucial requirement for economic growth in the long term and for job creation in Europe. It is also a key element for addressing the major challenges facing society today, particularly those linked to climate change, ageing population and energy security.

Against this background, the EU must reinvigorate its innovation strategy, adapting some of its elements and
introducing new ones. The existing R&D pillar of the strategy must be strengthened by increasing the volume of EU actions and improving the underlying management models. In addition, new cross-border cooperation approaches should be designed, helping to maximise the impact of every euro
spent by governments.

Europe needs a broader supply of venture capital. This calls for establishment of a genuine European market. In addition, the European Investment Bank (EIB) should introduce specialised new financial instruments.
It is essential to foster sustained demand for innovative products and services, while defining framework conditions that facilitate capital investment by suppliers to meet that demand.

Finally, policies must ensure an adequate supply of skilled workers to tackle the innovation challenge.
The 2004-2009 Barroso Commission rightly recognised the need to develop such a broad-based
innovation strategy. It is essential now to implement this vision with determination. The forthcoming European Innovation Plan and, in the longer term, the Eighth European Framework Programme (FP8) and the next Financial Perspectives (2014-2020) should be decisive milestones in this process.