Facing Mounting Fiscal Problems, EU Remains Committed to Supporting S&T Efforts

The European Union has implemented 30 of the 40 Innovation Union commitments according to State of the Innovation Union, a comprehensive progress report on the Innovation Union, the European Union's (EU) flagship initiative under the Europe 2020 growth strategy for the decade. By the end of 2011, the European Commission will have passed all six Innovation Union legislative proposals. The report highlights several of the new initiatives including the first Innovation Partnership in Active and Healthy Aging; the European Institute of Innovation and Technology; and the Smart Specialization Platform. However, the EU still has more to achieve including strengthening efforts at a national level to prioritize investments in research and innovation and set aside dedicated budgets to public procurement of innovative products and services.

Even though Europe faces the deepest crisis in decades, the report makes a case for maintaining a strong commitment to research and innovation. It contends that fiscal consolidation needs to be "smart" (e.g., preserving and reinforcing investments in education, R&D and innovation) in order not to jeopardize future growth. It also points out that this is imperative because China, India and Brazil are rapidly catching up the EU with regards to innovation. Read the report...

According to the report in 2012, the EU intends to remain committed to Innovation Union efforts including unveiling the two remaining Innovation Union initiatives scheduled for 2012 — the proposal for the European Research Area Framework and the new innovation headline indicator. The European Commission also will review the current approaches to innovation in other EU policies and propose new strategies to mainstream innovation into all EU policies. Read the press release...

• The EU also unveiled new insights into the proposed Horizon 2020 program, an €80 billion (approximately $107 billion) research commercialization program. Starting in 2014, Horizon 2020 would bring all of the EU's research and innovation funding programs under a single umbrella. The proposals includes three key objectives:
• Approximately €24.6 billion ($32.9 billion) will be committed to fund fundamental research (a 77 percent budget increase);
• Approximately €17.9 billion ($24.0 billion) will target key technologies and provide assistance for small businesses needing access to capital; and,
• Approximately €31.7 billion ($42.4 billion) to support research that will lead to scientific breakthroughs in innovative products and services that address areas of "popular concern" (e.g., health, food security, sustainable agriculture, transport and energy).

The proposed plan also intends to simplify reimbursement procedures for EU-funded research projects, reduce the paperwork involved in preparing a research proposals, abolish unnecessary checks and audits, and shorten the time between acceptance of a research proposals and receipt of the grant. A finalized plan will be announced sometime before the end of 2013.