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Tuesday, February 7, 2012

European companies must invest in innovation

Despite encouraging results, European businesses do not come to fill in the gap with leading global innovation (United States, Japan and South Korea).

The largest gap for the EU27 remains in terms of private sector innovation. The EU still maintains a clear lead over the emerging economies of China, Brazil, India, Russia, and South Africa. However, China is improving its innovation performance and is catching up progressively. Within the EU, Sweden confirms its position at the top of the overall ranking, followed closely by Denmark, Germany and Finland (see complete ranking below). Firms' innovation activities stand out as an important factor to achieve top positions at EU and international level.

Who are the innovation leaders in Europe? 

The 2011 Innovation Union Scoreboard places Member States into the following four country groups: 

- Innovation leaders: Sweden, Denmark, Germany and Finland. 

- Innovation followers: Belgium, the UK, Netherlands, Austria, Luxembourg, Ireland, France, Slovenia, Cyprus and Estonia with a performance close to that of the EU27 average. 

- Moderate innovators: Italy, Portugal, Czech Republic, Spain, Hungary, Greece, Malta Slovakia and Poland perform below that of the EU27 average. 

- Modest innovators: Romania, Lithuania, Bulgaria and Latvia are well below that of the EU27 average.

What makes innovation leaders successful 

Countries at the top of the ranking for the composite innovation indicator share a number of strengths in their national research and innovation systems with a key role of business activity and public-private collaboration. While there is not one single way to reach top innovation performance, it is clear that all innovation leaders, Finland, Sweden, Denmark and Germany, perform very well in R&D expenditures, including of firms. Most of the innovation leaders also perform very well in other innovation indicators related to firm activities. The top EU innovation performer Sweden dominates in three out of 8 innovation dimensions: Human resources, Finance and support, and Firm investments; while Germany and Denmark perform best in two innovation dimensions each (linkages & entrepreneurship and intellectual assets vs innovators and economic effects). European top innovators also score highly in the commercialisation of their technological knowledge. 

The EU in international comparison 

As last year, the largest gap appears in the "Firm activities" category where the EU27 lags behind in terms of business R&D expenditures, public-private co-publications, and, with the US, in terms of excellent and attractive research systems. Better framework conditions for innovation will not suffice if the EU cannot attract a much higher share of the top researchers and best young scientific talents worldwide. 

Background 

The 2011 Innovation Union Scoreboard draws currently on 24 indicators that are grouped into three main categories and 8 dimensions: 

- "Enablers", i.e. the basic building blocks which allow innovation to take place (Human resources, open, excellent and attractive research systems, and finance and support); 

- "Firm activities", which capture innovation efforts in European firms (firm investments, linkages & entrepreneurship, and intellectual assets); and 

- "Outputs" which show how this translates into benefits for the economy as a whole (innovators and economic effects, including employment).

Source  European Commission - Press release

More information  The full report is available here




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