Barroso II soll die Innovationspolitik straffen [en][fr] 

Innovation is the mot du jour in Brussels but policy in this area is split between a dozen or so separate directorate-generals. 

The commissioner for education and culture runs the European Year of Creativity and Innovation, the commissioner for enterprise and industry is focused on innovation as a driver of growth and jobs, the commissioner for research controls a vast R&D budget, and the president of the Commission has a personal stake in the Lisbon Agenda for Growth and Jobs. 

Add to that a smattering of units in other corners of the Commission's fragmented organisation and a complex picture emerges. With the Lisbon Agenda expiring in 2010, a new Commission taking office later this year and a European Innovation Act promised by next spring, the time is ripe to review how innovation policy is structured. 

European Commission President José Manuel Barroso has said innovation will be at the heart of the next Commission, but what precisely does that mean given the horizontal nature of innovation policy? 

The president has not been short of advice. Bruegel , a think-tank, has suggested appointing a 'commissioner for the Knowledge Economy' to be responsible for "the three sides of the knowledge triangle: higher education, research and innovation". 

The European Policy Centre , for its part, suggests having a small number of "super-commissioners" – one of which would have responsibility for competitiveness, research and innovation, including transport and regional policy. 

This, says the Brussels-based think-tank, could be supplemented by a commissioner tasked with strategic issues including the future of the Lisbon Strategy. 

While the EPC accepts that such a radical shakeup is unlikely, it is worth noting that the second Delors Commission had a vice-president for science, research, development, telecommunications and innovation. The post was held by Italy's Filippo Maria Pandolfi. 

Even outgoing Enterprise Commissioner Günter Verheugen had some suggestions when speaking yesterday (22 September) at an innovation event hosted by the directorate-general for education and culture. 

He said the EU executive does "too many little things that make too little impact" and needs a stronger strategy. President Barroso, he said, is looking at restructuring the Commission to give a "more targeted, concentrated innovation policy". 

Verheugen said the Commission will publish a European Innovation Act modelled on the Small Business Act by spring 2010, and he indicated that the low-carbon economy and innovation will be central to the post-Lisbon Agenda. The new blueprint for innovation could be expected to focus on innovative SMEs and entrepreneurship given the influence of DG Enterprise in crafting the document. 

Special advisors proposed 

Alternatives to handing innovation to a 'super-commissioner' include appointing an external 'innovation czar' to chair a committee of commissioners and report directly to the president (EurActiv 8/6/09). 

Precisely how all of this fits in with Barroso's recent announcement that he will appoint a chief scientific advisor remains unclear. Barroso said the move to have a designated point-man on science reflects "the central importance I attach to research and innovation," linking innovation to R&D. 

That is something that worries SMEs whose perennial complaint has been the EU's obsession with cultivating R&D in universities and large innovative companies. According to small firms' lobbyists, most innovation and jobs are created by SMEs and they fear being overlooked if the research agenda comes to dominate innovation. 

Business groups have a natural preference for innovation to be under the remit of DG Enterprise, which introduced the SME-friendly Small Business Act. 

Innovation policy remains fragmented and dispersed 

Vergheuen describes the current fragmentation of innovation policy as "a mess", noting that up to 12 commissioners have a stake in this cross-cutting area. 

Arguably the big three are the commissioners for enterprise, research and education, each staking their own claim on a sizeable portion of innovation policy. 

The 2010 Year of Creativity & Innovation comes under the education wing of the EU executive, as does the new European Institute of Technology (EIT). The brochure for the EIT clearly brands it an educational project, but the enterprise and research commissioners also get a mention. 

Then there is DG Research, which is responsible for the multi-billion euro research framework programmes. Currently in its seventh cycle (FP7), these funds have a major influence on the direction of R&D and innovation in Europe. 

But when the Commission unveiled its communication on "reviewing Community innovation policy," it was the enterprise commissioner who took centre stage. The document, published by DG Enterprise, was the first to mention plans for a European Innovation Act to be published next year (EurActiv 08/09/09). 

Perhaps the Commission will seek to marry its twin obsessions of innovation and SMEs by handing greater control to DG Enterprise, replacing Verheugen with a commissioner for enterprise and innovation. 

Could Barroso be the 'innovation czar'? 

However, there is one figure who always finds time to share the stage when junior colleagues roll out an innovation-related initiative. That man is Commission president José Manuel Barroso. 

It is he who championed the EIT and the Lisbon Agenda and pledges to make innovation a "central theme" of his next five-year term. 

"We will also need to put much greater emphasis on innovation as a cross cutting way of equipping all sectors of our economy to be more competitive so that they face the future with confidence," he said, pledging to bring together issues like public procurement, intellectual property rights and Community funds to promote innovation. 

If he considers appointing an innovation czar, he may well consider himself a candidate. 

European Commissioner for Enterprise and Industry Günter Verheugen told European Year of Creativity and Innovation debate in Brussels that now is the right time to review the EU's innovation strategy, adding that he will publish a detailed analysis of policies in this area by the end of his term. He said progress on innovation has been "insufficient". 

The commissioner said the results of the Lisbon Agenda have, "to put it mildly, been very mixed". "Despite all our action, clear short-comings remain and we need to turn this around." 

He said the internal market remains incomplete, and innovative SMEs still struggle to access venture capital. Verheugen also pointed to the ongoing failure to introduce a community patent. 

He revealed that he will bring forward a draft communication on "key enabling technologies" by the end of October. These will focus on nanotechnology, advanced materials, photonics, biotechnology, and micro- and nanoelectronics. 

Also speaking at the event was Ulrika Stuart Hamilton, vice-president of the  Swedish Entrepreneurship Forum . She said there is great expectation that SMEs will help solve Europe's problems of job creation and innovation. She said this faith was well founded as "almost all radical inventions" in the last few decades were made by small firms. 

She said research shows that most new jobs are generated by Europe's smallest businesses, while larger firms have been inclined to reduce staff numbers. 

In addition, there is strong evidence demonstrating that SMEs engaged in cross-border trade are more productive than those acting only in their local markets. Stuart Hamilton said progress on the Services Directive, implementation of the Small Business Act and a breakthrough on the Community patent would be a major boost for the economy. 

Ian McCoull, director of innovation support at  Scottish Enterprise , said innovation is essential at a time of economic downturn. He stressed that innovation is about more than just "technology, product and process," adding that policymakers should focus on helping exploit new ideas and turn them into marketable products. "It's not just about research and development," he said. 

He said traditional definitions of innovation would suggest that around 20% of Scottish firms are engaged in producing innovative products, but this rises to 60% if you include companies applying innovation in the services sector and those with innovative business models. 

"Scotland is incredibly successful in knowledge production but the challenge is turning that into sustainable economic growth," he said. 

Luc Hendrickx, director of enterprise policy and external relations at EU SME organisation  UEAPME , agreed that a broad definition of innovation is required. "The EU and member states see only as high-tech innovation when in fact, at SME level, it happens at the low and intermediate level. Some innovation in not technological at all," he said. 

Hendrickx was critical of the EU for channelling spending towards companies with an international dimension because there is a focus on competing with the United States and China. However, he said most innovation happens in SMEs, but better data is needed to understand where and how this happens. 

On the question of how innovation policy should be organised, Hendrickx said he would not like the research commissioner to be responsible for innovation because they would tend to ignore smaller players. He noted that several EU funding programmes, including Eurostars, are not open to SMEs because they do not spend enough on development. What smaller companies need most is access to advice and support to help them navigate complex legal areas such as intellectual property rights protection. 

Erik Spiekermann, a typography designer and ambassador for the European Year of Creativity and Innovation, said creativity should not be lost in the debate on innovation. He said more use should be made of designers in solving challenges as they can help visualise problems. "Designers are fundamental to defining problems and finding solutions," he said. 

Spiekermann said most people remain fearful of innovation as they see change as a threat to their existence. He remarked that most people involved in the innovation debate in Brussels have permanent, pensionable jobs rather than being engaged in creative or entrepreneurial work.