Main achievements and shortcomings of EU policies in support of innovation
Until now European innovation policies have relied purely on technological push, but this focus has not
been as effective as the pure concentration on marketing and non-technological factors would
have been. E.g. today business models interlink with technology and innovation is not
necessarily technological. This means that technology in general follows the business model,
not vice-versa.
Thus EGDF welcomes all efforts to extend the definition of innovation from purely
technological innovations to innovations related to content, services and business models. An
intelligent innovation strategy should be both flexible and a combination of different elements
of innovation, in order to make the difference.
Therefore EGDF would like to see even more user driven approach from Commission when it
comes to innovations. As Commission has concluded, non-technological aspects of the
innovation process, such as design and marketing, are increasingly important to getting more
innovative products and services in the marketplace. But beside design and marketing, also
content and business models are crucial areas of innovation.
Consequently EGDF is pleased to note that Commission has now stated it to be necessary to
better acknowledge the weight of services as an attribute of modern industrialised countries
and their innovation potential for the economy and the society at large. Hence it should be one
of the main priorities of Commission to better customise research and innovation support to
the specific needs of services, as well as completing critical infrastructures and unlocking
their potential with new services and applications. However, these maneuvers should be
implemented in a non-discriminatory way in order to keep the level of competition high.
For example user driven technology (see also www.nem-initiative.org) can be seen in open
combinations with different elements. E.g. game development studios are at the same time
technological (R&D relevant) and creative (design relevant), but it shows often that the
transition and the innovation do not follow these paths. Instead content and business models
are real drivers of innovation on that area.
Another good example is the sector of online mobile music distribution. In this case
innovation does not necessarily mean technological innovation network. Music downloaded
from the Internet has made large parts of storage media (based on complicated technological
standardisation procedures with strong European implications) obsolete. The real innovation
lies not in the technology, but in the radical business model. This demonstrates how the
relevance of content for the advancement of ICT technology has been underestimated in the
current generation of ICT support.
Furthermore, as in digital age one does not need large companies to innovate, the most of the
innovative business models, services and content are developed by small entities. Therefore
EGDF supports strongly a SME approach to innovation, as it should be remembered that
innovation cannot be produced; real innovations are usually hidden where one would less
expect to find them.
EGDF is pleased to note that EU has introduced efforts to strengthen conditions for
entrepreneurship and for growth of new ventures. Content and user driven SMEs like
Europe’s game developer studios can really make the difference. But a SME approach needs
not only to be preached, but also practised. This means that also in reality, not just in the level
of political statements, SME’s have to be specifically taken care of, including that they are
efficiently and successfully informed about their possibilities. Unfortunately so far this goal
has been only partially reached.
Consequently innovations should not be supported isolated from markets e.g. by relaying too
much on just technological breakthroughs. SMEs or other market actors are needed to create
jobs and growth from them. Thus one should be careful not be blinded by focusing solely on
innovations; one should always see innovations just one important part of the economy as a
whole.
In addition, EGDF agrees with Commission that current economic recession is making fundraising
and the exit environment difficult for entrepreneurs. As there is currently no EUfunding
program directed for the needs of the video came industry, preparations for setting up
one for the new programme period 2014-2019 should be started as soon as possible.
Meanwhile, as EGDF finds the Lead Market Initiative (LMI) especially successful tool for
supporting innovation, EGDF calls Commission to start a LMI of digital content as soon as
possible.
The whole statement can be found here
Consultation on Community Innovation Policy (with contact details)
