Editor's note

Every year, the Commission publishes a comparative assessment of the EU states’ innovation performance with comparisons to their international competitors, so-called European Innovation Scoreboard This data helps the states assess those areas in which most efforts are needed and political decisions shall be focused.

The 2018 Scoreboard reveals positive trends in most of the EU states, e.g. in Malta, the Netherlands, and Spain, with Sweden remaining the EU innovation leader. The EU is catching up with key competitors such as Canada, Japan and the US; but closing this innovation gap and maintaining the lead in the world would require concerted efforts to deepen Europe's innovation potential.

European assistance

In recent Commission's “renewed agenda for R&I” represented a call for the EU states to act to help Europe become the global innovation powerhouse. The EU leaders held an informal discussion on 16 May in Sofia, and conclusions are expected to formulate during and of June European Council.

Renewed Agenda in: https://ec.europa.eu/commission/sites/beta-political/files/communication-europe-chance-shape-future_en.pdf

To contribute to Europe's global leadership in innovation, the Commission proposed on 7 June the most ambitious EU research and innovation funding program (i.e. Horizon Europe), with €100 billion for 2021-27. On EU R&I Funds see in: http://europa.eu/rapid/press-release_IP-18-4041_en.htm

In selected areas of innovation, the EU leaders are: - Denmark -in human resources’ innovation and friendly environment; - Luxembourg – in attractive research systems; - France -in financial services and support; - Ireland – in SMEs’ innovation, employment and sales impacts; - Belgium -in innovation linkages and collaboration.

Challenges for the Baltics

Commissioner for EU’s entrepreneurship and SMEs, Elżbieta Bieńkowska said that the 2018 Scoreboard showed that EU states have had talents and entrepreneurial spirit, but they must do better to  turn this excellence into success. For example, Europe is strong in supporting innovation through so-called KETs approaches (Key Enabling Technologies), such as photonics and biotechnology.

However, taken EU-28 innovative level as 100% (in 2017), the Baltic States are situated at a much lower level: Estonia at about 80%, Lithuania at about 70% and Latvia at about 60%.  

On average, innovation performance in the EU has increased since 2010 by about 6%; over the last 8 years, innovation performance increased in 18 EU states (including all 3 Baltic States) and decreased in ten. Performance has increased most in Lithuania, Malta, the Netherlands and the United Kingdom while it decreased most in Cyprus and Romania.

What shall be done?

However, European states are lagging behind other global regions and states in numerous spheres. In order to sustain forefront position in research and innovation, the EU states have to overcome the following difficulties: 

- First, the EU companies spend less on innovation than their competitors around the world.

- Second, venture capital remains underdeveloped in Europe, resulting in companies moving to ecosystems where they have better chances to grow fast.

- Third, public investment across the EU falls short of 3% GDP target noticed in the EU-2020 strategy; besides, R&D intensity is still uneven among EU regions, with investment and research heavily concentrated in Western Europe.

- Finally, about 40% of the workforce in Europe lacks the necessary digital skills, the perspective direction in growth.

As to the Baltic States, their regions and SMEs have to cooperate closely to increase economic efficiency, improve the functioning of the “common Baltic market” and help ensure that the Baltics would be at the international forefront of innovations.

 Source: European Commission, press release “European Innovation Scoreboard 2018”, Brussels, 22 June 2018, in: http://europa.eu/rapid/press-release_IP-18-4223_en.htm?locale=en

Latvian version: http://europa.eu/rapid/press-release_IP-18-4223_lv.htm