Analytics, Education and Science, EU – Baltic States, Innovations, Modern EU, Technology

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

The 2018 Scoreboard edition reveals a positive trend in the majority of EU countries – most notably 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 United States. But closing this innovation gap and maintaining the lead over China will require a concerted effort to deepen Europe's innovation potential.

Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, Elżbieta Bieńkowska underlined in the connection of the 2018 Scoreboard, that it showed that the EU states are having enough talents and entrepreneurial spirit to reach the needed level of excellence and success. 

However, the EU states, regions, industry and SMEs have to cooperate closely to increase economic efficiency, improving the functioning of the internal market and helping to ensure that European region remains at the international forefront of innovation.

Commissioner for Research, Science and Innovation, Carlos Moedas added that the 2018-Scoreboard showed that Europe is strong in science but under-performing on innovation. The renewed agenda for research and innovation sets out a range of measures for Europe to become a global innovation leader. The EU’s proposals for “Horizon Europe” as the next EU research and innovation program, will accelerate innovation along the full value chain and support the identification and scale-up of breakthrough innovations.

European assistance

The EU institutions are making intensive efforts to activate the member states’ innovative activities. Thua, recent Commission's “renewed agenda for R&I” represents a call for the EU states for active impetus into the European efforts to become the global innovation powerhouse. The EU leaders held an informal discussion on 16 May in Sofia on innovative efforts; the conclusions are expected to be formulated during the end of June’s European Council.

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

Besides, in order to contribute to EU states global leadership in innovation, the Commission proposed in the beginning of June 2018 a new and ambitious European research and innovation funding program (EU R&I Funds within the “Horizon Europe” strategy), with €100 billion for 2021-27.

More on the EU R&I Funds see in: http://europa.eu/rapid/press-release_IP-18-4041_en.htm

But EU funding alone will not suffice; to maintain and improve the European way of life, a concerted effort by the EU states’ scientific communities’ efforts, as well as that of public and private sector is required.

Details: Innovation performance in 2017 (coloured columns), in 2016 (horizontal hyphens) and in 2010 (grey columns).

On average, innovation performance of the EU has increased presently by 5.8% since 2010. Over the last 8 years, innovation performance increased in 18 EU countries 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.

At the global level, the EU is catching up with Canada, Japan and the United States. Thus, the EU states maintain their lead over China; however, this lead is decreasing rapidly and China is improving almost three times faster as the EU. Relative to South Korea, the EU has been falling behind, but according to the Commission a gradual catch-up is expected over the next years.

Sweden is once again the EU’s innovation leader, followed by Denmark, Finland, the Netherlands, the United Kingdom and Luxembourg(the latter joins the top innovators group in 2018); Germany drops to the group of strong innovators.

The EU leaders in selected areas of innovations 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; and - Belgium -in innovation linkages and collaboration.

Innovation performance has improved in the EU states mostly in the area of broadband penetration, human resources, and the attractiveness of research systems, especially through international co-publications. However, public R&D expenditures as a share of GDP still remain below the 2010 level. The Commission prediction is that during the next two years, the EU's overall innovation performance will improve by 6%. 

Innovative perspectives in Europe

About two-thirds of Europe's economic growth over the last decades has been driven by innovation. With only 7% of the world's population, Europe accounts for 20% of global R&D investment, produces one third of all high-quality scientific publications, and holds a world leading position in industrial sectors such as pharmaceuticals, chemicals, mechanical engineering and fashion.

Europe is also strong in supporting innovation through so-called KETs approaches (Key Enabling Technologies), such as photonics and biotechnology.

However, European states are lagging behind other global regions and states in numerous spheres. First, the EU companies spend less on innovation than their competitors. 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.

Bottom line: the annual European Innovation Scoreboard provides a comparative assessment of the research and innovation performance of the EU countries and selected third countries. It analyses the relative strengths and weaknesses of national research and innovation systems and helps countries assess areas in which they need to concentrate their efforts to boost their innovation performance.

More information in the following websites: - FAQs; - 2018 European Innovation Scoreboard; - Press release: A renewed agenda for Research and Innovation: Europe's chance to shape the future; - Factsheet: A renewed agenda for Research and Innovation; - Press release: Commission proposes most ambitious Research and Innovation programme yet; - Factsheet: EU funding for Research and Innovation 2021-2027; - Factsheet: EU Research and Innovation success stories.

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