Policy Update:
Fuelling innovation in SMEs
DG Enterprise's Strategy Unit on Innovation Policy Development would like to make Europe the world's leading centre for innovation. To do this, the unit is preparing a detailed innovation plan for 2010.
There is a misconception that innovation within the EU is driven by large companies with the resources to invest in new ideas. But big ideas are not the preserve of big companies. Google, Ikea and Microsoft began life as garage start-ups and have been driven to worldwide success on the back of innovations that change the way we live.
Innovation Policy Development aims to foster innovation in Europe and help SMEs focus more on bringing good ideas to reality. Peter Dröll heads the unit, which began its work a year ago.
Mr Dröll said that "innovation works rather like an eco-system, where all parts are interdependent and affect overall progress. We are charged with producing ideas and guidance that will help adapt the current ecosystem and promote innovative thinking and practices."
Mr Dröll explained that policy-makers have three key angles of approach to adopt when deciding on how to do this. The first is to focus on the framework, such as the research base and the internal market. The second is to improve supply by financing new research, by using networking and through matchmaking events. The third is to help build demand by making choices in regulation and public procurement.
"When dealing with SME innovation within the EU, we must approach policy-making in all three of these areas to improve our innovation output," said Mr Dröll.
The unit is now moving from the internal debate phase to external discussion. The first stage, which is the innovation review, will take place in September. "This is a big deal and the sort of work that academics deal with," said Mr Dröll. "The review comprises a short policy paper and a further 400 pages of detailed analysis on innovation policy in general. It also discusses lead markets, services in innovation, financing innovation in SMEs and the effectiveness of innovation support." By publishing this review, the unit hopes to gain valuable feedback that will influence their overall plans.
In the lead-up to the review, several preparatory actions will already be in place. One of these is Innovation Unlimited, an independent business panel that provides input and ideas on future innovation in the EU from a business perspective. This panel, made up of five consultants, has created an online blog to encourage and provoke open debate on key innovation issues. Open to anyone, the blog closes at the end of August when the panel will include its findings in a report.
"This is just one contribution to the overall research being undertaken and will provide a wider reaction to our current ideas and plans," said Mr Dröll.
The role of research
To find out how innovation can be effectively promoted through policy, the unit's research has to understand SMEs and their staff.
Option papers form an integral part of strategy development. "Options encourage creative thinking and provide a good update on how our ideas are being received," said Mr Dröll. "My principle was to start with no limits where all ideas are welcome. We are not yet at the stage of writing any ideas off."
The research process is highly collaborative and involves working with other departments, launching studies within framework contracts or holding workshops, an initiative which includes universities and SMEs. "For example, we met with experts and representatives from Brazil, Russia, India and China who gave us an insight into cooperation efforts to see what currently exists and how we can improve upon it" said Mr Dröll. "The more we learn to give us ideas into creating a more innovative EU, the better."
One issue that Mr Dröll and his team have run into is the question of results. "It is very hard to quantify innovation and the effect our policies are having," he said. "We do not have any measurable targets, which is something we would like to change."
Some SMEs set specific targets for themselves that are later reviewed. At EU level there is some benchmarking for Member States. The annual European Innovation Scoreboard uses 29 performance indicators to measure a country's enablers (human resources and financial support), activities and outputs. This is used by governments wishing to improve innovation policy based on a wider country comparison.
"The current times provide many opportunities for improving innovation policy and the way in which SMEs operate to incorporate a more creative and innovative way of thinking," said Mr Dröll, "Our task is demanding and extensive, but helping the EU become the innovation leader of the world is a truly exciting prospect."
- Contact:
Peter Dröll
Head of Unit Innovation policy development
Tel. +32 2299 0348