Innovation 2010 - Towards more coherent policies for Europe

Innovation is the cornerstone of the Lisbon strategy, which was formulated by Europe's leaders in March 2000. Since then the European Commission has launched its 6(th) Research Framework Programme with an ambitious goal to create a Single Market for research in Europe. It has published a Green Paper on entrepreneurship and has also launched a debate on ways and means to increase research spending in Europe to 3% of GDP from its current level of near 2%. The recent Commission proposal for innovation policy is based on the "multidimensional view" of innovation. Besides research as a key driver for innovation and the need for higher spending on R&D, new ways of organising work and new concepts in design and marketing are key factors. Innovation policy must also provide the skills and develop the motivation for entrepreneurialism. And it needs to have an impact on the immediate operating environments of businesses. The large size of the public sector in Europe's economy is a further distinguishing feature. Under its eEurope policy framework, for example, the EU aims to help public authorities provide services online. The enlarged Union with ten new member countries that joined in May 2004 is a major and unique challenge. The paper analyses what innovation means in the context of the knowledge economy and society and it highlights two ways in which Europe can become the most competitive knowledge-based economy in 2010: Firstly, by supporting technology development for a world-class European intelligent systems industry, and secondly by facilitating the development and use of appealing people-centred public services.