Redefining innovation policy for big societal change

Europe’s industrial revolution in the 18th and 19th centuries was one of the most intense periods of technological innovation in human history. Agriculture, manufacturing, mining, transportation, civil engineering and many more fields of human endeavour were transformed by scientific and technological advances. Countries were able to drive their economies forward, change standards of living and increase their competitiveness and standing on the world stage.

In 21st century Europe, there is a bigger need than ever to stimulate radical innovation in as many fields as possible. Innovation policy needs to focus on addressing both economic concerns and the big societal challenges of the day. So it was good to read in the Commission’s Communication on the Innovation Union that Commissioner Geoghegan-Quinn intends to push for an innovation policy that addresses “climate change, energy and food security, health and an ageing population”.

Including “business models, design, branding and services and social innovation” in the new broader definition is important too, since this builds on the findings of the OECD. This is a move that Google broadly welcomes, especially since it’s clear that information technology is frequently a critical part of delivering this broader agenda.

There are also some other interesting and exciting new ideas in the Communication:

• The Commission will monitor a second benchmark of innovation (in addition to the target of 3% of GDP being spent on R&D) based on the “share of fast-growing, innovative companies in the economy”. This is good news: recent research from think tank Bruegel (disclosure: Google is a corporate member) shows that Europe has significantly less young firms among its leading innovators than the US. And as we noted on this blog just a few days ago the Internet has created unparalleled opportunities for small companies to go global.

• For the first time in a paper of this prominence, the Commission recognises the particular dynamics of innovation in the tech sector and the importance of openness. This is something that was highlighted in the recent Lisbon Council paper on Wikinomics.

• Similarly, the Commission highlights the importance of free movement of knowledge - and it redefines the Fifth Freedom more broadly. This is a move that we called for last year.

• The pilot project on open access is declared successful and the Commission promises to make "open access to publications the general principle for projects funded by the EU research Framework Programmes". This only seems right given that research is paid for by taxpayers, and that in the internet age, research is done by a much more diffuse community of people who are increasingly willing to share ideas and collaborate.

There are many good points in this Communication, but the challenge for the Commission will be to enable innovation in other policy areas. For example, the UK’s Intellectual Property Office is looking to “assess [...] the role intellectual property plays in the knowledge economy”. The scope of what they want to look at is much broader than the emphasis on patents in the Commission’s paper, and that’s something Google will continue to emphasise in its contacts with the EU institutions.

Wouldn’t it be great if, in ten years’ time, we could look back and describe the second decade of the 21st century as the knowledge revolution - a time when disruptive innovation drove the European economy forward, changed standards of living and increased Europe’s competitiveness and standing on the world stage?

Posted by Simon Hampton, Director of European Public Policy