or venture capital (97th) for their investment projects. In addition, labor markets are considered too rigid (137th) and the level of local competition low (82nd), mainly the result of a lack of liberalization in some services.
However, as for Spain, cuts in research and innovation and a drop in corporate innovation-related investments could continue to affect the capacity of firms to innovate (40th)
Corporate R&d investments (34th) appear now to contribute more to improving the country's innovative capacity (94th),
As a result, the business community continues to face important challenges in engaging in new investment projects.
and a fairly sophisticated business community (36th) help foster innovation in a service-oriented economy despite the low R&d investment (72nd) and technological innovation capacity (91st).
and continues to have fairly easy access to financing (40th) for its investment projects. Notwithstanding these strengths, the country also faces important challenges.
and low R&d-related innovation investments (90th). The weak quality of its transport infrastructure (93rd) also negatively affects its national competitiveness.
and by fostering more openness to foreign competition currently ranked at 42nd, reflecting barriers to international trade and investment.
Going forward, putting the country on a more stable development path will require further investment to boost health and educational outcomes.
Jordan could also benefit from more openness to international trade and investment, which would trigger efficiency gains in the domestic economy as well as transfer of knowledge and technology.
including critical investments across all modes of infrastructure (rank 129th), establishing a regulatory framework that encourages competition to foster economic diversification,
Due to lack of data about capital costs for some of the green technologies, the return of investment and its impact on the operating cost were considered not.
if the return of investment is included in the analysis. For the maritime 0%20%40%60%80%100%Technology impact%KPI factors Total positive Negative Neutral No information Fig
including their return of investment. To facilitate the adoption of green technologies, future analyses should examine large-volume transport paradigms,
Recognizes a higher Return on Investment rate to operators for these projects; starting mid 2011;
DSO investment programme and Latvenergo investment programme 52 LV: Timeline of research R&d and Pilot Funding (Mio.
Nesta is backed with an endowment originally provided from the UK National Lottery and works through a combination of research, investments,
In some cases substantial investment will be needed to achieve this. 5. Expand the European DSI network
While massive commercial investment and business models fuelled the web's incredible growth, the use of platforms like Facebook to serve social good has been disputed accidental
for the most part due to a lack of an open infrastructure and difficulty finding investment. The future of the Internet should remain pluralistic,
Europe could provide an alternative model in the form of investment in open infrastructures on the network, service and data layer.
This vision requires more investment in fundamental research to promote net-neutrality, strong encryption, banning of trivial patents, open standards and free software together with the multi-stakeholder governance model.
or lack of investment. It is crucial for successful crowdsourcing to design the activity properly to prevent excessive demands and frustrations.
AND ACCELERATORS MAKER AND HACKER SPACES ADVISORY OR EXPERT BODY INVESTMENT AND FUNDING 152 26 13 74 76 70 30 30 31 32 0 Project
Further support, investment advice and funding oppertunities for SMES and young companies are also available through the Startup Europe programme.
The US Federal government spends 2. 6 per cent of a much larger per capita GDP on research compared to only 1. 3 per cent on average in the EU. Early-stage funding for innovation is also more heavily supported by government investment
and subsidies in the USA than the EU. Approximately eight times as much public as private business investment goes into early stage technology development in the USA.
In the EU investment in research and technological development is based more market and demonstrably less effective (FINNOV European Policy Brief.
or the UK's Big Society Capital fund and India's Inclusive Investment Fund. They combine investments in new hardware
and software with experiments to discover better ways of delivering healthcare or reducing carbon emissions.
Seed funding is a very early-stage investment, meant to support the business until it can generate cash of its own,
or until it is ready for further investments. Seed money options include friends and family funding, angel funding and crowdfunding.
AND INNOVATION SUPPORT One important objective is to provide infrastructural investments such as broadband deployments and pan-European digital services that underwrite robust, equal,
INVESTMENT ON ENABLING INFRASTRUCTURES Community and bottom-up networking is an emerging mode of the Future Internet,
it needs investment in alternative architectures that favour new players and allow for bottom-up innovation. This includes the need for distributed data repositories and management systems
Investment for this kind of innovation support programmes can come from public funds but could also be through public private partnerships or crowdfunding.
Growing a Digital Social Innovation Ecosystem for Europe 83 The standards are used by the DSI accelerator Bethnal Green Ventures77 and Nesta's Impact Investment team78,
and the emerging Internet of things have their roots in strong public investment that funded general-purpose technologies and basic research.
just as in science and technology, innovation in society needs carefully crafted investment and support. There is a need to maximise the social value generated by digital technologies
In some cases substantial investment will be needed to support innovations through to sustainability just as in business, where many of the most transformative innovations required many years of patient,
large-scale investment before they delivered returns. Alternative socioeconomic models based on trust and their reputations are emerging.
place-based economic transformation agendas that do five important things They focus policy support and investments on key national/regional priorities,
and aim to stimulate private sector investment; They get stakeholders fully involved and encourage innovation and experimentation;
as an important innovation effort and considerable investment is required to shift towards a resource-efficient and low carbon economy,
not only investment in research or the manufacturing sector, but also building competitiveness through design and creative industries, social and service innovation, new business models and practice-based innovation.
and knowledge-based investments that are most likely to deliver growth and jobs in the regions.
The smart specialisation concept therefore promotes efficient, effective and synergetic use of public investments and supports countries and regions in strengthening their innovation capacity,
Some companies are responding to these opportunities by increasing their overall internal R&d investment which is aimed not only at implementing available technologies
because the concept of smart specialisation warns against'blind'duplication of investments in other European regions.
'which are selective investments in future-oriented domains with a high innovation and growth potential and large societal impact.
analyses of specialisation of R&d investment, publications and citations, and patent applications and citations by'field'.
prioritisation of public investment in research/education/innovation in the region (by all levels of government;
Favourable conditions for equity investment, business angels and venture capitalists; business environment favourable to the creation of new SMES;
stability of public investment in research, education and innovation; proper balance between institutional and competitive funding for innovation;
it is a time-consuming process that should be seen as an investment rather than a burden.
This includes private investments, as one explicit goal of RIS3, included in the criteria for the conditionality, is to leverage private RTD investments.
If such an analysis has not yet been initiated, RIS3 presents an opportunity to do so and will enable regions
and channelling resources towards those investments that have the potentially highest impact on the regional economy.
incubators Global talent attraction in targeted new sectors Strategic intelligence exercises (regional foresight) Complement national investments in research infrastructure Participation in national competitiveness poles/centres
for public investments in large S&t infrastructure linked to regional advantages Participation in national competitiveness poles/centres programmes (limited regional funding) Attracting FDI of knowledge-intensive companies and MNCS (infrastructure,
strengthening synergy between S&t developments and production activities S&tintensive production regions Industrial production regions including second-tier hubs in knowledgeintensive countries Investments in scientific or technology
linked to S&t infrastructure investments Competence centres and competitiveness poles relevant for regional industry Entrepreneurship and spin-off support (business plans competitions, regional venture capital funds) Incentives for regionally-relevant public research Entrepreneurship support (networks of individuals, training courses,
and export agencies Attracting national investments in vocational and tertiary education Promoting national training, lifelong learning schemes for companies and individuals Engaging regional stakeholders in external production networks Securing national infrastructure investments to enhance connectivity Source:
OECD 2011 58 Developing a RIS3 involves a degree of risk-taking, since there is always some uncertainty in the choice of priorities,
and channelling resources towards investments with a potentially higher impact on the regional economy. The distinctive elements that can guide review,
and improving their investment in R&d, facilitating innovation and promoting entrepreneurship. Cohesion Policy in fact provides the largest financial Community support to SMES through financial engineering instruments such as JEREMIE. 45 For the period 2014-2020,
They represent an aggregate European investment of more than EUR 100 billion. Some 50,000 researchers a year use them to produce 3, 000 to 6,
and avoid duplication of investment in infrastructures similar to those already in place nearby. How to act?
Investments in existing and new RIS should combine in the most efficient and effective way the instruments
For the next programming period, the investment's priorities proposed under the Cohesion Policy cover these aspects with an emphasis on connecting universities to regional growth and developing stronger partnerships within the knowledge triangle.
and/or relevant investments; Studies and investments associated with the maintenance, restoration and upgrading of the cultural and natural heritage of villages
and rural landscapes, including related socioeconomic aspects; Co-operation among different actors in the Union, agriculture, food chain, forestry sector and among other actors (including Universities) that contribute to achieving the objectives and priorities of rural development policies (e g. pilot projects;
or trying to create the conditions to attract new investment, the smart specialisation strategy builds on or constitutes the first step towards local/regional'digital agenda'.
The long-term competitiveness and innovation potential of regional and rural areas and the ability to achieve the fundamental objectives of both regional and rural policies depend on the good planning of these investments.
Barriers and challenges Europe is facing an investment challenge in the financing of high speed internet infrastructure
The large amount of investment required to achieve ubiquitous coverage80 requires a combined effort from a large number of investors from the private and public domains
the adoption of open and long-term investment models81 and the use of a range of financial tools including grants and financial engineering.
leveraging financing and investments in innovation and improved coordination and coherence between funding for research and innovation at European, national and regional level in Europe.
as well as ensuring investment in digital service infrastructures (trans-European high speed backbone connections for public administrations, cross-border delivery of egovernment services, enabling access to public sector information and multilingual
therefore to select investment models and strategic priorities that will foster the above efforts. 80 Estimated by the EC between EUR 180 and 270 billion. 81 See EU Broadband good practice site:
assessing the most suitable investment models, 89 etc. This may take the form of a stand-alone'Broadband Plan'(most Member States have one at national level)
id=158 Notably the Guide to Broadband investment: http://ec. europa. eu/regional policy/sources/docgener/presenta/broadband2011/broadband2011 en. pdf 85 The development of a chapter for digital growth within the smart specialisation strategy will enable regions
to identify the priorities for ICT investment which are pertinent to your territory. The Digital Agenda for Europe can be taken as a model.
to set up innovative investment models; to exploit pre-commercial procurement and other related innovative procurement activities including reinforcing cross border
Plan for high speed Internet Infrastructure (Next Generation Networks) The Guide to Broadband Investment, presenting the various models for management authorities wishing to invest in high speed infrastructure,
Provided that these investments respect the relevant regulation (telecom framework, State aid guidelines, etc. they can benefit from a wide range of EU funding instruments from the Connecting Europe Facility (CEF) and from cohesion (in less developed regions) or rural development policies.
The EBP provides assistance to regions to work through the different stages of the Guide to Broadband Investment as well as specific assistance through a range of training modules, workshops and training events.
The EBP will also continue to work on the guide on broadband investment models with the provision of additional models
of the investment priorities of the European Regional Development Fund (ERDF) as a relevant investment for the smart growth of regions. 94 KETS are seen as the route to new and better products and processes,
In addition, the Commission plans to cooperate more closely with the European Investment Bank in order to provide loan guarantees to productive investments.
Overall a coherent financial framework will be put in place in order to support all development and innovation stages of KET-related processes. 95 http://www. observatorynano. eu/project/96 http://www. proinno-europe. eu/page/regional-innovation-scoreboard
investments in cultural and creative industries (CCIS) already have a significant impact on smart, sustainable and inclusive growth.
See also the emphasis on the creative industries in the European Competitiveness Report 2010, Commission staff working document, COM (2010) 614.90 investments.
the prototype profile of their activities, their lack of investment-readiness, as well as the insufficient investorreadiness of financial institutions to support them.
Member States and regions are invited to finance their cultural and creative industries through investment priorities103 closely linked to the objectives of the EU 2020 Strategy. 102 In particular in the 2010 Commission Communication'Regional policy contributing to smart growth':
Strategic and inclusive approach to investments and the use of financial resources: Streamline regional, national and EU funding support to cover the different needs of the cultural and creative sectors.
Develop innovative financial instruments such as equity funds or guarantee funds to co-finance investments in the cultural and creative sectors,
in conjunction with the financial instrument that is proposed under the Creative Europe framework programme108 as a way to give leverage to private investment in this field;
Promote investments in the protection, promotion and development of cultural heritage. 109 Other investments could include:
the development and use of new information technologies (for example to promote the digitisation of cultural heritage), strengthening of entrepreneurship in CCIS,
creative hubs and clusters, networks, incubators and connected infrastructures) and soft (human capital addressing skills and training issues) investment should equally be encouraged. 94 Internationalisation Why should internationalisation be part of smart specialisation?
For more than ten years, the EU budget has been using financial instruments such as loans, guarantees and equity investment for SMES.
in order to deliver investments in projects which demonstrate appropriate repayment capacity in situations of market imperfection.
which will be ring-fenced for investments in line with the programmes concerned, for example, a guarantee facility is being launched to incentivise financial intermediaries to extend loans to SMES in the cultural and creative sectors (CCS) under the new Creative Europe Programme.
It also briefly describes the joint initiatives with the European Investment Bank (EIB), the European Investment Fund (EIF) and the Council of europe Development Bank (CEB) which promoted the implementation of financial instruments with resources provided to Member States through Regional Policy (European Regional Development Fund
) and the EU Rural Development Policy (European Agricultural Fund for Rural Development). EU level risk capital/equity instruments:
and growth of SMES in order to support the investments of such companies in innovation activities, including eco-innovation.
The 2020 European Fund for Energy, Climate Change and Infrastructure (the Marguerite Fund) is a pan-European equity fund for infrastructure investments in the transport, energy and renewable sectors.
The Fund was established as a regulated, specialised investment vehicle under Luxembourg law. The Commission, representing the EU,
but is involved not in the day-to-day management of the Fund or in individual investment decisions,
as this is the responsibility of the Management Board and Investment Committee of the Fund. 114 Policy DG in charge:
and innovation investments by sharing the underlying risks between the EU and the EIB. Together, the European commission and the EIB are 113 http://ec. europa. eu/enterprise/policies/finance/cip-financial-instruments/index en. htm 114 http://www. margueritefund. eu
SMEG is operated by the European Investment Fund (EIF) on behalf of the Commission (representing the EU). 116 Policy DG in charge:
which can be invested either in the form of equity, loans, guarantees or other forms of repayable investments in enterprises, mainly SMES, public private partnerships, urban development projects;
or in legal or natural persons carrying out specific investment activities in energy efficiency and renewable energies.
Joint European Resources for Micro to Medium Enterprises is an initiative of the European commission's Directorate General for Regional Policy (DG REGIO) developed together with the European Investment Fund
Joint European Support for Sustainable Investment in City Areas is a joint initiative of the European commission's Directorate General for Regional Policy (DG REGIO) developed in co-operation with the EIB and the CEB
or in legal or natural persons carrying out specific investment activities in rural areas, in accordance with the relevant rural development programmes.
EIB Group's own resources The European Investment Bank is the long-term financing institution of the European union
credit lines to banks and financial institutions to help them to provide finance to small and medium-sized enterprises with eligible investment programmes
The European Investment Fund provides financial intermediaries an integrated risk finance product range of SME finance initiatives,
), Higher impact of innovation investments thanks to a comprehensive strategy that combines R&d investments (e g. in eco-innovation) with purchasing innovations (e g. of energy efficient and low carbon buildings or transport),
and return-on-investment for innovative firms. Barriers and challenges The main reasons why still too few public procurers in the EU buy innovations and why the procurement of innovation is used still hardly as an innovation support tool are:
In general, individual procurements are mostly too small for companies to make investments in innovations worthwhile.
129 http://ec. europa. eu/enterprise/policies/sme/business-environment/public-procurement/105 The ERDF permits the strategic combination of investments in R&d&i capacitybuilding with demand
but local and regional authorities are also usually responsible for implementing policies, programmes, legislation and public investments in key areas for sustainable growth and innovation such as energy, environment, transport, land-use, education
covering all shared managed funds, through thematic objectives, investment priorities, and also as a crosscutting principle.
and the less developed regions 6%.Rural development policy has also reinforced its contribution for the energy investments.
to expand and become sustainable. 166 The European Social Fund (ESF) has made significant investments in social innovations,
http://ec. europa. eu/internal market/social business/index en. htm 169 http://ec. europa. eu/internal market/investment/docs/social investment/20111207proposal en. pdf 170
4. 4 Does the document outline measures to stimulate private R&d&i investments, for instance through public-private partnerships?
33 9 Assessing the Investment Potential of SMES Emerging from Phase I of the SME Instrument 33 HORIZON 2020 WORK PROGRAMME 2014-2015 Innovation in SMES PART 7-Page 3 of 35 Introduction Exiting the economic crisis
and create high return on investment. The SME instrument addresses all types of innovative SMES so as to be able to promote growth champions in all sectors.
and analysed during phase 1 and addressed during phase 2 to increase the return in investment in innovation activities.
Increase of private investment in innovation, notably leverage of private co-investor and/or follow-up investments.
market seize, IP management, sales, return on investment and profit). Type of action: SME Instrument The conditions related to this common call are provided below and in the General Annexes,
or regional authorities (including under the European Structural and Investment funds) and/or by private investors (upfront or as follow-up investments).
Expert contracts 9 Assessing the Investment Potential of SMES Emerging from Phase I of the SME Instrument This action will establish a group of investment specialists, operating in a personal capacity,
to assess the investment potential of SMES emerging from Phase I of the SME Instrument28.
The work of the expert group will be essential to get a better overview of the investment-readiness landscape in Europe,
to ensure that entrepreneurs are prepared better to negotiate effectively with potential investors, to increase the number of investments made into early-stage firms
and to ensure a greater commercialisation of scientific knowledge in Europe. The experts concerned will be qualified highly
This action is linked to an investment readiness measure (Call H2020-BIR-2014 in the Access to Risk Finance Work Programme
This tangible investment in a healthy competitive European economy is every bit as important as our commitment to European debt and deficit reduction.
Investment in research and innovation has a powerful multiplier effect, especially at the European level.
The European commission and the European Investment Bank Group are also working together to help innovative SMES access finance from commercial banks. 1 Source:
Direct investment remains vital as well, and Horizon 2020 will be the biggest EU research and innovation programme ever,
EU research and innovation is an investment in our health as it will keep older people active and independent for longer,
The return on this investment will include new ways to prevent disease, better diagnostics and more effective therapies,
and investment marketing in the region, the Technology and Marketing Corporation in Linz. It has formulated a strategic concept for the technology policy in Upper Austria focusing in particular on strengthening applied R&d, intensified collaboration in clusters (metal and steel, machinery, vehicles),
The most frequent positive effect concerns the co-funding of investments, followed by the co-funding of personnel.
investments Funding of personnel 50.7 54.2 Funding of external 31.3 33.3 consulting services Provision of technical 18.2 know-how Technical services 9. 1 Provision
SMEPOL-survey Upper Austria. 156 A. Kaufmann, F. To dtling/Technovation 22 (2002) 147 159 support more on personnel than other direct support schemes which aim more at investments.
funds for investments, personnel, 76.9 38.5 Financial problems: lack of finance, too high risk consultancy, reduction of risk Technological effects:
Creating a RTD Investment Policy for Regions in Emerging and Developed Economies Contract no: 029746-CRIPREDE Workpackage 2, Deliverables 2. 1 and 2. 2 Project Co-ordinator:
, through the investment decisions taken on the kinds of research undertaken in specific institutions. Of particular importance in this regard for the development of high-tech industries are the quality
Studies show for example that corporate investments in R&d, measured by corporate patenting by region within ICT industries in regions in the UK,
'This refers to the often heard criticism that Bangalore's success is only a result of the foreign investment because of low cost advantages
which consisted of heavy central government investment in strategic goods, was followed by liberalisation (market opening).
For instance, a lot of investments were made in infrastructure (e g.,, data networks) that supported the settlement of foreign enterprises.
The only exceptions to this are the Nordic pharmaceutical firms and some others with large R&d investments and good collaboration with universities (OECD 2001.
It is positioned‘uniquely to attract industrial and financial investments in the biomedical area'(Boston Consulting Group 2002.
It is the most important investment region in Scandinavia and ranked number three in Europe when it comes to the number of investment projects (Oresund Region 2006).
A main issue for the region is knowledge and learning, which helped making this region successful in terms of knowledge transfer between research and education institutions and industry:
The Role of R&d in Attracting Regional Investments. Copenhagen. Breschi, S. 2000: The Geography of Innovation:
They relate knowledge investment and input to performance or economic output throughout the innovation cycle.
Investment and input Performance/economic output Research R&d intensity 2011: 1. 21%(EU: 2. 03%;
-10.75%)Over the last decade, the Hungarian research and innovation system has made clear progress in the level of private sector investment and in overall R&d intensity,
In Hungary, inward business investment in R&d as a percentage of total BERD decreased between 2003 and 2007 in contrast to the majority of European countries where internationalisation of R&d increased over the same period.
However, the actual amount of inward business investment in R&d increased in nominal terms. Hungary has by far the highest ratio of inward FDI to GDP but only an average inward business investment in R&d intensity.
Hungary Spain and to a lesser extent Italy all suffered declines in intensity of inward investment in R&d over the period 1998 2007 (the latest period for
which data are available). Hungary has had a participant success rate of 20.4%in FP7 close to the EU average of 21.5,
This is probably due to the increased role of large foreign owned enterprises in business R&d investment.
Private investment in R&d is carried primarily out by a small number of large foreign owned enterprises making growth relatively vulnerable.
Hungary Competitiveness in reaping income of global demand and markets Investment in knowledge, technology intensive clusters,
(2) Rank within EU ENABLERS Investment in knowledge New doctoral graduates (ISCED 6) per thousand population aged 25-34 0. 50 0. 53 0
2008 2009 2010 2011 2012 Average EU Rank HUNGARY annual average (2) within growth (1) EU(%)ENABLERS Investment in knowledge New doctoral graduates
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