Lisbon Strategy: Progress, Challenges, and Renewed Focus

1. Lisbon Strategy • Examine the Lisbon strategy • Analyse its progress • Explore how the strategy is being implemented by the EU

2. Background • At the Lisbon Summit in 2000, the European Union set itself a new agenda • Aim: to make the European Union "the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment by 2010". • US economy had begun to outperform all but the very best of the individualEuropean economies • Europe had to act with determination in context of mountingeconomic challenge from Asia and the slowdown of European population growth

3. Overall Strategy • Preparing and facilitating the transition to a knowledge-based economy and society • In EU countries many governmental guidelines aim at developing an activeknowledge-based economy • The Lisbon Declaration of 2000 aimed to bring all EuropeanUnion countries together into a sound strategy to effect change and to benchmark progress in order to harness knowledge for development and wealth • A comprehensive but interdependent series of reforms • Important for Member States to act collectively

4. Main focus Based on the economic concepts of: • Innovation as the motor for economic change • The "learning economy" • Social and environmental renewal

5. Primary aims • Combine economic dynamism to create higher growth and employment rates withlongstanding European concerns to advance social cohesion, fairness andenvironmental protection • Raise private and public researchand development spending as the centrepiece of a concerted effort toincrease the creation and diffusion of scientific, technological andintellectual capital • Foster trade and competition by completing thesingle market and opening up hitherto sheltered and protected sectors • Securemore flexibility and adaptability in the labour market by raising educationaland skill levels, pursuing active labour market policies • Encouraging Europe’s welfare states to help the growth of employment and productivity • Growth to be environmentally sustainable

6. The importance of the knowledge economy • Success in the knowledge economy seen as the key to allowing Europeto remain both open and socially cohesive • The more Europe could sustain itself as ahigh productivity, high value-added, high employment economy, the betterable it would be to create the wealth and jobs that would allow it both tosustain its vital commitment to open markets and to social andenvironmental Europe

7. A joint approach • Combination of the traditional ‘Community method’ of EU legislation and via a new process known as the ‘open method of coordination’ • Member States agree to voluntarily cooperate in areas of national competence and to make use of best practice from other Member States • Role of European Commission in coordinating the process • Stimulate and create the necessary peer pressure to achieve goals bypublicising results achieved by individual Member States • Lisbon strategy would deliver much needed growth and jobs while requiring Member States voluntarily to coordinate their policies

8. Criticism • Strategy sometimes criticised for neglecting the importance of the traditional industrial strengths ofthe European economy • Vital that Europe retains astrong industrial and manufacturing base as a crucial component of abalanced approach to economic growth • Industrial growth andproductivity since industrialisation have always been underpinned byadvances in technologies and sectors • A vigorous knowledge economy needs a strong high-tech manufacturing sector making high-tech goods atthe frontier of science and technology

9. Ongoing development • In 2005, the EC refocused the Lisbon Strategy on actions that promote growth and jobs on the basis of social and environmental renewal, innovation as the motor for economic change, and EC Recommendations on the “learning economy” • Refocused Lisbon Strategy emphasized efforts to enable public research institutions to develop more effective links with industry, in particular SMEs

10. Developments in 2007-2008 • In 2007, The EC’s Communication COM(2007) 182 encouraged scientific, technological and R&D interactions in Europe as a means of implementing the Lisbon Strategy • In April 2008, The European Commission launched recommendation C(2008)1329 “on the management of intellectual property in knowledge transfer activities and Code of Practice for universities and other public research organisations” • Advises about the principles regarding collaborative and contract research compatibility, clarity, ownership and access rights.

11. A renewed sense of urgency • Lisbon strategy seen as even more urgent today as growth gap with North Americaand Asia has widened • Europe facing combined challenges of lowpopulation growth and ageing • Requires better delivery from the European institutions and Member States through greater political commitment, broader and deeper engagement of Europe’s citizens

12. Recent recommendations • A high level working group recently proposed urgent action across five areas of policy: • Knowledge society • Internal market • Business climate • Labour market • Environmental sustainability

13. Implementation • The 'knowledge triangle' - research, educationand innovation - a core factor in European efforts to meet the Lisbon goals • Numerous programmes, initiatives and support measures are carried out at EU level in support of knowledge • Translation of the Lisbon Strategy goals into concrete measures led to the extension of the Framework Programmes for Research and Technological Development into FP7 and the Joint Technology Initiatives (JTIs)

14. The main objectives of FP7: Specific programmes • The Seventh Framework Programme (FP7) brings all research-related EU initiatives together • Plays a crucial role in reaching goals of growth, competitiveness and employment • A new Competitiveness and Innovation Framework Programme, Education and Training programmes, and Structural and Cohesion Funds for regional convergence and competitiveness • A key pillar for the European Research Area (ERA) • The broad objectives of FP7 are grouped into four categories: Cooperation, Ideas, Peopleand Capacities. For each type of objective, a specific programme corresponding to the main areas of EU research policy

15. Joint Technology Initiatives (JTIs) • Joint Technology Initiatives (JTIs) are public-private partnerships set up atEuropean level to address strategic areas where research and innovationare essential to European competitiveness • JTIs support large-scale multinational researchactivities • Bring together private and public partners to define commonobjectives • Combine funding and knowledge in order to fulfill these objectives

16. How are JTIs set up? • JTIs generated from the work of European Technology Platforms • European Technology Platforms bring together a broad range of stakeholders –industry, including SMEs, researchorganisations, civil society organisations and the public sector – to defineStrategic Research Agendas in particular fields • Criteria include: • Strategic importance of the topic and clear objectives • Existence of market failure • Added value of action at European level • Substantial, long-term industry commitment • Inadequacy of existing Community instruments

17. Who can participate in the research activities of a JTI? • Private companies, researchorganisations, universities and other stakeholders are eligible to become members during the lifetime of a JTI • Various organisations can participate in projects carried out in the frame of JTIsthrough responding to calls for proposals • Key principle is that research should be performedin Europe

18. Who finances JTIs? • The EC and Member States that are part of a JTI commitfunds from their research budget on an annual basis • Matched by in-kindcontributions fromindustry, which covers at least 50% of total cost of the research projects • JTIs may also be financed through additional sources, such as theEuropean Investment Bank, the Structural Funds and additional private investmentat European or national levels

19. How will JTIs benefit European citizens? • By contributing to key challenges for the European economy and society, e.g: • Environmentally-friendly aircraft critical to addressing the global problemof climate change • New techniques to predict safety and efficacy of new medicines willimprove public health. • By focusing on the major technological challenges where Europe must succeed, e.g: • It is predicted that some 40 billion devices will be embedded by 2020. BoostingEuropean capabilities in embedded computing systems is a priority.

20. Boosting growth and employment • Nanoelectronics affect a wide range of industries, ranging fromtelecommunications to transport to healthcare. The sector is a significantgenerator of highly qualified jobs, with an estimated market sizeof € 5 000 billion

21. Links • Lisbon Strategy: http://ec.europa.eu/growthandjobs/index_en.htm • FP7: http://cordis.europa.eu/fp7/home_en.html • JTIs: ftp://ftp.cordis.europa.eu/pub/fp7/docs/faqs-jtis_en.pdf Thank You! Barbara Baker