European Union

Russia and Ukraine on Tuesday (4 July) accused each other of plotting to stage an attack on the Russian-held Zaporizhzhia nuclear power station, long the subject of mutual recriminations and suspicions.

The Polish opposition should side with democracy and human dignity, socialist MEP Robert Biedroń (S&D) said about opposition leader Donald Tusk’s new election campaign spot, which he called ‘racist’ and ‘mindless’. Tusk, head of the centrist Civic Platform (PO) party,...

Alberto Núñez Feijóo, leader and prime minister candidate of centre-right Partido Popular (PP), called on the Socialist Party (PSOE) on Tuesday to let him govern if he wins the upcoming general elections in Spain, saying this would prevent the far-right...

The government needs to break up its national rail operator Deutsche Bahn to counter grave quality deficits of the railway system, the German Monopolies Commission warned on Tuesday. Germany privatised its national railway company in 1994, but the emerging company,...

Spanish Prime Minister Pedro Sánchez expressed support for a more federalised EU as his country recently took over the Spanish EU Council Presidency while backing the mandate renewals of EU Commission chief Ursula von der Leyen and NATO Secretary General...

The number of cancer cases in France has doubled since 1990, according to the latest data from national health organisations, in part due to the changing demographic.

Hungary has all-but dropped its veto on Sweden's Nato entry, as Turkey dials down rhetoric despite a Koran-burning scandal.

Kazakhstan is “completely dependent” on Russia when it comes to balancing energy needs and the best solution is to create a transnational electricity grid in Central Asia, similar to the one in Europe, a Kazakh expert told a Brussels audience on Tuesday (4 July).

The main political groups of the European Parliament are expected to reach a common position on the new cybersecurity regulation at a political meeting on Wednesday (5 July).

Mental health problems among the young are on the rise. A proposal from the Spanish presidency, dated 23 June and seen by EUobserver, stresses the urgency of tackling the problem and sets out a series of policies to address it.

Doubts have been cast on whether Greece will carry out a proper criminal investigation into the 14 June sinking of the Adriana trawler that has likely killed over 500 people.

As EU countries phase out coal, they support their affected regions in transitioning economically. Now it appears that such a regional policy to cushion climate action is needed elsewhere, too: To defuse social dynamite in rural areas, Europe must prepare its cow phase-out.

The European Central Bank is pursuing the severest policy of monetary belt-tightening Europe has seen in decades, with little public debate about the political and societal consequences of a policy-induced recession.

Paris is in talks with the European Commission to avoid penalties for having missed its 2020 objective under the EU’s renewable energy directive and failing to make up for the shortfall.

As the EU takes a critical look at the revision of the Packaging and Packaging Waste Directive (PPWD), key stakeholders gathered in the European Parliament to discuss the delicate balance between protecting products, preventing waste, and fostering sustainable economic growth....

Brussels can also go further and warn Moscow that any nuclear incident — for example, at facilities such as Ukraine's Zaporizhzhia nuclear power station, under Russian control since March 2022 — will also be considered a nuclear attack.

Over 450 shops have been entirely looted and 300 bank points burnt to the ground in the week of riots that shook up France, the president of the employers’ union MEDEF revealed on Tuesday (4 July).

DRAFT REPORT on the implementation on the EU-UK Trade and Cooperation Agreement
Committee on Foreign Affairs
Committee on International Trade
Seán Kelly, Andreas Schieder

Source : © European Union, 2023 - EP

Talks at the UN International Maritime Organization headquarters in London are reportedly divided between wealthier nations, who want to see stronger shipping emissions targets, and developing countries concerned by the economic impact of green restrictions.

 

This article is based on research presented at the UACES Graduate Forum 2023 (8-9 June, at IBEI, Barcelona).

 

The European Union’s (EU) innovation policies are characterized by their evolutionary dynamics and remain a subject of substantial scholarly attention. A report of the European Parliamentary Research Service (2016) explains that initially, innovation was primarily associated with the establishment of a research-related policy, which later became connected to industrial policies. The first action plan that aimed to promote innovation at the European level was only adopted 1996. This plan was specifically developed to address the ‘European paradox,’ which refers to Europe’s limited ability to transform scientific advancements into successful industrial and commercial outcomes.  

Subsequently, policy recognition of the role of technological innovation has increased, being spurred by rising concerns about Europe’s technological leadership and technological sovereignty. Yet, despite seemingly greater policy attention, in 2012 Lipkova observed that the EU lags behind the world’s leading innovators – the United States, Japan and South Korea. A more recent 2021 analytical report, prepared for the European Parliament, cautioned that Europe faces challenges in commercialising scientific research achievements. According to the report’s global comparative perspective, non-European enterprises are responsible for the bulk of currently successful business models and products. 

 

Fostering Innovation

The EU’s commitment to fostering and promoting innovation has now become a cornerstone of its economic and social policies, driving growth and development. However, understanding the conceptual strengths and weaknesses of pan-European innovation policy requires re-engagement with classical scholarship. Joseph Schumpeter’s seminal work on the theorization of the dynamics of economic change– as a result of long-term technological change and attendant productivity enhancement– is particularly relevant. His concept of ‘creative destruction’ is noteworthy as it captures the process by which new innovations and ideas displace established ones, leading to the destruction of old industries and the creation of new ones. However, despite its merits, Schumpeter’s classical analysis has been criticised for placing technology in a ‘black box’ – i.e., neglecting to theorise it comprehensively. While acknowledging the importance of innovation and technological capabilities for productivity growth, Neo-Schumpeterian scholars argue for a more systemic and broader contextual understanding of the innovation process. Inspired by this approach, this discussion will explore the the relevance of neo-Schumpeterian analytical perspectives on understanding the evolution of European innovation policy. 

 

Smart Specialization Strategy (S3)

One of the key mechanisms through which the EU has sought to promote innovation is the Smart Specialization Strategy (S3), which aims to identify and build on the unique strengths and competitive advantages of different regions within Europe. According to the United Nations Economic Commission for Europe (UNECE), governments adopt the S3 to create policies that are responsive to market signals. This approach enables governments to harness the skills, resources, and competencies of the enterprise sector, thereby fostering innovation and creating new comparative advantages. 

Since its conceptualisation in 2009, the S3 has played a significant role in shaping the EU’s regional cohesion and innovation policy. Dominique Foray (2018), an eminent theorist of the strategy, explains that each region is distinguished by its capacities, requirements, and possibilities. The scholar argues in favour of a particular type of regional specialisation: one that capitalises on regional assets or potentials, rather than a strategy that disperses Research & Development (R&D) funding thinly across a number of frontier technologies and research sectors. According to Foray, David and Hall (2009), if European regions attempt to create similar programs in an imitative manner, this could result in an overabundance of duplicated Research & Development and educational investment, ultimately reducing ‘the potential for complementarities within the European knowledge base.’  

While existing literature on S3’s strategy suggest that it is grounded in a Schumpeterian emphasis on innovation and economic growth, the mechanism for innovation aligns more closely with neo-Schumpeterian perspectives on the critical roles of technological change and knowledge creation as key drivers of economic growth and development. As a result, the S3 strategy makes several significant contributions to European innovation policy.  

 

The Benefits of the S3 strategy

Firstly, shifting the focus from individual entrepreneurs to regional strengths, S3 re-scales the innovation process from a Schumpeterian entrepreneurial micro-scale or a pan-European policy landscape to the scalar construct of European regions. This encourages regions to focus on their key advantages in order to develop innovative solutions that can create new economic opportunities. The S3 framework also highlights the systemic nature of innovation as a process within Regional Innovation Systems (RIS), while emphasising the need for policy efforts to promote RIS. Moreover, the strategy acknowledges the complex and dynamic nature of innovation by stressing the importance of fostering diverse interactions among various RIS stakeholders.  

Furthermore, collaboration is highlighted as an important mode of interaction among the innovation system’s actors– universities, research institutes, and businesses– as it facilitates the development and implementation of innovative solutions to regional challenges. Emphasising the role of knowledge and learning in the innovation process, the strategy valuably recognises the importance of continuous knowledge exchange among stakeholders. Finally, by embracing a symbiotic connection between the key concepts of the S3 strategy, European regions can enhance their competitiveness and innovation in the global market. Adopting this strategic approach enables all actors involved in an innovation system to leverage their strengths and work together more effectively. 

 

Conclusion

This article accentuates the significance of neo-Schumpeterian analytical perspectives for understanding the evolution of European innovation policy. The Smart Specialisation Strategy (S3) has become attuned to the regional diversity of the European innovation landscape, as well as to the diversity of RIS stakeholders and their interactions. In recognising and developing regional strengths and capacities, the S3 policy aligns with neo-Schumpeterian approaches to innovation, thereby emphasising the symbiotic nature of key RIS characteristics. In summary, the S3 framework provides a useful lens for understanding the evolution of European innovation policy and the importance of RIS in driving economic development forward. 

 

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