At the European Innovation Council Summit, Anna Panagopoulou, Director of ERA & Innovation at the European Commission, said the EU will do everything it can to deliver the twin green and digital transition.
To learn more, I sat down with Anna to get her take on the current state of EU innovation, where it’s heading, and how businesses big and small can play their part.
Why is investing in research and innovation crucial to achieving a just transition to a green economy?
Europe is the fastest-warming continent and is already experiencing climate impacts, from forest fires drought, flooding, and sea level rise. However, thanks to the outputs of the research and innovation we fund, the EU has successfully started decoupling economic growth (+ 60%) from decarbonization (-30%) in the last 30 years, and Europe also has a competitive advantage in the development of green technologies, outperforming both China and the US in areas related to climate adaptation and energy technologies. This has also been made possible to Horizon Europe, whose legal base provides for 35% spending target for climate action.
The New European Innovation Agenda (NEIA) aims to position Europe at the forefront of deep-tech innovation.
Research and Innovation will thus continue to play a crucial role in achieving EU’s policy objectives around the twin green and digital transition safeguarding EU’s open strategic autonomy and economic security. The European Innovation Council (EIC) is developing strong portfolios in areas such as ‘Low Carbon and Decarbonization Solutions’, which has attracted nearly EUR 300 million in support; Energy Storage and Batteries which has attracted over EUR 140 million; and Hydrogen with over EUR 90 million. Moreover, the Strategic Energy Technology Plan (SET Plan) now coordinates the R&I energy activities across the EU with a SET Plan Steering Group. The technology scope of SET Plan encompasses all strategic renewable energy technologies, and the implementation of the SET Plan is supported by the Clean Energy Transition Partnership, a partnership with 30 national, regional, and international funding agencies that align priorities, pool budgets, and implement joint calls.
Such mobilisation of support for research and innovation and associated ecosystem development will help accelerate the route to market of critical technologies, deliver on our policy ambitions, create jobs and achieve technological sovereignty in sectors critical to the future economy.
How can collaboration between the different parts of the innovation helix be fostered in ways that help to tackle societal challenges?
Multidisciplinary and cross-sectoral cooperation among the different parts of the innovation helix — academia, industry, government, and civil society – is essential for generating innovative solutions and address the most pressing societal challenges.
The New European Innovation Agenda (NEIA) aims to position Europe at the forefront of deep-tech innovation, and to do that, the Commission is supporting the creation of innovation ecosystems which bring together partners from different sectors to work on common challenges. As a flagship initiative, let me mention the Regional Innovation Valleys. This initiative aims to harness the potential of deep-tech innovation across the different EU territories and addresses the innovation divide. To do that, the Regional Innovation Valleys will create networks of regions, universities and promising scale-ups (among others) to collaborate in key areas and societal challenges (including food security, renewable energy, circular economy, digital transition, healthcare system).
Further, we are through the EIC facilitating cross-sectoral collaborations and providing support at scale to turn disruptive European science into groundbreaking commercial propositions and accelerate the scale-up of “game-changing” innovations in key areas such as Health and the Energy transition.
What would you say to early-stage companies about their importance to the green economy?
I invite all early-stage companies to explore the opportunities offered by EIC calls.
Deep tech innovations that are emerging from a growing cohort of innovative startups in the EU have the potential to drive innovation across the economy and society. This can in turn transform the EU’s business landscape and associated markets and help addressing the most pressing societal challenges, including the green transition.
To early-stage companies contributing to the green economy, I would say that your work is not just important; it is critical. The deep tech solutions you are working on are essential for addressing our most pressing societal challenges, including the green transition.
The European Commission is also aware of the challenges and opportunities you face. We have through our New European Innovation Agenda, put in place measures that cover the spectrum from access to finance, regulatory frameworks and access to talents amongst others to ensure that you as early-stage deep tech companies can take better advantage of the single market to commercialise and scale your companies from here in the EU. Also, let me mention the opportunities offered by the EIC, which was established to identify, develop and scale up breakthrough technologies and companies, which are critical for EU policies to achieve the green and digital transition and help ensure future open strategic autonomy in critical technologies. I invite all early-stage companies to explore the opportunities offered by EIC calls.
In these uncertain times, how can people be encouraged to pursue their creativity when the ‘safe options’ seem more sensible?
During uncertain times, it’s more important than ever to support and champion creativity and innovation. This requires effort at EU level to mitigate risks for creative minds and innovators.
This starts by attracting and retaining research, innovation and entrepreneurial talents in Europe. The European Union is a leader in the research workforce, with around 2 million researchers; however, it is projected that the EU will need to train and employ at least one million new researchers by 2027 to meet the targets for increased R&I investment. To this end, there is a pressing need for policies aimed at enhancing the appeal of research careers and improving the working conditions for researchers. Such efforts are vital for the establishment of a robust European Research Area. As a concrete achievement, last December the Council of the EU adopted the Recommendations on “promoting attractive and sustainable research careers, balanced talent circulation and international, transdisciplinary and inter-sectoral mobility across the ERA”. These measures will foster better working conditions for researchers in all sectors, including academia, business, industry and the public administration.
More broadly, and at firm level, innovation fosters economic resilience, and the resulting novel products and services stimulate competitive markets, and foster resilience by diversifying economic activities and reducing dependency on traditional industries. Innovation also helps firms to cushion the negative impact of economic disturbances. Following the COVID-19 outbreak, European fast-growing firms showed a high degree of resilience, managing to sustain investments. The ability to innovate as market conditions change also represents a key determinant of a firm’s survival.
Through the European Innovation Council and instruments like InvestEU, the Commission is actively working to lower the barriers that hinder innovation. These initiatives provide crucial financial support and resources, making it safer for companies to pursue their innovative ideas. By reducing the financial risks associated with creative projects, this can empower more innovators to follow their ideas, ensuring that Europe remains at the forefront of innovation and technological advancement.
With all the different schemes and programmes available, it can seem daunting for people with ideas – where should they start if they want to pursue funding and support for innovation.
The network of National Contact Points (NCPs) is the main structure to provide guidance, practical information and assistance on all aspects of participation in Horizon Europe. Also, for those seeking to navigate the funding opportunities available, the EU’s Funding and Tenders Portal serves as a central hub, offering detailed information on funding and tender opportunities, along with guidance on the application process.
However, it is important to recognise that EU R&I funding programmes constituted 7.2% of public R&I funding in Europe in 2021, and the significance of these programmes in relation to the overall public funding at the Member State level differs. The added value of EU R&I policy thus lies in its capacity to leverage Member States’ efforts and ensure a coordinated and synergistic approach towards collective goals. The Commission has thus set up a European Innovation Council (EIC) Forum – a platform where countries and the Commission can exchange good practices and coordinate their innovation policies. Further, over the past two decades, the European Research Area (ERA) has turned to be one of the most successful political instruments of the European Union to trigger – through R&I cooperation and common actions of the Member States – structural, economic and political changes in research and innovation, and beyond.
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