The SRIP report shows that Europe is a leader in science for the green transition, but needs to invest more in R&I and skills for the technological revolution.
On 27 May, the European Commission (EC) published the third edition of the EU’s Science, Research and Innovation Performance (SRIP) Report. The report summarizes the findings of an analysis of the EU’s performance in a global context and has since 2016 been compiled every two years. The 2020 edition highlights in particular the need for research and innovation (R&I) to support sustainable and inclusive growth of companies, countries and regions, while ensuring also less developed regions are included. It demonstrates that R&I policy plays a significant role in strengthening productivity and creating jobs and value in a sustainable way, and emphasises the importance of the right skills to keep pace with technological revolutions. In her foreword, Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth said, “The SRIP shows how R&I are crucial to bring about the ecological and digital transitions Europe needs”.
The methodology behind the SRIP report combines indicator-based macroeconomic analysis with in-depth analytical research. The results of this research are presented as a list of ten top facts characterising Europe’s global position in R&I. The EU is among the best players in scientific production for the green transition, it publishes 25% of the top-cited papers in climate sciences and 27% of the top publications for the bioeconomy, and it leads in patent applications in these fields. However, it still has not reached its 3% of GDP R&I investment target. R&I drive two thirds of the EU’s productivity growth, and the Union is a global leader in scientific excellence measured by its share in the top 10% highly cited publications, falling just behind the United Stated of America (US). The picture looks far gloomier for digital though; here the EU lags behind the US, China and others e.g. with respect to artificial intelligence (AI) firms. There also remains a long way to go in supporting tech firms: venture capital for scaling up is scarce, and seven out of ten top companies by market-capitalisation are American and Chinese tech giants. Too great are also the imbalances within the EU geographically and within the society. While 10% of the regions account for 50% of research and development investments, and the polarisation in the labour market is increasing as medium-skilled jobs disappear, also the gender gap in R&I remains high.
Analysis in the SRIP report also covers some countries outside the EU including Switzerland for comparison. It shows that Switzerland is only behind the US in terms of health of its entrepreneurial ecosystem and among the top in business R&D intensity. However, the country shares the polarisation of the labour market with its EU peers seeing a hollowing of medium routine task jobs. Together with the Nordic countries, Switzerland has one of the highest public R&D intensities in Europe and is a world leader in the percentage of top 1% most cited publications as well as in its share of patent applications per inhabitant. With respect to digital skills, Switzerland is competing closely with the Nordic countries and the Netherlands, outperforming most of the other EU member states. The high share of doctoral degrees in the population, second only to Spain, illustrate the high level of education in the country.
To close the identified gaps and address the twin challenge of the green and digital transitions while becoming a modern economy, the SRIP report proposes a set of policy recommendations. Policy will need to ensure that R&I contributes to a broad concept of sustainability, including social, environmental and economic aspects in line with the United Nations’ sustainable development goals (SDGs). It is therefore guided by five principles for a sustainable and competitive Europe: Co-creation for a better society, diffusion and sharing of knowledge, uptake of science into sustainable solutions, transformation of the way we produce and consume, and directionality with R&I leading the way. Based on these principles, the authors propose eleven policy headlines, which shall support people, planet and prosperity. Overall, a shift towards a transformative innovation policy shall propel the Green Deal, while leaving no one behind and equipping Europeans with skills to navigate a changing world. A vibrant and resilient R&I ecosystem will shape Europe’s competitive edge in the global race for technology and make it fit for the digital age. To maximise the value of R&I results, the EU’s regulation must become innovation-friendly and forward-looking.
Acknowledging the current Covid-19 crisis, the SRIP report also highlights the importance of R&I at the core of the response to the pandemic itself and in the recovery from the crisis delivering to the European Green Deal. R&I will play a crucial role in building resilience to future shocks.
The report concludes that Europe will need to put more efforts into turning research results into marketable solutions, building a strong European Research Area (ERA), and increasing the effectiveness of public research systems. The right policy mix must foster deep-tech and digital skills in a time when digitalisation is transforming R&I. Also of great importance are open science and sufficient investment in high-quality data infrastructures. To achieve the aspired goals and steer R&I efforts in the right direction, the next R&I framework programme, Horizon Europe, will play a central role through its mission-oriented approach and with its strategically selected European partnerships.