The report on Science, Research, and Innovation Performance in the EU genuinely illustrates the need for a stronger R&I sector.
The biennial Science, Research and Innovation Performance of the EU (SRIP) report 2024 has just been published by the European Commission, with the announcement from Iliana Ivanova, European Commissioner for Innovation, Research, Culture, Education and Youth. This comprehensive exercise of 500+ pages, entitled “A competitive Europe for a sustainable future”, sheds light on the European Union’s (EU) performance in science, research, and innovation, and provides key insights about its determinants.
Following an introductory chapter that provides an overarching view of the edition and details the EU R&I challenges, the report is split into two parts: The first part offers key analytical insights for the EU on topics such as (i) R&I, transition and geoeconomics, (ii) Scientific knowledge production, (iii) EU R&I ecosystems, and (iv) developing a thriving innovative Europe. The second part, which includes – among others – a contribution from a Swiss expert, Dominique Foray (Chair of Economics and Management of Innovation from EPFL in Lausanne), spans topics such as directionality in public research (Foray’s contribution) to technology sovereignty, but also the support of “high-costs high-risks” green start-ups to the corporate investments in innovation.
The 2024 edition highlights that R&D investments have increased in recent years but are still below the target of 3% of GDP. The EU is among the world’s strongest in terms of knowledge production, contributing to 18.1% of all scientific publications and being diverse in various innovation fields. However, it shows weaknesses in key technologies the EU should invest in to enhance productivity, such as the Internet of Things, blockchain, artificial intelligence and cybersecurity technologies. The venture capital market is also limited in a global comparison, and EU governments so far preferred tax incentives over direct subsidies to encourage private investments, leading to potential tax competition. The report identifies better utilisation of R&D ecosystems as a challenge for Europe. Regional differences between North, South, West and East still exist and must be addressed, e.g. with actions under the Framework Programme (FP) and European Structural and Investment Funds (ESIF). A separate chapter is dedicated to R&D in defence and security. The report shows that investments in defence are mainly focused on acquiring equipment and the final stages of development rather than on R&D and testing technologies. In this field, the report recommends, for instance, bridging the gap between civilian and military research and development to exploit the potential of dual-use technologies fully.
The SRIP report is a combination of various policy briefs, publications and reports. Among these is the latest Innovation Output Indicator (IOI) 2023, a report from the Joint Research Centre (JRC) tracking country innovation performance from 46 different nations, including EU Member States and selected EFTA, OECD, and emerging economies.
The IOI indicators measure various aspects of innovation output, such as patent and trademark applications, employment in knowledge-intensive sectors, and the domestic value added in high-tech exports. The 2023 results highlight that Sweden and Germany lead the EU 27 Member States in innovation output, with strengths in IP applications and high-tech manufacturing exports, respectively. Despite overall progress, notable gaps persist, with Romania, Latvia, and Poland lagging. The EU, while outperforming countries like China and Brazil, still trails behind top global innovators such as the US, South Korea, and Japan.
In the report, Switzerland emerges as a standout performer, maintaining its position at the forefront of innovation. It leads the IOI ranking thanks to its balanced excellence across all innovation dimensions, particularly in patent applications and high-value-added exports. Both reports underscore the importance of continuous innovation and strategic policymaking in maintaining and enhancing competitive advantages in a rapidly evolving global landscape.