INNOVATION IS KEY FOR SUSTAINABLE ECONOMIC GROWTH AND EMPLOYMENT

Europe should support advanced technologies and innovation to remain globally attractive. There are several measures that need to be taken to compete more successfully with some of the global destinations. Some of the world’s most innovative and entrepreneurial cities have certain ‘hard’ features in common:

• Large companies
• Solid infrastructure
• Easy access to finance
• Strong skills base

However, key differentiators lie in their creative potential, so the presence of academic institutions, including universities and research organizations, with renowned scientists and highly skill researchers are some of the indicators of success.

Innovation could put Europe on the path toward faster and more sustainable economic growth and employment.

Key Reforms Required for Innovation

1. Reduce bureaucracy
2. Improve education and training in new technologies
3. Develop a culture of innovation and creativity
4. Reform labour laws
5. Increase tax incentives for innovative companies
6. SMEs
7. Reduce taxes
8. Develop entrepreneurship
9. Develop joint research projects at the European level
10. Develop venture capital and other financial tools

Critical to a dynamic, self-sustaining culture of innovation are SMEs which account for over 99% of all European businesses. Small companies can be more agile and flexible in responding to new technologies. In many sectors, such as biotechnology, and ICT, small companies can also emerge as developers of new technologies. With SMEs playing such a key role in innovation, there is an urgent need to revamp the entrepreneurial environment in Europe.

Most Innovative EU Member States

1. United Kingdom
2. Sweden
3. Finland
4. Netherlands
5. Denmark
6. Luxembourg
7. Ireland
8. Germany
9. Austria
10. France