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Europaudvalget 2010-11 (1. samling)
EUU Alm.del Bilag 227
Offentligt

European Commission, DG Enterprise and Industry

Att.: CIP Secretariat

BREY 13/092

B - 1049 Brussels

Belgium

MINISTER FOR ECONOMIC

AND BUSINESS AFFAIRS

Danish response to the EU public consultation on a new Competi-

tiveness and Innovation Framework Programme (CIP II)

MINISTRY OF ECONOMIC

In the wake of the economic crisis and deep recession, Europe finds itself

in a weakened position as to global competitiveness. If we want to create

growth in the EU in the coming years, it demands the willingness to make

the transition towards a knowledge and innovation based green economy

while ensuring consolidation of public budgets.

The Europe 2020 Strategy lays down an ambitious framework for making

the necessary transition of the European economy. It calls for action to

create an Innovation Union and to develop an industrial policy for a glob-

alised world while also strengthening the Internal Market, ensuring re-

source efficiency, mobility and raising a digital agenda for Europe which

includes the creation of a digital single market.

The current CIP programme

With the current Competitiveness and Innovation Framework Programme

(CIP) EU has established a programme structure to stimulate growth and

to foster competitiveness and innovation in small and medium sized en-

terprises (SMEs) in the European Union. The current CIP programme is

funded by the multi-annual financial framework and runs from 2007 to

2013 with an overall budget of EUR 3621 million.

Within the framework of CIP three separate operational programmes ex-

ist, namely EIP (entrepreneurship and innovation), ICT PSP (information

and communication technology) and IEE II (intelligent energy). With

SMEs as its main target CIP supports innovation activities (including

eco-innovation), provides better access to finance, improves framework

conditions and delivers business support services in the European Re-

gions. It also encourages a better take up and innovation of information

and communication technologies (ICT) and helps to develop the EU in-

formation society. Finally the programme promotes the increased use of

renewable energies and energy efficiency.

Recent information on the European Economy shows a significantly low-

er average growth rate compared to the US and the BRIC-countries. With

a lower level in research and development (R&D) and innovation, an in-

sufficient use of information and communication technologies and a less

dynamic business environment in the EU compared to other economic

AND BUSINESS AFFAIRS

Slotsholmsgade 10-12

DK-1216 Copenhagen K

Tel.

Fax

+45 33 92 33 50

+45 33 12 37 78

CVR no. 10 09 24 85

[email protected]

www.oem.dk

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partners, this calls for further action by the EU and justify the increased

focus on growth in the Europe 2020 strategy. It also lays the ground for

further development of the CIP programme to meet future economic chal-

lenges for European SMEs.

Perspectives for a future CIP II programme

A new Competitiveness and Innovation Programme (CIP II) for the next

multi-annual financial framework (2014-2020) is currently planned and

will be a central instrument to realise some of the initiatives within the

Europe 2020 Strategy.

In that respect CIP II for instance should strengthen instruments to over-

come market gaps and increase finance and guarantees for innovative

SMEs, start-ups and early growth phases for enterprises. It should also

strive to facilitate a strong coordination between research, innovation and

competitiveness programmes in order to orient innovative activities to-

wards the needs of society.

CIP II should work to exploit the EU potential to capitalize on a strong

technology base and create a large Green Single Market, e.g. by promot-

ing SMEs to use all forms of eco-innovation. It should contribute to the

removal of market barriers for sustainable energy and to creating a more

favourable business environment for increasing energy efficiency and re-

newable markets.

Keeping in mind the great potential of Information and Communication

Technologies (ICT) to further growth and innovation CIP II should also

prioritize the digital agenda and support the introduction of the digital

single market. Finally CIP II should continue providing a wide range of

access to finance for SMEs as well as incorporating the financial perspec-

tives directly to existing programmes that provide project support for

SMEs.

To meet these strategic challenges it is of utmost importance that the CIP

II has a significant volume and an efficient design while at the same time

being based on targeted policy principles. Denmark suggests that CIP II

should be developed on the following general principles:



The general budget for handling challenges concerning EU com-

petitiveness must be increased by redeployment from other budget

categories.

Future EU framework programmes concerning EU

competitiveness should have an increased budgetary volume in

order to meet the new policy targets set out in the EU 2020 strate-

gy.

The application procedure concerning the CIP II calls for pro-

posals must be simplified and funding to larger scale initiatives

should be prioritized.

This should ensure transparency in the EC



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selection of service providers and secure fair competition between

all SMEs regardless their size. Furthermore, CIP II should pro-

mote simplification of existing specific programmes within the

framework programme as well as prioritizing budgetary larger

scale initiatives.



CIP II should be a horizontal framework underpinning and link-

ing together strategic areas and policies.

The programme should

embrace areas such as green growth, sustainable and smart growth

as well as addressing the EU competitiveness and innovation poli-

cy directly to SMEs. Focus should be on capturing the added val-

ue in between policies by supporting them and ensuring positive

spill-over effects and to avoid overlaps. Furthermore, CIP II

should be presented and thought of as a unity.

The design of a future CIP II should contribute positively and targeted to

the EU competitiveness and innovation by supporting the Europe 2020

targets for smart, sustainable and inclusive growth as well as supporting

the coming Eco-innovation Action Plan. CIP II could fill out the role as

an effective implementation platform for several policy proposals in the

different Europe 2020 flagship initiatives: ‘Innovation Union’, ‘Industrial

policy for the globalisation era’, ‘A digital agenda for Europe’, ‘Resource

efficient Europe’ and ‘An agenda for new skills and jobs’. In that respect

the link to LIFE+

should also be taken into account.

In addition, CIP II should promote synergies with the new framework

programme for research and development (FP8) in order to establish a

clear link between research and development activities and the commer-

cialization of products.

Proposals for a set of policy principles in CIP II

It is of utmost importance to ensure coherence between all of the above-

mentioned general recommendations in order to provide strong frame-

work conditions for European SMEs. An ambitious CIP II framework

programme should rest on the core principles in Europe 2020 which

could form a solid and ground future for European work on competitive-

ness and innovation policy. With this response to the EU public consulta-

tion on CIP, Denmark thus proposes the following specific policy princi-

ples:

Support to the internationalisation of SMEs to help them benefit from the

EU and global markets

CIP II support infrastructure must be prepared so that European SMEs

can accommodate an increasing international competition and benefit

from a global economy. In order to help SMEs go international, they need

The Financial Instrument for the Environment (2007-2013)

http://ec.europa.eu/environment/life/funding/lifeplus.htm

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the right information and support in markets outside the EU. Therefore,

promoting creation, growth and internationalisation of SMEs also has to

be of part of a new EU integrated industrial policy.

Denmark supports the idea of promoting SME internationalisation. How-

ever, it is important to focus on real European value added and avoiding

duplication of existing initiatives both in the EU and at the Member-State

level. Any initiatives to promote SME internationalisation should be co-

ordinated and possible synergies with existing initiatives should be ex-

ploited.

Increased focus on high-growth entrepreneurship

High-growth entrepreneurs play an important role in contributing to eco-

nomic growth in the EU. However, whilst the improvement of the busi-

ness environment is a relevant aspect in the policy toward growth of

many countries, most of the existing initiatives used to promote high

growth entrepreneurs rely on the facilitation of access to finance and the

support to research, development and innovation.

Therefore, CIP II should pay specific attention to policy initiatives that

provide support to training and skill upgrading in young and small enter-

prises that have a clear growth potential; e.g. found in specific incubator

and accelerator programmes. This could also encourage the entrepreneur-

ial attitude in the EU in order to stimulate more growth ambitions in new

and existing enterprises.

Ensuring the right business environment for SMEs

The Internal Market is an important factor for growth in the EU. In times

of an economic crisis and a new world order where the largest growth is

mainly seen in the BRIC-countries, it is essential to make sure that the

EU also continues to increase its growth. In relation to the Internal Mar-

ket this also means that it is not only important to make sure that the In-

ternal Market works in practice on the ground – and thereby delivers a

business environment that benefits end-users in the Internal Market (e.g.

businesses, consumers, and employees) – but also that the policy tools

used are modern, flexible and innovation friendly.

Therefore, the right way to create a future innovation friendly business

environment is to use a modern policy tool box for the Internal Market.

This means a policy tool box where legislators and civil servants always

have the end-user of the regulation in mind throughout the entire policy

cycle. Such a tool box will make sure that the Internal Market delivers on

the ground because the business environment will be specifically de-

signed to fit the contexts and needs of the end-users. Furthermore atten-

tion should be paid on implementation, application and enforcement to

ensure that the rules and principles of the single market effectively sup-

port business opportunities throughout Europe. This also enhances com-

pliance and thereby the attainment of desirable policy goals.

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Increase the link between research, development and commercialization

CIP II should strive to raise the total amount of funds given to pro-

grammes that support market driven innovation. This counts for pro-

grammes that support commercialisation of products, market application

programmes as well as employee driven innovation.

In this respect the synergies between LIFE+, the future FP8 and CIP II

should undergo further investigation in order to secure a direct link be-

tween research projects, development of new innovative products in the

EU and the need for addressing environmental demonstration projects.

The use of standards based on the latest knowledge and technologies of-

ten provides an important foundation for the development of new and in-

novative products and services. Hence the role of standards in the value

chain between research, standardisation and innovation is a good example

of how research and state of the art knowledge can be effectively and le-

gitimately integrated into the innovation process, thus resulting in new

innovative products.

In addition, more focus could be kept on commercialization on research

initiatives, e.g. by including commercialization opportunities as a key cri-

teria for the selection and evaluation of new research and development in-

itiatives. This could contribute to a stronger interaction between research-

ers and European SMEs and increase their mutual benefits and access to

new knowledge.

CIP II should also be able to support bringing research results to market

i.e. by supporting proof-of-concept activities. This strives for a direct link

between FP8 cooperation programmes and specific sector programmes in

CIP II where there are clear overlaps, e.g. ICT, Intelligent Energy and

Eco-innovation.

Promote access to finance for European SMEs

Further priority of financial instruments managed by European Invest-

ment Fund (EIF) should be given in CIP II. CIP II financial instruments

should provide European SME’s and high growth companies with access

to finance on market based terms with a clear focus on European value

added.

CIP II should also provide further supply of early-stage venture capital to

innovative SMEs with high growth potential and take appropriate action

in order to support their innovative-driven activities. Finally further

strengthening should be given to the co-investment in funds and invest-

ments vehicles promoted by business angels through the existing finan-

cial instrument – e.g. risk capital for innovative SMEs in their early stag-

es (GIF 1).

Promote the use of all forms of Eco-innovation

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CIP II should strive to promote SMEs to use all forms of Eco-innovation,

should underpin the coming Eco-innovation Action Plan as well as

providing the necessary financial and business support. In that matter CIP

II should prioritize eco-innovation co-funding of financial instruments.

Specific and innovative allocation of financial instrument to eco-

innovation may be more useful than additional funding of traditional

measures. This will also be in line with the ambitious EU climate and en-

vironmental policy and research targets.

Within Eco-innovation there is a need to open up for demonstration pro-

jects - the step in the innovation chain prior to ”first application” and

”market replications” projects. European SMEs often find it very difficult

to find the necessary funding for e.g. the demonstration of new technolo-

gies within e.g. waste treatment methods and wastewater treatment. Eco-

innovation could be an effective instrument to close the gap.

In addition, Eco-innovation ‘first application’ and ‘market replication’

project fills an important gap in the innovation support chain and should

be prioritized in CIP II. Encouragement to take up of environmental tech-

nologies is needed in most “green areas”, which calls for an increase of

the CIP II budget allocated to this point. Enablers for green and innova-

tion-friendly public and corporate procurement should also be enhanced.

Furthermore, a larger eco-innovation programme will make it possible to

introduce two yearly calls for proposals, which will make the programme

much more in line with the planning horizon of SMEs and the overall

programme perspectives.

Creation of a digital single market in the EU

CIP II shall support information and communication technology’s poten-

tial to improve growth and productivity through an increased focus on the

creation of a true digital single market and thus access to high-speed

broadband and better digital skills. The European Commission estimates

that the Information and Communication Technologies sector is directly

responsible for 5% of European GDP and contributes far more to the

overall productivity growth (20% directly from the ICT sector and 30%

from ICT investments). Despite the impressive rates, ICTs still hold great

potential to further affluence, welfare and growth.

The European Commission recently published the Digital Agenda, the

first flagship initiative of the Europe 2020 strategy to be launched. The

initiatives include – among others - a digital single market and e-

Commerce, access to high-speed broadband everywhere and increased

digital skills to promote use of the possibilities on the net. These priorities

should be reflected in CIP II.

CIP II should prioritize to set up an interoperational environment build

upon national systems and infrastructures supporting SME activities. An

increased focus on the standardization and interoperability of e.g. ICT

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public contracts across national systems will provide further cross border

trade for SMEs. This will also lead to further innovation on the ICT mar-

ket for the benefit of EU growth and competitiveness.

Enhance the use of renewable energies and energy efficiency

Sustainable energy policy has become an important part of the European

strategy, set up in Europe 2020, including the so-called ‘202020’ climate

and energy package from 2008. This emphasis on energy policy is also

reflected in article 194 of the Lisbon Treaty.

Current reviews indicate that EU must make extra efforts in achieving the

targets set in ‘202020’ by reinforcing the EU acquis in new and revised

directives, and in follow up to implementing measures. At the same time,

energy supply will demand access to new resources and huge investments

inside EU over the next decades, including substantial innovation.

So obviously, an energy strategy must be supported by a multitude of ac-

tions on an EU scale. This is also emphasised in the Strategic Energy

Technology Plan (SET Plan) from 2008 and should be reflected and ac-

companied by future support programmes for sustainable energy.

Over the last decade, the programme Intelligent Energy Europe (IEE2)

has developed as a valuable instrument in implementing sustainable ener-

gy policies. The programme has expanded and is now gradually being ad-

justed to the new challenges and opportunities:



the clear link to climate and energy policies should be maintained

as an indispensable precondition, including the SET Plan

investments in energy efficiency and renewable energy should be

stimulated further

the involvement and of local actors, municipalities, SMEs, build-

ing work force and owners, etc. should increase

product innovation and market replication related to sustainable

energy could develop further, also in a global context.

On this basis, an IEE3 could be designed as a strengthened continuation

of the previous programmes. The link to CIP II and other programmes

should be clear and avoiding unnecessary overlap or duplication.