EU and China to debate economic and trade issues at high level dialogue

The EU and China will hold their third High Level Economic and Trade Dialogue (HED) on 20 and 21 December in Beijing. It is the first such meeting since the entry into force of the Lisbon Treaty and will cover macro-economic challenges facing the international economy, competition questions as well as trade, investment, innovation, and customs cooperation.

Commission Vice-President in charge of competition policy Joaquín Almunia said: "The European Union and China are both global partners that have much to gain from each other. It is our interest to develop economic relations that are mutually beneficial and provide the best opportunities for our respective citizens. The EU and China must both be actors in the solution of global challenges such as current macro-economic imbalances, development of trade flows, access to raw materials and the need for a more efficient energy use worldwide."

"European businesses have vastly contributed to China’s economy over the last decade," said EU Trade Commissioner Karel De Gucht. "We want to stay in the game and be part of China’s future economic development. A constructive dialogue that looks at both the challenges and the opportunities is the way to make this happen."

The HED offers an opportunity to discuss EU-China relevant topics across the board. It is co-chaired by European Commission Vice-President in charge of competition policy Joaquin Almunia, Trade Commissioner Karel De Gucht, Commissioner for Economic and Monetary Affairs Olli Rehn as well as Chinese Vice-Premier Wang Qishan. The EU will further be represented by Commissioner for Taxation and Customs Union Algirdas Šemeta, Director General for Enterprise Heinz Zourek and Deputy Director-General for Information Society Antti Peltomaki.The meeting takes place as the global economy is gaining a more solid foothold and at a juncture where both the EU and China are moving forward with bold plans for the future of their economies. It is important for the EU and China, two of the largest economies in the world, to discuss the economic challenges they face. Both EU and China can contribute, through their policies and enhanced bilateral cooperation and within the G20, to more solid, sustainable and balanced global growth.

News source: EU Press Room link: article

 

More spending needed in science, technology and innovation: OECD

The Organisation for Economic Co-operation and Development (OECD) says in its latest annual report that OECD members and non-members must drive science, technology and innovation (STI) investment in order to contend with intensified global competition and bolster long-term growth. STI offers societies the potential to tackle the myriad challenges they face, such as health issues and demographic change. Maintaining STI investment is key.

The 'Science, Technology and Industry Outlook 2010' highlights that OECD members posted sluggish research and development (R&D) spending figures, with annual growth shrinking from more than 4% in recent years to 3.1% in 2008. Patent numbers rose by more than 2% from 1995 to 2008, but growth has weakened in recent years, and the number of OECD-area patents dropped in 2008. Trademarks also decreased by 20%. The report suggests that a rise in quality triggered the drop in the quantity of patents. Companies may also be opting for other ways to safeguard their knowledge base such as collaborative information science mechanisms.

Businesses were forced to rein in their efforts to maintain innovative activity, and trade and foreign investment have adversely affected the global value chains. This in turn has hampered businesses' technical expertise and market intelligence. However, the OECD found some positive results as well. Despite the crisis that has played havoc on the global economy in the last two years, a number of countries have reported surges in spending. Germany, South Korea, Sweden and the US have in fact given their long-term innovation a boost by increasing spending on public research. Moreover, all OECD members, save for the US, reported increases in their output of scientific articles between 1998 and 2008.

The report also notes how emerging economies continue to increase their R&D spending. Russia, for example, reported that R&D spending in 2008 was equal to 2% of the OECD total, which is nearly equal to the shares of Canada and Italy. 'Investment in science and technology is an investment in the future,' says OECD Secretary General Angel Gurría. 'At a time of fiscal consolidation, countries must carefully consider the long-term impact of spending cuts on science and technology. There is also a need to increase the efficiency of this spending. The right governance structures should be in place if countries are to make the most of the resources devoted to science and technology.'

So how can we give innovation a boost? The OECD report highlights a number of issues that need to be resolved. For instance, governments should establish a new shared system for the governance of international cooperation in science and technology so as to tackle the challenges that affect us all including climate change. Members should also enhance policy support at various stages of the innovation value chain such as entrepreneurship. The report also notes how the information and communication technologies (ICT) infrastructure should be upgraded and greater access to public research data should be offered. Finally, policy at the international, national and regional levels should be coordinated better. 

News source: Cordis link: article

Prioritise investments to safeguard growth and jobs, ministers say

The EU must prioritise investment in education, training, research (fundamental and applied), development and innovation as well as key technologies if it is to safeguard its sources of future growth and jobs, according to EU research and industry ministers. The recommendation is one of many contained in the conclusions on the 'Innovation Union' initiative issued by participants at the latest Competitiveness Council, which took place in Brussels, Belgium on 25 and 26 November. The Innovation Union is one of a number of flagship initiatives launched under the banner of the Europe 2020 strategy. In their conclusions, the ministers stress : 'Scientific excellence and basic and applied research, supported by world-class infrastructures, life-long learning, training and higher education, in particular in science and engineering, as well as incentives for commercialisation of results, are preconditions for an efficient innovation system.'

In another 'key message', the ministers call on both the EU and Member States to take a 'strategic and integrated approach to innovation', by aligning policies designed to contribute to innovation. In a similar vein, the ministers underline the importance of strengthening the 'knowledge triangle' and facilitating commercialisation and knowledge transfer. At the EU level, the Framework Programme for Research and Technological Development (RTD), the Competitiveness and Innovation Framework Programme (CIP) and the Structural Funds should all 'focus more on the priorities of the Europe 2020 strategy'. Access to these funds should also be 'radically simplified' ministers underline. According to the ministers, ensuring access to finance for innovation activities, particularly for small and medium-sized enterprises (SMEs) should be a 'top priority for action'.

Ministers welcome the idea of the European Innovation Partnerships (EIPs), emphasising that these structures should 'provide genuine European added value, address societal challenges, avoid duplications, and be based on flexible, simple and transparent governance associating Member States and relevant stakeholders'. The ministers go on to invite the European Commission to carry on developing the practical aspects of the EIPs, notably with regard to funding, selection criteria, governance, and legal issues. The Commission, Member States and other stakeholders are invited by the ministers to launch a pilot EIP on active and healthy ageing in early 2011. In fact, the European Commission launched a consultation on this very subject on 26 November.

The ministers' conclusions on the Innovation Union end with a roadmap for actions. Among other things, the European Commission will present a communication on standardisation, an eco-innovation plan, a consultation on measures needed to achieve the European Research Area (ERA), and proposals on what is needed to achieve a genuine European Venture Capital Market. Finally, ministers invite the European Commission to start work on the development of an innovation indicator. The indicator, which should be ready by 2012, would help monitor overall progress on innovation performance in all dimensions.

Furthermore, Commission, Member States and others are invited to launch an annual 'innovation convention' in the second half of 2011 and run awareness raising campaigns at the European, national, regional and local levels in order to 'stimulate and innovation mindset'. For their part, Member States are invited to develop strategies to meet their national research and development (R&D) targets and improve the use of the Structural Funds for research and innovation. Elsewhere at the meeting, ministers discussed the issue of a European patent. In a statement, European Commissioner for Internal Market and Services Michel Barnier said: 'As everyone knows, there is no unanimity in Council on the language regime for the European patent. Several Member States have today indicated their support to move towards enhanced cooperation. As soon as the Commission receives a formal request, we will be ready to take action quickly and seriously.
'We need a European patent. The current system for the patent is too expensive; it costs 10 times more than in the United States. It impedes growth. And it is small and medium sized businesses - genuine sources of dynamism for the future - which are suffering most from it. We thus need to move forward quickly on this issue. The December Competitiveness Council will be the opportunity for this.' 

News source: CORDIS link: article

More than half of EU27 enterprises are innovative One in nine innovative enterprises cooperate with European partners

In the EU27, 52% of enterprises from industry and services reported innovation activity between 2006 and 2008. Among the EU27 Member States, the highest proportions of enterprises with innovation activity in this period were recorded in Germany (80% of enterprises), Luxembourg (65%), Belgium and Portugal (both 58%) and Ireland (57%). The lowest rates were observed in Latvia (24%), Poland (28%), Hungary (29%), Lithuania (30%) and Bulgaria (31%). This information, which comes from the Community Innovation Survey 2008, covering the EU27 Member States, Norway and Croatia, is published by Eurostat, the statistical office of the European Union. The survey contains a broad set of indicators on innovation activities of enterprises and provides for the first time information on innovation with environmental benefits.

A third of innovative enterprises cooperate with external partners. Among enterprises with innovation activities in the EU27, 34% cooperated with other enterprises, universities or public research institutes in 2006-2008, while the remaining 66% innovated using only internal resources. The highest proportions of innovation co-operation were found in Denmark (57% of all innovative enterprises), Cyprus (51%), Belgium and Estonia (both 49%), and the lowest in Romania (14%), Italy (16%), Bulgaria and Latvia (both 17%). In the EU27, 11% of innovative enterprises had innovation cooperation with a partner in another EU27 Member State, EFTA or candidate country4, 3% with a partner in the United States and 2% with a partner in India or China. Innovation cooperation with a European partner was highest in Slovenia (35% of all innovative enterprises), Estonia (33%), Belgium (30%), Luxembourg (28%), Finland and Slovakia (both 26%), and lowest in Spain and Italy (both 4%), Bulgaria and Ireland (both 6%) and Germany (7%). For cooperation with partners in the United States, Sweden and Finland (both 11%), Belgium and Luxembourg (both 9%) had the largest shares. Sweden and Finland (both 7%) and Belgium (6%) had also the highest shares of cooperation with partners in India or China.

News source: Eurostat link: publication

Possible senior EBRD loan for the refurbishment, extension and operation of Hotel Crna Gora

Refurbishment, extension and operation of Hotel Crna Gora (the “Hotel”, or “Project hotel”), an existing hotel of 150 rooms located in a prime central location of Podgorica, Montenegro. After refurbishment, the Project will comprise of the Hotel, with approximately 200 rooms, which will be operated at international hospitality standards under the Hilton brand, a spa centre, congress centre, underground garage and a retail gallery of 5,500 m2 Gross Leasable Area within the Hotel complex. The Project is being built in 2 phases. The project will introduce an international standard hotel chain into the city that currently lacks accommodation in the premium / institutional range of the market.  

Market expansion (through backward linkages) and improved business standards. The Project will contribute to a significant upgrading of technical and managerial skills in the economy beyond the Project entity both at the hotel construction and operating stages. Construction companies involved in the Project will be required to deliver an international standard hotel product in full compliance with Hilton’s specifications. Once the hotel is fully operational, the employees will benefit from thorough training in customer service, marketing and hospitality, as well as catering management, to ensure that an international standard of service is achieved.

The Project will set a new benchmark in its innovative design and quality. The Project will introduce an international premium hotel chain. It is expected that the demonstration effect of the Project is two-fold and particularly strong since many hotel operators and financial institutions still shy away from the perceived risks and obstacles related to hotel operations in Montenegro. Observing a successful hotel project will lead, on the one hand, other international hotel operators to consider expanding their operations into Montenegro, and on the other hand, it will also encourage commercial banks and equity investors to look at similar projects in the future.
Crna Gora Hotel d.o.o, a special purpose company to be incorporated in Montenegro (“the Borrower”). And applied for a senior loan of up to EUR 23.9 million.

News source: EBRD link: article

Competitiveness Council takes on innovation, patents and more

Innovation, patents and simplification topped the agenda at the latest meeting of the Competitiveness Council in Luxembourg on 11 and 12 October. Summing up the outcomes of the gathering, Jean-Claude Marcourt, who is among other things Minister for the Economy, SMEs (small and medium-sized enterprises), Foreign Trade and New Technologies of the Belgian region of Wallonia said: 'Member States are relying on innovation.' The European Commission released its plans for the creation of an 'Innovation Union', part of the wider Europe 2020 strategy, on 6 October. Ministers broadly welcomed the European Commission's approach, underlining the importance of placing innovation 'at the core of the EU's internal market for boosting competitiveness'. The Belgian Presidency of the Council of the EU hopes to submit a set of conclusions for adoption at the 25 November meeting of the Competitiveness Council. The discussions will also feed into the wider debate on innovation which EU leaders will hold in December.

Another issue under discussion in Luxembourg was the EU patent. It is widely acknowledged that an EU patent is essential for encouraging innovation and boosting competitiveness. However, the question of translations has hampered progress towards an agreement on this subject. Under a European Commission proposal, EU patents would be granted in one of the official languages of the European Patent Office (EPO), i.e. English, French or German. Applicants would only have to provide translations into these languages; no further translations would be needed to enforce the EU patent throughout the EU. A 'very large majority' of Member States support a compromise set out by the Belgian Presidency, highlighting the importance of making available high-quality machine translations into all EU languages as well as compensation for the costs of translation of a patent application drafted in an EU language other than one of the official EPO languages.


News source: Cordis link: article

Croatia´s electrical car project looks for investors in diaspora

The creator of Croatia’s first electric car is looking to attract private investors from Croatian diaspora in order to finance production of the vehicle. Vjekoslav Majetic, the owner of Dok-Ing Automotive, says that future shareholders would have 49 per cent of ownership over the company. That would mean that Dok-Ing would not be listed on the Zagreb stock exchange, but that the shares would be sold to known interested investors. Majetic is particularly looking to the Croatian diaspora, which he says, has shown a lot of interest in the project.

While it was previously reported in the media that Majetic planned to link up with the world’s leading auto-mobile companies, he says these are not his intentions. He is, however, negotiating with potential investors. At the beginning of 2011 he plans to start a pre-series production that would be financed by Dok-Ing, the business portal Poslovni Dnevnik writes.

News source: Croatiantimes.com link: article

Communication for innovation

In a communication presented on 6 October 2010, the European Commission maps out the road towards the Innovation Union, marking a new milestone for this flagship initiative launched as part of the Europe 2020 strategy. The communication details comprehensive and decisive action to achieve Innovation Union and underlines the need for political determination. Designed to boost green growth and social progress, the Innovation Union would concentrate Europe's combined efforts on key challenges such as climate change, energy and food security, health and the demographic change linked to an ageing population. The strategy to bring it about calls for public sector intervention to stimulate the private sector and eliminate the factors that complicate entrepreneurial efforts to bring innovative ideas to market.

Improved access to finance, encouragement for innovation through public procurement, rapid standard setting and measures to overcome the fragmentation of research systems and markets are examples of actions that can help transform bright ideas into cutting-edge products and services.

Actions such as these are designed to support the emergence of a knowledge-based economy, and would go a long way towards meeting the Europe 2020 target of boosting R&D (research and development) expenditure to 3% of GDP (gross domestic product). According to recent research into the cost of a non-innovative Europe, this level of investment could create up to 3.7 million jobs and increase annual GDP by as much as EUR 795 million by 2025. To unleash the full potential of the Innovation Union, 1 million more researchers will be needed.

News source: Cordis link: article