Richard L. Hudson, CEO & Editor of Science|Business interviewed the current EU Commissioner for regional policy, Johannes Hahn. You can watch the whole interview by following this link.
“We have a few regions performing very well and we have a huge majority of regions that are lagging behind, or where innovation is on an amateur level,” says the EU Commissioner for Regional policy, Johannes Hahn.
Incoming EU President Jean-Claude Juncker wants a “new start”, and Hahn believes one of the key issues is the EU’s two-speed technology ecosystem. Dynamic, innovative and fast-growing technology clusters – rare enough in Europe - are concentrated in the north and the west. In contrast, take a short trip to the east or south and the picture is not nearly as bright.
Hahn, rates this as one of the main priorities for him and his colleagues when they take office in October. “I think we spend a lot of money for research, even for innovation, but we are still not really capable of transferring research outcomes into business cases,” he told Science|Business.
One key barrier to entrepreneurialism is the employment outlook of young people. “Here in Europe ….. many young people believe the best [thing] is to become a civil servant, and this is something we need to change,” said Hahn.
New-look regional funding: investment, not charity
Hahn is returning as Austria’s Commissioner, but he is expected to move on from DG Regio, the Commission’s department for the regions. His term there saw a major reform of EU regional policy, in which billions in EU regional development funds that were once sprinkled widely to help poor regions catch up, will now be targeted to support innovation.
In the past regional funding meant bankrolling infrastructure projects. “A lot of asphalt, a lot of concrete, a lot of roads,” as MEP Lambert van Nistelrooij told Science|Business earlier this year. Now, support for innovation through smart specialisation strategies is the linchpin of the EU regional plan for 2014-2020.
The Commission earmarked some €100 billion for research and innovation, information and communications technology, SMEs and the low-carbon economy. “It’s investment policy; it’s not about charity,” said Hahn.
Seventy per cent of the budget will go to the 25 per cent of Europe where regions are flagging. “But we’ll pursue the concept of investment policy and principles when using the money,” said Hahn. “We’ll help poor regions catch up, but we expect to get out more than we put in.”
The Commission will try to direct loans to weaker regions and to promote improvements in the quality of investment decisions made by local government. “If you are forced to reimburse a loan, you will think two, three, four times if the project is good enough,” Hahn said.
The Commission’s smart specialisation strategy means using local know how, or “entrepreneurial discovery”, to identify and build on a region’s existing strengths. “We ask each of the regions to be clear about their potential, about their opportunities; where the money should primarily be spent to create clusters [of excellence].”
Hahn said his department takes a broad view of innovation and would like to see regions leverage not only new technologies, but any innovation that enhances competitiveness.
At least once a year, progress of the EU’s 274 regions will be probed by the Commission, said Hahn. The final judgment of the success of the new regional policy and of smart specialisation will depend on how much regions in the east and south catch up.
Next portfolio for Hahn?
Hahn was tight-lipped on his preferred portfolio for his next term of office. He met Juncker yesterday to discuss the distribution of jobs in the new Commission.
Johannes Hahn, meeting with Jean-Claude Juncker, on 3 September 2014
Juncker will formally announce his new Commission early next week. It is not expected that Hahn will remain as Commissioner for Regional Policy.
Following the announcement, the next hurdle comes in September and October when the European Parliament interviews the candidates. Finally, on 6-10 October Parliament will vote on the whole line-up.
Receive the Funding Newswire each Tuesday, our Policy Bulletin each Thursday, and news about bridging Europe’s east-west innovation gap twice a month in The Widening. 