The Potential Contribution of Innovation Systems to Socio-Ecological Transition

European countries are currently faced with a variety of challenges, ranging from the new global distribution of economic activity, the diffusion of new, radical technologies to the aging of its population, youth unemployment and the aftermath of the economic and financial crisis. These challenges put the traditional growth model and the policies to foster it under strong pressure. Though it would have been tempting under these circumstances to opt for a "low road strategy" to stimulate growth, e.g. by increasing working hours, limiting social inclusion and postponing climate change goals, European countries have agreed upon a much more ambitious new growth path in its Europe’s 2020 strategy. Innovation is generally seen as a major driver of growth. In order to shift Europe towards a new growth path with greater social inclusiveness and more ecological awareness, it is important that the innovation system itself as well as innovation policy and industrial policy promote this change in paradigm. This report summarizes the contributions of the wwwforEurope projects on the definition resp. redefinition of industrial, regional and innovation policy to characterise and stimulate the economies along a new growth path. It is argued that a new growth path needs a new vision on what Europe understands as competitiveness. The report highlights the history and the way forward of European industrial policy. As regional and innovation policy are fully intertwined with industrial policy for a new growth path, it sheds light on these domains as well. For example, the report investigates the role of clusters for the new growth path and the contribution of green innovation, especially in the energy sector, to employment creation. Finally, the report takes a look at the role of SMEs and universities, new players in the new growth model which are normally not included in discussions of competitiveness.

Licht, Georg, Bettina Peters, Christian Köhler and Franz Schwiebacher (2014), The Potential Contribution of Innovation Systems to Socio-Ecological Transition, Europäische Kommission, Mannheim