Stimulating innovation is one of the most pressing items on the EU agenda. In the latest European Business Forum’s debate on innovation (Issue 22 – Autumn 2005) a panel of business people, academics, advisers and policymakers address the question: “Is Europe losing its innovative edge?”
Watch: Knowledge Economy
In order to facilitate countries trying to make the transition to the knowledge economy, the Knowledge Assessment Methodology (KAM) was developed by the World Bank Institute.
In another era, a nation’s most valuable assets were its natural resources — coal, say, or amber waves of grain. But in the information economy of the 21st century, the most priceless resource is often an idea, along with the right to profit from it.
European Commission Press release (19 July 2005) point out that ‘The 2005 key figures show that EU R&D intensity is close to stagnation. Growth of R&D investment as a % of GDP has been slowing down since 2000 and only grew 0.2% between 2002 and 2003. Europe devotes a much lower share of its wealth to R&D than the US and Japan (1.93% of GDP in the EU in 2003, as compared to 2.59% in the US and 3.15% in Japan).
Mid-term assessment of the Lisbon Strategy launched on March 2000 showed not very satisfactory results. By establishing an effective internal market, by boosting research and innovation and by improving education, the aim was to make the European Union “the most dynamic and competitive knowledge-based economy in the world” by 2010. However,
Business Week Special Report
‘The Knowledge Economy as we know it is being eclipsed by something new — call it the Creativity Economy.