Innovation, EU & Regions: A Way Out of Poverty?

I NNOVATION, EU AND REGIONS: A WAY OUT OF POVERTY? Project 17: Project Leader: Prf. Dr. rer.pol. Bettina Burger-Menzel Team composition: MARÍA ANDREA VÁSQUEZ CASTILLO CHRISTINE LESSMANN JUSTINA SAKALYTE IEVA NAUJALYTE CRISTINA SALA LIDÓN MARC JUANOLA MONÉ

Contents

Introduction

Why Germany, Lithuania and Spain?

Economic Background

Study Case

Lithuania’s survey

Conclusions

1. Introduction

Germany, Spain and Lithuania as the EU members

Role of the innovation in the develop ment of the countries.

Structural and technological changes and their effects into the economies.

2. Why Germany, Lithuania and Spain?

Innovation Leaders: Germany

Catching-up Countries: Lithuania

Trailing Countries: Spain

2. Why Germany, Lithuania and Spain? Source: European Innovation Scoreboard 2006

Innovation Dimensions

Inputs

Innovation drivers: S&T graduates

Knowledge creation: Expenditure on R&D

Innovation & Entrepreneurship: Expenditure on ICT

Outputs

Application: Employ. Med/high-tech manf. , High-Tech Exports

Intellectual Property: Patent applications

2. Why Germany, Lithuania and Spain? Source: European Innovation Scoreboard 2006

3. Economic Background Germany Source: Eurostat “Structural Indicators and long-term Indicators” 17,1* 18,3 16,0* 19,6 Business investment as a percentage of GDP 0,9* 2,4 -0,8 6,7 Foreign direct investment intensity 8,7 8,6 9,5 7,2 Unemployment rate (as % of active population) 2,2 2,4 1,9 1,4 Inflation rate (average annual) 0,6* 1,5 0,4* 1,9 Total employment growth (annual % change) 1,6 3,9 0,9 3,2 Real GDP growth rate (% change previous year) 100 100 108,2 112,1 GDP per capita in PPS (EU25=100) 2005 2000 2005 2000 EU 25 National Performance INDICATORS

3. Economic Background Lithuania Source: Eurostat “Structural Indicators and long-term Indicators” 17,1* 18,3 18.0* 16.0 Business investment as a percentage of GDP 0,9* 2,4 0.6* 1.7 Foreign direct investment intensity 8,7 8,6 11.0 1.6 Unemployment rate (as % of active population) 2,2 2,4 1.1 0.9 Inflation rate (average annual) 0,6* 1,5 2.4 -3.7 Total employment growth (annual % change) 1,6 3,9 6.7 3.9 Real GDP growth rate (% change previous year) 100 100 48.1 38.5 GDP per capita in PPS (EU25=100) 2005 2000 2005 2000 EU 25 National Performance INDICATORS

3. Economic Background Spain Source: Eurostat “Structural Indicators and long-term Indicators” 17,1* 18,3 24.5 22.8 Business investment as a percentage of GDP 0,9* 2,4 3.2 8.4 Foreign direct investment intensity 8,7 8,6 9.2 11.1 Unemployment rate (as % of active population) 2,2 2,4 3.4 3.5 Inflation rate (average annual) 0,6* 1,5 2.6 5.1 Total employment growth (annual % change) 1,6 3,9 3.4 5 Real GDP growth rate (% change previous year) 100 100 98.3 91.3 GDP per capita in PPS (EU25=100) 2005 2000 2005 2000 EU 25 National Performance INDICATORS

4. Study Case

Definition of NIS (National Innovation System)

” The network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies may be described as the “National Systems of Innovation ”

Source: Freeman, C. (1987); Technology Policy and Economic Performance – Lessons from Japan; Pinter Publishers, London.

4. Study Case Innovation Indicators Innovation System Innovation Actors

Education

R&D

Implementation

Financing

Networking

Demand

Regulation and Competition

Citizen

Enterprice

State

Source: DIW 2006 – Innovationsindikator Deutschland 2006

4. Study Case

Analysis of inputs and outputs some innovation indicators:

Education System

Research and development

Implementation

Germany, Lithuania and Spain

4. Study Case

Education : It is very important for the innovation ability. The society can be innovative o nly with qualified person nel , intelligent engineers and creative scientist s .

4. Study Case Output: Science and Technology ( S&T ) graduates per 1000 population between the age of 20 - 29 Output: Employment in high and medium high technology manufacturing sector - % total employment rate

4. Study Case

Research & Development (R&D): It is actually the branch of high technology where the needs for developing creative ideas and their conversion into innovation exist

4. Study Case

Implementation of the innovation in the production: The process of the innovation reaches its target, if the companies make realisation of the products and services or procedures i n the market.

4. Study Case

6. Conclusions