This report focuses on creativity and innovation because they can help the Union to emerge faster and stronger from the current economic crisis. This is why the European Economic Recovery Plan together with Cohesion Policy targets investments that strengthen the EU longterm competitiveness, such as entrepreneurship, access to finance for SMEs, human capital, ICT, green technology and energy efficiency. This plan reinforces Cohesion Policy's link with the Lisbon Strategy and the stronger focus in the period 2007-2013 on innovation to which €85 billion has been dedicated. The fifth progress report3 highlighted the strong role of certain sectors and economic restructuring in regional development. This recession will accelerate restructuring and hit some sectors hard, particularly the financial, construction and automobile sector will face significant employment losses.

Furthermore, this report argues that creativity and innovation have a crucial regional dimension. The OECD emphasizes that because innovation is becoming more complex (with more open innovation models, process innovation and role of absorption and adaptation) no single policy can promote innovation in all regions. Local knowledge needs to be mobilised for regions to design their own innovation systems and use knowledge and technology more effectively. Last but not least, the European Year of Creativity and Innovation inspired the focus of this report.

The main goal of this report is to show which factors can boost creativity and innovation in both developed and less developed regions. The report covers technological innovation, but also many non-technological forms of innovation such as social, artistic, cultural, process and service innovation.

Regional data available for this report does not yet reflect the crisis. Up until 2007, unemployment rates were shrinking and converging rapidly (see Annex, Factsheet 1). But they are now increasing dramatically in Spain, Ireland and the three Baltic States, expected to reach between 11 and 17% in 2009, more than double the rate in 20076. These five Member  States (MS) are also forecast to suffer economic contractions, bringing to an end a period of sustained growth (see Annex, Factsheet 2).

The report also provides a synthesis of the debate on Territorial Cohesion, launched by a Green Paper last year, and is accompanied by 11 factsheets mapping and analysing key indicators related to creativity and innovation.  

25/06/2009

European Commission

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Urban Policy

Economy knowledge & employment