Are the high hopes of the 2020 program coming true?
Forget natural resources and cheap labor, argues Rus Mircea-Iosif in his recently published paper Annals of the University of Oradea : Economic Science. In the future it is all about intellectual capital. With this same vision, EU is investing no less than 80 billion in becoming an Innovation Union. Is it working?
The goal of the so called ‘Horizon 2020 program’ is to become a leading knowledge-economy by making universities and companies work better together. A good idea, says Mircea0-Iosif. After all, research, development and innovation together form the ‘knowledge triangle’ and represent the engine of economic and social development,
But the Innovation Union still sounds like a high ambition for Europe, since the link between the academic and business sector is still rather thin in European countries. European investment in research and development from the private sector, for example, is lower than that of competitors in the United States and Asia. Furthermore, the European financial market did not yet sufficiently discover the economic value of investment in knowledge.
Science is thus in need of more recognition, according to Mircea-Iosif. Luckily, the 2020 program is indeed helping here. Results were already being felt in 2011, which led the major companies headquartered in the European Union to increase their investments in Research &Development by 8.9%. This increase was almost equal to that of the U.S.A. companies (9%), higher than the world average (7.6%) and superior to Japanese companies (1.5%).
According to Mircea-Iosif this highlights the fact that the European Union may become attractive for research-development and innovation investments and this can result in jobs creation and increasing competitivenees of this field of the states of the European Union. Let’s hope he is right.
Photo: Flickr, ell brown
Source: Rus Mircea-Iosif (2013). “THE KNOWLEDGE TRIANGLE” IN A KNOWLEDGE-BASED SOCIETY Annals of the University of Oradea : Economic Science Other: 1222569X 15825450
innovation union, horizon 2020 program, knowledge economy