"Europe must develop innovation friendly markets in a more targeted way, creating conditions to facilitate the marketing of innovative products and services. The Lead Market Initiative has identified promising emerging markets in which the European Union has the potential to become world leader and where coordinated action is urgently needed "
Vice President Günter Verheugen, responsible for enterprise and industry policy
Brussels: In a move to drive innovation in targeted industrial sectors, including recycling and energy from waste, the European Commission recently announced a proposal to unlock market potential for innovative goods and services by lifting obstacles hindering innovation in a first batch of six important markets.
The markets concerned are eHealth, protective textiles, sustainable construction, recycling, bio-based products and renewable energies which are considered to have high economic and societal value.
The 'Lead Markets Initiative for Europe' (LMI) proposed by the Commission is intended to foster the emergence of these markets. This would be achieved through initiatives such as ‘improving legislation, encouraging public procurement and developing interoperable standards’, according to the Commission. It is expected that businesses would have a better opportunity of entering new fast growing world-wide markets with a competitive advantage as lead producers.
The European Directorate-General for Enterprise and Industry (DGEI) says that the markets represent an annual turnover of more than EUR 120 billion and 1.9 million jobs in the EU. The Directorate expects that with this initiative they may increase to over EUR 300 billion and over 3 million jobs in the EU in 2020.
Innovation in recycling container design - Cow bins from Taylor (Photo: Taylor)
Recycling
The recycling sector in Europe has a turnover of around € 24 billion and employs in the region of half a million people.
The DGEI says that there is significant market potential in recycling, though barriers to market development need to be addressed. There is potential to significantly improve efficiency and capacity by encouraging innovation, and introducing more effective processes and improved technologies.
Renewable energy
The development of renewable resources is held back by high costs, low demand, market fragmentation and administrative and market barriers, according to the DGEI.
It is considered by the Directorate that a flexible market based European framework should allow 20% of energy demand to be met by renewables. Accelerating innovation in low carbon technologies and removal of planning and certification barriers are considered to be crucial for the sector.
Demand driven approach
The Commission says that its initiative is focused on a competitive, demand-driven approach and avoids ‘picking winners’. The emerging markets identified, can build on new and existing available technologies. In addition the LMI will avoid favouring specific companies so as to create fair and open competition.
In all the areas identified, there is strong market potential within a short time span which could improve economic benefits, especially for small and medium sized enterprises (SMEs), which are already recognised by the European Commission as the dominant drivers of innovation.
Vice President Günter Verheugen, responsible for enterprise and industry policy, said:
"Europe must develop innovation friendly markets in a more targeted way, creating conditions to facilitate the marketing of innovative products and services. The Lead Market Initiative has identified promising emerging markets in which the European Union has the potential to become world leader and where coordinated action is urgently needed“.