Brussels, 7th April 2005
What is the Commission doing to deliver on the re-launched Lisbon agenda? How can EU Euros be most effectively invested in creating growth and jobs? By tabling the first “Competitiveness and Innovation framework Programme ” the Commission has adopted a coherent and integrated response to these objectives from 2007-2013. The programme has a proposed budget of € 4.213 billion. (See also IP/05/391 )
Why a new framework programme for competitiveness and innovation?
We need to boost entrepreneurship in Europe
The EU entrepreneurial spirit remains weak: only 45% of Europeans say that they will prefer self-employment to being employed.  Europe lags behind the US in 10 out of 11 innovation indicators and within the EU significant national differences are also observed. 
Through its “Entrepreneurship and Innovation” programme, CIP will address these challenges by:
- Improving the regulatory environment for enterprise and innovation
- improving access to finance for SMEs in their start-up and growth phases and
- by helping SMEs navigate the single market, and channel feedback on businesses concerns to improve EU policy making.
ICT is a big sector (representing 8% of EU GDP). But ICTs are also the key drivers of growth and jobs (ICT accounted for 50% of European productivity growth from 1995-2000). CIP will stimulate innovation through a wider adoption of and investment in ICT by:
- stimulating the new converging markets for electronic networks, media and digital technologies
- testing solutions to the bottlenecks that delay wide European deployment of electronic services
- supporting modernisation of public sector services to boost productivity, improve efficiency and raise the quality of services
But Europe is not fully exploiting its potential in bringing to the market environmentally friendly technologies. Through the Entrepreneurship and Innovation programme and the Intelligent Energy Europe programme, CIP will address these market failures by:
- promoting energy efficiency and a more rational use of energy
- fostering the use of new and renewable energy sources and help energy diversification
- supporting technological solutions to reduce greenhouse gas emissions caused by the transport sector
- promoting eco-innovation and facilitating access to finance for SMEs investing in environmental technologies
To build a knowledge-based economy we need innovation
To build a knowledge-based economy we need innovation. Innovation is about bringing ideas to market and turning them into Euros. It is about firms innovating in their technology, design, management, marketing, logistical and organisation. CIP actions will support all of these. They will help firms bring knowledge to bear on their economic activity.
Three specific programmes under CIP
The CIP brings together several existing EU activities that support competitiveness and innovation. For Member States and other participating countries this ambitious framework will ensure continuity of programmes with a proven and successful track record. Many of the components of CIP are familiar:
1. The “Entrepreneurship and Innovation” Programme
This programme will bring together activities that were previously dispersed over the Multiannual Programme (MAP) for SMEs, activities for Industrial Competitiveness and elements of the existing LIFE-Environment programme. CIP will also build on innovation activities that have been successfully tested and developed under previous Research Framework Programmes. Through a single source, CIP will provide support for the improvement of the conditions in which innovation happens. It will provide the instruments to develop and sustain a supportive environment for innovative firms, encouraging clusters, strengthening access to finance and to the other resources on which innovation depends and ensuring that SMEs in particular can benefit from simple, clear and efficient access to the EU - its legislation, programmes and opportunities.
2. The “ICT Policy Support” Programme