The European Commission has proposed a European Innovation Act designed to make it easier for innovative ideas developed in Europe to be financed and scaled up across the EU.
The plan is intended to address uneven rules between EU countries and difficulties startups and scaleups face in attracting funding, the Commission said in a statement on Wednesday.
One part of the proposal would introduce a common EU framework for valuing intellectual property — such as patents and other protected inventions — and set up a digital marketplace to connect buyers and sellers of intellectual property, according to the Commission.
It said those measures are expected to generate about €35 million in administrative cost savings and unlock €10.2 billion a year in additional financing through intellectual property-backed venture capital and debt.
Common approach for public R&D procurement
A second part of the proposal would establish a common procedure for research and development procurement, the Commission said, adding that this would provide more legal certainty and make it easier for public buyers in different member states to run joint R&D purchases.
Those procurement measures are expected to deliver €1 billion a year in savings for public buyers and €25.92 billion in additional annual profits for companies.
Alongside the proposed Act, the Commission also set out a separate proposal for a Council Recommendation on regulatory sandboxes — controlled environments where companies, researchers and public authorities can test new products or technologies for a limited time under regulator supervision — to create a more consistent approach across the EU.
The initiative includes “one framework for IP valuation” and “one simpler route for public procurement of cutting-edge research and development”, Ekaterina Zaharieva, the Commissioner for Startups, Research and Innovation, said in a statement.
