Emmanuel Macron, president of France, is continuing to keep himself busy with radical reforms and visions for the future of his own country and that of the EU. A month ago, Global Government Venturing dedicated an editorial to Macron’s call for a $12bn innovation fund to invest in the domestic healthcare, transport, energy storage and renewable energy sectors.
But Macron also made another bold statement recently and one that would have even more far-reaching consequences than his innovation fund – in a two-and-a-half-hour speech he gave at Paris-Sorbonne University about the future of Europe, he called for the creation of an EU agency dedicated to funding disruptive startups.
Macron noted that the EU should seek not only to keep pace with China and the US but to be a global leader in innovation. To achieve that leadership, Macron said education, science and technology would require significant rethinking and strengthening to equip citizens with the best possible skillset and tools.
The French president appeared particularly keen on industries such as artificial intelligence, biotechnology and digital technologies – all areas he also hopes to target with the aforementioned innovation fund.
Macron’s call gives political weight to the idea of a European Innovation Council, first mentioned by Carlos Moedas, EU research commissioner, who said in a speech in 2015: “Europe does not yet have a world-class scheme to support the very best innovations in the way the European Research Council is the global reference for supporting excellent science.
“So I would like us to take stock of the various schemes to support innovation and SMEs under Horizon 2020, to look at best practice internationally, and to design a new European Innovation Council.
“This is not for tomorrow, but I believe we should discuss it as a major element under the mid-term review of Horizon 2020.”
In May and June 2016, the European Commission collected responses to its consultation from a wide range of actors including the UK government’s innovation agency Innovate UK, Germany-based research institute Fraunhofer and the Flemish Department of Economy, Science and Innovation, as well as a host of universities and several corporations across the EU.
There is, of course, a certain irony to Innovate UK’s contribution, as the country’s vote late in June 2016 means no UK government agency will be a party to the European Innovation Council.
Macron, meanwhile, can confidently speak of innovation leadership. Since the EU launched its SME Instrument in 2014, it has funded more than 157 startups in France alone, and the country’s public investment bank BPIfrance is a prolific investor in domestic companies as well.
The two-year timeframe Macron has set himself and the EU to set up the new agency is no coincidence. It covers the period left under the EU’s research funding program Horizon 2020 – a good moment to take stock of what has worked in the program and how a council could improve on that work.
The innovation council is expected to simplify and accelerate startups’ access to support in future, blending equity, grants and loans. The aim, much like the UK government’s patient capital review, will be to generate more companies worth $1bn or more.
Moedas himself welcomed Macron’s call, telling news publication ScienceBusiness: “I am glad we are talking about the same kind of ideas. It is a big boost for us in Brussels because it is the first time a head of state has come out and publicly called for it, and the support of France is essential for doing this.”
Brexit, which has turned into a many-headed beast for the UK government, including a 3% inflation rate and much ridicule and confused comments across European media, was barely mentioned in Macron’s speech. Although the country’s departure is serving as a catalyst for his calls for fundamental reform of the EU, Brexit is already considered the past by the French president.
Macron has shown himself open to the idea that the UK may one day seek to rejoin the reformed EU, but he has not been shy about his view that the union will not be longing for the country’s return.
The EU does need reform – Brexit and several general elections across member states that have provoked a significant shift towards the far-right prove as much – and so far, Macron’s ideas seem very sensible indeed. And they are certainly good news for startups in the world’s largest single market.
