An entrepreneurial spark

Androulla Vassiliou, European Commissioner for Education, Culture, Multilingualism and Youth, provides insight into efforts to foster entrepreneurship in EU countries…

Innovation is the key to jobs, growth, competitiveness and social wellbeing in the 21st Century. The capacity of a society to innovate is crucial in an ever more knowledge-intensive economy. Europe's success is increasingly determined by its ability to adapt quickly to the fast pace of development, to be one step ahead in providing solutions to rapidly emerging societal problems and to develop products that meet consumer demand.

Europe faces a major innovation challenge: despite an excellent research base, dynamic companies and creative talents, good ideas are too rarely turned into great products or services. This is what some have termed the 'European paradox'. Europe needs a real change of mindset towards the promotion of a more entrepreneurial culture.

There are signs of progress in this respect. Entrepreneurship has been increasingly promoted as a key competence in recent years by the European Union, as an integral part of the set of basic skills and attitudes that need to be developed by citizens. The very high level of youth unemployment, seen in many member states, underscores how vital it is to advance a European entrepreneurial culture by fostering the right mindset and skills.

According to the European Commission's Eurobarometer survey, only 45 per cent of European citizens prefer to be self-employed. Attitudes are shaped from an early age and this is why the EU is committed to bringing about a change in this respect.

The need to improve the entrepreneurial and innovative capabilities of our citizens is highlighted at the heart of the Europe 2020 strategy for jobs and sustainable growth. The European Institute of Innovation and Technology (EIT) and the new 'Erasmus for all' programme are at the core of this strategy.

EIT
Created in 2008, the EIT aims to strengthen Europe's innovation capacity and inspire the entrepreneurs of tomorrow. The institute builds on Europe's excellent universities, research centres and businesses to create an unprecedented network of innovation and excellence centres, which will enable these actors to grow and capitalise on their innovation capacity and capability. In 2011, the EIT gathered 228 partners, bringing together 76 universities, 54 research centres and 87 companies – from major corporations to SMEs.

One of the main achievements of the EIT has been to successfully integrate education and entrepreneurship within the innovation process. The institute promotes an entrepreneurial culture conducive to creativity, risk-taking and competitiveness through its support for tailor-made Master's degrees, business opportunities, innovative research and collaborative projects.

It works with innovation hubs known as Knowledge and Innovation Communities (KICs), which are public private partnerships. So far, three KICs have been set up to address major societal challenges in the areas of sustainable energy (KIC InnoEnergy), climate change (Climate-KIC), and information and communication technologies (EIT ICT Labs). Each hub operates in innovation centres across Europe.

Through its postgraduate (Master's and doctorate) programmes, business mentoring, and mobility schemes between universities, companies and research labs, the EIT is transforming ideas into new opportunities. By bringing together and enhancing the knowledge base with entrepreneurial know-how, the institute helps to develop the essential talents needed in a knowledge economy. For example, stronger interaction with business allows students to develop the practical skills, expertise and mindset vital to the creation of innovative companies that can compete globally. In 2011, 600 students received training backed by the EIT and this figure is expected to increase to more than 1,300 in 2012.

Each KIC has its own set-up for supporting existing or potential entrepreneurs. Climate KIC, for instance, has a three-step incubation programme that offers tailor-made assistance, such as business coaching and grants, in the different stages of a business start-up. KIC InnoEnergy has set up a 'highway for business creation' that supports an integrated network for entrepreneurs, while EIT ICT Labs provides access to finance, best practice, a business and entrepreneurs club, and other innovative schemes. The first start-ups have already been created, highlighting the potential of this initiative.

The Commission has proposed to significantly step up its support for the EIT by increasing its budget to €2.8bn in 2014-2020. This will enable the EIT to grow and build on the strengths and resources of excellent European organisations. The first step is to consolidate the existing KICs; six new KICs would be created to focus on healthy living, raw materials, food for the future, urban mobility, added value manufacturing and smart secure societies. It would also provide an impetus for the creation of 600 start-up companies and train around 10,000 Master's students and 10,000 PhDs.

It is now up to the European Parliament and the member states to allocate the means for Europe to meet its innovation ambitions.

Erasmus for all
As part of its wide-ranging support for entrepreneurship, the European Commission has also proposed this new programme for education, training and youth, which is due for launch in 2014. Erasmus for all will invest in entrepreneurship, skills, employability and creativity through increased support for student and staff mobility, as well as measures aimed at improving cooperation between educational institutions, youth organisations, businesses, local and regional authorities and NGOs.

The programme proposes to create 400 'Knowledge Alliances' and 'Sector Skills Alliances'. The former are large-scale partnerships between higher education institutions and businesses, to promote creativity, innovation and entrepreneurship by offering new learning opportunities and qualifications. Sector Skills Alliances will focus on partnerships between education and training providers and business to promote employability by forming new sector-specific curricula and innovative forms of vocational teaching and training.

More immediate measures include the production of a policy handbook to provide policymakers and practitioners with information to support their efforts to design and implement entrepreneurship education. The handbook will be based on input from a specialist group on entrepreneurship education, set up by the Commission in November 2011, which includes experts from 24 countries as well as from business and trade unions.

Encouragingly, half of the countries in Europe are introducing educational reforms that include the strengthening of entrepreneurship education. Eight countries have launched specific strategies to promote these skills, as indicated in the recent Eurydice report on Entrepreneurship Education at School in Europe.

Entrepreneurship is not something any of us is born with; but it can be acquired, it can be taught, it can be learned. Including it, even highlighting it, in the education process makes sense. Entrepreneurship is a skill that will benefit young people for life by helping them to be more creative, innovative and confident. Whether starting a business, promoting an idea in the workplace or coming up with ideas to improve the local community, an entrepreneurial mindset will serve people well.


This article first appeared on publicservice.co.uk: An entrepreneurial spark.