Europe lags behind Japan, US in midst of ‘innovation crisis’

Europe is in the midst of an innovation crisis that threatens the very way of life that Europeans have become accustomed to, according to the founder of the European Young Innovators Forum, Larry Moffett.

Speaking at the EU Innovators Forum in UCC, Mr Moffett said that Europe’s poor performance in the global innovation index was a crisis for the whole region. In recent years, Europe has lagged behind Japan and the United States while the emerging economies were eating into Europe’s lead as a bloc of advanced nations.

“Sadly, year after year, Europe does not score well in that comparison. In 2011, Commissioner Quinn called it an innovation emergency and we are still in that emergency today,” he said.

While the innovation index is a measure of countries’ activity, the effect of performing poorly carries through to the livelihood of citizens, effecting employment rates and growth of the whole region.

“The threat of Europe being constantly behind and not catching up with America and Japan, with other countries catching up, is not just the economic loss, the loss of jobs, the loss of economic growth, but also we feel there is a social cost and a risk that we will lose the way of life, the quality of life that European have enjoyed for so long,” he said.

Unfortunately there is no quick and easy fix to Europe’s poor performance. The innovation ecosystems in areas such as Silicone Valley, where the worlds most innovative companies have consistently emerged from, took time to develop.

Mr Moffett referred to venture capitalist Victor Hwang’s analogy of the innovation rainforest. This idea is that a complex system of supports and alliances have emerged in Silicone Valley organically over time and the system cannot easily be mimicked.

Mr Moffett said that what needs to happen in Europe is a cultural change to support people who are looking to begin start-ups.

“Public attempts to foster innovation that do not focus on changing human behaviour are doomed to failure,” said Mr Moffett.

MEP Sean Kelly said there was a duty on people in power to clear the way for innovators.

“As politicians and policymakers, we need to make the field of play open to our star players. We need to cheer on their endeavours and provide support for their trials and tribulations, their triumphs, failures and triumphs again,” he said.