Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - A lead market initiative for Europe {SEC(2007) 1729} {SEC(2007) 1730}
Date: 2007-12-21
Institutions: European Commission
Subjects: EU policy, competitiveness, economic development, innovation, market research, standardisation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.12.2007 
COM(2007) 860 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

A lead market initiative for Europe 

{SEC(2007) 1729} 
{SEC(2007) 1730} 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

A lead market initiative for Europe 

1. 

INTRODUCTION 

Developing an innovation-driven economy is crucial for competitiveness. The Commission’s 
broad based innovation strategy1 highlighted the necessity to use consistently and strategically 
tools  and  instruments  in  support  of  innovation,  with  a  demand-driven  approach.  The  report 
“Creating  an  Innovative  Europe”2,  the  EU  2006  Competitiveness  report  and  stakeholder 
consultations also concurred that Europe must seek to develop innovation-friendly markets in 
a more targeted way, decisively facilitating the marketing of innovations. 
The Competitiveness Council3 invited the Commission "to present during 2007 an initiative 
on lead markets, based on a broad stakeholder consultation for defining a valid approach for 
fostering  emergence  of  markets  with  high  economic  and  societal  value.  This  would  include 
identifying  areas  where  concerted  action  through  key  policy  instruments  and  framework 
conditions, coherent and coordinated policy making by relevant public authorities, as well as 
enhanced  cooperation  between  key  stakeholders  can  speed  up  market  development,  without 
interfering with competitive forces.” 

In  response,  the  present  communication  launches  a  lead  market  initiative  (LMI).  This 
identifies  a  first  set  of  markets  with  potential  to  become  LM.  It  calls  for  urgent  and 
coordinated action through ambitious action plans4 for these markets, to rapidly bring visible 
advantage for Europe’s economy and consumers.  

The  annex  II  “Explanatory  Paper  on  the  European  LM  Approach:  Methodology  and 
Rationale”5  describes  the  consultation  process  of  interested  parties,  the  economic  nature  of 
LM and the overall potential for economic, social and environmental benefits that justify the 
policy efforts needed to launch and implement the LMI.  

2. 

THE LMI: KEY TO A SUCCESSFUL INNOVATION STRATEGY FOR EUROPE 

2.1. 

Objectives and key principles of the LMI 

In  its  methodology,  the  LMI  is  different  from  previous  EU  initiatives.  It  goes  beyond  the 
typical  use  of  one-off  measures  with  only  punctual  effects.  The  initiative  on  GSM,  for 
instance,  was  mainly  limited  to  1  instrument,  the  setting  of  norms.  The  LMI  also  aims  at 
entering first fast growing world wide markets with a competitive advantage. By contrast, e.g. 

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COM(2006)502 final of 13.09.2006. 
http://ec.europa.eu/invest-in-research/action/2006_ahogroup_en.htm. 
Conclusions of 4 December 2006 on innovation policy and competitiveness. 
See Annex I, SEC XXX. Thematic preparatory papers will also be available on Commission’s Europa 
website. 
SEC XXX. 

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the 1997 European initiative on electronic commerce6, although similar in scope, addressed a 
market that had already taken off in the USA.  

The  focus  on  markets  requires  a  thematic  approach.  Different  categories  of  innovative 
products  and  services  face  their  own  specific  problems  and  require  different  kinds  of 
concerted policy action. 

The  LMI  therefore  firstly  identifies  promising  emerging  markets  to  be  supported  by  such  a 
concerted policy action based on in-depth analysis5, intense consultations as well as feed-back 
mechanisms. 

Secondly,  it  designs  a  process  to  better  streamline  legal  and  regulatory  environments  and 
accelerate the growth of demand.  

To be successful, the process needs to 

–  incorporate global market needs and customer preferences to maximise market potential; 

–  facilitate  the  acceptance  of  EU  standards  and  approaches  by  non-EU  markets,  notably  in 

domains affected by global trends (e.g. environmental issues); 

–  aim  at  reducing  the  cost  of  bringing  new  products  or  services  into  the  market,  by  easing 
market  access  and  measures  to  facilitate  the  aggregation  of  demand.  Competition  among 
different  innovation  designs  must  be  ensured,  thus  encouraging  constant  adaptation  to 
evolving market requirements. 

Finally, the active participation of Member States (MS) and the private sector7, in line with 
the  principle  of  subsidiarity,  as  well  as  the  existing  EU  legal  framework,  notably  for 
competition, State aid8, and public procurement is essential.  

As the initiative does not intend to artificially create markets by standards or regulations or by 
targeted funding to individual technologies, it requires no additional Community budget. The 
initiative may however have an impact on priority-setting for the use of existing funds. 

2.2.  Methodology for the identification of the markets  

Based  on  these  principles,  the  Commission  undertook  intensive  stakeholder  consultations, 
thus identifying the following set of criteria for the LM 

•  Demand  driven  instead  of  technology  push:  The  range  of  potential  customers  and  the 
needs  addressed  by  the  market  indicate  that  there  is  a  strong  market  potential  both  in 
Europe and on a global level within a rather short time span.  

•  Broad market segment: The market segment is rather broad as opposed to building on 1 
single  product.  A  significant  impact  on  markets  can  only  be  achieved  if  a  range  of 
interconnected products and services are offered simultaneously. This leads to more added 
value in the product/service chain and procures a more sustainable competitive advantage 
along the years to a broader industrial base in Europe. 

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COM(97)157 of 16.04.1997. 
e.g. via the ETPs. 
If Member States envisage new State aid measures, those should target a well-defined market failure, 
have an incentive effect, be proportionate and have a limited negative effect on competition and trade. 
Aid must not cover the costs of meeting the mandatory requirements in EU legislation. 

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•  Strategic  societal  and  economic  interest:  The  market  segment  provides  wider  strategic 
economic  or  societal  gains,  such  as  public  health,  environment  and  climate  protection, 
security  or  employment.  The  cost  of  public  coordination  efforts  undertaken  in  a  specific 
LMI is justified if it compensated by such gains. 

•  Added value of prospective, concerted and targeted, but flexible policy instruments: 
In  the  identified  markets,  there  is  no  single  policy  measure  which  could  remove  the 
barriers that block the emergence of strong demand9. The barriers identified are such that 
only  a  combination  of  different  public  measures  and  incentives  can  make  a  difference. 
While  the  target  of  the  policy  measures  is  clearly  defined,  the  mode  of  implementation 
must 
technological  or  commercial 
developments. 

leave  scope  for  reacting  with  flexibility 

to 

•  No  "picking  of  the  winners":  Industrial  potential  and  sufficiently  mature  new 
technologies  or  ideas  for  new  use  of  existing  technologies  are  available  in  Europe,  on 
which the product or service range for the emerging market can build. The characteristics 
of  the  market  avoid  the  risk  of  de  facto  favouring  specific  companies,  to  ensure  fair  and 
open  competition  and  to  avoid  dictating  the  technological  choices  which  might  pre-empt 
the development of competing and possibly economically better options. 

These principles were complemented by an assessment of the feasibility of launching the LMI 
in these markets in terms of availability of information and ongoing work in the Commission.  

2.3.  Which markets for the LMI 

The  identification  of  the  criteria  described  above  drew,  in  particular,  on  the  very  large 
industrial  and  thematic  coverage  of  more  than  30  industry-led  European  Technology 
Platforms (ETP)1011 and on the 8 INNOVA Panels12. 

The  stakeholder  consultations  in  a  first  pre-identification  round  were  indeed  very  broad 
covering  both  the  methodology  and  the  choice  of  areas.  Based  on  those,  the  Council 
conclusions of 4-12-20064, ETPs and Europe INNOVA Panels were specifically invited in a 
second  round  to  assess  various  markets13,  by  workshops,  expert  groups  and  questionnaires 
against the agreed criteria.  

Further  consultations  were  conducted  with  various  industrial  sectors  in  order  to  deepen  the 
analysis of the most promising areas. 

On this basis, six markets have been identified for the initial stage of the initiative - eHealth, 
protective textiles, sustainable construction, recycling, bio-based products and renewable 
energies.  They  are  highly  innovative,  respond  to  customers’  needs,  have  a  strong 
technological  and  industrial  base  in  Europe  and  depend  more  than  other  markets  on  the 
creation of favourable framework conditions through public policy actions. 

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In which case there would be no need for applying the LMI to that market. 
See list on http://cordis.europa.eu/technology-platforms/individual_en.html. 
ETPs - Seminar of Industrial Leaders: on 6 XII (http://cordis.europa.eu/technology-platforms/seminar7_en.html) 
Aerospace, automotive, biotechnology, ICT, textile, energy, eco-innovation, and gazelles (High Growth 
SMEs); http://www.europe-innova.org/index.jsp. 
Such  as  suggested  by  the  Commission  in  COM(2006)502  and  by  the  Council  in  the  conclusions  of 
4/12/2006. 

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•  eHealth  can  help  to  deliver  better  care  for  less  money  within  citizen-centred  health 
delivery systems. Without significant reforms, including the better use of eHealth, health 
expenditure is expected to increase from 9% of GDP at present to around 16% by 2020 in 
response to an 'ageing' Europe. Substantial R&D investments in eHealth have been made. 
Nevertheless,  the  ICT  investments  in  this  area  have  stayed  behind  that  of  other  service 
sectors. The take-up of technical and organisational solutions is often hindered by a strong 
fragmentation  of  the  market,  e.g.  due  to  different  social  security  systems  and  a  lack  of 
interoperability.  This  prevents  economies  of  scale.  This  is  aggravated  by  a  lack  of  legal 
certainty  as  regards  reimbursement,  liability  and  a  lack  of  awareness  on  the  correct 
application  of  the  legal  provisions  on  the  protection  of  personal  data.  This  hampers  both 
the product take-up and business investments. 

•  The construction market accounts for 10% of GDP and 7% of the workforce. Buildings 
account for the largest share of the total EU final energy consumption (42%) and produce 
about 35% of all greenhouse emissions. The very encompassing market area of sustainable 
construction  involves  environmental  concerns  (e.g.  efficient  electrical  appliances  and 
heating  installations),  users’  health  aspects  (e.g.  in-door  air  quality)  and  issues  of 
convenience  (e.g.  related  to  elderly  persons’  independence).  It  encompasses  developing 
sustainable  solutions  for  residential  and  non-residential  buildings  as  well  as  in 
infrastructure  assets.  Insufficiently  coordinated  regulations,  not  only  at  EU  but  more 
specifically  at  national  level  in  the  area  of  construction,  coupled  with  the  predominantly 
local  business  structure,  lead  to  considerable  administrative  burden  and  to  a  high 
fragmentation  of  the  sustainable  construction  market.  There  is  a  lack  of  knowledge  on 
possibilities  within  the  existing  legal  framework  for  public  procurement  (PP)  that  could 
facilitate  demand  for  innovation-oriented  solutions.  An  anticipative  approach  is  also 
needed for regulation as well as for PP decisions. 

•  Protective  textiles14  comprise  clothing  and  other  textile-based  systems  whose  main 
function is to protect the users from hazards and dangers in the conditions in which they 
operate.  The  current  size  of  the  PPE14  market  in  the  EU  is  estimated  at  €  9.5-10  billion, 
with around 200,000 jobs directly or indirectly related to PPE products and services. The 
fast growth forecasted in certain parts of the world suggests that EU exports of PPE could 
grow  by  about  50%  over  the  next  years.  A  swifter  development  and  use  of  European 
standards in the global market, combined with appropriate measures for the protection of 
intellectual  property,  e.g.  through  support  services  for  SMEs,  would  create  additional 
demand  for  PPE.  PP  purchases  have  an  important  role  to  play  with  regard  to  protective 
textiles, but there is fragmentation of demand at the level of local authorities.  

•  Bio-based products are made from renewable, biological raw materials such as plants and 
trees. The market segment chosen for the specific LMI includes non-food new bio-based 
products  and  materials  such  as  bio-plastics,  bio-lubricants,  surfactants,  enzymes  and 
pharmaceuticals. It excludes traditional paper and wood products, but also bio-mass as an 
energy source. The long term growth potential for bio-based products will depend on their 
capacity to substitute fossil-based products and to satisfy various end-used requirements at 
a  competitive  cost,  to  create  product  cycles  that  are  neutral  in  terms  of  greenhouse  gas 
(GHG)  and  to  leave  a  smaller  ecological  footprint,  i.e.  generating  less  waste,  using  less 
energy and water. Europe is well placed in the markets for innovative bio-based products, 

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Technical textile for intelligent personal protective clothing and equipment (PPE). 

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building  on  a  leading  technological  and  industrial  position.  Perceived  uncertainty  about 
product  properties  and  weak  market  transparency  however  hinder  the  fast  take-up  of 
products.  Environmental regulations, standardisation, labelling, and  encouraging Member 
States to set up demonstration plants have a role to play, as does the Common Agriculture 
Policy. 

•  Recycling reduces waste going to disposal, consumption of natural resources and improves 
energy  efficiency.  It  therefore  plays  an  essential  role  in  the  move  towards  sustainable 
consumption and production – not only in terms of energy but in terms of all resources we 
produce.  The  recycling  sector  has  a  turnover  of  €  24  billion  and  employs  about  500,000 
persons. It is made up of over 60,000 companies. The EU has around 30% of world share 
of eco-industries and 50% of the waste and recycling industries. Despite significant market 
potential,  barriers  to  market  development  remain.  Potential  is  also  significant  to  improve 
efficiency  and  capacity,  by  encouraging  innovation  and  introducing  more  effective 
processes and technologies. This would save costs, energy, and natural resources and help 
Europe to be less dependent on raw materials prices.  

•  Renewable  energy  (RE)  refers  to  energy  that  can  be  derived  from  regenerative  energy 
sources  like  wind,  solar,  biomass,  biodegradable  waste  or  feedstock,  geothermal,  wave, 
tidal  and  hydropower.  Currently,  the  European  RE  sector  has  an  annual  €  20  billion 
turnover and provides jobs to app. 300.00015 people while meeting approximately 8.5% of 
Europe's  energy  needs15.  The  European  Council  in  March  2007  set  a  binding  target  of  a 
20%  share  of  EU  energy  consumption  for  RE  by  2020.  This  target  offers  to  producers  a 
huge opportunity to develop while cutting production costs. The development of renewable 
resources is held back by three factors. First, the external costs of energy use16 are not fully 
reflected in energy prices. Therefore, demand for RE, which on the whole has low external 
costs, is sub-optimal. Second, important learning curve effects which would lower prices in 
several  technologies  are  exploited  more  slowly  on  account  of  present  low  levels  of 
demand.  Finally,  the  fragmentation  of  RE  support  systems  and  the  existence  of 
administrative and market barriers mean that the potential of the internal market is not fully 
exploited. 

Annex  II  provides  more  detailed  analysis  of  these  6  markets  and  of  the  impact  of  the  LMI. 
Based on very prudent assumptions, tentative estimates show that supported by the focussed 
approach of the LMI, the combined market volume of the 6 markets could more than double 
by 2020 and some 1 million new jobs could be created.  

The  identification  of  markets  for  the  first  round  does  not  disqualify  other  market  areas  as 
potential  future  candidates,  nor  does  it  represent  any  political  statement  regarding  their 
comparative societal or economic importance.  

Already, some convincing indications point to domains that could be considered for a similar 
approach  in  the  future.  Stakeholders’  consultations17  and  market-intelligence  tools  will 
support  this  continuous  identification  process  by  establishing  monitoring  and  foresight 
mechanisms, building on existing diagnostic and analytical tools, such as ERA-Watch and the 
Sectoral Innovation Watch18. This LM approach could be encompassed into wider initiatives 

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European Renewable Energy Council. 
E.g. greenhouse gas (GHG) emissions, air pollution, security of supply. 
Such as the ETPs and Europa INNOVA panels. 
https://www.europe-innova.org. 

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currently  being  launched19  that  would  enhance  the  benefits  to  Europeans  from  the 
development of innovation-intensive markets. 

3. 

THE MAIN POLICY INSTRUMENTS  

The  specific  thematic  action  plans  to  facilitate  the  emergence  of  LM  in  these  areas  are 
summarized in annex I. The LMI will deploy a diversified set of policy instruments: 

•  Legislation 

Legislation,  developed  to  serve  policy  objectives,  needs  also  to  be  designed  to  foster 
innovation and avoid imposing burdens on innovative business and other organisations. There 
is an opportunity to improve the coordination of regulations across different policy areas that 
affect  markets  for  innovative  products  and  services.  Reliable,  lean  and  well  designed 
legislative  and  jurisdictional  environments  are  essential  for  business  to  invest  and  for 
consumers to take up new products and services. 

The  regulatory  measures  in  the  LMI  action  plans  comprise  proposals  for  new  legislation  as 
well as modifications, revisions or abolitions. For instance, the use of bio-based products and 
the diffusion of new technologies in the production of bio-based products can be supported by 
streamlining existing legislative actions in IPPC20 (Integrated Pollution Prevention Control). 
Similar activities are proposed for the Recycling LMI action plan, that focuses on providing 
support  measures  in  synergy  with  specific  EU  regulations,  in  particular  the  WEEE21 
(Electrical and Electronic Waste) and ELV22 (End-of-life of vehicles) directives.  

•  Public procurement (PP) 

PP spending represents 16% of EU GDP, but reaches 40% of spending on construction and 
almost  100%  on  defence,  civil  security  and  emergency  operations.  Mobilising  public 
authorities to act as 'launching customers' by promoting the use of PP practices supportive for 
innovation is therefore a frequent point in the action plans.  
The application of the existing EU legal framework23 for PP supports the LMI by addressing 
market  fragmentation  and  encouraging  the  development  of  competitive  solutions.  A  guide 
recently published by the Commission24 describes how innovation can be fostered through the 
use  of  PP.  These  solutions  would  require  changes  in  the  typically  used  administrative 
processes of the national, regional and local PP offices for preparing calls for tenders (e.g. as 
regards  practices  to  obtaining  information  on  existing  and  possibly  new  technical  solutions 
and on new services and products, or to learn more about the option to identify and award the 
“economically  most  advantageous  tender”  (EMAT)  bids  on  the  basis  of  a  life-cycle  cost 
assessment).  The  same  applies  to  ways  to  facilitate  the  achievement  of  a  critical  mass  that 
helps  the  development  of  a  LM.  Requirements  of  interoperability  and  replacement  of 
individual  small  scale  purchases  by  grouped  orders  could  be  useful.  Increased  training  and 
awareness-raising efforts targeted at PP officers, as well as networking among PP offices, are 
cross-cutting measures that could produce benefits for all LM. 

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E.g. the Action Plan for "Ageing Well in the Information Society" (COM(2007)332 final). 
Council Directive 96/61/EC concerning IPPC, OJ L 257, p. 26-40.  
Directive 2002/96/EC on WEEE, OJ L 37, p. 24. 
Directive 2000/53/EC on ELV, OJ L 269, p. 34. 
Directives 2004/17/EC and 2004/18/EC. 
http://www.proinno-europe.eu/doc/procurement_manuscript.pdf. 

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•  Standardisation, labelling and certification  

Standards  may  facilitate  the  development  of  LM,  provided  they  do  not  exclude  competing 
technologies,  unduly  limit  competition  or  hamper  emerging  demand.  More  consistent 
technical,  performance  and  product  standards  along  the  whole  production  chain,  from  raw 
materials  to  end  products,  could  make  standardisation  more  innovation-friendly.  Standards 
should preferably be performance-based, yet technology-neutral.  

In the 6 markets, the current standardisation process is fragmented. This results in competing 
standards  that  prevent  interoperable  solutions.  The  lack  of  interoperability  makes  the 
incorporation of knowledge and various components into complex new products and services 
complicated.  Competing  non  interoperable  standards  impede  innovative  solutions  along  the 
value chain. In the context of the LMI, the choices between such standards should therefore 
be  made  in  an  inclusive  manner  and  preferably  at  EU  level,  while  avoiding  to  exclude 
competing  technologies25.  Pan-European  standardisation  platforms,  such  as  the  Europe 
INNOVA  standardisation  networks,  may  help  identifying  the  most  suitable  standards  for  a 
given problem  based on broad  industrial consensus. Communication about standards should 
be  improved  in  order  to  drive  the  demand  of  informed  buyers  and  users  and  to  ensure  that 
standards are taken into account in research projects.  

New  approaches  to  self-certification  may  be  developed,  building  on  experiences  within  the 
industry. Based on the revised EU Eco-label scheme, new extensions could inlcude features 
that  highlight,  for  example,  ‘EU-bio-based  products'  and  or  ‘remade  in  Europe’  (recycling). 
These are likely to are likely to attract new consumers. Information on performance beyond 
minimum legal requirements could drive purchase decisions of potential customers. E.g., the 
Directive on the Eco-design of Energy-using Products (2005/32/EC) provides the instruments 
for the development of effective and dynamic market transformation. It can push the market 
through minimum requirements by banning the worst performing products, while benchmarks 
–  to  be  identified  in  the  implementing  measures  of  the  Directive  addressing  particular 
products  (Annex  I.3.2)  -  can  provide  predictability  and  dynamism  for  industry.  Mandatory 
performance labels to be displayed at the point of sales are crucial to allow consumers make 
informed choices. Energy star and (Eco-) labels will reward only the best performing products 
from the environmental perspective 
Dynamic  standards  and  top-runner  schemes5  could  be  developed.26  The  upcoming 
communication  on  Standardisation  and  Innovation  pays  specific  attention  to  the  impact  of 
standardisation on LM, as well as the working plan under the Eco-design Directive27. 

•  Complementary instruments 

Other  actions  could  accelerate  and  improve  the  interactive  flow  of  information  between 
suppliers and users, thus contributing to improve market transparency. This will also lead to a 
competitive  advantage  for  enterprises  by  creating  better  conditions  to  respond  to  the 

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27 

The procedure for choosing standards will depend on the nature of the standard, formal or informal, and 
should be flexible enough to adapt over time to changing market conditions. 
The forthcoming Sustainable Consumption and Production Action Plan, the review of the Energy using 
Products framework in 2010, and eco-label revisions in 2008 will offer a chance to put these dynamic 
approaches in to practice. Cf. http://ec.europa.eu/enterprise/environment/sip_en.htm. 
Article 16 of Directive 2005/32/EC 

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multidisciplinary challenges in the identified markets. This may require platforms28 as well as 
adequate financial support, notably in the 2 cases below: 

− 

Business and innovation support services, training and communication 

In some market segments, young innovative enterprises would benefit from support such as 
activities  to  facilitate  knowledge-transfer,  incubation  and  access  to  finance  through 
consultancy services or training. Beside the supply of such thematically targeted services via 
support of the Structural Funds or the new CIP integrated enterprise and innovation support 
network, a more coordinated use of networking projects and platforms29 for mutual learning 
and  knowledge-sharing  could  support  the  implementation  of  the  action  plans.  Cooperation 
within and between knowledge-based regional clusters across Europe could speed up the flow 
of ideas and knowledge. The potential of Cohesion Policy contributing to direct investments 
as  well  as  networking  should  be  exploited  by  MS  and  regions  in  several  LM  areas30.  This 
could  contribute  to  maintaining  political  momentum  and  stakeholder  commitment  and  to 
broaden the range of stakeholders involved in the LMs31. 

− 

Financial support and incentives 

The  emergence  of  very  significant  new  business  opportunities  in  the  areas  covered  by  the 
LMI is likely to foster private investment. Here, public action can be instrumental to facilitate 
access to finance.  
The action plans could drive proposals within the national and EU programmes32. At EU33 or 
MS  level,  public  R&D  and  Innovation  funds  could  be  used  to  help  prove  the  feasibility  of 
certain product cycles.  

The EIB and EIF manage substantial amounts of EU financial support such as the risk-sharing 
facility and the CIP High Growth & Innovative SME Facility. EIB funds, in combination with 
private funds and possibly structural funds could support the ′demonstration′ and up scaling of 
the  production  of  innovative  goods  and  services.  In  addition,  JEREMIE,  a  joint  initiative 
established  by  the  Commission  with  the  EIF  and  the  EIB  can  provide  improved  access  to 
finance for SMEs, such as micro credit, venture capital, loans or guarantees. New models of 
public-private-partnerships  can  be  considered,  in  which  investors  and  other  stakeholders 
could  participate.  This  could  encourage  private  investors  to  support  new  ventures  related  to 
the LMI. 

The reorientation of National or Regional State aid schemes could be used by MS to exploit 
the new possibilities for supporting research, development and innovation under the new State 
aid  Community  framework34  in  this  field.  The  reorientation  of  structural  fund  support  for 
regions is of particular importance. All MS "earmarked" a certain proportion of their cohesion 
policy resources to the renewed growth and jobs agenda. The major shift in cohesion policy 
investments  concerns  R&D  and  Innovation.  Around  €  83  billion  or  25%  of  the  overall 

28 

29 
30 
31 
32 

33 
34 

Notably  electronic  platforms  of  exchanges  of  information  associating  public  and  private  partners,  at 
cross-sectoral level and with a European dimension. 
E.g. following the PRO INNO-Actions format or building on the Europe INNOVA sectoral networks. 
The Commission initiative "Regions for Economic Change" is also of relevance for these LM.  
E.g. the insurance sector could be involved in climate protection or security related actions. 
For  FP7,  this  should  not  alter  or  substitute  the  normal  procedure  for  the  revision  of  the  work 
programme. 
Notably FP7 and CIP. 
OJ  C  323  p.  1  sqq,  notably  new  possibilities  to  support  innovation,  http://ec.europa.eu/invest-in-
research/policy/state_aid_en.htm. 

EN 

9 

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cohesion budget will be allocated to this type of investment. It is clear that the identification 
of LMs constitutes a useful orientation tool for private and public investment linked to the use 
of these funds. 

4. 

GOVERNANCE AND NEXT STEPS  

The  need  for  a  tight  co-ordination  among  the  considerable  number  of  diverse  actions  in  a 
short timeframe makes the action plans35 particularly ambitious. Success will depend on the 
commitment of the European Institutions and of the MS to closely cooperate in implementing 
these  action  plans  under  demanding  time  constraints  and  thus  encouraging  the  continued 
interest of private stakeholders to invest in these promising markets.  

The  Commission  will  put  the  necessary  coordination  structures  in  place  to  ensure  the 
efficiency of the initiative. 
The  Council3,  that  called  for  the  LMI,  will  have  a  key  role  to  play  in  pushing  forward  the 
process  started  with  this  Communication.  It  offers  a  forum  to  establish  the  roadmap  for  the 
LMI’s contribution to the Growth and Jobs Strategy and to monitor progress. Indeed, as this 
initiative constitutes a key contribution to achieve the objectives of several of the integrated 
guidelines of the Partnership for Growth and Jobs36, the MS actions’ to implement the LMI 
can usefully be reported in that context37. 

Regular  briefings  for  and  consultations  with  key  stakeholders  will  be  organised.  Targeted 
information  and  communication  towards  relevant  national  and  sub-national  decision-makers 
shall be provided, taking account of MS initiatives. 

To  further  promote  the  LMI  and  to  actively  involve  stakeholders  into  this  process,  an 
electronic  LMI  stakeholder  platform  will  be  established  by  the  Commission,  with  thematic 
pages for each action plan.  

The  Commission  will  consider  completing  the  present  LMI  with  action  plans  for  other 
markets,  if  the  MS  and  stakeholders’  degree  of  involvement  in  the  LMI  demonstrate  the 
feasibility of an extension of the approach and if, on the basis of the permanent monitoring 
mechanism to be established, new market areas responding to the identified criteria appears to 
be ripe for a similar initiative.  

A mid-term progress report will be presented in 2009 on the progress in implementing the 
action plans and on the commitment of public and private stakeholders. 

A final report drafted by independent experts on the first round of the LMI will be presented 
in 2011, comprising an ex-post evaluation, assessing the impact of the policy actions and – to 
the extent possible – the actual impact on the market segments.  

35 

36 

37 

EN 

The individual measures contained in the action plans will be assessed according to the relevant impact 
assessment rules subject to the relevant decision-making procedures. 
IG  nr  10 
“the  development  of  new 
(http://ec.europa.eu/growthandjobs/pdf/integrated_guidelines_en.pdf) 
The  European  Council  of  December  2006  indicated  “progress  made  in  delivering  results  will  be 
monitored at future Spring European Council meetings within the framework of the Lisbon Strategy.” 

and  markets” 

technologies 

already 

implies 

10 

   EN 

 
                                                 
5. 

CONCLUSION 

If  implemented  in  time  with  adequate  political  support,  the  LMI  can  provide  European 
enterprises with fair and better chances of entering new fast growing world-wide markets with 
a competitive advantage as lead producers, thus contributing to a sustainable growth in jobs 
and  wealth.  It  can  provide  European  citizens  with  the  opportunity  of  benefiting  faster  from 
innovations in emerging market areas of particularly high economic and societal benefit.  

To implement the initiative, 

•  The  Commission  will  formulate  the  necessary  legislative  proposals  as  indicated  in  the 

action plans and launch calls for proposals to implement supporting actions. 

•  Member  States  are  invited  to  implement  the  actions  that  they  are  best  placed  to  lead  as 
indicated in annex I and to encourage relevant national and regional actors to participate in 
the  coordination  mechanisms  that  will  enhance  the  impact  of  the  initiative  and  favour 
consistency between different measures.  

•  Business  and  other  private  stakeholders  are  encouraged  to  participate  in  the  actions, 
notably  following  up  the  actions  for  which  the  action  plans  indicate  them  as  important 
actors, and through continued interaction with relevant authorities for issues falling under 
their respective competence.  

EN 

11 

   EN