AD MARKET INITIATIVE FOR EUROPE

The
Lead Market Initiative for Europe will foster the emergence of lead
markets high economic and societal value. On the basis of intense
stakeholder consultations, six markets have been identified against a
set of objective criteria; eHealth, protective textiles, sustainable
construction, recycling, bio-based products and renewable energies.
These markets 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 measures. For each market, a plan of actions for
the next 3-5 years has been formulated. The European citizens will
benefit both from the positive impact on growth and employment (the
identified areas could represent three million jobs and 300 billion EUR
by 2020) and from the access to enhanced goods and services of high
societal value.

A Lead Market Initiative for Europe

The
Union’s return on its private and public investment in research and
innovation can be increased through new products and services revealing
more quickly demand, if these emerging markets are identified at an
early stage and if favorable market conditions are established by
concerted action of public authorities. Public authorities can indeed
enhance the quick take-up of innovations thus giving industry the
opportunity to turn these innovations into world-wide leading products
or services in new high-growth markets (“lead markets”) on the basis of
the Union’s industrial dynamics.

The
Council endorsed the Commission’s proposal in its broad based
innovation strategy to launch a lead market initiative to develop an
appropriate approach in a limited number of potential lead markets. Key
features of such markets and of the initiative are:

- The aim
is not “to pick winners”, nor to artificially create a market for a
given technology or pre-empt the development of other competing
options;

- The assessment of the market potential and of the demand side (including of users’ needs) is a crucial point;

-
The added-value of the initiative is about developing a prospective,
concerted and focused approach of regulatory and other policy
instruments to allow a varied set of technologies and of innovative
business models to meet rapidly the demand and to benefit from a
mobilising effect generated by this initiative.

Six markets
have been identified for the initial stage of the initiative; eHealth,
protective textiles, sustainable construction, recycling, bio-based
products and markets for renewable energies. These six market sectors
are suitable for inclusion in this stage of the Lead Market Initiative,
because they are (1) highly innovative, (2) supported by well
characterised customer needs and (3) a strong technological and
industrial base in Europe and (4) depending more than others on the
creation of favourable framework conditions as a result of public
intervention.

The LMI consists of coordinated priority actions in each market area. The actions deploy a core set of policy instruments:

Legislation

The
LMI constitutes an opportunity to improve the coordination of various
sets 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 in innovation and for consumers to take up new products and
services.

Public procurement

Mobilising
public authorities to act as 'launching customers' by promoting the use
of innovation-friendly procurement practices is therefore a frequent
measure in the action plans, taking into account risks and regulatory
limitations.

Standardisation, labelling and certification

More
consistent technical, performance and product standards along the whole
production chain, from raw materials to end products, could make
standardisation more innovation-friendly.

Complementary instruments

In
certain market areas, measures to provide business and innovation
support services, training and communication are deemed a necessary
complement to the above policy instruments. In some instances,
financial support and incentives which aim at facilitating the
interaction of customers with the innovating companies and their
solutions are considered advantageous. Such schemes could involve
Structural Funds and State aid funding.
This
Annex contains short descriptions of the first six market areas. The
emerging markets were identified by intensive stakeholder consultations
and an assessment of the degree to which the selection criteria were
met. Central to the initiative is a tight coordination of the measures.
An action plan for the next 3-5 years is presented for each market.
Annex I of the Communication contains the action plan of policy
measures for each lead market; legislation, public procurement and
standardisation. They form a coherent package with market-specific and
complementary activities such as business and innovation support
services.

The policy measures is presented for each lead
market are grouped in the following categories; legislation, public
procurement, standardisation, labelling, certification and lastly,
complementary activities (mainly business and innovation support
services, training and communication and financial support and
incentives).

These action plans should be implemented by
the Member States and the European Commission. However, the commitment
of the regional authorities, the use of structural funds and the boost
in investment by the private sector, expected from such a coherent
approach, will be key for the success of this initiative.

This
paper describes the consultation process of interested parties, the
economic nature of lead markets (a literature review) and the overall
potential for economic, social and environmental benefits that justify
the policy efforts needed to launch and implement the LMI and its
specific initiatives.

It gives details about the potential
economic advantages of the Lead Market Initiative (LMI) for Europe,
such as more rapid returns on investments and thus greater incentives
for expanding private investment in R&D; location advantages for
R&D and production facilities; higher productivity, increased
exports, ultimately leading to higher levels of growth and employment.
Facilitating the growth of lead markets could be an approach to bridge
the gap between the generation of new technologies and the market
success of innovations. It could also generate substantial
environmental and societal benefits.

See also: Press release (07.01.2008)

Lead Market Areas

• eHealth

  eHealth
  tools or solutions include products, systems and services that go
  beyond simple internet-based applications, for instance tools for
  health authorities and professionals and as personalised health systems
  for patients and citizens.

  Without significant reforms,
  including 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. Despite substantial R&D investments in eHealth,
  ICT investment in this area has lagged behind that in other service
  sectors.

  Technical and organisational solutions often
  fail to be taken up because the market is strongly fragmented between
  different social security systems, a lack of interoperability between
  the various systems and lack of legal certainty.

  Standardising
  various information exchange formats, for instance, and certifying of
  interoperable systems should effectively overcome the interoperability
  barriers. Other measures within the framework of the LMI are
  clarification and guidance for applying the legal framework, networking
  of public procurers, as well as information of users, doctors, health
  managers and public authorities on eHealth benefits.

  European
  citizens would greatly benefit from cost reductions, coupled with
  better efficiency of the healthcare systems through the wider
  development of eHealth.

• Sustainable construction

  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.

  Insufficiently
  coordinated regulations, 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 that could facilitate demand for innovation-oriented
  solutions.

  A different, more goal-oriented approach to
  construction in the form of a lead market on sustainable construction
  solutions is needed. Besides applying its better regulation policy, the
  EU may further render the regulatory framework more efficiently by
  accompanying measures and awareness campaigns. Standardisation measures
  can improve the situation and introduce concepts relevant for
  sustainability.

  The LMI could considerably speed up the
  access of citizens and business to new buildings features with enhanced
  quality of life and working conditions.

• Technical
  textiles for intelligent personal protective clothing and equipment:
  increasing the knowledge content and the added-value

  Protective
  textiles are clothing and other textile-based systems thatto protect
  the users from hazards and dangers in the conditions in which they
  operate. The current size of the market in the EU is estimated at € 10
  billion, with around 200,000 jobs directly or indirectly related to
  these products and services.

  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
  accelerate the increase in demand for protective textiles. Public
  procurement has an important role to play, but there is fragmentation
  of demand for protective textiles at the level of local authorities.

  The
  action plan proposed by the Commission integrates all necessary actions
  in a synchronised way to favour the innovation of new products and
  accelerate growth. Other measures should facilitate public procurement
  for innovative protective textile products; strengthen awareness of
  intellectual property protection and SME involvement in the development
  of standards.

  Citizens will also benefit from access to
  better products for key services such as civil protection, for instance
  in case of pandemics or terrorist actions with high risks to the
  population.

• Bio-based products: innovative use of renewable raw materials

  Bio-based
  products are made from renewable, biological raw materials such as
  plants and trees. 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.

  Europe
  is well placed in the markets for innovative bio-based products,
  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.

  The
  Commission's action plan for this lead market integrates all necessary
  actions in a synchronised way to favour the innovation of the new
  products and services. The actions range from improving the
  implementation of the present targets for bio-based products over
  standardisation, labelling and certification to ensure the quality and
  consumer information on the new products to harnessing the purchases of
  public authorities to show the way to the future.

  European
  citizens will greatly benefit from reduced dependency on fossil
  products and of reduced emission of pollutants, through the wider use
  of these bio-based products. In the medium term, additional capacity
  could also help to reduce prices of average goods.

• Recycling: proper and effective waste management

  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. The recycling
  sector has a turnover of € 24 billion and employs about 500,000
  persons. 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.
  There is also significant potential 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.

  The
  Commission proposes an action plan that integrates all necessary
  actions in a synchronised way to favour the innovation of the new
  products and services in the recycling market area. The actions range
  from standardisation, labelling and certification to ensure the quality
  of and product information on recycling products as well as the
  environmental friendliness of the recycling process.

  European
  citizens will benefit from the consolidation of the position of
  Europe’s industry as a world leader, while environmental advantages
  will be significant.

• Renewable energy: CO2-neutral energy sources

  The
  European renewable energy sector has an annual turnover of € 20 billion
  and provides jobs to 300.000 people while meeting approximately 8.5% of
  Europe's energy needs. The European Council in March 2007 set a binding
  target of a 20% share of EU energy consumption for renewable energy by
  2020.

  • The external costs of energy use are not fully reflected in energy prices.

  •
  Important learning curve effects which would lower prices in several
  technologies are exploited more slowly on account of present low levels
  of demand.

  • The fragmentation of renewable energy
  support systems and the existence of administrative and market barriers
  mean that the potential of the internal market is not fully exploited.

  The
  main elements of the renewable energy action plan are removing barriers
  to the integration of renewable energy sources in the EU energy system
  and simplifying authorisation procedures. A coordinated approach for
  standard setting and labelling on technologies as well as mobilising
  public and private financing are other measures to help reaching the
  20% target by 2020.

Contact

For further information
European Commission
Directorate-General for Enterprise and Industry

Directorate D - Innovation Policy
B-1049 Brussels
Belgium

e-mail: ENTR-LMI@ec.europa.eu

ACTION ENT/CIP/08/C/N04S00 – Responsible competitiveness
– fostering Corporate Social Responsibility in European industrial sectors

- The overall objective of this call for proposals is to improve the CSR
performance of European industry, thereby improving its contribution to
sustainable development and enhancing its competitiveness

• A. Call Text
  
• B. Submission set
  
• C. Guide for submission
  

-Documents to be
downloaded in order to complete your proposal

• Forms A1 to A4, C
  & D (Submission set)
  
• Forms A5 (Financial
  Statement)
  
• Forms B1, B1A, B2
  (Budget Form)
  

- Final date for submission: 23rd of May 2008 (delivery by hand
until 4 pm)

-Financial
identification form (please fill in the appropriate sheet for your
country)
-Legal
entity form (please fill in the appropriate sheet for your legal
situation)

-Please note that additional information could be posted on this webpage
during the publication stage. Consequently, we encourage you to visit
regularly this page.

*********************

1. CONTEXT
1.1 The importance of multistakeholder sector-based initiatives
Social and environmental issues have a growing influence on the competitiveness and
innovation agenda of enterprises. Climate change, natural resource constraints,
population growth, poverty, inequality and human rights issues are increasingly part of the
accepted agenda of business. The evolving expectations of consumers, citizens,
employees, governments, non-governmental organisations and financial institutions are
fundamentally changing the environment in which businesses operate.
Enterprises and other stakeholders increasingly see value in partnership and cooperation
to address social and environmental issues which affect enterprises or over which
enterprises have influence. The involvement of non-business stakeholders is often crucial
to the credibility of initiatives that seek to improve CSR performance, including the
development and oversight of guidelines and codes of conduct.
The 2004 report of the EU Multistakeholder Forum on CSR made a number of references
to the advantages of a sector-based approach to supporting the development of CSR.
Some of the most important social and environmental issues facing business cannot be
adequately addressed by individual enterprises acting on their own. Joint action by
enterprises from the same sector can increase the impact of taking action, especially when
a significant number of SMEs are involved. Joint action by enterprises from the same
sector can also reduce the risks sometimes incurred by individual enterprises taking action
on their own.
1.2 European policy context
In re-launching the Lisbon Strategy in 2005, the European Commission stated that
“voluntary business initiatives, in the form of corporate social responsibility practices
(CSR), can play a key role in contributing to sustainable development while enhancing
Europe’s innovative potential and competitiveness” (Working Together for Growth and
Jobs: a new start for the Lisbon Strategy, COM(2005)24).
In March 2006 the European Commission adopted a new policy on CSR aiming to make
Europe a pole of excellence in corporate social responsibility (CSR) and to encourage the
uptake of CSR as an important business contribution to the Growth and Jobs Strategy.
In response to the Commission call for the European business community to step up its
commitment to CSR, BusinessEurope, CSR Europe and UEAPME, together with a
number of enterprises, launched the European Alliance for CSR. The European
Commission has given strong political backing to the Alliance, as well as some financial
support.
In its CSR communication of March 2006, the Commission underlined the importance it
attaches to multistakeholder dialogue on CSR, and proposed to convene regular meetings
of the European Multistakeholder Forum on CSR.
The Commission also identified a number of priority areas for action to further promote
CSR. These include: support for multistakeholder initiatives; promoting CSR amongst
SMEs; the international dimension of CSR; consumer information and transparency; and
integrating CSR into relevant education curricula.

In May 2007, the Commission published the report of the European Expert Group on
CSR and SMEs, containing advice and recommendations on the best ways of further
increasing the uptake of CSR amongst SMEs.1 The Commission has also co-financed a
number of projects to promote CSR amongst SMEs.2
The European Parliament adopted a resolution on CSR in March 2007. The resolution
“supports the principle of 'responsible competitiveness' as an integral part of the
Commission's Competitiveness and Innovation Programme (CIP).”
2. OBJECTIVE OF THE CALL
The overall objective of this call for proposals is to improve the CSR performance of
European industry, thereby improving its contribution to sustainable development and
enhancing its competitiveness.
The specific objectives are:
· to promote a greater uptake of CSR amongst enterprises, including SMEs, in a limited
number of industrial sectors;
· to facilitate joint action between industry and other stakeholders on CSR issues;
· and to further explore the links between CSR and competitiveness on a sector basis,
feeding these findings back into the policy-making process.
These objectives will be met by co-financing a limited number of multistakeholder
initiatives to promote CSR on a sector basis. These may be new initiatives, or they may
be existing initiatives that seek to consolidate, to expand, or to enhance cooperation or
merge with other existing initiatives.
In parallel to co-financing the selected initiatives, the European Commission intends to
contract a consultant to further explore the concept of responsible competitiveness on a
sector basis. The consultant will work with the selected initiatives in order to identify the
main lessons to emerge from their experiences.

Possible activities might include:
· Identification and mapping of main CSR challenges faced by the sector, and analysis of how they impact on competitiveness and sustainable development and how they can be ddressed.
· The development and implementation of sector-wide CSR or responsible
competitiveness strategies.
· The setting up and functioning of new or enhanced mechanisms for dialogue between stakeholders.
· The merging of existing initiatives, or the setting up and functioning of new
mechanisms for coordination between existing initiatives.
· Development and implementation of codes of conduct or guidelines, including
consolidation or convergence of different existing codes or guidelines. Any CSR codes
or guidelines developed under this funding programme should at least be consistent
with internationally agreed CSR instruments such as the ILO Tri-partite Declarations3
and the OECD Guidelines for Multinational Enterprises.4
· Development and implementation of initiatives relating to CSR-related requirements in the supply-chain.
· Development and implementation of sector-specific reporting guidelines on
sustainability and CSR issues.
· Awareness-raising.
· Training and education.
This list of activities is indicative only. Applicants are encouraged also to consider other activities consistent with the aims and objectives of this call.
The Commission expects the selected initiatives to have the following characteristics:
· Be multi-stakeholder in nature. The project partners should include a minimum of two
organisations. There should be at least one sector-based business organisation or trade association. There should also be at least one trade union, or non-governmental
organisation, or both. Other partners could be: employers’ organisations; public
authorities; academic, training or education establishments; non-profit making CSR
organisations, networks or think-tanks; international organisations; public or private
enterprises; organisations that represent the investment community or the
financial/accounting industry.
· Be transnational. The final target groups (for example, enterprises from a particular
sector and relevant stakeholders) should come from at least three of the countries listed under point 5.1, in addition to any possible target groups outside the EU.
· Be sector-based. Initiatives should focus on one particular sector. The sector may be
a primary (raw materials) industry, with the exception of agriculture or fisheries, or a
secondary (manufacturing) industry. Services sectors are not eligible, except for
tourism and distribution/retail.
· Aim to create a durable multistakeholder partnership for the further development of
CSR in the given sector after the end of the project period, as opposed to a temporary
collaboration between stakeholders for the implementation of one-off activities.

Address CSR challenges with the aim of enhancing the sector’s competitiveness and improving its contribution to sustainable development.
· Have a European focus. This could, however, be combined with an international or global dimension if relevant and justified in the proposal.
· Take full account of the needs and constraints of SMEs, insofar as SMEs are a significant part of the target group.
Note: the first three items on this list (“be multistakeholder”, “be transnational” and “be sector-based”) constitute formal eligibility criteria, as described under point 5.4. Initiatives are not required to address every aspect of CSR. It is more important that initiatives address those specific CSR issues that are deemed to be important to stakeholders and relevant to the competitiveness and social and environmental impacts of the sector.
Proposals that focus on EU Member States that have joined the EU since 2004 are especially encouraged.
Please also consult the award criteria in point III of the Guide to Submissions.

3. TIMETABLE
Scheduled start-up date for the action: September 2008
Maximum duration of actions is 18 months. The minimum duration is 12 months.
The intention is to inform applicants of the outcome of the award procedure no later than July 2008.
The period of eligibility of costs will start on the first day of the second month after the ontract is signed by the last of the parties. If a beneficiary can demonstrate the need to tart the action before the agreement is signed, expenditure may be authorised before the greement is signed. Under no circumstances can the eligibility period start before the date f submission of the grant application.

4. FINANCING
The maximum budget allocated for the operation is : €510.000
The maximum EU contribution per project is : €150.000
Indicative number of projects : 3-5
Community co-financing rate of eligible costs: maximum 50%
· Please note that one action may give rise to the award of only one grant from the
Community budget to any one beneficiary.
· The Commission reserves the right to award a grant of less than the amount requested
by the applicant. Grants will not be awarded for more than the amount requested.