Blair calls for EU to back knowledge-based companies

A joint letter from Prime Minister Tony Blair and the Dutch Prime Minister, Wim Kok, to the Spanish Prime Minister and EU President, Jose Maria Aznar, has called on the forthcoming Barcelona Council to tackle Europe's failure to fully exploit the innovation and the commercialisation of knowledge-based companies.

The letter, signed by Mr Blair and Mr Kok, states: 'We need to ask ourselves why the EU has been falling behind other leading economies.

'A focus on innovation, as well as economic reform more generally, is especially important given weaknesses exposed by the current downturn.

'A key objective at the Barcelona European Council in March must therefore be to promote reforms which will ensure that Europe's return to strong growth is accompanied by the success of innovative, knowledge-based companies - the only sure way to boost employment and productivity.'

The letter invites the Commission to provide a detailed report on: 'The scope and incentives for innovation in the EU service sector.'

The UK and Holland will present a paper to the Barcelona summit entitled: 'Overcoming the European Paradox', which 'seeks ways of increasing innovation and the commercialisation of knowledge' in Europe.

The paper says high levels of dynamic competition are now needed 'to allow smaller firms to grow quickly and challenge incumbents.'

Both Mr Blair and Mr Kok have challenged the European Union to state explicitly that its goal is to become the most innovative economy in the world by 2010.

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Richard Powell, UKTECH