Investment, innovation and dependency– why does it matter?
By its nature the single market helps increase the economic resilience of the EU economy by strengthening incentives to investment and innovation. Furthermore, because of its scale, the single market provides a strong basis to mobilise investment and skills and to address regulatory challenges, which is needed to tackle strategic dependency experienced in key areas.
The indicators in this section measure the performance of the single market in terms of its ability to drive investment and innovation as expressed by the expenditure for research and development (R&D). These indicators show overall positive trends in both areas, although one can also observe comparatively low levels of R&D against some of the EU trade counterparts.
The innovation performance of the single market is also assessed by its ability to translate R&D in concrete outcomes such as high shares of value added and exports of high and medium technologies, with the indicators pointing to strong but overall share in the global market.
An indicator for the degree of dependency for the supply of raw materials complements the analysis pointing to an overall average degree of concentration for the EU for a basket of raw materials. This suggests the need to capitalise on the synergies offered by single market tools to strengthen the resilience of the EU economy in this area.