Advancing Innovation in Europe – CIFF response on the EU Innovation Act
The Chemical Industry Federation of Finland welcomes the European Commission’s initiative to develop a comprehensive European Innovation Act. As a sector at the heart of Europe’s industrial transformation, the chemical industry is committed to fostering innovation that supports sustainability, competitiveness, and technological leadership. We urge policymakers to ensure that the Innovation Act creates enabling conditions for all companies, regardless of size, to bring innovative solutions to market.
1. Defining Innovation: Focus on Projects, Not Labels
The current lack of harmonized EU definitions for ‘innovative company,’ ‘start-up,’ and ‘scale-up’ creates uncertainty and there is a risk for administrative complexity. The Finnish chemical industry cautions against rigid company classifications. Instead, support mechanisms should target innovative projects, irrespective of company size or age. That gives more space for different types of companies to fit under the definition as the main goal is to strengthen competitiveness. Finnish chemical industry stresses that all kind of companies strive for an innovative approach.
2. Regulatory Frameworks: Foster, Don’t Hinder, Innovation
Legislation must be designed with innovation in mind. We support the introduction of an ‘innovation stress test’ for new and revised EU laws. Regulatory sandboxes and fast-track procedures for permits and patents should be expanded.
3. Access to Finance: Mobilize Public and Private Investment
Europe’s innovation gap is partly due to underinvestment in commercialization and market uptake. The EU Innovation Act should promote blended finance models and remove barriers to IPR-backed financing. Finnish chemical industry supports the plans to establish a Scale up Fund to ensure that funding will be available for piloting in EU. The demonstration phase is the most expensive and risky phase of the RDI funnel.
4. Market Access: Level the Playing Field
Innovative products often face higher costs and market barriers. The EU should implement market-pull mechanisms and fast-track approvals to incentivize adoption of sustainable solutions. It is important to keep a technology neutral approach where different technologies and raw materials fit in.
5. Research Infrastructure and Knowledge Transfer
Access to research and technology infrastructure must be simplified. The Commercialization of publicly funded research should be prioritized through improved IPR policies and incentives for collaboration.
We urge the Commission to adopt a pragmatic, project-focused approach that empowers all innovators and accelerates Europe’s industrial competitiveness.
