Notts innovation an example to Europe says EU commissioner

EU Commissioner Danuta Hubner paid a two-day visit to Nottingham to see how her regional budget was spent. Here she speaks to Business Editor RICHARD TRESIDDER

Danuta Hubner is coming to the end of her term as European Union commissioner responsible for regional policy .

In that time, she has visited nearly all the EU sub regions. Her day in Nottingham took her to the University of Nottingham and BioCity, where she was deeply impressed by the role of innovation as a way of stimulating and growing the economy.

There were lessons to be learnt by the rest of the EU, she commented.

Nottingham has been a substantial recipient of EU aid under the EU cohesion policy aimed at revitalising areas which have seen a decline in some sectors.

In Notts, that means coal and textiles.

Since 2000, EU investment in the East Midlands has created 15,000 jobs and supported 13,000 small and medium sized companies. These include BioCity, which received £4.4m from the EU regional development fund.

But Mrs Hubner's visit comes at a time of financial crisis around the world.

She said: "In these times of crisis, it is more important than ever to make the best possible use of European funds. The East Midlands is getting considerable support from the cohesion policy – more than £420m over 2007-13 – and I am confident that the region will maintain its impressive track record in making the most of this EU investment.

"I am particularly encouraged that the region's strategy emphasises 'smart investment' for research, technological development and innovation."

The EU has speeded up structural fund payments because of the downturn. The East Midlands will receive an extra cash advance of 6.7m euros this year on top of 13.4m euros it has already received since 2007. This will allow the region to speed up the implementation of projects and help boost confidence in its economy.

Other measures include cutting red tape by simplifying the management of funding and giving UK authorities greater flexibility to adjust priorities.

Mrs Hubner said she was anxious to hear from the region's leaders and businesses about the kind of help needed.

"I notice a working together between the regional development agency, the elected authorities and the partners from academia. This is working and essential for the future."

Mrs Hubner, a Polish academic, added: "I was impressed by the projects that make full use of the existing universities structure such as the Environmental Technology Centre at Nottingham University. It shows that Nottingham knows how to use the European funding to support innovation and the transfer of knowledge from the university into the economy.

"The region understands the importance of the knowledge base and that makes me very optimistic for the future."

Mrs Hubner said where there is good co-operation between universities and small and medium sized companies, there is growth, change and jobs are created.

She was clearly impressed by the Environmental Technology Centre where small firms are converting environmental costs into benefits which she hoped to see broadcast to a wider audience across Europe.

Mrs Hubner said there were lessons to take back to other regions in Europe.

"It is not enough to have a well functioning regional development agency but you must have close links and co-operation with elected authorities, the business community and trade unions.

"The partnership is very important particularly when the challenge is innovation."

Mrs Hubner said the entire EU had been hit by the financial crisis.

"We all face the same challenge," she said. "We must not use the crisis as a pretext for the East Midlands to divert from the strategic path towards a more innovative and competitive economy."

Mrs Hubner said innovative kinds of financing must be found.

"The EU has 420m euros until 2013 for the East Midlands but it is never enough so we must reach out to financial institutions."

Nottingham, she said, could benefit from a new urban regeneration fund combining European grants with funding from European financial institutions.

The fund, Jessica, is an initiative in cooperation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB), to promote sustainable investment, growth and jobs in urban areas.

Mrs Hubner said prorities for the European cash were settled locally by East Midlands Development Agency, local authorities, academics and partners.

"It is not decided in Brussels," she added. "Most of the 420 euros will go for supporting innovation and enterprise in small and medium-sized firms. An important part of the funding goes to firms in disadvantaged areas which need more life."

Mrs Hubner said that it was vital to pay attention to climate change.

"We have to think about sustainability to protect the existing environment. Environmental standards are a cost on industry. So we must think how we convert this cost into a benefit.

"Projects at the Environmental Technology Centre are focused on this."

Mrs Hubner used as an example the conversion of waste from the leather industry. "We must all invest in energy efficiency such as solar energy. A measure for industry will be energy efficiency.

"Thinking about the environment as not only a cost but a business opportunity is well understood. It is also a priority for the EU."