Innovation Activities in Pulp, Paper and Paper Products in Europe

Keith Smith, Karl Führer, Espen Dietrichs and Errko Autio

No 199704, STEP Report series from The STEP Group, Studies in technology, innovation and economic policy

Abstract: This report uses data from the Eurostat/DG-XIII Community Innovation Survey (CIS) to analyse innovation activity and innovation performance in the Pulp, Paper and Paper Products Industry in Europe. Analyses of innovation, and policy discussions of innovation, are often focused on high-R&D performing sectors such as IT, biotechnology, pharmaceuticals and so on. Sectors such as Pulp and Paper are usually regarded as low-technology activities, since they perform relatively little internal R&D. However it is important to note that high-R&D sectors tend to be small in terms of output and employment. The bulk of European output and employment is found in low and medium-R&D performing industries such as Pulp and Paper. Though somewhat neglected in policy terms, such industries are vital to European competitiveness, growth and employment. This sector in particular is also very important in environmental terms. The report is in three parts. The first presents an overview of the industry in Europe - its structure, products, innovation methods, investment patterns, export specialisation and general development trends. The second part explores innovation activity in the industry, looking at tangible and intangible investments, R&D co-operation, innovation-related expenditures (and their distribution across categories), and innovation outputs (in terms of shares of turnover generated by new products). Part Three analyses innovation performance, where we distinguish between high, medium and low-performing innovators, and analyse the characteristics of high-innovating firms in the industry.

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