Lisbon Strategy
Encyclopedia
The Lisbon Strategy, also known as the Lisbon Agenda or Lisbon Process, was an action and development plan
devised in 2000, for the economy of the European Union
between 2000 and 2010.
Its aim was to make the EU "the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion", by 2010. It was set out by the European Council
in Lisbon
in March 2000. By 2010, most of its goals were not achieved.
It was adopted for a ten-year period in 2000 in Lisbon
, Portugal by the European Council. It broadly aimed to "make Europe, by 2010, the most competitive and the most dynamic knowledge-based economy in the world".
. The Lisbon Strategy was heavily based on the economic concepts of:
Under the strategy, a stronger economy would create employment in the EU, alongside inclusive social and environmental policies, which would themselves drive economic growth even further.
An EU research group found in 2005 that current progress had been judged "unconvincing", so a reform process was introduced wherein all goals would be reviewed every three years, with assistance provided on failing items.
Translation of the Lisbon Strategy goals into concrete measures led to the extension of the Framework Programmes for Research and Technological Development
(FPs) into FP7 and the Joint Technology Initiatives (JTI).
, Bengt-Åke Lundvall
, Luc Soete
, Carlota Perez
, Manuel Castells
, Giovanni Dosi
, and Richard Nelson
.
Key concepts of the Lisbon Strategy include those of the knowledge economy
, innovation
, techno-economic paradigms, technology governance
, and the "open method of coordination
" (OMC).
headed up a review of the program and presented a report on the Lisbon strategy concluding that even if some progress was made, most of the goals were not achieved:
The European Commission used this report as a basis for its proposal in February 2005 to refocus the Lisbon Agenda on actions that promote growth and jobs in a manner that is fully consistent with the objective of sustainable development. The Commission's communication stated that "making growth and jobs the immediate target goes hand in hand with promoting social or environmental objectives."
In its resolution on the mid-term review of the Lisbon strategy in March 2005, the European Parliament expressed its belief that "sustainable growth and employment are Europe's most pressing goals and underpin social and environmental progress" and "that well-designed social and environmental policies are themselves key elements in strengthening Europe's economic performance".
These declarations were classed as unrealistic by some, and the failure of the "relaunch" initiative was predicted if the existing approach was not changed.
prime minister Fredrik Reinfeldt
admitted:
The alleged failure of the Lisbon Strategy was widely commented on in the news and by member states leaders.
Spain's prime minister José Luis Rodríguez Zapatero
pointed out that the non-binding character of the Lisbon Strategy contributed to the failure, and this lesson needed to be taken into account by the new Europe 2020
strategy.
Official appraisal of the Lisbon Strategy took place in March 2010 at a European Summit, where the new Europe 2020
strategy was also launched.
Development Plan
A development plan is an aspect of town and country planning in the United Kingdom comprising a set of documents that set out the local authority's policies and proposals for the development and use of land in their area...
devised in 2000, for the economy of the European Union
Economy of the European Union
The economy of the European Union generates a GDP of over €12,279.033 billion according to the International Monetary Fund , making it the largest economy in the world...
between 2000 and 2010.
Its aim was to make the EU "the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion", by 2010. It was set out by the European Council
European Council
The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy...
in Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
in March 2000. By 2010, most of its goals were not achieved.
Background and objectives
The Lisbon Strategy intended to deal with the low productivity and stagnation of economic growth in the EU, through the formulation of various policy initiatives to be taken by all EU member states. The broader objectives set out by the Lisbon strategy were to be attained by 2010.It was adopted for a ten-year period in 2000 in Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
, Portugal by the European Council. It broadly aimed to "make Europe, by 2010, the most competitive and the most dynamic knowledge-based economy in the world".
The Strategy
The main fields were economic, social, and environmental renewal and sustainabilitySustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
. The Lisbon Strategy was heavily based on the economic concepts of:
- InnovationInnovationInnovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...
as the motor for economic change (based on the writings of Joseph SchumpeterJoseph SchumpeterJoseph Alois Schumpeter was an Austrian-Hungarian-American economist and political scientist. He popularized the term "creative destruction" in economics.-Life:...
) - The "learning economyLearning economyModern economies can be characterised as learning economies in which knowledge is the crucial resource and learning is the most important process. Different kinds of learning and economically relevant types of knowledge can likewise be identified. It is argued that pure market economies, if such...
" - Social and environmental renewal
Under the strategy, a stronger economy would create employment in the EU, alongside inclusive social and environmental policies, which would themselves drive economic growth even further.
An EU research group found in 2005 that current progress had been judged "unconvincing", so a reform process was introduced wherein all goals would be reviewed every three years, with assistance provided on failing items.
Translation of the Lisbon Strategy goals into concrete measures led to the extension of the Framework Programmes for Research and Technological Development
Framework Programmes for Research and Technological Development
The Framework Programmes for Research and Technological Development, also called Framework Programmes or abbreviated FP1 through FP8, are funding programmes created by the European Union in order to support and encourage research in the European Research Area...
(FPs) into FP7 and the Joint Technology Initiatives (JTI).
Key thinkers and concepts
Contemporary key thinkers on whose works the Lisbon Strategy was based and/or who were involved in its creation include Maria João Rodrigues, Christopher FreemanChristopher Freeman
Christopher Freeman was an English economist, the founder and first director of Science and Technology Policy Research at the University of Sussex, and one of the most eminent modern Kondratiev wave and business cycle theorists...
, Bengt-Åke Lundvall
Bengt-Åke Lundvall
Bengt-Åke Lundvall is professor at the Department of Business Studies at Aalborg University and at Sciences-Po in Paris, France, since 2007. He was also a visiting professor at the Tsinghua University in Beijing in 2004-06...
, Luc Soete
Luc Soete
Luc Soete is a Belgian economist, Rector Magnificus Professor of International Economic Relations at the School of Business and Economics, Maastricht University and director of UNU-MERIT, a joint research institute of the United Nations University and Maastricht University...
, Carlota Perez
Carlota Perez
Carlota Perez is a Venezuelan scholar and expert on technology and socio-economic development most famous for her concept of Techno-Economic Paradigm Shifts and her theory of great surges, a further development of the Kondratieff waves.-Career:...
, Manuel Castells
Manuel Castells
Manuel Castells is a sociologist especially associated with information society and communication research....
, Giovanni Dosi
Giovanni Dosi
Giovanni Dosi is Professor at the Sant'Anna School of Advanced Studies in Pisa , where he also coordinates the International Doctoral Program in Economics and leads the Laboratory of Economics and Management...
, and Richard Nelson
Richard Nelson
Richard Nelson may refer to:* Richard Nelson , anthropologist and writer* Richard Nelson , Episcopal bishop in America...
.
Key concepts of the Lisbon Strategy include those of the knowledge economy
Knowledge economy
The knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economic constraints, or to a knowledge-based economy. In the second meaning, more frequently used, it refers to the use of knowledge technologies to...
, innovation
Innovation
Innovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...
, techno-economic paradigms, technology governance
Technology governance
Technology governance means the governance, i.e., the steering between the different sectors — state, business, and NGOs — of the development of technology. The concept is based on the notion of innovation and of techno-economic paradigm shifts according to the theories of Joseph A...
, and the "open method of coordination
Open Method of Coordination
The open method of coordination is a relatively new and intergovernmental means of governance in the European Union, based on the voluntary cooperation of its member states.- Overview :...
" (OMC).
Mid-term review
Between April and November 2004, Wim KokWim Kok
Willem "Wim" Kok ; born September 29, 1938) is a retired Dutch politician of the Labour Party . He served as Prime Minister of the Netherlands from August 22, 1994 until July 22, 2002....
headed up a review of the program and presented a report on the Lisbon strategy concluding that even if some progress was made, most of the goals were not achieved:
The European Commission used this report as a basis for its proposal in February 2005 to refocus the Lisbon Agenda on actions that promote growth and jobs in a manner that is fully consistent with the objective of sustainable development. The Commission's communication stated that "making growth and jobs the immediate target goes hand in hand with promoting social or environmental objectives."
In its resolution on the mid-term review of the Lisbon strategy in March 2005, the European Parliament expressed its belief that "sustainable growth and employment are Europe's most pressing goals and underpin social and environmental progress" and "that well-designed social and environmental policies are themselves key elements in strengthening Europe's economic performance".
These declarations were classed as unrealistic by some, and the failure of the "relaunch" initiative was predicted if the existing approach was not changed.
Closing review
In 2009 SwedishSweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
prime minister Fredrik Reinfeldt
Fredrik Reinfeldt
John Fredrik Reinfeldt is the Prime Minister of Sweden, leader of the liberal conservative Moderate Party and former President of the European Council...
admitted:
The alleged failure of the Lisbon Strategy was widely commented on in the news and by member states leaders.
Spain's prime minister José Luis Rodríguez Zapatero
José Luis Rodríguez Zapatero
José Luis Rodríguez Zapatero is a member of the Spanish Socialist Workers' Party . He was elected for two terms as Prime Minister of Spain, in the 2004 and 2008 general elections. On 2 April 2011 he announced he will not stand for re-election in 2012...
pointed out that the non-binding character of the Lisbon Strategy contributed to the failure, and this lesson needed to be taken into account by the new Europe 2020
Europe 2020
Europe 2020 is a 10-year strategy proposed by the European Commission on 3 March 2010 for reviving the economy of the European Union. It aims at "smart, sustainable, inclusive growth" with greater coordination of national and European policy...
strategy.
Official appraisal of the Lisbon Strategy took place in March 2010 at a European Summit, where the new Europe 2020
Europe 2020
Europe 2020 is a 10-year strategy proposed by the European Commission on 3 March 2010 for reviving the economy of the European Union. It aims at "smart, sustainable, inclusive growth" with greater coordination of national and European policy...
strategy was also launched.
See also
- Europe 2020Europe 2020Europe 2020 is a 10-year strategy proposed by the European Commission on 3 March 2010 for reviving the economy of the European Union. It aims at "smart, sustainable, inclusive growth" with greater coordination of national and European policy...
- Updated strategy for next decade - Economy of the European UnionEconomy of the European UnionThe economy of the European Union generates a GDP of over €12,279.033 billion according to the International Monetary Fund , making it the largest economy in the world...
- Aho reportAho reportThe Aho report on Creating an Innovative Europe was published in 2006. The report was written by a four-member group chaired by Esko Aho, former Finnish Prime Minister. The committee was created at the Hampton Court summit in the United Kingdom in October 2005...
- Community patentCommunity PatentThe EU patent or European Union patent, formerly known as the Community patent, European Community Patent, or EC patent and sometimes abbreviated as COMPAT, is a patent law measure being debated within the European Union, which would allow individuals and companies to obtain a unitary patent...
- European Institute of TechnologyEuropean Institute of TechnologyThe European Institute of Innovation and Technology is a public European institute which was established on 11 March 2008. It was set up in order to ‘address Europe's innovation gap’, and is the EU's flagship education institute designed to assist innovation, research and growth in the European...
(EIT) - Innovative Medicines InitiativeInnovative Medicines InitiativeThe Innovative Medicines Initiative is a European initiative to improve the competitive situation of the European Union in the field of pharmaceutical research...
- Knowledge triangleKnowledge triangleThe knowledge triangle refers to the interaction between research, education and innovation, which are key drivers of a knowledge-based society. In the European Union, it also refers to an attempt to better link together these key concepts, with research and innovation already highlighted by the...
- Sapir ReportSapir ReportAn Agenda for a Growing Europe, also called The Sapir Report, is a report on the economy of the European Union edited by a panel of experts under the direction of André Sapir and published in July 2003...
- Science and technology in EuropeScience and technology in EuropeEurope's achievements in science and technology have been significant and research and development efforts form an integral part of the European economy. Europe has been the home of some of the most prominent researchers in various scientific disciplines, notably physics, mathematics, chemistry and...
Lobbying around the strategy
- European Trade Union ConfederationEuropean Trade Union ConfederationThe European Trade Union Confederation is a trade union organization which was established in 1973 to represent workers and their national affiliates at the European level....
, (ETUC update on the Lisbon strategy) - EuroscienceEuroscienceEuroscience is a pan-European grassroots organisation for the support and promotion of science and technology in Europe. The membership of Euroscience consists of individuals interested in constructing a scientific Europe...
- Transatlantic Business DialogueTransatlantic Business DialogueThe TransAtlantic Business Dialogue offers a framework for cooperation between the transatlantic business community and the governments of the European Union and United States of America ....
, which took part in the report for a new restart of the agenda - Union of Industrial and Employers' Confederations of EuropeUnion of Industrial and Employers' Confederations of EuropeFounded in 1958, BUSINESSEUROPE represents small, medium and large companies through its members, 41 leading national business organisations in 35 European countries working together to achieve growth and competitiveness in Europe...
(UNICE)
Further reading
- Maria João Rodrigues (2003), European Policies for a Knowledge Economy, Edward Elgar.
- Maria João Rodrigues (2009), Europe, Globalization and the Lisbon Agenda in collaboration with I. Begg, J. Berghman, R. Boyer, B. Coriat, W. Drechsler, J. Goetschy, B.Å. Lundvall, P.C. Padoan, L. Soete, M. Telò and A. Török, Edward Elgar.
- Arno Tausch (2010), Titanic 2010?: The European Union and Its Failed Lisbon Strategy (European Political, Economic and Security Issues Series) Hauppauge, New York: Nova Science Publishers
- Aristovnik, Aleksander & Andrej, Pungartnik, 2009. "Analysis of reaching the Lisbon Strategy targets at the national level: the EU-27 and Slovenia", MPRA Paper 18090, University Library of Munich, Germany.
External links
- Official EU summary on the Lisbon Strategy
- Sapir, André (2003): An Agenda for a Growing Europe, Making the EU Economic System Deliver. Report of an Independent High-Level Study Group established on the initive of the President of the European Commission
- Euractiv background article about the Lisbon Agenda
- Stefan Collignon, Forward with Europe: a democratic and progressive reform agenda after the Lisbon strategy, Friedrich-Ebert-Stiftung, Internat. Politikanalyse, April 2008.
- The Economist – Charlemagne Blog: Do Europeans want a dynamic economy?
- Joachim Fritz-Vannahme, Armando García Schmidt, Dominik Hierlemann, Robert Vehrkamp: "Lisbon – A Second Shot", spotlight europe 2010/02, February 2010, Bertelsmann Stiftung (PDF, 340 kB)
- Friedrich-Ebert-Stiftung, Study Group Europe: Paving the way for a sustainable European prosperity strategy, February 2010 (PDF, 135 kB)