{"id":26646,"date":"2026-09-22T18:48:27","date_gmt":"2026-09-22T16:48:27","guid":{"rendered":"https:\/\/ponsip.com\/?p=26646"},"modified":"2026-09-22T18:53:19","modified_gmt":"2026-09-22T16:53:19","slug":"innovation-act-when-rd-is-not-enough","status":"publish","type":"post","link":"https:\/\/ponsip.com\/en\/ip-news\/intangible-assets-management\/innovation-act-when-rd-is-not-enough\/","title":{"rendered":"Innovation Act: When R&amp;D Is Not Enough"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Luis Ignacio Vicente del Olmo, Strategic Advisor at PONS IP<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those without vision tend to confuse R&amp;D with innovation. In Spain, we sometimes treat the two concepts as interchangeable, when in practice they are distinct activities that require different skill sets and management models. R&amp;D generates knowledge; innovation transforms that knowledge into economic and social value through the market. Europe is reasonably effective at generating knowledge, yet it remains mediocre at converting that knowledge into market success. Addressing this challenge is precisely the objective of the European Innovation Act proposal presented by the European Commission on 9 September.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spanish companies account for 56% of all R&amp;D activity undertaken in the country, yet that effort represents only 0.84% of GDP, compared with an EU average of 1.41% and 1.99% across the OECD. Nevertheless, I believe these figures conceal a higher level of R&amp;D activity. It makes little sense that, for example, according to the <em>EU Industrial R&amp;D Investment Scoreboard 2025<\/em>, Banco Santander is the leading Spanish company in terms of R&amp;D investment, while other financial institutions do not even appear on the list. The reason for these discrepancies may lie in the fact that companies operate with three different concepts of R&amp;D: the R&amp;D recorded in accounting terms, the R&amp;D that qualifies for tax incentives, and the R&amp;D reported to the National Statistics Institute (INE) or in surveys of this kind, based on the OECD&#8217;s Frascati Manual definition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The situation is similar in the field of innovation, where there is no single accepted definition. Instead, we coexist with the definitions contained in the OECD&#8217;s Oslo Manual and those set out in the Spanish Corporate Income Tax Act for the purpose of applying tax deductions. More than thirty-five years ago, I was probably the first person to hold a position bearing the word &#8220;innovation&#8221; in the job title, and ever since I have devoted considerable effort to finding the most effective ways of managing it. Although I teach innovation at some of the world&#8217;s leading business schools, I must confess that I still have more questions than answers.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Today, businesses, and Spain as a nation, face challenges such as geopolitical uncertainty, the need to attract and retain the talent we require, the integration of Artificial Intelligence, and, above all, the imperative of increasing productivity.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Against this backdrop, the first thing that strikes me about the Commission&#8217;s proposal is its structural modesty. To address something as broad and multidimensional as innovation, involving talent, business culture, regulation, geopolitics, financing, and technological absorption capacity, the Commission has chosen to focus on only two pillars: public procurement of innovation and the management of intangible assets, with particular emphasis on their valuation and value creation, which are themselves two distinct concepts. I understand the logic of concentrating efforts. It is better to do two things well than many things poorly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That said, I believe both pillars are highly relevant, and I maintain that their implementation, rather than their design on paper, will determine whether this legislation genuinely delivers change.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The challenges in both areas are significant. The first, public procurement of innovation, is based on an approach I fully support: positioning the public sector as the first customer for emerging technologies, something that Europe has performed between five and eight times less effectively than other major competitors for many years. I recall that, under the leadership of Cotec, Spain played a pioneering role in developing these policies in Europe, although we have not become a leader in their implementation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For innovative public procurement to achieve its intended purpose, it must be a genuinely transparent process grounded in technical merit, rather than yet another administrative layer that ultimately benefits incumbent suppliers or becomes a mere box-ticking exercise. Businesses have long complained about an unpredictable regulatory framework, excessive bureaucracy, inadequate alignment with the pace of technological innovation, and a lack of coordination among public administrations. Let us hope that the new procurement framework addresses these shortcomings, namely genuine transparency, timelines compatible with the pace of a start-up, and effective coordination across different levels of government, so that it can become a real catalyst for bringing technology to market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second pillar, the management of intangible assets, including patents, software and data, is a subject that particularly concerns me. I am convinced that strengthening intellectual property management will help increase productivity by fostering an economic model based on high-value technological products and services. Today, a significant proportion of corporate value is derived from intangible assets. Establishing a common European framework for intellectual property valuation is a necessary and timely initiative. Without credible and harmonised valuation methodologies, no bank or investment fund will accept a patent as meaningful collateral for financing, regardless of the economic value it may embody.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, such a framework requires an institutional home with genuine technical capability, and all indications suggest that this responsibility will fall to the European Union Intellectual Property Office (EUIPO). The challenge is that rigorous valuation of intangible assets, carried out consistently across very different sectors and jurisdictions, requires technical and economic expertise that goes far beyond the areas traditionally managed by the EUIPO, whose activities have historically centred on trade marks and designs. Unless the EUIPO is equipped with sufficient human and technical resources, including experts in financial valuation, sector-specific technologies and market analysis, the valuation framework risks becoming a purely formal exercise, lacking the credibility necessary for banks and investors to adopt it in any meaningful way.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The European Innovation Act deserves credit for identifying two genuine problems and seeking to address them through concrete and measurable instruments. Yet even the most carefully designed legislation will fall short if implementation does not match its ambition. Public procurement that lacks transparency, or intangible asset valuation without the means to be conducted rigorously, will produce exactly the same outcome as having no legislation at all. Europe, and Spain in particular, will continue to confuse investment in R&amp;D with genuine innovation until these implementation challenges are resolved.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Vision, to return to the idea with which I opened this article, is not simply about identifying the right destination. It is about having the discipline, and providing the necessary resources, to travel the road towards it successfully.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Luis Ignacio Vicente del Olmo, Strategic Advisor at PONS IP Those without vision tend to confuse R&amp;D with innovation. In Spain, we sometimes treat the two concepts as interchangeable, when in practice they are distinct activities that require different skill sets and management models. R&amp;D generates knowledge; innovation transforms that knowledge into economic and social &#8230; <a title=\"Innovation Act: When R&amp;D Is Not Enough\" class=\"read-more\" href=\"https:\/\/ponsip.com\/en\/ip-news\/intangible-assets-management\/innovation-act-when-rd-is-not-enough\/\" aria-label=\"Read more about Innovation Act: When R&amp;D Is Not Enough\">Read more<\/a><\/p>\n","protected":false},"author":7,"featured_media":26644,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76,75,73],"tags":[59],"class_list":["post-26646","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-intangible-assets-management","category-intellectual-property","category-rdi-management","tag-articles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Innovation Act: When R&amp;D Is Not Enough - PONS IP<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Innovation Act: When R&amp;D Is Not Enough - PONS IP\" \/>\n<meta property=\"og:description\" content=\"Luis Ignacio Vicente del Olmo, Strategic Advisor at PONS IP Those without vision tend to confuse R&amp;D with innovation. In Spain, we sometimes treat the two concepts as interchangeable, when in practice they are distinct activities that require different skill sets and management models. R&amp;D generates knowledge; innovation transforms that knowledge into economic and social ... 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