The role played by research and development and education is key for innovation. Promoting R&D investment includes a better use of public procurement, more innovation-friendly regulation and stepping up the provision of targeted fiscal incentives to the private sector. Finland is currently the only country in the euro area which complies with the Lisbon target of 3% spending on R&D.
Adequate systems to support R&D are of course not only a quantitative issue; increasing the efficiency of research at the same time is essential. 3  See Stiroh, K. J. (2002): ‘Are ICT Spillovers driving the new economy?’ Review of Income and Wealth, Series 48, No 1, March.