Concerted action through key policy instruments will speed up market development of fast-growing products and services, without interfering with competitive forces. The first six areas - eHealth, protective textiles, sustainable construction, recycling, bio-based products and renewable energies - which have been identified for the "Lead Market Initiative" (LMI) are highly innovative, respond to customers’ needs, have a strong technological and industrial base in Europe and depend more than other markets on the creation of favourable framework conditions through public policy actions. The initiative calls for the urgent coordination of policy through ambitious action plans for these markets, rapidly bringing visible advantage for Europe’s economy and consumers.

How does the Lead Market Initiative (LMI) process work?
The LMI identifies promising emerging markets which could be supported by such concerted policy action and outlines a process to streamline the necessary legal and regulatory environments and accelerate the growth of demand.

To be successful, the process needs to:

• incorporate global market needs and customer preferences to maximise market potential;
• facilitate the acceptance of EU standards and approaches by non-EU markets, notably in domains affected by global trends (e.g. environmental issues);
• aim at reducing the cost of bringing new products or services into the market, by easing market access and measures to facilitate demand.

An action plan for the next years is presented for each market with a set of policy instruments boosting the competitiveness of the lead markets:

• Improving legislation: it is designed to foster innovation and avoid imposing burdens on innovative business and facilitate an integrated approach along the value chain
• Encouraging public procurement for such innovative goods and services
• Standardisation, labelling and certification: encourage standards that facilitate the operation of products and business processes with each other and raise the recognition and confidence of users in innovative products and services;
• Complementary instruments such as business and innovation support services, training, communication, financial support and incentives.

Markets:

1. eHealth can help to deliver better care for less money.
2. Sustainable construction: towards sustainable development.
3. Technical textiles for intelligent personal protective clothing and equipment: increasing the knowledge content and the added-value.
4. Bio-based products: innovative use of renewable raw materials.
5. Recycling: proper and effective waste management.
6. Renewable energy: CO2-neutral energy sources.

The development of renewable resources is held back by three factors:

• The external costs of energy use are not fully reflected in energy prices.
• Important learning curve effects which would lower prices in several technologies are exploited more slowly on account of present low levels of demand.
• The fragmentation of renewable energy support systems and the existence of administrative and market barriers mean that the potential of the internal market is not fully exploited.

The main elements of the renewable energy action plan are removing barriers to the integration of renewable energy sources in the EU energy system and simplifying authorisation procedures. A coordinated approach for standard setting and labelling on technologies as well as mobilising public and private financing are other measures to help reaching the 20% target by 2020.

More information:
For more information about LMI can be found at the official website DG Enterprise.