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At a time of public budget constraints, major demographic changes and increasing global
competition, Europe's competitiveness, our capacity to create millions of new jobs to replace
those lost in the crisis and, overall, our future standard of living depends on our ability to
drive innovation in products, services, business and social processes and models. This is why innovation has been placed at the heart of the Europe 2020 strategy. Innovation is also our best means of successfully tackling major societal challenges, such as climate change, energy and resource scarcity, health and ageing, which are becoming more urgent by the day.