Proposals to strengthen competitiveness and innovation "made in Europe"
ERT a group of business leaders from around 60 of Europe´s largest employers released a report entitled” Innovation made in Europe”, sharing insights on policy choices that are the building blocks to creating a more innovation-friendly environment across the EU-27. The report warned that Europe has fallen behind its global peers in terms of technological advancement and key infrastructure and highlight that if Europe wants to reclaim its competitiveness, it must restore the business case for innovation. According to the report, the EU's "Green Deal Industrial Plan" could be a great opportunity to improve the EU's innovation support system and competitiveness.
Main takeaways from the report:
- The paper sets out ERT Members’ views on where Europe can and has to do better to remain an innovative powerhouse, a leading industrial base and a prosperous continent:
- Compared to our global peers and competitors, Europe’s investment in R&D is relatively low. With a few exceptions, we are far behind in the tech race in the ICT (information and communication technology) area.
- In the European R&D mix experimental development – which is ‘high-risk, high-return’ – plays a much smaller role than for other innovation leaders, such as Israel, South Korea, the US – and also China.
- Innovation increasingly builds on collaboration – whether cross-sectoral or between different types and sizes of companies. This makes triggering innovation even more complex.
- Compared to our global peers and competitors, Europe’s investment in R&D is relatively low. With a few exceptions, we are far behind in the tech race in the ICT (information and communication technology) area.
- Three priority policy messages to help unleash innovation made in Europe:
- Rethink regulation. Europe can only be a frontrunner in innovation if EU decision makers put the business case for innovating and investing in Europe at the core of EU regulation. This requires a regulatory framework that is coherent with political goals and that is kept up to date to accommodate innovation timely enough for quick commercialization.
- Re-focus on robust intellectual property (IP) rights and international standardization. Solid globally competitive IP. This will be key for the digital and green transition and to avoid delays and disadvantages in innovation and commercialization.
- Realise the scale-up of investment-intensive innovation. To move forward with the green and digital transition, public-private investment agreements and innovation-oriented public funding should be encouraged.
Filter results
According to AFME, a clearer, more coherent, and proportionate regulatory environment, without unnecessary layers and focuses on growth and competitiveness, is keyl to increase investor confidence, unlock private capital and deepen European capital markets
According to the Center for the Governance of Change at IE University, Europeans support technological progress if it reinforces security, inclusion, and social welfare; but resist it when change feels imposed, opaque, or misaligned with their values.
According to a recent report released by CEPS, European financial regulators should adopt competitiveness as a formal secondary objective, following the precedent established by the UK's Financial Services and Markets Act 2023.
According to the OECD. SMEs and start-ups that grow rapidly contribute significantly to job creation, economic growth and competitiveness. Indeed, SMEs that grow by one-third over a three-year period, contribute about as much to job creation as large firms.
According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.