{"id":635781,"date":"2024-09-10T17:40:10","date_gmt":"2024-09-10T14:40:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/eu-must-close-innovation-gap-to-overcome-existential-challenge-warns-draghi\/"},"modified":"2024-09-10T17:40:10","modified_gmt":"2024-09-10T14:40:10","slug":"eu-must-close-innovation-gap-to-overcome-existential-challenge-warns-draghi","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/eu-must-close-innovation-gap-to-overcome-existential-challenge-warns-draghi\/","title":{"rendered":"#EU must close innovation gap to overcome \u2018existential challenge\u2019, warns Draghi"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f82f952350\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f82f952350\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/eu-must-close-innovation-gap-to-overcome-existential-challenge-warns-draghi\/#Need_to_close_the_innovation_gap\" >Need to close the innovation gap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/eu-must-close-innovation-gap-to-overcome-existential-challenge-warns-draghi\/#Key_barriers_and_necessary_steps\" >Key barriers and necessary steps<\/a><\/li><\/ul><\/nav><\/div>\n<p><img decoding=\"async\" src=\"https:\/\/img-cdn.tnwcdn.com\/image?fit=796%2C417&amp;url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2024%2F09%2FUntitled-design-34.jpg&amp;signature=c35b24ad3b0a3f5f84df6162dd57fff7\" \/><\/p>\n<div id=\"article-main-content\">\n                            Mario Draghi has sounded the alarm about the EU\u2019s competitiveness \u2014<span> and future \u2014 as it is again failing to translate ideas and ambition into technological innovation.<\/span><\/p>\n<p>In a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/commission.europa.eu\/topics\/strengthening-european-competitiveness\/eu-competitiveness-looking-ahead_en\">report<\/a> commissioned by the bloc\u2019s chief Ursula von der Leyen, Draghi stressed that a pronounced growth slowdown has widened the GDP gap between the Union and the US.<\/p>\n<p>This slowdown is closely linked to sluggish tech development.<\/p>\n<p>\u201cEurope largely missed out on the digital revolution led by the internet and the productivity gains it brought,\u201d the former European Central Bank (ECB) president said.<\/p>\n<div class=\"inarticle-wrapper channel-cta\">\n<div class=\"ica-text\">\n<p class=\"ica-text__title\">TNW Conference 2025 &#8211; Back to NDSM on June 19-20, 2025 &#8211; Save the date!<\/p>\n<p>As we wr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed up our incredible 2024 edition, we&#8217;re pleased to announce our return to Amsterdam NDSM in 2025. Registration now!<\/p>\n<\/div>\n<\/div>\n<p>He also warned that history might repeat itself.<\/p>\n<p>\u201cThe EU is [likewise] weak in the emerging technologies that will drive future growth.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Need_to_close_the_innovation_gap\"><\/span>Need to close the innovation gap<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A critical step for the EU to turn the tables is closing the innovation gap with China and, especially, the US.<\/p>\n<p>\u201cThe problem is not that Europe lacks ideas or ambition,\u201d the Italian former premier said.<\/p>\n<p>\u201cBut innovation is blocked at the next stage: we are failing to translate innovation into commercialisation.\u201d<\/p>\n<p>The data speaks for itself.<\/p>\n<p>According to the report, merely four of the world\u2019s top 50 tech companies are European. This includes chip machine manufacturer ASML and Germany\u2019s software provider SAP.<\/p>\n<div id=\"1725972051.498209\" class=\"c-virtual_list__item\" tabindex=\"0\" role=\"listitem\" aria-setsize=\"-1\" data-qa=\"virtual-list-item\" data-item-key=\"1725972051.498209\">\n<div class=\"c-message_kit__background c-message_kit__background--hovered p-message_pane_message__message c-message_kit__message p-message_pane_message__message--showing_context_bar\" role=\"presentation\" data-qa=\"message_container\" data-qa-unprocessed=\"false\" data-qa-placeholder=\"false\">\n<div class=\"c-message_kit__hover c-message_kit__hover--hovered\" role=\"document\" aria-roledescription=\"message\" data-qa-hover=\"true\">\n<div class=\"c-message_kit__actions c-message_kit__actions--above\">\n<div class=\"c-message_kit__gutter\">\n<div class=\"c-message_kit__gutter__right\" role=\"presentation\" data-qa=\"message_content\">\n<div class=\"c-message_kit__blocks c-message_kit__blocks--rich_text\">\n<div class=\"c-message__message_blocks c-message__message_blocks--rich_text\" data-qa=\"message-text\">\n<div class=\"p-block_kit_renderer\" data-qa=\"block-kit-renderer\">\n<div class=\"p-block_kit_renderer__block_wrapper p-block_kit_renderer__block_wrapper--first\">\n<div class=\"p-rich_text_block\" dir=\"auto\">\nIn the last 50 years, there has also not been any EU company with a market capitalisation of over \u20ac100bn. In contrast, the US has minted six companies with a valuation above \u20ac1 trillion.\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><span>The bloc is also currently falling behind in advanced technologies, such as artificial intelligence.<\/span><\/p>\n<p>Since 2017, approximately 70% of foundation AI models have been developed in the US. Similarly, US-based companies, including Amazon and Microsoft, account for over 65% of the global \u2014 and European \u2014 cloud market.<\/p>\n<p>It then comes as no surprise that European founders prefer seeking funding from US investors and scaling up outside of the bloc. Between 2008 and 2021, nearly 30% of Europe\u2019s unicorns relocated abroad, with the majority choosing the US.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_barriers_and_necessary_steps\"><\/span>Key barriers and necessary steps<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to Draghi, the EU faces a long list of problems that need to be solved to close the innovation gap.<\/p>\n<p>First comes the lack of late-stage VC funding opportunities for startups as well as insufficient, or misdirected, public investment in research and innovation (R&amp;I).<\/p>\n<p>The scaling-up process is also affected by market fragmentation across the bloc and complex regulation.<\/p>\n<p>\u201cThe EU\u2019s regulatory stance towards tech companies hampers innovation,\u201d Draghi said.<\/p>\n<p>\u201c[It] now has around 100 tech-focused laws and over 270 regulators active in digital networks across all member states.\u201d This includes the AI Act, which came into force last month.<\/p>\n<p>Another problem is the limited number of European universities that make it to the top.<\/p>\n<p>\u201cThe EU has only three research institutions ranked among the top 50 globally, whereas the US has 21 and China 15,\u201d Draghi said. \u201cMuch of the knowledge generated by European researchers remains commercially unexploited,\u201d he stated in the report.<\/p>\n<p>Draghi has offered a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of extensive suggestions to address these issues, including:<\/p>\n<ul>\n<li>Transforming the European Innovation Council (EIC) into an \u201cARPA-type of agency,\u201d alongside the allocation of a \u20ac200bn budget to R&amp;I<\/li>\n<li>Attracting foreign investment with a smoother spinout process, less bureaucracy, and regulation exceptions for startups and SMEs<\/li>\n<li>Lowering the cost of AI deployment by increasing computational capacity and access to high-performance computers<\/li>\n<\/ul>\n<p>Overall, Draghi\u2019s report paints a grim picture for the entirety of the EU\u2019s economy and ambitions.<\/p>\n<p>It\u2019s still unclear whether his suggestions will become part of the new European Commission\u2019s agenda. Von der Leyen will announce the members next week.<\/p>\n<p><span>It\u2019s even less clear whether the EU will manage to overcome, as Draghi described it, the \u201cexistential challenge\u201d it\u2019s currently facing.<\/span>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/eu-must-close-innovation-gap-existential-challenge-draghi-report\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mario Draghi has sounded the alarm about the EU\u2019s competitiveness \u2014 and future \u2014 as it is again failing to translate ideas and ambition into technological innovation. In a report commissioned by the bloc\u2019s chief Ursula von der Leyen, Draghi stressed that a pronounced growth slowdown has widened the GDP gap between the Union and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":635782,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/tnw-blurple?filter_last=1&fit=1280%2C640&url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2024%2F09%2FUntitled-design-34.jpg&signature=7b1bf0fcff36cef6418d22d071c4c9a7","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-635781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/635781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=635781"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/635781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/635782"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=635781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=635781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=635781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}