Europe at a Crossroads: The Future of Research and Innovation as a Key to Global Leadership

Europe stands at a pivotal moment in its modern history, facing one of its greatest challenges: maintaining relevance in the global race for technological dominance. While the United States and China pour unprecedented amounts into research and innovation, the European Union wrestles with internal disparities, bureaucratic complexity, and fragmented systems among its member states. In her recent address to the European Parliament, European Commission President Ursula von der Leyen did not shy away from this issue. Instead, she made it a top priority, declaring, “We must close the innovation gap between Europe and our global competitors. Innovation and research must be at the heart of our economy.”

Von der Leyen outlined plans for a "Competitiveness Compass", a strategic framework to steer the European Commission over the next five years. This vision comes as preparations for Framework Programme 10 (FP10), set to launch in 2028, gather momentum. While her speech inspired many, it lacked detailed policy specifics. Yet, key resources such as the Draghi Report and Heitor Report provide valuable insights into what the future of European research and innovation could—and should—look like.

Europe by the Numbers: Where Do We Stand?

Europe produces roughly the same number of patents as the United States and China, but only a third of these patents are commercially exploited. According to an OECD report (2023), Europe creates a comparable number of startups to the U.S., yet it significantly lags in scaling them up. In the United States, startups routinely secure funding and grow across a unified national market. In Europe, by contrast, entrepreneurs face 27 different regulatory environments, creating substantial barriers to growth.

The Draghi Report, released in October 2024, identifies critical pillars for strengthening Europe’s innovation ecosystem, including the European Research Council (ERC) and the European Innovation Council (EIC). These institutions have already demonstrated their value—ERC fosters scientific excellence, while EIC transforms ideas into market-ready products. However, the report stresses that without structural changes—such as deeper private-sector engagement and reduced bureaucracy—even increased funding will not be enough to bridge the gap with global competitors.

The Widening Divide: Addressing Inequities in Europe

The EU has long aimed to close the research and innovation gap between its member states. The Widening Participation Programme, introduced during Horizon 2020, was designed to support less-developed regions and ensure equal access to funding. Yet, according to European Commission data (2023), countries like Bulgaria, Romania, Slovakia, and even Czechia remain underrepresented in funding allocations.

The Heitor Report, led by former Portuguese science minister Manuel Heitor, critiques the Widening Programme as overly complex and inefficient. It proposes rebranding the program as "Advancing Europe", signaling a shift away from the narrative of a two-speed Europe. This change is not merely semantic—it reflects a call for structural reforms, including better alignment between EU and national funding, and pre-accelerator schemes to help startups in less-developed regions succeed in programs like the EIC Accelerator.

For instance, Czechia has called for simplified funding processes and clearer communication of rules. Lithuania has emphasized the importance of dual-use technologies, reflecting its geopolitical realities. Malta has urged greater accessibility to prestigious grants, such as those from the ERC, for smaller states. These demands collectively underscore the need for fairness and inclusivity in FP10, not charity but recognition of untapped potential.

Challenges and Opportunities for FP10

The upcoming Framework Programme 10 must address several critical challenges:

1. Reducing Bureaucracy: Programs like Horizon Europe have been criticized for their complexity and lengthy grant cycles. The Draghi Report advocates for a “trust first, evaluate later” system, which could streamline processes and reduce delays. Expanding lump-sum funding could also minimize administrative burdens on applicants.
2. Increasing Budget: Stakeholders, including the European Parliament and the ITRE Committee, have called for FP10’s budget to double to at least €200 billion. Half of this should be allocated to ERC and EIC, reflecting their pivotal roles in the ecosystem.
3. Engaging the Private Sector: The proposed European Technology and Industrial Competitiveness Council could foster better collaboration between research and industry, ensuring innovations move swiftly from labs to markets.
4. Focusing on Real-World Impact: FP10 programs must align research priorities with societal challenges such as decarbonization, digital transformation, and security, ensuring innovation delivers tangible benefits.

A Personal Perspective: Building Trust and Momentum

Reflecting on these challenges, I feel a mix of trepidation and optimism. Europe has the talent, institutions, and history to lead globally in research and innovation. But success requires bold changes—not cosmetic tweaks. As Mario Draghi aptly noted: “Innovation demands courage; without it, it’s just an empty word.”

The potential reforms outlined in FP10 offer a chance not just to catch up with global leaders but to redefine Europe’s role in the 21st-century innovation landscape. From simplifying grant processes to creating programs like “Choose Europe,” which seeks to attract and retain top talent, these measures could transform Europe into a hub where innovation thrives, driven by trust, inclusivity, and ambition.

The journey ahead is not just about funding or programs—it’s about restoring trust: trust in Europe’s institutions to adapt, in its researchers to excel, and in its entrepreneurs to innovate. In the words of Ursula von der Leyen, “The future is not something we wait for. It’s something we create.”

Let us seize this opportunity, knowing that the future of European research and innovation depends not only on overcoming challenges but on daring to imagine—and build—a brighter tomorrow. Europe’s moment is now, and it’s up to all of us to ensure it succeeds.