The future of Eu innovation policy

Encouraging innovation has long been a priority for European policymakers, with the implicit aim of reaching the technology frontier represented by the US. This goal has not been achieved. The Innovation Scoreboards regularly published by the European Commission have consistently found that the EU lags behind the US on many indicators. The most recent Scoreboard indicates that the transatlantic gap has widened. 

The report “EU Innovation Policy - How to Escape the Middle Technology Trap” by the European  Policy Analysis Group argues that current European efforts, while laudable, are insufficient, in both quantity and quality. Important reforms are required to enable Europe to compete in the value-creating space. 

Also, the report states, less than 5% of Horizon Europe supports breakthrough innovation, which has the potential to create new markets but is remote from commercial applications. The recent creation of the European Innovation Council (EIC) was a positive step towards redirecting…