Radek Pawlowski’s Post

New article “Can Europe Create an Innovation Economy?” by Philippe Aghion, Mathias Dewatripont, and Jean Tirole, published in Project Syndicate! Read here 👉 https://lnkd.in/drfUT-2M After the 30 “glorious” years of economic growth following World War II, European policymakers failed to adopt the institutions and policies to promote disruptive innovation. Now, Europe urgently needs to adopt a new economic doctrine and reform agenda, or else it will continue to fall behind the United States and others.

These statements by Mario Draghi in his recent report are alarming and should prompt those of us who have chosen to live in Europe to consider how we can act to change the situation: “The core problem in Europe is that new companies with new technologies are not rising in our economy. In fact, there is no EU company with a market capitalisation over EUR 100 billion that has been set up from scratch in the last fifty years. All six US companies with valuations above EUR 1 trillion have been created in that period of time…. And these figures do not include the many young, talented Europeans who go to study in the United States and found their companies there. It is a huge loss for our economy in terms of jobs and brain drain. The innovation gap is at the root of Europe’s slowing productivity growth relative to the US. So, we must bring innovation back to Europe – and the report proposes to do so through reforming the whole innovation ecosystem. It starts with establishing our universities and research institutions at the frontier of academic excellence, and making it easier for researchers to commercialise their ideas. Only about one-third of the patented inventions registered by European universities are commercially exploited”

The Euro Zone is at a crossroads, needing a tech transformation to close the gap with the U.S. and China. It’s not just about innovation; it’s about leading with security, AI, and clean tech. The Euro Zone is showing promising signs of investing in these areas, but we need to cut the red tape and embrace bold changes. This could be the spark that unleashes a wave of new policies and innovation across Europe. Let’s lead, not follow. #EU #Eurozone #Innovation #Jolera

Last month, Mario Draghi's report on the EU highlighted that in the past 50 years, not a single company with a market cap of €100B+ was started in Europe, while all 6, €1T+ companies in the US were founded within this period. Most analyses focus on the structural EU regulatory+policy+capital environment to explain this. But, having spent the last 8 years working and living in Europe - I'm convinced that a deeper undercurrent lies in the contemporary Culture across the continent. https://lnkd.in/g7ZmqNC8

What’s needed for Europe to shine on the global stage? “A new European #competitiveness deal is needed” says Enrico Letta to 🇪🇺 leaders, today and tomorrow. As we navigate towards a more dynamic Europe on the global stage, it's imperative to include the European tech sector, particularly scale-ups, in our strategic dialogue. Here are their top three priorities: 1️⃣ European Tech for European competitiveness: It's not just about innovation; it's about strategic imperative. Empowering EUTA members for global excellence demands harmonised and consistent EU regulations, applicable across all companies operating in Europe or targeting European consumers. 2️⃣ Smart rules for a stronger Europe: Coherence is key in rule-making. Let's ensure existing regulations are firmly established before introducing new ones. All rules must fit together like pieces of a puzzle. 3️⃣ Better enforcement for fairer competition: Enhancing enforcement is the answer to fair competition, not the proliferation of new regulations. Strong collaboration among enforcing authorities at both EU and Member States’ levels is crucial. Now is the time for action. Let's make it happen and unlock Europe's potential at home and beyond.

Mario Draghi's report on the competitiveness of the EU is rather chilling: "Across different metrics, a wide gap in GDP has opened up between the EU and the US, driven mainly by a more pronounced slowdown in productivity growth in Europe. Europe’s households have paid the price in foregone living standards. On a per capita basis, real disposable income has grown almost twice as much in the US as in the EU since 2000." "First – and most importantly – Europe must profoundly refocus its collective efforts on closing the innovation gap with the US and China, especially in advanced technologies. Europe is stuck in a static industrial structure with few new companies rising up to disrupt existing industries or develop new growth engines. In fact, there is no EU company with a market capitalisation over EUR 100 billion that has been set up from scratch in the last fifty years, while all six US companies with a valuation above EUR 1 trillion have been created in this period. This lack of dynamism is self-fulfilling." At NP-Hard Ventures we're long on Europe but there's a lot of work to be done to counter the slowdown in productivity, growth and lack of dynamism. To that end, we're excited to announce our newest installment of our Foundry Meetups; The Re-industrialize Europe Edition, featuring Farmless, Cradle and Monumental who are leading the charge to reignite Europe’s industrial dynamism. Sign-up link in the comment below. Looking forward to seeing you there. 🤖 🇪🇺

"The future of European competitiveness", a report by Mario Draghi has been released this week.   The report identifies major barriers to competitiveness in Europe, and offers concrete recommendations to tackle them.   🔎 Some highlights from the report:   🔸 Europe largely missed out on the digital revolution led by the internet and the productivity gains it brought; 🔸The EU is weak in the emerging technologies that will drive future growth. Only four of the world’s top 50 tech companies are European; 🔸Rising geopolitical risks can increase uncertainty and dampen investments. Europe is particularly exposed, as we are heavily dependent on foreign suppliers for critical raw materials and on imports of digital technology (for chips production, 75-90% of global wafer fabrication capacity is in Asia); 🔸Even though energy prices have fallen considerably from their peaks, EU companies still face electricity prices that are 2-3 times those in the US. Natural gas prices paid are 4-5 times higher; 🔸By 2040, the workforce is projected to shrink by close to 2 million workers each year; 🔸The defence industry is too fragmented, hindering its ability to produce at scale, and it suffers from a lack of standardisation and interoperability of equipment, weakening Europe’s ability to act as a cohesive power.   🔎 Concerning the issues we face:   🔸Fragmentation of the Single Market hinders innovative companies that reach the growth stage from scaling up in the EU, which in turn reduces demand for financing; 🔸Europe is stuck in a static industrial structure with few new companies rising up to disrupt existing industries. In fact, there is no EU company with a market capitalisation over EUR 100 billion that has been set up from scratch in the last fifty years, while all six US companies with a valuation above EUR 1 trillion have been created in this period; 🔸Public spending on R&I in Europe lacks scale and is insufficiently focused on breakthrough innovation; 🔸We continue to add regulatory burdens onto European companies, which are especially costly for SMEs and self-defeating for those in the digital sectors. More than half of SMEs in Europe flag regulatory obstacles and the administrative burden as their greatest challenge.   To read the full report: https://lnkd.in/eAk84kkG

🧐 Why does Europe need synergy between small and large businesses to stay competitive? Mario Draghi’s recent report is a wake-up call: Europe must strengthen its productivity and close the innovation gap if it wants to thrive in a fiercely competitive global market. This isn’t about choosing between big and small businesses. It’s about building a collaborative ecosystem where SMEs can flourish alongside tech leaders. If you’re interested in Europe’s path to greater economic strength, read our latest blog on https://lnkd.in/dwk4Cg7D and join the conversation on what we can achieve together. 👇 #EuropeanCompetitiveness #Innovation #EU

Euro Zone competitiveness needs a spark Is the Euro Zone ready for a tech transformation? I think so. 🇪🇺🚀 The recently released European Union Competitiveness Report by former Italian Prime Minister Mario Draghi highlights an urgent need for action. As CEO of Jolera, I’m now based in Porto, Portugal, because I believe in the growth of the Euro Zone for the company. This report resonated deeply with me, especially regarding security and innovation. The EU's strategy? Focus on closing the technology productivity gap with the U.S. and China, with security, artificial intelligence, and clean technology at the forefront. 🔐⚡ Here's what stands out: 📊 The 400-page Draghi report underscores challenges like European common debt, China's rise, and a lack of tech innovation. 💡 Draghi calls for more venture capital and investments in high-risk projects to boost growth. 🔧 Regulation stifles innovation, forcing European tech unicorns to relocate for scaling opportunities. I was encouraged by the Euro Zone’s willingness to increase its investment in security. Currently they are dependent on a small number of vendors. Developing more security vendors in Europe would dramatically improve the area’s overall competitiveness. The key takeaway? 🚨 Europe must cut the red tape and fuel its tech ambitions to lead, not follow. This report could be the spark Europe needs to unleash a wave of new policies and innovation. #EU #Eurozone #Innovation

Singapore and Canada have agreed to bolster bilateral cooperation in science, technology, and innovation, focusing on AI, biotechnology, and green technologies. During his visit to Ottawa, Singapore’s Minister for Trade and Industry, Gan Kim Yong, met with his Canadian counterpart, Mary Ng, to discuss collaboration opportunities. Both countries, ranked among the top 15 in the Global Innovation Index, aim to explore joint research, talent exchanges, and partnerships, particularly in green economy initiatives. They will establish bilateral consultation mechanisms to identify opportunities and coordinate activities. The collaboration is based on four principles: recognizing the role of science and technology in economic growth, acknowledging their global leadership in research and innovation, promoting mutually beneficial cooperation, and strengthening capabilities for innovation and market growth. Gan emphasized the longstanding partnership between the two countries, while Ng highlighted their growing economic ties. The collaboration extends beyond economic realms to cybersecurity, education, defense, and more. Gan assured Ng of Singapore's commitment to being a regional gateway for Canadian companies. Both ministers expressed confidence in the friendship between the two countries as a solid foundation for future collaboration. #Growth #Trade #Economy #AI #Canada #Singapore #Sustainability #DigitalEconomy #Innovation #Friendship I The Business Times I SPH Media I Sharon See