Boosting Europe's Competitiveness Through Research and Innovation

Insights from the Commission’s Expert Group on the Interim Evaluation of Horizon Europe: Europe stands at a critical juncture. Amidst rising geopolitical tensions, rapid technological disruption, and pressing societal and environmental challenges, the European Union’s research and innovation (R&I) strategy is more important than ever. The recent Expert Group report on the Interim Evaluation of Horizon Europe provides a comprehensive roadmap to ensure that Europe not only stays competitive in the global arena but also addresses the existential challenges of our time. Here, we explore the context behind the report and the key recommendations it offers for driving European R&I forward. 

The Context: A Global Competition for Technological and Scientific Leadership

Europe’s global standing in research, technology, and innovation has been slipping in recent years. While Europe has long been a scientific powerhouse, it now faces stiff competition, particularly from the U.S. and China, both of which are making significant investments in disruptive technologies like artificial intelligence, quantum computing, and biotechnology. According to the report, Europe’s share of global scientific publications has declined, and its position in the race for technological leadership is under threat. 

This backdrop of intensifying global competition is coupled with broader geopolitical challenges. The report highlights the rise of systemic rivalry with China and the growing need for Europe to maintain its technological independence in strategic sectors like defence, energy, and digital infrastructure. The war in Ukraine and other geopolitical tensions have further underscored the importance of Europe strengthening its R&I capabilities to ensure both economic resilience and security. 

In addition to external pressures, Europe faces internal challenges as well. The accelerating climate crisis, biodiversity loss, and societal issues such as mental health and inequality require urgent and innovative solutions. The European Union recognises that addressing these challenges is not only a moral imperative but also a competitive advantage, provided that it can mobilise its vast R&I potential. 

European Innovation score and quality of Life: an international comparative analysis. Source: Expert group report on the interim evaluation of Horizon Europe, October 2024 

Key Recommendations: Align, Act, and Accelerate

The report outlines twelve key recommendations to ensure Horizon Europe, the EU’s flagship R&I funding programme, can meet these challenges effectively and elevate Europe’s position in the global innovation landscape. The recommendations can be distilled into three overarching themes: Align, Act, and Accelerate. 

Align Research with EU Strategic Priorities

The report stresses the importance of aligning Europe’s R&I policies with broader strategic goals, such as fostering a free, secure, and prosperous Europe. To achieve this, the EU must integrate R&I across its economic and regulatory frameworks, ensuring that innovation is at the heart of future European growth. This “whole-of-government” approach is crucial to driving the transformative changes needed.

Act to Secure Global Competitiveness

To regain its competitive edge, Europe must significantly increase public and private investments in research and innovation. The report proposes a budget of EUR 220 billion for the next framework programme (FP10), emphasising that stronger funding is essential for nurturing world-class research, scaling up technological breakthroughs, and fostering industrial competitiveness. Additionally, it calls for a focus on disruptive technologies and for establishing mechanisms to test new programs quickly, such as innovation prizes and “ARPA-style” initiatives.

Accelerate Solutions for Societal Challenges

Europe has a unique opportunity to lead in addressing global societal challenges, particularly through green technologies and sustainable development. The report recommends the creation of a “Societal Challenges Council” to identify priorities aligned with the European Strategic Agenda, from combating climate change to addressing mental health crises. Horizon Europe should accelerate the commercialisation and scaling of these innovations to ensure societal impact.

Simplification and Inclusivity: Making Horizon Europe More Efficient and Accessible

One of the most pressing issues identified in the report is the need to simplify Horizon Europe’s funding processes. The current system is criticised for being too bureaucratic and slow, hampering the ability of researchers and innovators to get funding in a timely manner. The report calls for a “radical simplification” of the programme, reducing the administrative burden and making the system more user-friendly. This would allow for faster time-to-funding, fostering a more dynamic and responsive innovation ecosystem. 

Inclusivity is another critical focus. Europe must better harness its diverse talent pool by improving access to funding for small and medium-sized enterprises (SMEs), young researchers, and innovators across the continent, particularly in countries with lower success rates. Strengthening university alliances and encouraging collaboration between public and private sectors are also seen as vital steps in building a robust European R&I ecosystem. 

Looking Ahead: Europe’s Path to Global Leadership

The report paints a clear picture: if Europe wants to lead in the next wave of global technological innovation and address the pressing challenges of the 21st century, it must act decisively now. With the Horizon Europe programme, the EU has a proven instrument for supporting science, technological development, and innovation. However, to fully realise its potential, the programme needs to be more agile, better funded, and more aligned with Europe’s strategic priorities. 

The Expert Group report on the Interim Evaluation of Horizon Europe provides a bold vision for the future—one where Europe is not only a global competitor in technology and innovation but also a leader in addressing the world’s most pressing challenges. By aligning efforts, acting boldly, and accelerating the pace of change, Europe can ensure a prosperous, sustainable, and secure future for its citizens. 

This is a pivotal moment for European R&I. With the right policies, investments, and actions, Europe can secure its place as a global leader in research, innovation, and competitiveness. 

Align, act, accelerate – Publications Office of the EU (europa.eu)

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