Innovation: the heart of Europe’s competitiveness challenge
Europe’s competitiveness challenge is fundamentally an innovation and productivity one. But Europe lags in the development and productive uptake of more advanced infrastructures and services...
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Innovation: the heart of Europe’s competitiveness challenge
Europe’s competitiveness challenge is fundamentally an innovation and productivity one. But Europe lags in the development and productive uptake of more advanced infrastructures and services (e.g., 5G standalone, cloud and AI). Indeed, Europe’s labour productivity lags against other major jurisdictions most acutely in sectors ICT is produced and where it is intensively used. The reasons include shallow capital markets and small firm sizes, which result in weaker returns on R&D. Addressing this challenge requires policy changes - including rebalancing public R&D towards high-impact, high-tech missions; strengthening the research-to-deployment pipeline; and ensuring measures to enhance strategic autonomy are risk-based and proportional.
Summary and Key Findings
This CERRE Issue Paper by Antonio Manganelli identifies the root causes of the EU’s competitiveness problem. It finds that today’s general-purpose technologies (
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