The European Union’s reliance on imported technologies and its passive role in the global tech race must end, according to experts. To reclaim a place among the world’s top technology players, Europe needs to rethink its approach to autonomy, alliances, regulation, and leadership.
Currently, 80% of the technologies and services needed for Europe’s digital transformation are designed and manufactured outside the continent, mainly in the US and China. This has led to a consumer-centric approach in laws, prioritizing protection as consumers over innovation.
Regulatory excellence is Europe’s trademark, but without an accompanying innovation policy, it risks becoming a spectator in the global tech race. Foreign direct investment into Europe fell to its lowest level in nine years in 2024, with France and Germany experiencing double-digit declines.
To succeed, industry leaders and policymakers must collaborate closely with civil society, universities, and trade unions. A coalition of like-minded companies could play an important advocacy role in shaping digital products and services that respect human rights and workers.
Europe needs to build its own core capabilities while ensuring security through strategic interdependence. It also requires a level playing field for partnerships to expand, as seen in the example of Helsing’s drone startup relying on open-source large language models developed by Mistral.
A change of mindset is essential, acknowledging Europe’s shortcomings and creating a regulatory environment that empowers innovators while safeguarding market participants. Protecting people in the digital realm also remains a top priority, with harmonizing innovation policies and protections for fundamental rights crucial.
By addressing these challenges and opportunities, Europe can restore its status as a global leader in technology and innovation, and it knows how to do it.
Source: https://www.pubaffairsbruxelles.eu/opinion-analysis/restoring-european-tech-leadership