Summary:
Ursula von der Leyen emphasizes the need for Europe to improve its startup scaling capabilities.
A new commissioner role focused on startups has been created to address the innovation gap.
Von der Leyen advocates for increased private investment to enhance Europe’s competitiveness.
The EU aims to reduce the regulatory burden on entrepreneurs to foster business growth.
A cultural shift towards embracing riskier investments is essential for future innovation.
Europe’s Startup Challenge
Europe must significantly improve its startup scaling capabilities, as highlighted by European Union President Ursula von der Leyen. With her second term set to begin on December 1, she emphasizes that the EU's competitiveness hinges on addressing the "innovation gap" — unlocking more support for startups and easing regulations that hinder business growth across the 27 Member States.
A New Focus on Startups
In her recent speech to the European Parliament, von der Leyen announced the creation of a commissioner role dedicated to startups, marking a pivotal shift in EU policy. She stated, “We are roughly as good as the U.S. at creating start-ups. But when it comes to scale-ups, we are doing much worse than our competitors.” This gap must be bridged for Europe to thrive in the global market.
Investment Strategy
Her strategy for reform includes investing more and focusing better on scaling startups. A significant part of this plan involves early investment, especially in frontier technologies. Von der Leyen stressed that for Europe to remain competitive, it must foster the next wave of technological advancements.
Funding and Private Investment
The EU is in dire need of increased private investment to meet its goals for innovation and competitiveness. Von der Leyen pointed out that business expenditure on research and development in Europe is only 1.3% of GDP, significantly lower than in China (1.9%) and the U.S. (2.4%). To tackle this, she proposed a European Savings and Investments Union to ensure companies can access necessary capital.
Streamlining Regulations
Von der Leyen also addressed the regulatory burden that hampers entrepreneurs. She stated, “We need to streamline our rules to reduce the burden on businesses.” This initiative aims to simplify the legal landscape, making it easier for businesses to operate across Europe.
A Cultural Shift Needed
For the EU to nurture a robust pipeline of innovation, a cultural shift may be required. This includes encouraging regional investors to embrace riskier investments rather than just stable returns. The journey to a more innovative Europe is underway, but it will demand concerted efforts and a change in mindset.
Comments