Re-elected as President of the European Commission, Ursula von der Leyen recently addressed the European Parliament to present the College of Commissioners (approved by parliament) and its program. To boost the competitiveness of the EU, the Commission will rely on “the three great pillars which emerge from the Draghi report”. And the first of these pillars consists of closing the innovation gap that exists between the European Union and the United States or China.
The good news, according to the President of the European Commission, is that when it comes to patent applications, the EU has nothing to envy of other powers. Unfortunately, only a third of these intellectual properties are exploited commercially. The EU is also “about as good as the US” at creating startups. But for the expansion of its businesses, Europe has a gap that it is filling.
“For these reasons, we will place research and innovation, science and technology at the heart of our economy. We will invest more and take a more targeted approach. Additionally, we will ensure that our small businesses, start-ups and growing businesses can thrive here in Europe.”also declared Ursula von der Leyen during this speech.
More support for startups
In essence, the fact that the EU is creating startups is a good thing. But this must now ensure that these startups evolve. And according to Ursula von der Leyen, the actions to be taken are already clear. “A California start-up can grow and raise funds anywhere in the United States. A European start-up, on the other hand, must face 27 different national obstacles. We must make it easier for businesses to grow in Europe”she indicated.
During this second term, Ursula von der Leyen should in any case place more emphasis on supporting innovation. Moreover, the new European Commission includes a commissioner for startups, research and innovation, which is a first. This function will be carried out by the Bulgarian Ekaterina Zaharieva. “His leadership and experience will be a valuable contribution to bringing more cutting-edge technologies from the laboratory to the market,” declared the President of the Commission.
The EU needs private investment
During her speech, Ursula von der Leyen also admitted that public budgets will not be enough to catch up with the EU in terms of spending on research and development, and therefore in terms of innovation. Additional private funds are therefore needed. “We urgently need additional private investment. In Europe, business spending on research and development represents around 1.3% of GDP, compared to 1.9% in China and 2.4% in the United States. she explained. To fill this private capital gap, the Commission is proposing the creation of a “European Savings and Investment Union”.
This task will be entrusted to the Commissioner for Financial Services and the Savings and Investment Union, whose mission will be to ensure that European companies find financing in Europe.
- In a speech, Ursula von der Leyen presented her new strategy to close the EU’s innovation gap compared to China and the United States
- The European Commission wants to better support startups, in order to facilitate their expansion
- Ursula von der Leyen also admits that public funds are not enough and proposes a strategy to bring in private capital
