New Report Proposes Actions to Close Technology and Investment Gap with US and China
Europe currently competes with the US and China in only four of fourteen technologies deemed critical for the future of the global economy. A new report, “Europe in the Intelligent Age: From Ideas to Action” from the World Economic Forum (WEF) and McKinsey & Company, outlines three concrete actions to reverse this trend and strengthen Europe’s competitiveness.
“Europe’s share of the global market for key technologies is very low, and we risk losing both jobs and innovation if we don’t act quickly,” says Robert Kärrberg, Associate Partner at McKinsey and co-author of the report. “With the right measures, we can achieve rapid mobilization and unlock Europe’s economic potential.”
Proposed Actions:
- Targeted investments in areas where Europe has a lead: Europe should defend and expand its global leadership in areas such as quantum technology and climate technology. In technology areas where Europe has fallen behind, the focus should shift from innovation to adoption.
- “Lighthouse Initiatives” from the private sector: Projects such as industrial AI solutions and quantum technology hubs can mobilize investment and accelerate innovation.
- Comprehensive public initiatives: Ten prioritized mega-projects, including an EU-wide digital permit system, can reduce fragmentation and promote investment.
“A Wake-Up Call”
Europe has been lagging behind the US and China in the technology field for a long time. Between 2015 and 2022, European companies invested 700 billion less than their American competitors – particularly in technology.
If Europe fails to close the technology and investment gap, European countries could miss out on between 2 and 4 trillion euros annually until 2040 – an amount exceeding Europe’s current annual funding needs for climate transition, defense, and healthcare combined.
“We have seen a worrying trend for a long time, but I think today’s situation is a wake-up call for many,” concludes Robert Kärrberg. “As the report title reveals, we must now move from words and ideas to action, and it is fundamentally about showing decisiveness and making the right priorities. Our report provides clear answers on what is required to strengthen productivity and competitiveness in Europe and Sweden going forward.”
The report “Europe in the Intelligent Age: From Ideas to Action” is available for download.
Contact Information:
Daniel Nord
Communications Specialist, McKinsey & Company
daniel_nord@mckinsey.com
070-452 01 62
McKinsey & Co
McKinsey is a global management consulting firm that helps organizations create growth that is both inclusive and sustainable. We are located in 130 cities and 68 countries, and work with clients in all sectors to solve complex problems and enable positive change. With new ways of working and new technology as a foundation, we give organizations skills that create long-term value for the world, the organization and employees so that they stand strong now, and in the future.
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