Shaping the Future with the European Innovation Act

The European Parliament recently hosted a debate on the European Innovation Act, a proposed legislation that aims to revolutionize the EU’s approach to innovation. This ambitious initiative seeks to position Europe as a global leader in technological advancement, competitiveness, and sustainable growth. Here, we delve into the key points of the discussion, highlighting the views of the Commissioner for Startups, Research, and Innovation Ekaterina Zaharieva and MEPs.

What is the European Innovation Act?

The European Innovation Act represents the EU’s commitment to strengthening its innovation framework by tackling issues such as regulatory fragmentation, limited access to venture capital, and insufficient coordination among member states. The Act focuses on fostering the development and adoption of digital and green technologies, building a robust AI research framework, and enhancing collaboration between public and private sectors. Commissioner Ekaterina Zaharieva emphasized its role in addressing obstacles that hinder Europe’s potential to lead in innovation and commercializing research outcomes. The Act also includes measures to boost startup growth, promote entrepreneurial education, and create a more streamlined regulatory environment.

Views from the Plenary

The debate surrounding the European Innovation Act brought forward a diversity of perspectives, highlighting both optimism and caution. Commissioner Ekaterina Zaharieva set the tone by emphasizing the urgency of this initiative, underscoring Europe’s lag in venture capital investments compared to global competitors. She elaborated on how simplifying regulations and leveraging tools such as regulatory sandboxes could make a tangible difference. Zaharieva also proposed significant initiatives like an AI Research Council and a dedicated startup and scale-up strategy, aiming to bring coherence and dynamism to Europe’s innovation landscape.

From the European People’s Party (EPP), Letizia Moratti called for a balanced approach, advocating for public-private partnerships and urging the reduction of bureaucratic hurdles. She argued that innovation cannot solely rely on increased funding but must also involve structural reforms, particularly benefiting small and medium-sized enterprises (SMEs).

Echoing the need for practical solutions, Matthias Ecke of the Socialists and Democrats (S&D) described the Act as a step in the right direction. For Ecke, the ultimate measure of success would be whether innovation improves people’s lives and fosters inclusive growth across Europe.

From the European Conservatives and Reformists (ECR), Ondřej Krutílek welcomed the initiative but pointed to overregulation as a persistent challenge. He argued that reducing administrative burdens and revising existing regulations are vital to allowing companies to translate research into market-ready solutions. Similarly, Kosma Złotowski (ECR) warned of the economic inviability of innovation under the current regulatory framework, calling for harmonized and clear processes.

Anna Stürgkh of Renew Europe emphasized the importance of retaining innovative ideas within the continent and ensuring they are implemented locally before being exported globally. Her remarks resonated with a broader theme in the debate: Europe must be a leader, not just a participant, in the global innovation ecosystem.

Green MEP Damian Boeselager supported the Act but urged a focus on sustainability, proposing a Clean Industrial Act as a more immediate priority. For him, innovation must align with environmental goals to remain relevant and impactful.

EPP member Lukas Mandl highlighted how innovation underpins Europe’s social security and economic resilience. He warned against complacency, arguing that Europe risks becoming a consumer rather than a producer of cutting-edge technologies. Similarly, Sophia Kircher (EPP) stressed the transformative potential of artificial intelligence and called for increased confidence in change rather than fear of it.

Dick Erixon, also from the ECR, expressed frustration over Europe’s inability to capitalize on the tech boom, noting the stark disparity in unicorn companies between the EU and the US. He advocated for reduced red tape and greater incentives for private investment. Dimitris Tsiodras echoed these sentiments, emphasizing the need for better infrastructure and easier access to financing to bridge the gap between ideas and market success.

Vytenis Povilas Andriukaitis of S&D introduced the concept of a “fifth freedom” in the EU: the freedom of innovation and research. He argued that integrating this principle into the Act would ensure a more forward-looking and comprehensive approach. Maria Grapini added that without simplified processes and harmonization, the legislation’s potential would remain unrealized, particularly for SMEs.

Hildegard Bentele brought the debate back to the critical issue of scaling up. She pointed out that while Europe generates brilliant ideas, it often falters at the moment of growth and global expansion. For her, attracting international investment and addressing overregulation are key steps toward solving this issue.

Europe’s path to innovation

The European Innovation Act has become a focal point for discussions about Europe’s future in technology and global competitiveness. While the debate revealed differing priorities and perspectives, a common thread emerged: the urgent need to address regulatory and structural barriers to foster a thriving innovation ecosystem. By simplifying processes, improving access to capital, and promoting collaboration across member states, the Act holds the promise of transforming Europe into a global leader in sustainable and inclusive technological advancement.