Europe needs to improve its ability to help startups grow, according to Ursula von der Leyen, the President of the European Union. She emphasized the importance of supporting startups to scale up and reducing obstacles that may be hindering businesses from taking full advantage of the EU single market. Von der Leyen’s second term will focus on supporting innovators, with the creation of a new commissioner dedicated to startups, Ekaterina Zaharieva.
While Europe is on par with the U.S. and China in terms of global patent applications, only a third of these patents are commercially utilized. Von der Leyen highlighted the need to close the gap in scaling startups compared to other global competitors. Her strategy revolves around investing more and investing earlier to foster frontier technologies in Europe.
The EU is in need of more private investment to drive innovation and competitiveness. Von der Leyen proposed the establishment of a European Savings and Investments Union to ensure that European companies have access to the necessary capital. Additionally, efforts will be made to reduce regulatory burdens on businesses by simplifying rules and introducing new legislation to streamline the legal landscape.
The focus on supporting innovation and startups in Europe is a positive sign for the local startup ecosystem. However, there may be challenges in simplifying the complex regulatory framework of the EU, which has traditionally been known for its extensive rule-making. The shift towards a more right-leaning EU administration indicates a change in direction, requiring a cultural shift towards embracing risk and significant investments for innovation to thrive.
