Speed, security, Solidarity, that is the title of the Letta report. It gives a very productive reading of the current way the EC is embracing and struggling with the Digital.
“Europe has changed fundamentally since the Single Market was launched, to a large extent thanks to its own success. Integration has reached high levels in many, though not all, sectors of the economy and society, and 80% of national legislation results from decisions from Brussels”
Yet, although the integration of the European Member States in a time span of twenty five years has been very successful, its ultimate goal ; a Single Market is not yet within reach.
In that time span the digital and the Cloud (around 2000) rose, but as the focus of the EC was on further integration within it treated these digital possibilities as necessary capabilities which has led to the current dependence on US Hyperscalers.
Both the Letta report and the Draghi report set the tone for the European Research Days strategically.
In the Draghi report we also read:
“Technological change is accelerating rapidly. Europe largely missed out on the digital revolution led by the internet and the productivity gains it brought: in fact, the productivity gap between the EU and the US is largely explained by the tech sector. The EU is weak in the emerging technologies that will drive future growth. Only four of the world’s top 50 tech companies are European.”
The Commission has put startups, research and innovation among the key priorities of its mandate, with the goals of closing the innovation divide between the EU and its global competitors and boosting competitiveness, bearing in mind the Letta Report on the future of the Single Market and the Draghi Report on European competitiveness:
“However, the regulatory and business environment in the EU is still not sufficiently conducive for bringing innovative products, services and solutions to users at the necessary scale. As a result, many innovative companies end up seeking venture capital and expanding opportunities outside Europe: around 60% of all global scaleups are based in North America, in contrast with only 8% in the EU. The share of the EU in the global share of venture capital raised is only 5%, compared to 52% in the United States, or 40% in China.”
One of the most interesting sessions was: Can Europe truly embrace an ARPA-style approach to fund breakthrough innovation?
Prof. Dr. Christian Hummert, Scientific Director of Germany’s Cyberagentur, shared hands-on experience building an ARPA-inspired agency focused on disruptive solutions in cybersecurity and beyond.
One of the key discussions is on the independence of an EU equivalent to the Defence Advanced Research Projects Agency (DARPA) as the proposed owner, the European Innovation Council (EIC), is not independent from the European Commission.