On 9 September 2024, Mario Draghi, former Italian Prime Minister and European Central Bank President, presented his highly anticipated report on «The Future of European Competitiveness» to European Commission President Ursula von der Leyen [1][2]. This comprehensive report analyzes the challenges faced by European industries and companies in the Single Market and proposes strategies to enhance the EU’s competitiveness [2].

Based on this report it is necessary with a significant increase in spending to ensure competitiveness in our part of the world. To get there it seems evident that Norway must encourage and back the future founders in this country.  We need to focus more on how to make the start-up ecosystem grow in Norway. If asked, we know that the Norwegian government will confirm that they focus on innovation, tech and helping the Norwegian start-up ecosystem to grow – we even have a new ministry, the Ministry of Digitization and Public Administration – which is good. But it is not enough.

In Norway, we have had an important debate about the so-called “Exit-Tax”. Taxation of individuals leaving the country, to Switzerland for instance. Typically, it’s these high net wealth individuals, that also happen to be successful founders and entrepreneurs, that are the ones leaving.

We believe that Norway should make a 360-assessment on all aspects that influences on start-up ecosystem in Norway and aim for the sky: do what it takes to put Norway on top of the European start-up chart. Attracting founders to Norway, not making them go away.

In Norway we do a lot of things right too; like focus on the governmental early-stage funds, like #Investinor, and numerous soft funding arrangements. But with the Draghi-report at hand it shows that the net-effect is still too small and it’s going too slow.

Here are the key aspects of the report:

Main Areas of Focus
The report identifies three primary areas for action to revitalize sustainable growth in Europe:

1. Closing the innovation gap with the US and China, especially in cutting-edge technologies
2. Developing a joint plan for decarbonization and competitiveness
3. Increasing security and reducing dependencies [1]

Recommendations
Draghi’s report contains approximately 170 general proposals, with innovation forming the first pillar [1]. Some key recommendations include:

• Establishing a Research and Innovation Union to formulate a common European R&I strategy and policy
• Promoting a ‘European Research and Innovation Action Plan’ designed collaboratively by Member States, the Commission, the research community, and private sector stakeholders
• Increasing public R&D spending and boosting private R&D investment
• Streamlining the regulatory framework
• Maximizing the impact of the European Health Data Space [3]

Sectoral Focus
The report emphasizes the strategic importance of the pharmaceutical sector for the EU, highlighting the need to:

• Bolster R&D and innovation in the EU
• Fund the development of world-class innovation hubs, especially for advanced therapy medicinal products
• Increase the budget of the European Investment Fund to enhance EU venture capital [3]

Financial Implications
The report suggests that a minimum annual additional spending of around €800 billion would be needed to ensure EU competitiveness [3].

Governance and Integration
Draghi recommends increased integration and coordination among national agencies on various issues, including clinical trials, real-world evidence, and pricing and reimbursement in the pharmaceutical sector [3].

The findings of this report are expected to contribute significantly to the European Commission’s work on a new plan for Europe’s sustainable prosperity and competitiveness, particularly in developing the Clean Industrial Deal for competitive industries and quality jobs [2].

Read the report here: EU competitiveness: Looking ahead – European Commission (europa.eu)

Citations:
[1] https://era.gv.at/news-items/mario-draghi-presents-future-of-european-competitiveness-report/
[2] https://commission.europa.eu/topics/strengthening-european-competitiveness/eu-competitiveness-looking-ahead_en
[3] https://www.vbb.com/insights/draghi-publishes-report-on-future-of-european-competitiveness-eu-pharmaceutical-sector-needs-to-bol
[4] https://commission.europa.eu/document/download/97e481fd-2dc3-412d-be4c-f152a8232961_en
[5] https://hydrogeneurope.eu/draghi-report-confirms-hydrogen-role-eu-competitiveness/
[6] https://www.regulationtomorrow.com/the-netherlands/banking-the-netherlands/the-future-of-european-competitiveness/
[7] https://www.chathamhouse.org/2024/09/mario-draghis-eu-competitiveness-report-sets-political-test-eu

This content was created with the assistance of AI.

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