WEF and McKinsey: How Europe can strengthen its competitiveness
Press release, January 23, 2025
A new report outlines three key actions Europe can take to close its technology and investment gap and catch up with the United States and China.
Currently, Europe is able to compete with the United States and China in only four out of 14 technologies critical to the global economy. The report “Europe in the Intelligent Age: From Ideas to Action”, published by the World Economic Forum (WEF) and McKinsey, highlights three concrete measures that could reverse this trend and strengthen Europe’s competitiveness.
“Europe’s share of the global market in critical technologies is alarmingly small. Without swift action, we risk losing jobs and innovation capacity. However, with the right measures, we can rapidly unlock Europe’s economic potential,” says Jukka Maksimainen, McKinsey senior partner, global leader of the Energy & Materials sector, and member of McKinsey’s board.
The three proposed actions:
- Targeted investments on Europe's areas of strength: Europe must defend and strengthen its leadership in technologies like quantum technology and climate technology. In areas where Europe lags behind, the focus should shift from innovation to technology adoption.
- Private sector “lighthouse initiatives”: Industrial AI solutions and quantum technology hubs can act as drivers that attract investments and accelerate innovation.
- Broad public initiatives: Ten prioritized mega-projects, such as an EU-wide digital permitting system, could reduce market fragmentation and support investment.
A wake-up call for Europe
Europe has long trailed behind the United States and China in technological development. Between 2015 and 2022, European companies invested €700 billion less in technology than their U.S. competitors.
If the technology and investment gap is not closed, European countries could lose €2–4 trillion annually by 2040. This amount exceeds the EU’s total annual funding needs for combating climate change, defense, and healthcare combined.
“We have witnessed this worrying trend for a long time, but the current situation serves as a wake-up call for many. The report’s title, ‘From ideas to action,’ emphasizes the urgent need to transition from words to action. Now is the time to demonstrate resolve and make the right priorities. Our report offers clear solutions to enhance productivity and competitiveness in Europe – and in Finland – for the future,” concludes Jukka Maksimainen.
The report “Europe in the intelligent age: From ideas to action” can be downloaded in full here.
Press contact
Mari Muoniovaara
External Relations Specialist
+358 40 728 1550
mari_muoniovaara@mckinsey.com
About McKinsey & Company
McKinsey is a global management consulting firm committed to helping organizations accelerate sustainable and inclusive growth. We work with clients across the private, public, and social sectors to solve complex problems and create positive change for all their stakeholders. We combine bold strategies and transformative technologies to help organizations innovate more sustainably, achieve lasting gains in performance, and build workforces that will thrive for this generation and the next. www.mckinsey.com
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