Investing in research and innovation, as many like to say, is investing in the future. It is actually true, since research and innovation have a multifaceted potential through which we can boost competitiveness, build a greener and more sustainable environment, and contribute to a fairer society. So, research and innovation can offer solutions to economic, environmental and even societal challenges. But the European Union seems to fall short of its overall potential, even if some Member States do perform well on the global stage. What are the issues and what are the odds that the European Union can solve them during the next cycle?
A deficient area
For the 2021-2027 period, Horizon Europe is the key research and innovation funding programme of the European Union with an indicative amount of €93.5 billion. Compared to Horizon 2020, the previous programme, Horizon Europe has new elements, such as the European Innovation Council which promotes breakthrough innovation with the potential to scale up internationally. The new programme has the following five missions where the European Union should deliver results by 2030: adaptation to climate change, cancer, restoring our oceans and waters, climate-neutral and smart cities, and a soil deal for Europe. Besides, Horizon Europe embraces the open science policy – sharing knowledge, data and tools as soon as possible – and a more ambitious, objective-driven approach to partnerships.
Atomico has been publishing an extensive report each year about the evolution of European tech since 2015. One of the key findings of the State of the European Tech 2023 is that Europe in fact exceeds the United States in the number of new tech startups – as it has done for the past five years –, but for some reason, Europe’s full potential is still untapped. Among the main challenges, access to capital, geopolitical risk – due to the war in Ukraine –, and general concerns around the macroeconomic environment were listed as the first three. Meanwhile, the recent Draghi report addressed that Europe seems to fail to translate innovation into commercialisation, and named it as the reason why almost 30% of the so-called unicorns – startup companies valued at over $1 billion – founded in Europe relocated their headquarters abroad between 2018 and 2021.
But there is actually one European Union Member State which excels in the field of startups. Estonia leads not only in startups per capita – followed by Luxembourg and Ireland –, but also in unicorns per capita – followed by Sweden and Malta –, so it is deservedly called the ‘startup and unicorn haven’ of the European Union. The world-renowned Skype was Estonia’s first unicorn, but Playtech and Bolt were also founded in the northernmost Baltic state. Estonia seems to have found the formula for success, but when will the European Union?
A Bulgarian nominee
On the 17thof September 2024, Commission President Ursula von der Leyen decided to divide the former Innovation, Research, Culture, Education and Youth portfolio in two and proposed a Commissioner for Startups, Research and Innovation to deal with one half. Bulgarian Ekaterina Zaharieva was born in 1975 and started her career as a Lawyer in 2001. She soon became Director of the Legal in the Regulatory and Administrative Services Directorate of the Ministry of Environment and Water in 2003. She changed jobs in 2009 and worked as Deputy Minister of Regional Development and Public Works until 2011. She then served as Head of Cabinet and Secretary General of the President of the Republic between 2012 and 2015. In the meantime, she was Deputy Prime Minister for Economic Policy and Minister of Regional Development and Public Works on two occasions between 2013 and 2014. She was appointed Minister of Justice in 2015, but two years later, she went on to become Deputy Prime Minister for Judicial Reform and Minister of Foreign Affairs. She has been a Member of the Bulgarian Parliament since 2017.
The nomination was warmly welcomed by Iliana Ivanova – responsible for the mentioned former portfolio – praising Zaharieva’s competence and qualities. Though, the denied accusations about Zaharieva’s alleged involvement in the illegal selling of Bulgarian passports to foreigners might cause some trouble during her hearing in the European Parliament. But if she passes, Zaharieva will be the third Bulgarian to assume the research portfolio.
A necessary step
Ursula von der Leyen’s mission letter to Ekaterina Zaharieva defines some tasks that are probably easier said than done. Working under the guidance of the Executive Vice-President for Prosperity and the Industrial Strategy, Zaharieva will have to expand the European Innovation Council and the European Research Council and set up a European AI Research Council. She is expected to work on a European Research Area Act, a European Innovation Act, an Advanced Materials Act while contributing to the EU Biotech Act and further developing the New European Bauhaus. Zaharieva will naturally be responsible for the implementation and funding of programmes, like Horizon Europe, and the reinforcement of the international research and innovation cooperation. She is expected to lead the preparation of a new Strategy for European Life Sciences and create a network of Trusted Investors. And if this would not be enough, she will have to develop an EU start-up and scale-up strategy as well.
Zaharieva’s biggest challenge will definitely be to unleash more of the potential that the European Union has in the field of research and innovation, so that the organisation would have the chance to outperform the United States and China, no matter how unlikely it seems right now. But for research and innovation to work well, we need creative people and a nourishing environment. No wonder why Estonia, the country with the best education in Europe is so successful in the area. The Draghi report also advocates for the enhancement of education systems, even though the European Union has limited competence in the field. But if Member States want to thrive, they already have an excellent example to follow. Just take the Estonians’ word for it: Tublidus ei tule tööta, osavus ei hooleta. Diligence doesn’t come without work; skill doesn’t thrive without care.