Welcome remarks

Johannes Lindner, co-director, Jacques Delors Centre

Johannes Lindner opened the event, welcoming attendees and emphasizing the significance of fostering innovation in Europe. He noted that strengthening the single market and ensuring access to financing are critical for European startups and entrepreneurs. He highlighted the importance of aligning national policies with broader EU economic strategies.

Keynote speech by Enrico Letta

Enrico Letta, former prime minister of Italy & president, Jacques Delors Centre

Challenges in European innovation

• Europe is lagging behind the U.S. and China in translating scientific research into marketable innovations.
• The gap between the number of patents and unicorn startups is growing, limiting Europe’s global competitiveness.
• Scaling up businesses remains difficult due to regulatory fragmentation and high costs of failure.

The “fifth freedom” proposal

• Letta introduced the concept of a "fifth freedom" to complement the existing four freedoms of the EU (goods, services, capital, and people).
• This new freedom would focus on innovation, research, and skills development to mobilize political, financial, and academic energies toward technological leadership.
• He urged the European Commission to adopt this vision for the next five years to drive momentum in innovation policy.

Policy recommendations

• Shift from directives to regulations to reduce national-level barriers.
• Create a "28th virtual state" business regulation framework that startups can opt into for simplified cross-border operations.
• Develop a European savings and investment union to fund deep-tech industries and AI innovation.

Panel discussion

Moderated by Clark Parsons, managing director, Innovate Europe Foundation

Panelists

• René Obermann (Warburg Pincus, Airbus, IEF board member)
• Dr. Annika von Mutius (co-founder & co-CEO, Empion, German KI-Bundesverband board member)
• Prof. Lars-Hendrik Röller, PhD (professor of economics, ESMT Berlin, chair of Berlin Global Dialogue)

Key themes discussed

• Regulatory overload: Europe’s complex regulatory framework stifles innovation and startup growth.
• Public-private collaboration: Business leaders must work more closely with policymakers to ensure favorable conditions for innovation.
• AI and tech sovereignty: Europe must avoid dependency on foreign technology and instead invest in AI infrastructure and quantum computing.
• Cultural shift needed: A more risk-tolerant approach to entrepreneurship is required to foster a dynamic innovation ecosystem.

Q&A session

Audience question: How can we improve enforcement of EU tech regulations?

Response: Panelists agreed that enforcement mechanisms need to be fair and applied equally across domestic and foreign companies. There is concern that European companies bear a disproportionate regulatory burden compared to international competitors.

Audience question: Are European investors too risk-averse?

Response: Compared to the U.S., European financial markets are too conservative in investing in startups. Cultural attitudes towards risk and failure need to evolve, and regulatory frameworks should allow pension funds and institutional investors to allocate more capital toward venture capital and private equity.

Key takeaways

• Innovation as a European priority: policymakers must prioritize innovation to close the gap with the U.S. and China.
• Regulatory simplification is crucial: reducing bureaucratic hurdles will make it easier for startups to scale up.
• The fifth freedom: this concept can help frame future EU policies around research, innovation, and tech leadership.
• Financial reforms needed: a European investment union could unlock significant capital for tech startups and AI-driven industries.
• Stronger public-private partnerships: European businesses and policymakers must collaborate more effectively to ensure sustainable innovation growth.

Conclusion

This event underscored the urgency of Europe addressing its innovation challenges through regulatory reforms, increased investment, and fostering a more entrepreneurial mindset. As Europe prepares for upcoming elections, these discussions will be pivotal in shaping the future of its technological and economic landscape.