The Draghi Report on Competitiveness: Support for Innovation and Reforms
From the very first pages, the Draghi Report highlights a significant "productivity gap" between the Old Continent and the United States in the field of Digital, emphasizing a certain "delay" that Europe has accumulated especially regarding innovative digital technologies that will drive future growth such as artificial intelligence (especially generative AI), cloud (from 'providers' to 'services'), and computing (both 'high-performance' and 'quantum').
The report, therefore, analyzes the causes of the digitalization gap and proposes a comprehensive strategy so that the Union can capitalize on future waves of digital innovation. Additionally, the report includes thematic focuses on three specific lines of intervention.
Digital Transition in the EU, Obstacles and Strategy in the Draghi Report
Among the main problems underlying Europe's disadvantaged position in the field of digital technologies is a "static industrial structure" that over the years has invested in research and innovation "on mature technologies and in sectors where the productivity growth rates of large companies are slowing down."
The report also highlights the critical issues of European funding programs dedicated to research and innovation, such as the excessive complexity of Horizon Europe and the scarcity of resources available to the Pathfinder of the European Innovation Council (EIC). Additionally, there are elements such as the excessive fragmentation of the Single Market that prevents exponential growth for innovative companies, and the regulatory obstacles that make it costly for young companies in the technology sector to scale up.
In light of these limitations, the report outlines a plan to address the innovation and digital transition deficit. First and foremost, the Union should "improve conditions for breakthrough innovation by addressing the weaknesses of its common R&I programs," allocating more substantial budgets and investing more in disruptive innovations.
Furthermore, the EU should invest more in the EuroHPC JU (European High-Performance Computing Joint Undertaking).
