Sovereignty Built on Strength and Significance

"One way to ensure long-term growth in the EU is to revive Europe's traditionally pioneering innovative strength", says Victor Warhem, cep economist in Paris and author of the study. Public funding is essential in this regard "because private investment in high-risk technologies tends to be sub-optimal".

Following the example of China and the USA, Warhem argues that a fixed proportion of gross domestic product (GDP) should be allocated to innovation in all member states. After evaluating relevant academic research, the cep analyst proposes that the fixed proportion be set at 0.02%. Based on last year’s figures, this corresponds to a total of around 3.4 billion euros in the EU.

In addition, Warhem insists on the need for a so-called league system to maximise the efforts of financed high-tech SMEs, and a link between JEDI and European institutions. "A European programme aimed at increasing the proportion of students who are willing to study STEM subjects and become entrepreneurs would also be useful", says the cep expert. 

The study is part seven of an eight-part cep series on the challenges facing the EU after the European elections.