Today, the European Commission published the much-anticipated Competitiveness Compass, setting a course for the EU to overcome multifaceted challenges in innovation.
These challenges include performance gaps relative to global competitors, regulatory hurdles, workforce skill mismatches, and a lack of investment in research and development. We are pleased to see that the strategies and goals outlined in the Competitiveness Compass align well with ANE’s strategic recommendations for the 2024-2029 EU agenda.
The Compass recognises that despite high employment rates, there are significant skills gaps within the workforce, particularly in high-tech and skilled occupations. It supports a multifaceted approach to competitiveness that includes promoting skills, innovation, and technology, with a particular focus on the role of STEM skills in boosting Europe’s competitiveness.
STEM Education Strategic Plan
The Compass reconfirms a STEM Education Strategic Plan aimed at enhancing education in STEM to prepare the workforce for high-demand sectors. ANE advocates for a broader and more integrated EU STEM strategy, which goes beyond education and lifelong learning policies. However, we are pleased to see that the compass promotes a collaborative approach among different sectors, emphasising the importance of aligning education with market needs. Integrating industry feedback into educational frameworks is crucial to ensure that graduates possess relevant skills, addressing the need for synergy between academia, industry, and government.
Investment in Research and Infrastructure
The Compass also recognises the importance of addressing the innovation gap between Europe and its major competitors by enhancing investment in R&I. It emphasises the need for significant investment in R&I ecosystems to bridge productivity and innovation gaps. Modernising science and technology infrastructure is also highlighted as crucial in the Compass, which supports the development of effective research environments. Furthermore, the Compass recognises that policies supporting entrepreneurship and the protection of intellectual property are crucial for fostering a robust STEM landscape.
The Compass highlights that addressing the barriers to scaling up is crucial for enabling deep-tech startups to thrive. This includes establishing funding programmes specifically designed for scale-up financing to ensure that these innovative enterprises have access to the necessary resources to grow. Additionally, the Compass underscores the need to simplify regulations and create a conducive environment for innovation, which directly supports ANE’s vision for a competitive and innovative Europe.
Hopeful but Thoughtful
After studying the Competitiveness Compass, we are optimistic but also left with questions and concerns. For instance, the Compass does not provide specific measures that member states should implement or any deadlines. How will it establish a robust monitoring and evaluation framework for understanding the effectiveness of actions taken under the Compass? What initiatives will the Commission prioritise first, and how will resources be allocated to the different initiatives?
The Compass will undoubtedly be followed up with specific guidelines, clear resource allocation strategies, and defined roles for stakeholders. We are ready to consult and support this process, and we look forward to engaging with the Commission and all other relevant stakeholders to support the efforts to drive innovation across the EU.
By the way, you can explore ANE’s report, ‘Reclaiming Europe’s Edge: Competitiveness through STEM Talent’, which evaluates the STEM skills shortage and its impact on Europe’s global position here.