Horizon Europe: the EU must be ambitious to become a global innovation hub

Europe is once again at a defining moment. For some time now, I have argued that the European Union needs a clearer sense of direction if it is to remain a credible global player in Research and Development (R&D), innovation and sustainable growth. It is crucial for our competitiveness.

The recent Opinion of the European Economic and Social Committee on the future of Horizon Europe for the period 2028–2034 reinforces this conviction: Europe must act with ambition, invest strategically and simplify decisively.

The proposals put forward by the European Commission signal an important shift in mindset. In a world shaped by accelerating green and digital transitions, rising geopolitical tensions and fierce global competition for talent, technology and capital, Europe can no longer afford complexity, fragmentation or hesitation. If Europe truly wants to position itself as a global innovation hub, it must create a framework that enables excellence to flourish and innovation to reach the market faster.

The indicative budget proposed for Horizon Europe is an encouraging political signal, but figures alone will not deliver results. What matters most is impact. Public investment in research and innovation must translate into stronger industrial competitiveness, shorter innovation cycles, faster access to funding and broader participation by SMEs and less-represented regions. Simplification and proportionality are therefore not technical adjustments; they are strategic choices that will determine Europe’s capacity to innovate.

Another essential message of the opinion is the need for coherence. Horizon Europe cannot operate in isolation. Stronger synergies between its different pillars, and with instruments such as the European Competitiveness Fund, are crucial to ensure continuity along the entire innovation journey — from frontier research to industrial deployment and market uptake. Europe’s strength lies in its ability to connect excellent science, applied research and industrial scale-up within a single ecosystem.

Competitiveness, however, must be understood in a broad and forward-looking sense. A genuine global innovation hub is not built on technology alone. It also depends on people, skills, inclusion and social acceptance of change. Innovation policies must therefore strike the right balance between economic ambition and societal responsibility, ensuring that democratic values and social cohesion remain integral to Europe’s growth model.

Europe does not lack ideas, talent or scientific excellence. What it needs is focus, speed and consistency. By simplifying rules, investing strategically and aligning research and innovation policies with clear objectives, Europe can strengthen its position as a leading global hub for innovation and sustainable development. The direction is clearer than it has been in years. Now, Europe must have the determination to follow it. The same determination that I see among EESC Employers' Group members when competitiveness is the subject matter.

Gonçalo Lobo Xavier, EESC Employers' Group member and member of the Study Group of Opinion INT/1102 Horizon Europe.