Commission launches strategy to boost Europe as an emerging powerhouse

The European Commission launched on 28 May the EU Strategy for Start-ups and Scale-ups, “Choose Europe to Start and Scale”, which aims to make Europe a leading place to create and develop technology-driven global businesses. The Strategy is in line with the broader “Choose Europe” initiative launched by President Von der Leyen. This initiative focused first and foremost on the science component, promoting a unified European approach to attract and retain talent, thereby strengthening Europe’s competitiveness.

Start-ups and growth companies are essential for Europe’s future, driving innovation and sustainable growth, creating high-quality jobs, attracting investment and reducing strategic dependencies. However, despite their strong foundations, too many still struggle to take ideas from the lab to the market or to grow on a large scale within the EU.

The Strategy addresses these challenges by supporting companies throughout their lifecycle, from start-up to maturity and success in the EU.

It identifies the key needs of emerging and growing businesses and presents a set of actions in five main areas:

• Fostering an innovation-friendly environment: As outlined in the Single Market Strategy, emerging and growing businesses need less fragmentation and fewer administrative burdens, as well as simpler and more favourable rules across the Single Market. The Commission will propose a 28th European regime to simplify rules and reduce the cost of failure by addressing critical issues in areas such as insolvency, labour and tax law. The European Business Portfolio will enable seamless digital interactions with public administrations across the Union through a unified digital identity for all economic operators. The forthcoming European Innovation Act will continue to support innovation by promoting controlled testing spaces.
• Boosting better financing: Start-ups and growth companies need better financing, a larger and more integrated EU venture capital market and greater involvement of European institutional investors. The Savings and Investment Union initiative will be key to unlocking more financing and investment opportunities in the EU. To complement this initiative, the Strategy aims to expand and simplify the European Innovation Council, deploy a European fund for growth companies to help bridge the funding gap for deep-tech growth companies and develop a voluntary European Innovation Investment Compact to mobilise large institutional investors to invest in EU funds, venture capital funds and unlisted growth companies.
• Supporting market deployment and expansion: Start-ups and scale-ups need a faster path from lab to market. The Strategy introduces the Lab to Unicorn initiative, which includes European start-up and scale-up hubs to help connect university ecosystems across the EU. This includes a blueprint for licensing, rights and revenue sharing and equity participation by academic institutions and their inventors in commercialising intellectual property (IP) and creating spin-off companies, together with guidance on IP state aid rules.
• Attracting and retaining top talent: To keep and attract top talent, emerging and growing companies need better access to highly skilled people. The Strategy introduces the Blue Carpet initiative, focusing in particular on entrepreneurship education, tax aspects of employee stock options and cross-border employment. The Commission will also promote the Blue Card Directive and encourage Member States to set up fast-track schemes for non-EU founders.
• Facilitating access to infrastructure, networks and services: Start-ups and scale-ups need shorter time to market and faster time to market. The Strategy proposes to simplify and harmonise diverging access and contractual conditions for start-ups and scale-ups to research and technology infrastructures through an Access Charter for industrial users.

More information: European Commission