Council backs research and innovation for startups and scaleups

The Council approved last September 30th conclusions on the importance of research and innovation for the EU Startup and Scaleup Strategy. These conclusions provide guidance for the establishment of a strong and dynamic ecosystem where higher education and research institutions can support the creation and growth of new companies, valorise the results of their research, and attract and retain talent. To this end, the conclusions call for a supportive regulatory and financial environment to boost innovative companies.

”Research and entrepreneurship are not separate realities, but two sides of the same coin. While research institutions can help startups and scaleups take off and grow, the private sector can also help research institutions secure investment and valorise their findings. It is a win-win-win strategy: research institutions win, companies win, and European competitiveness wins”.

-Christina Egelund, Danish Minister for Higher Education and Science

Creating the right ecosystem

The conclusions welcome the EU Startup and Scaleup Strategy as a key step to strengthen European competitiveness and innovation. They stress the urgent need for bold action to close the innovation gap with global competitors while safeguarding welfare, economic security and strategic autonomy and preserving an open economy.

However, innovation ecosystems are complex and require collaboration across the value chain and effective feedback between innovators and researchers. The Commission, in cooperation with member states, is encouraged to act in areas such as the development of legal definitions for startups, scaleups, mid-caps, innovative companies, and undertakings in difficulty, as well as reducing administrative and economic burdens for these companies.

R&I – the foundation of startups and scaleups

The conclusions recall that predictable and coherent funding in R&I programmes is of the utmost importance for the success and development of startups and scaleups.

In this context, higher education institutions and research-performing organisations play an essential role in retaining and attracting talent and valorising innovation through academic spin-offs and startups. The conclusions encourage universities and other research centres to strengthen their entrepreneurship and valorisation activities.

State aid can support these efforts, but the current framework makes it difficult for higher education institutions. The conclusions therefore invite the Commission to propose solutions within the existing legislative framework and to provide guidance on the implementation of current state aid rules related to higher education institutions and research-performing organisations.

Attracting and retaining talent

The Council conclusions welcome the focus on talent and skills in the Startup and Scaleup Strategy and encourage the fostering of entrepreneurial skills in students and academic staff as well as administrative teams in research institutions.

Experience exchange, cross-border networks, and European programmes such as Erasmus+, the European Research Council, Marie Skłodowska-Curie Actions, EURAXESS, and the new ‘Choose Europe’ initiative can help attract, foster and retain talent in Europe.

Better use of research and technology infrastructures

To facilitate access for companies and businesses to infrastructures, the ‘Charter of Access for industrial users’ could be a valuable tool, according to the conclusions adopted today. Another positive step would be enhanced cooperation between existing initiatives, such as the European Universities Alliances, Rise Europe, Startup Europe, and the European Startup Nations Alliance (ESNA), to create or reinforce startup and scaleup hubs.

Connecting these hubs through digital technologies and applying FAIR data principles could further facilitate access to funding, improve intellectual property management, and promote global market access.

Closing the gaps in the value chain

The conclusions call for better use of existing programmes and instruments at European, national, and regional levels to close the financial gap for scaleups as soon as possible. Finally, they stress the need for effective implementation of the strategy, with clear key performance indicators (KPIs), better planning, and maximum efforts to reduce reporting burdens.

Background

On 28 May 2025, the Commission published the EU Startup and Scaleup Strategy, aiming to make the EU the best place in the world to launch and grow technology-driven innovative companies.

The strategy builds on the ‘Choose Europe’ initiative to attract and retain scientific and innovative talent, and highlights the fact that, despite the EU’s solid foundations (e.g. its economic strength, highly skilled workforce, and stable democratic institutions), structural barriers to the creation and growth of enterprises persist. Leaders welcomed the strategy at the June 2025 European Council.

 

More information: European Council