In 2025, the European Commission will adopt the new EU Startup and Scaleup Strategy, a key initiative to foster innovation and competitiveness within the Single Market. This strategy is part of the Commission’s broader commitment to research, innovation, and economic growth, aligning with the recommendations of the Letta and Draghi Reports on European competitiveness.
The Competitiveness Compass, adopted in January 2025, identifies this strategy as a flagship initiative under its first pillar, “Closing the innovation gap.” It will lead to concrete measures, including legislative proposals such as the European Innovation Act and the “28th regime” for innovative companies. These actions aim to create a more supportive business environment for startups and scaleups, addressing challenges related to access to capital, markets, services, infrastructure, and skilled talent.
Startups and scaleups are key drivers of innovation, often introducing groundbreaking solutions that stimulate economic growth and job creation. Despite their potential, European startups face significant barriers compared to their global competitors. Currently, the EU represents only 8% of global scaleups, and its share of venture capital remains at 5%, far behind the United States and China. Many promising companies seek funding and expansion opportunities outside Europe, highlighting the need for a more enabling regulatory and financial framework.
The EU Startup and Scaleup Strategy will be closely linked to other major initiatives under the Competitiveness Compass, including the “Savings and Investments Union,” the “Single Market Strategy,” and the “Union of Skills.” It seeks to ensure that startups can scale up within Europe, driving productivity, investment, and innovation.
Stakeholders are encouraged to contribute to the development of this strategy by participating in an online consultation via the “Have Your Say” portal until 17 March. The feedback collected will help shape the final strategy and the Commission’s upcoming policy measures. Various events will also be held to engage with the startup ecosystem and ensure that the proposed measures meet the needs of innovative businesses.
Source: INSME Secretariat
