Draghi Report Blames 100 EU Tech Laws for Europe’s 17% R&D Share
Updated
Updated · The Dispatch · Aug 25
Draghi Report Blames 100 EU Tech Laws for Europe’s 17% R&D Share
3 articles · Updated · The Dispatch · Aug 25
Summary
Mario Draghi’s 2024 report says Europe’s innovation slump stems from fragmented markets, overlapping regulation and tax burdens that keep startups from scaling into global leaders.
Over 50 years, Europe created zero companies from scratch worth more than 100 billion euros, while the EU’s share of global corporate R&D fell to 17% in 2024 from 25% in 2004.
About 100 tech-focused laws and more than 270 digital regulators force companies expanding across the bloc to navigate multiple national rulebooks, while Europe’s IPO markets remain split instead of offering a Nasdaq-style venue.
That structure weakens venture capital and retention: nearly 30% of European startups later valued above $1 billion moved their headquarters abroad between 2008 and 2021, mostly to the U.S.
Draghi’s findings suggest Europe could benefit if U.S. immigration tightens and defense spending rises, but economists cited in the report say a broader pro-innovation shift is still needed.