The 2024 Draghi report confirms that Spanish and European companies have not evolved in step with the times. Unlike major markets such as China and the United States, Europe is lagging behind in the technological field.
This represents a a blow to competitiveness of the entire continent, for which Mario Draghi has pointed out that a large investment is necessary, both public and private capital, with which drive innovation.
Europe, at the tail end
In his report, Draghi once again addresses some relevant points which are widening the gap between the major economies and Europe.
This is not the first time that Mario Draghi has pointed out that European countries need to invest capital, but this 2024 He specified the figures: around 800 billion additional euros per year (800 trillion) to get out of a situation of low productivity and weak growth.
The alternative It is a Europe lagging behind In the technological field, compared to other countries that have made considerable progress and continue to be a major source of importing professionals and exporting products.
Furthermore, all these ideas are complemented by a traditional European concern, which Spain also suffers from, is losing competitiveness in areas of high technology and digitalization.
The key points, for Draghi
The most relevant points of the report reflect some of the challenges facing Europe and Spain compared to other stronger economies, such as:
- Lack of investment and innovation, due to a less developed financial market: for example, Europe has a notable lack of venture capital for new technological projects
- The difficulties in adapting research and development (R&D) in applied technologywhich creates a gap between China or the US versus Europe
- The report also notes some stagnation in European productivity (especially in traditional sectors: extraction, manufacturing) and lower competitiveness, which puts obstacles in the way of innovation to boost the economy as a whole.
- The European legislation, stricter, and the legal barriers High-tech related activities also reduce the capacity of Europe and Spain compared to other countries
Policy changes, massive investment
Among the key points of the Draghi report, are proposed changes in competition policies, which should facilitate the creation of technology and telecommunications companies, but, above all, the need for a massive investment, both private and public to drive innovation.
Among the key points in Europe, Draghi considers an investment of more than 800 billion euros per year to lead the field of new technologies, climate responsibility and maintain real independence from other major nations.
And key fact To understand this, it is that while The US has changed its industry in 20 years (where Ford, Pfizer and GM were in the lead, and Microsoft, Intel, Merck, Meta and Alphabet have been growing), in Europe there has been a period of immobility: with Mercedes-Benz, Volkswagen and Bosch among the major brands on the continent that have invested in R&D.
In any case, this also means keeping in mind the difficulties of companies’ growth, the adaptation to technological changes and legal barriers and administrative, which must translate into a restructuring of industrial policies, and even of Europe’s defence policies.
For Spain, the situation does not look much better. In our country, the need to invest massively in innovation and productivity (especially for diversify the economy beyond construction and tourism) and implement structural reforms to to relax its regulation (become desirable as an incubator of startups and technology companies) seems essential if we want to opt for new opportunities in artificial intelligence and clean technologies.
Source: www.elblogsalmon.com