In a major push to bolster its global competitiveness in the technology sector, the European Commission has launched a comprehensive Startup and Scaleup Strategy , aimed at transforming Europe into a premier destination for launching and scaling globally competitive, technology-driven companies. The initiative, announced this month, is part of a broader effort to close the innovation gap between Europe and its counterparts in North America and Asia.
The strategy arrives at a critical juncture. While Europe is home to world-class research institutions, a highly skilled workforce, and robust public funding mechanisms, it has long struggled to convert promising startups into tech giants. Too often, innovative ideas born in European labs fail to make the leap to market—or are acquired by foreign firms before reaching scale.
“Startups and scaleups are the engines of innovation, job creation, and strategic autonomy,” said a senior Commission official involved in drafting the plan. “This strategy is about giving them the tools, the environment, and the support they need to thrive right here in Europe.”
Five Pillars of the Startup and Scaleup Strategy
At the heart of the new approach are five key areas designed to address the lifecycle challenges faced by startups—from ideation to international expansion:
1. Fostering an Innovation-Friendly Environment
One of the biggest hurdles for entrepreneurs in Europe is navigating the continent’s fragmented regulatory landscape. The Commission aims to reduce red tape and simplify legal frameworks across member states, ensuring that startups can focus on growth rather than compliance.
“We want to create a single, seamless ecosystem where a company founded in Lisbon can operate as easily in Berlin or Helsinki,” said Thierry Breton, Commissioner for Internal Market. “Less bureaucracy means more innovation.”
2. Driving Better Financing
Despite having access to strong early-stage funding, European startups often face a venture capital (VC) gap when scaling up. The Commission will work to deepen and integrate the EU’s venture capital market, encouraging institutional investors—such as pension funds and insurance companies—to increase their exposure to high-growth tech ventures.
A flagship goal is to unlock €10 billion in new private capital over the next five years through targeted policy reforms and co-investment initiatives.
3. Supporting Market Uptake and Expansion
Speeding up the transition from lab to market is another priority. The Commission plans to strengthen connections between research institutions and industry, streamline procurement processes, and offer pilot programs to test innovations in real-world settings.
“We have some of the best scientists and engineers in the world,” said Mariya Gabriel, Commissioner for Innovation, Research, Culture and Education. “Now we must ensure their breakthroughs reach consumers faster.”
4. Attracting and Retaining Top Talent
Recognizing that talent is the lifeblood of innovation, the strategy aligns closely with the “Choose Europe” initiative—a pan-EU campaign to attract top researchers and entrepreneurs from around the globe.
New fast-track visa schemes, improved recognition of foreign qualifications, and better mobility pathways for founders and technical experts will be introduced. The Commission also plans to expand postdoctoral fellowships and startup incubators targeting international talent.
“Europe offers stability, freedom, and quality of life,” said Gabriel. “We want to make sure that the brightest minds see Europe not just as a place to visit—but as a place to build.”
5. Facilitating Access to Infrastructure and Services
To help startups scale efficiently, the Commission will harmonize access to digital infrastructure, cloud services, testing facilities, and supply chains. It will also standardize contractual conditions to reduce disparities between national markets.
This includes expanding the European Innovation Council (EIC) ’s support network and accelerating access to Horizon Europe funding, which allocates €93.5 billion for research and innovation until 2027.
Strategic Alignment with “Choose Europe”
The startup strategy dovetails with the broader “Choose Europe” initiative, which promotes the EU as a global hub for science, innovation, and entrepreneurship. Recent announcements include:
- A new MSCA Choose Europe for Science program offering grants of up to €3.5 million.
- Over 60 cross-border funding and support schemes available across all 27 member states.
- Significant investments in research careers, including €1.25 billion allocated earlier this year to attract top researchers.
Together, these efforts aim to position Europe as a magnet for global talent and innovation, particularly amid growing geopolitical tensions and restrictions on scientific mobility elsewhere.
Implementation and Monitoring
The Commission will publish regular progress reports, with the first due by the end of 2027. Member states, regional authorities, universities, and private-sector partners are expected to play a central role in executing the strategy locally.
“This isn’t just about supporting startups—it’s about building a culture of innovation across Europe,” said President Ursula von der Leyen during a recent speech in Paris. “If we get this right, we won’t just create jobs—we’ll shape the future.”
A Vision for Global Leadership
With its Startup and Scaleup Strategy, the EU is making a bold bet: that innovation, sustainability, and openness can drive both economic resilience and global leadership. By removing barriers, mobilizing capital, and attracting talent, Europe is laying the groundwork for a new generation of tech champions—ones that will define the industries of tomorrow, from green hydrogen to artificial intelligence.
As António Costa, President of the European Council, recently noted while addressing Brazilian business leaders:
“When the foundation is solid, we just need to move forward with confidence.”
For Europe’s startup ecosystem, that moment of confidence may finally be here.
The Commission has launched an EU startup and scaleup strategy to make Europe a great place for starting and growing global technology-driven companies. It’s part of the broader Choose Europe initiative, and it will help strengthen Europe’s competitiveness.
