Critical Gaps in EU’s Technology Sector, Including AI, Quantum, and Space

21/06/2024

A recent study by DIGITALEUROPE has revealed significant deficiencies in Europe’s technology sector, particularly in artificial intelligence AI, quantum computing, and space technology.

The report, titled “The EU’s Critical Gap: Rethinking Economic Security to Put Europe Back on the Map,” highlights that Europe is trailing in seven out of eight key technologies analysed, with advanced connectivity being the only area where it leads.

The study underscores a substantial shortfall in both public and private investment in these critical technologies.

Investment in AI startups in Europe is only one-seventh of that in the United States.

This investment gap is stunting skills, innovation, and overall growth in these vital sectors, leaving Europe significantly behind its global competitors.

Stuart Munton, Chief for Group Delivery at AND Digital said: “Digital skills are crucial to empowering staff and maximising the benefits of technologies, yet the skills gap remains rife.

“Businesses need to take an innovation and people approach to technology development and adoption, investing not only in the technology itself but the people that are using it.”

Complex European regulations have been identified as a key obstacle to growth and scalability in the technology sector, potentially driving talent to more favourable markets.

Sridhar Iyengar, Managing Director, Zoho Europe commented: “Building digital skills to lead innovation in the workforce is essential for driving the EU’s commitment to technology and innovation.

“The impending skills shortage calls for collaboration between government, educators, and industry to provide the necessary training and investment to create an EU-wide digitally proficient workforce.

“Organisations need access to skilled staff not only to maximise the benefits of tech but to lead any digital transformation and develop a competitive edge.

“Businesses should review their skills development strategies and ensure they are promoting a culture for continuous learning and development.”

The research underscores the critical need for strategic partnerships to enhance the EU’s competitive position, advocating for collaboration with global leaders to optimise supply chains and foster robust technology ecosystems.

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