Mario Draghi on Innovation
TL;DR
Mario Draghi views strengthening European innovation via massive, focused public and private investment as an existential necessity for global competitiveness.
Key Points
He called for the European Innovation Council (EIC) to be reformed into a "DARPA-type agency" to support high-risk, high-reward innovation projects.
Draghi stressed the need to increase annual R&D spending to meet the long-standing EU target of 3% of GDP.
He highlighted that the EU must focus resources into centres of excellence and coordinate research streams rather than spreading funding thinly.
Summary
Mario Draghi’s core position on innovation, detailed in his report on the future of European competitiveness, is that the European Union faces an existential challenge due to lagging in advanced technologies and must urgently implement an ambitious industrial strategy. He argues that current growth factors are insufficient, necessitating a significant investment boost, estimated at an additional EUR 750–800 billion annually, with a crucial focus on technology. A key evidence point is the EU’s weak performance in producing large foundation models in Artificial Intelligence compared to the US and China.
The implications of his stance emphasize a structural shift in research funding and governance. Draghi recommends transforming the European Innovation Council (EIC) into a "DARPA-type agency" to better finance high-risk, breakthrough projects, potentially doubling its budget to €200 billion over seven years. He also advocates for refocusing the next Framework Programme on selected priorities and creating world-class innovation hubs, arguing that past failures in tech initiatives underscore the need for sustained, outcome-focused investment that links research to industrial application.
Key Quotes
“Failure to meet the 3% target for R&D expenditure set by EU leaders over two decades ago is a fundamental reason why the EU lags behind the US and China.”
“...no continent that wants to have geopolitical power and wants to preserve its existence from an economic and social viewpoint, can be excluded from disruptive technologies.”
Frequently Asked Questions
Mario Draghi views boosting innovation through massive, coordinated investment as critical for the EU's survival and global competitiveness. He explicitly calls for a significant increase in research and development funding across the bloc. His proposed reforms target better financing mechanisms for breakthrough technologies to close existing gaps with global rivals.
Mario Draghi proposed substantial changes to how the EU funds research and innovation to ensure it leads to scalable industrial success. Specifically, he recommended that the European Innovation Council (EIC) operate more like the US DARPA, focusing on high-risk, high-reward projects. He also sought a budget increase for the next Framework Programme (FP10) and tighter alignment of research with EU priorities.
The former ECB President prioritizes innovation investment because he believes the EU is falling behind the US and China, creating an "existential challenge" for its long-term prosperity. He argues that productivity gains and future growth rely on mastering disruptive technologies, especially in areas like Artificial Intelligence.
Sources7
The Draghi report on EU competitiveness
The Draghi report one year on: what has changed? | Science|Business
Mario Draghi in Brussels—One Year On - Groupe d'études ...
Research Funding at the Forefront of EU Strategy in the Draghi Report
Innovation and Competitiveness: at What Price? | IEP@BU
Draghi's Plan: Rewriting or Repeating EU Tech History? – Open Future
The future of European competitiveness – European Sources Online
* This is not an exhaustive list of sources.