Europe's economy struggles to bring innovative products to market as swiftly and successfully as the competition from the USA and Asia. This is not due to a lack of good ideas – quite the contrary.
This article was featured in week 5 of the newsletter's 2026 edition.
European research ranks among the best worldwide. Yet the step from promising innovation to market-ready product is often not successful. One reason: Even within the European single market, there are many obstacles. Different national regulations, cumbersome procedures, and lack of access to financing often slow companies down.
The EU Commission is addressing this now: The goal is to facilitate the path from innovation to faster market maturity with less bureaucracy, improved financing opportunities, and incentives for bold new developments. These measures are part of the "European Innovation Act" planned for March 2026.
Faster processes and simpler procedures
With the new EU Innovation Act, conditions for innovation in the single market are to be fundamentally improved. The European Commission particularly wants to make existing rules innovation-friendly and eliminate unnecessary bureaucratic obstacles, such as those hindering the marketing of research results. The aim is to make it easier to transfer research from theory to practice and make it financially viable. Furthermore, the plan includes better alignment of fragmented national approaches. Companies would then no longer need to navigate different regulations in each country.
Supporting start-ups and scale-ups – with balance
Building on the "EU Start-up and Scale-up Strategy" presented in 2025, specific benefits for these companies are also planned. Start-ups (companies in the start-up phase) and scale-ups (advanced start-ups undergoing growth) typically face common challenges when it comes to innovation. These include limited equity, high financing needs, and restricted access to research and technology infrastructures. Uniform EU-wide definitions aim to address these challenges more effectively.
Unified terms could provide international comparability and easier access to funding instruments. However, from the perspective of the German Chamber of Commerce and Industry (DIHK), it is crucial for the entire economy that start-ups and scale-ups do not receive special rules at the expense of other companies. Innovation is vital for all sectors. Thus, easing conditions for innovation should be open to all businesses. The DIHK warns against categories like an EU definition of "innovative companies" as it risks leading to new demarcations and additional bureaucracy.
Thinking real laboratories on a European scale
A uniform understanding of real laboratories across the EU could simplify the process for companies to test their innovative solutions and business models temporarily – securely and under real market conditions. For companies, this means lower legal risks during product development, greater planning security, and faster learning curves. Creating cross-border real labs within Europe adds value, especially if test results are mutually recognised and new collaborations among start-ups, industries, science, and authorities are simplified.
Procurement as a market opener
Public procurement should also be used more effectively to promote innovations. State-level procurement of innovative products can help companies secure references and unlock new markets. Practically, an innovation test through an additional special award system should be avoided, as it would only increase bureaucracy. Instead, this check should be logically integrated into the ongoing reform of the EU Procurement Directives. Streamlining procedures, greater flexibility in evidence submission, and practical guides are more suitable for companies than additional special provisions.
Better access to financing and infrastructure
New approaches to large-volume growth financing are also under discussion. Intellectual property rights should be leveraged as security for financing innovation. This is particularly vital for research-intensive companies with strong developments but limited equity.
Furthermore, some companies advocate making publicly funded IP rights, i.e., intellectual property protection rights, more accessible. This would significantly enhance technology transfer between academia and industry. Policymakers should also simplify access to research infrastructure for companies – through more transparency, clearer state aid guidelines, and a harmonised European access framework.
If these reforms succeed, they will particularly benefit companies wishing to invest in new technologies and business models, strengthening Europe's competitiveness and paving the way for more market successes "made in Europe."
- Relevant in topic:
- Innovation and Digitalisation
It has been translated with the assistance of AI.
No guarantee is made as to the accuracy or completeness of the translation.
Released 26.01.2026
Modified 10.09.2026
Contact
Lorenz Kramer
Director Economic Policy in Europe