According to a Eurobarometer survey conducted by the European Commission in 2020, around 45% of SMEs found the application process for EU funds to be complex and bureaucratic. This indicates a significant challenge for many startups and scale-ups navigating the landscape of EU-funded opportunities and policy-related challenges. To address these issues and streamline the path for innovators, the Innovation Radar Bridge project aims to simplify processes and enhance connectivity between EU-funded innovators, investors, and policymakers.
To make it easier for European innovators to grow to the next level, EU-Startups, Dealroom, and Dealflow have come together under the umbrella of the “Innovation Radar Bridge” project. This collaboration, funded by the European Commission, aims to strengthen connections between EU-funded innovators, investors, and policymakers, and foster greater market uptake of EU-grown innovations.
How will Innovation Radar Bridge achieve this? Through a series of impactful events and insightful reports over the next two years, addressing the real challenges faced by EU-funded startups and scale-ups and offering potential solutions.
Efforts are already underway. Two significant events have already taken place: the launch event in Brussels and the first policy event during the EU-Startups Summit. These events ignited new conversations and outlined the efforts, challenges, and positive outcomes that the startup ecosystem faces in Europe. Both events emphasized the need for policies that promote innovation and competitiveness.
The Policy Puzzle: Insights and learnings from panel discussions
The EU-Startups Summit held in Malta this May and the launch event in Brussels earlier in the year served as platforms for Innovation Radar Bridge’s policy-related events. These gatherings brought together EU-funded innovators, policymakers, investors, and media to discuss the current landscape and brainstorm solutions. Speakers from the European Commission, European Parliament, European Innovation Council, Malta Enterprise, venture capitalists, ESNA, founders, innovators, and researchers highlighted the collaborative spirit needed to connect key players within the European startup ecosystem.
The events identified policy-related challenges, brainstormed solutions through dynamic discussions, and leveraged opportunities within the European startup landscape. They aimed to engage investors and policymakers and highlight untapped investment opportunities within EU-funded Research and Innovation Programmes. Thijs Povel of Dealflow and Yoram Wijngaarde of Dealroom provided an overview of the EU innovation and venture capital ecosystem and introduced a matchmaking platform to address some challenges. While Europe generates many innovative ideas, it lags behind the US and other regions in securing private funding, underscoring the need for more effective strategies to attract private investment.
Insights from the Innovation Radar Bridge Events
- Transitioning research to market: Connecting laboratory research with market opportunities is paramount. Initiatives like Horizon Europe play a vital role in facilitating this transition, enabling research breakthroughs to evolve into commercial successes.
- Enhancing investor awareness: Increasing awareness among investors about EU programme opportunities is fundamental. Developing robust mechanisms to identify and support promising startups will bridge the gap between innovation and funding, invigorating the startup ecosystem.
- Simplifying processes for startups: Streamlining administrative processes and reducing bureaucratic hurdles are essential for startups. Enhancing agility through effective engagement with the private sector will enable startups to operate more smoothly and scale more efficiently.
- Policy harmonisation: Standardising definitions of startups and scaleups across Europe is crucial for creating a cohesive market. Harmonised policies and support mechanisms are needed to avoid fragmented systems that can stifle growth and scalability.
- Navigating complexity: Understanding the nuances of EU funding terminology and overcoming bureaucratic challenges are significant hurdles. Effective guidance and resources are required to help startups navigate the complexities of securing and utilising Euro Funding, which encompasses the various EU initiatives and financial support aimed at fostering innovation and market growth.
- Strategic advice and networking: Strategic networking and meaningful partnerships are critical for startup success. Seeking tailored advisory support and engaging in substantial networking activities, rather than just participating in generic events, can lead to more impactful collaborations and opportunities.
- Securing Private Funding: Attracting private investment remains a pressing need. Implementing effective strategies to support the commercialisation of European research and development is crucial for addressing funding gaps and accelerating innovation.
Policy perceptions: Survey
As part of the Innovation Radar Bridge project, a survey was conducted among EU-funded innovators to gauge their experiences and perspectives on EU policies. The results highlight a complex relationship with EU bodies, where interactions are often perceived as challenging and in need of improvement. Innovators emphasised the need for more effective communication channels and responsive support systems to enhance the implementation of EU policies and foster a more collaborative environment.
Despite these challenges, the survey also revealed that EU policies generally have a positive impact on innovation projects. Benefits such as increased funding opportunities, streamlined regulatory processes, and enhanced collaboration were noted. However, innovators expressed a desire for clearer regulations, particularly concerning health data, and more consistent enforcement of policies across member states. Addressing these areas could significantly contribute to a more supportive and cohesive environment for innovation across Europe.
Addressing challenges: Cross-border hiring and bureaucracy
One of the significant challenges highlighted is cross-border hiring and bureaucracy. Navigating different legal frameworks, employment regulations, and administrative processes across EU countries can be cumbersome and time-consuming for startups. Simplifying these processes could significantly enhance the ease with which companies expand and operate across borders.
In parallel, initiatives like ESNA are leading the European Agenda for Startups, focusing on connecting the European Commission, Member State Governments, and National Entrepreneurship bodies. By fostering more startup-friendly policies and improving communication and collaboration among these stakeholders, ESNA aims to streamline support for entrepreneurs and enhance the overall startup ecosystem in Europe.
Arthur Jordão, the Executive Director of ESNA, said: “Europe as a whole is committed to creating more favourable conditions for startups. 27 European countries agreed to implement the same eight game-changing standards at the national level. Ultimately, this will create a level playing field across the continent and result in tangible progress towards the vision of a harmonised Europe.”
New horizons: The DMA and AI Act’s impact on Europe’s startup ecosystem
The Digital Markets Act (DMA) and the AI Act are set to usher in a new era of opportunity and innovation within the European tech landscape.
The DMA is creating a more equitable environment by enabling the establishment of third-party app stores and enhancing access to crucial technologies such as NFC antennas. This regulatory shift is designed to democratise the market, allowing emerging startups to compete on a more level playing field. against established tech giants. By promoting transparency and fairness, the DMA aims to foster a competitive ecosystem where European tech firms can rise to prominence on the global stage. This policy not only supports the growth of new entrants but also strengthens Europe’s position as a leader in technological innovation.
Digital markets act and Apple: A case for fair competitiveness
The European Commission has raised concerns about Apple’s App Store rules under the Digital Markets Act (DMA), which may restrict app developers from directing customers to alternative purchasing options. The DMA aims to ensure fair competition by allowing developers to steer customers towards more competitive offers. The Commission’s investigation into Apple’s practices underscores the DMA’s role in promoting a transparent and equitable digital market.
In addition, the AI Act introduces the first comprehensive legal framework for Artificial Intelligence, positioning Europe as a global leader in trustworthy AI. This legislation establishes clear requirements for AI developers, aiming to mitigate risks while reducing administrative and financial burdens, especially for SMEs. Part of a broader initiative, including the AI Innovation Package and the Coordinated Plan on AI, these measures enhance safety, ethical standards, and fundamental rights associated with AI, while boosting investment and innovation across the EU.
Together, the DMA and AI Act represent a significant step forward in creating a supportive and dynamic startup environment. Make sure to stay tuned about Innovation Radar Bridge’s next events to participate in the next round of discussions in person and join our new Slack channel to be part of the conversation online
