COP31

As COP31 gets underway in Antalya, the focus is increasingly shifting from climate ambition to implementation. Roland Berger is contributing to this debate with a focused engagement around one of the key challenges of the energy transition: accelerating electrification and turning targets into investable, deliverable projects. On 10 November, Roland Berger will partner with IRENA for the session “Transforming the Power Sector by 2030” at the IRENA Pavilion in the Blue Zone. The session will explore what it takes to move from ambition to execution, addressing critical questions around grid expansion, permitting, supply chains, financing and risk allocation. Roland Berger Senior Partner Yvonne Ruf will bring the firm’s perspective on how the energy transition can be delivered in practice, alongside decision-makers from across the energy ecosystem. Beyond the session, Roland Berger will use COP31 to engage with clients and key stakeholders on the ground and contribute further perspectives on electrification, power grids and the implementation of the energy transition. For further information, please contact Isabel von Waldburg .

Event duration: November 9, 2026 - November 20, 2026

SZ Business Summit

Under the overarching theme “Sovereign in Turbulent Times,” the 20th SZ Economic Summit will bring together decision-makers from business and politics in Berlin from November 9 to 11. Roland Berger will contribute to the debate with a clear focus on one of the key questions shaping Germany’s economic future: How can the potential of artificial intelligence be translated into greater competitiveness and tangible value creation? In the joint discussion “Will Germany Get AI Right?”, Global Managing Partner Stefan Schaible and CNTR CEO & Co-Founder Jonas Andrulis will discuss where Germany currently stands on AI adoption and what needs to change for companies to successfully harness the technology. Roland Berger’s engagement is complemented by exchanges with C-level executives and supervisory board members through the Digitalkompetenz im Aufsichtsrat (DKAR) initiative, of which Roland Berger is a partner. For further information, please contact Isabel von Waldburg.

Event duration: November 9, 2026 - November 11, 2026

Europe's innovation paradox: strong research, limited technology leadership

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November 9, 2026

By David Born

Demographic change and global competition make innovation essential for Europe's productivity

Europe's research institutions are among the strongest in the world, with a large base of researchers and a high volume of scientific publications. Yet in key digital technologies, the US and China have strengthened their positions, and Europe has been less successful in turning scientific strength into technological leadership. For decision-makers, this raises a question with direct consequences for investment plans, business models and talent strategies: what stands between research strength and technology leadership? The question is pressing. Europe's population is aging, its workforce is shrinking and its social security systems depend on economic growth. Our new study, Boosting Innovation, examines Europe's innovation performance and competitiveness from several angles.

Key insights from the publication

1. Europe's research strength does not translate into technology leadership. The EU has more researchers and scientific publications than the US. Yet its high-value patent output has fallen by almost one third since 2000, and China has overtaken Europe in greentech patents.

2. Europe is falling behind on R&D, especially in digital technologies. EU R&D spending is at 2.1% of GDP, below its own 3% target and the US level of 3.4%. EU companies cut ICT software R&D by 8.9% in 2024, while globally, software's share of total R&D spending rose from 13% to 24.9%.

3. Scale-ups lack growth capital at the stage where they need it most. The venture capital gap to the US widens at later stages. European scale-ups increasingly depend on foreign investors, and fragmented capital markets limit cross-border funding.

Why innovation matters for Europe's productivity and growth

Demographic change adds urgency. Fewer people in employment must support growing social security obligations, which makes productivity growth a priority for governments and companies alike. We see innovation as a central lever for productivity across industries. The study therefore treats innovation as a core economic issue, not only as a topic for research departments and technology companies. Innovation also depends on skills. Education forms the basis of the talent on which research, engineering and digital transformation rely.

From research to market: where does Europe stand?

Europe's scientific base is established, so the more relevant question concerns what happens after the research stage. The study compares Europe with the US, China, Japan and selected European countries along the innovation chain, from scientific output and patents to R&D spending.

Investment patterns are a second area of analysis. R&D budgets determine which technologies and sectors a region can lead in a decade from now. The study examines how corporate R&D in Europe compares internationally and how it is distributed across sectors. Digital technologies are among the key trends shaping future competitiveness.

Financing is the third area. Scaling a technology company requires capital across several growth stages. The study examines how investor structures, capital markets and regulatory frameworks affect start-ups and scale-ups, and what this means for the ability of European companies to grow. Recent reforms aim to improve the conditions. For investors, founders and established corporates alike, the effect of these reforms is a decisive question.

Strategic choices for companies and policymakers

Europe also brings strengths to this discussion. European companies have deep sector expertise and decades of experience in engineering, manufacturing and industrial processes. Europe's high-technology exports remain significant. Which product groups carry this position, and where is it exposed? Our 2040 Technology Game Plan offers orientation on the technology trends with the highest commercial relevance and the continent's position in the race for leadership position.

Companies and policymakers face linked decisions. Companies must decide where to concentrate limited resources and how to build the capabilities they need. Policymakers shape the conditions in which innovation takes place, through public funding for research and education, by shaping growth-friendly regulations - but also as anchor buyers in certain technological fields.

Whether Europe can narrow the gap in future technologies will depend on making the right decisions right now, and on how effectively businesses, research institutions and public authorities work together. The full study provides the data behind these questions and the ideas for action.

The 2040 technology game plan

Thirty technology trends will grow tenfold to EUR 20 trillion by 2040. Where does Europe stand – and what must it do to compete?

ARTICLE

China Shock 2.0: Why Europe's trade deficit with China keeps widening

Europe's trade deficit with China is accelerating. Roland Berger analyzes the structural drivers and what Europe must do now.

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Germany's automotive reset

Germany's automotive industry faces painful consolidation. Our study examines the pressures reshaping the sector and how a profitable core can survive.

Expertise