The European Commission has claimed that Europe¡¯s research and innovation (R&I) sector is?¡°underutilised¡± and faces funding issues and regional divides.

A ¡°persistent¡± R&I divide across Europe and a?lack of?long-term planning for research means that European Union targets for research to?comprise 3?per cent of?gross domestic product are ¡°still far from being achieved¡±, the commission¡¯s latest warns.

The report says: ¡°Investing in R&I means investing in Europe¡¯s ability to handle the difficulties of the 21st century. It is crucial for boosting Europe¡¯s long-term competitiveness and improving living standards. And its role in supporting productivity growth and transition towards a sustainable economy will further increase with population ageing and the consequent shrinking of the labour force.¡±

While it describes northern and western Europe as being home to ¡°innovation leaders¡±, it says ¡°moderate and emerging innovators¡± are mostly situated in southern and eastern Europe.

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It warns that R&I is fragmented along national lines throughout Europe, ¡°restricting the EU¡¯s ability to achieve global leadership¡±. Structural reforms in member states¡¯ national R&I systems are therefore ¡°essential¡±, the report says, to unleash research potential across the continent.

This feeds into a ¡°critical investment gap¡±, the commission paper says, noting that the annual R&D budget of Amazon is more than four times that of the annual budget for the EU¡¯s framework programme for research and innovation.

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But European funding initiatives ¨C including the framework programme and the European structural and investment funds dedicated to supporting territory development ¨C ¡°have a strong potential for narrowing this divide¡±, it?says.

Such frameworks are ¡°crucial¡± for establishing ¡°synergies of the kind that could not be created by individual countries acting alone¡±.

¡°[That support] enables the development of more ambitious projects, fosters transnational collaborations, addresses EU-wide challenges, reduces redundant efforts, allows for EU-wide competition and sets unified standards,¡± it outlines.

Iliana Ivanova, European commissioner for innovation, research, culture, education and youth, said the report highlighted the need to ¡°intensify¡± efforts to meet the 3?per cent target.

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¡°Boosting Europe¡¯s scientific and technological capacities and complementary action at the EU, national and regional levels are essential for both current and long-term resilience and competitiveness,¡± she said.

The paper echoes previous warnings that the EU?research funding lacks long-term stability, because budgets can often face cuts when emergencies arise and money is shifted to address more immediate needs. ¡°As we are entering an era of polycrisis or permacrisis, a balanced approach is warranted to ensure that policies address immediate needs without compromising long-term aspirations,¡± it says.

juliette.rowsell@timeshighereducation