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Competitive and future-orientated: Strengthening Europe's life sciences sector

The life sciences sector is of crucial importance for Europe's economy and health: pharmaceutical products contribute €538 billion to EU trade and medical technology companies secure over 10 million jobs. However, rising costs, regulatory hurdles and declining investment in research and development are jeopardising the sector's competitiveness and driving innovation out of Europe. The BDI, together with the Italian Confederation of Industry (Confindustria), the Danish Industry Association (Danish Industry) and the Austrian Federation of Austrian Industries (IV), is therefore proposing a life sciences strategy that strengthens Europe's strategic autonomy, economy and security.

Geopolitical tensions and increasingly complex challenges due to technological and demographic developments are increasing the pressure on companies. Nevertheless, EU policy is falling short of expectations: high production and energy costs, regulatory hurdles and insufficient R&D funding are hampering innovation. With only 2.11% of GDP invested in R&D, the EU lags behind global innovation leaders such as the USA. This weakens the European life sciences sector and diverts investment to other regions, increasingly to the USA and China in particular. Without strategic adjustments, the EU is threatened with long-term losses in the competitiveness of the life sciences sector and the development of necessary health innovations for its citizens.

The life sciences industry should be seen as the engine of Europe's strategic autonomy, economy and security and as the centrepiece of EU industrial policy. Against this background, European business organisations are calling for a comprehensive life sciences strategy to close the competitiveness gap with other leading regions. This strategy focuses on three main objectives:

  • Making the EU a global research and innovation centre for life sciences: By fostering competitive clusters, optimising R&D spending and improving the single market for innovation, the EU can increase its competitiveness, health resilience and economic strength.
  • Position the EU as an attractive location for investment, start-ups and growth in the life sciences sector: Creating a predictable regulatory environment with strong intellectual property rights and targeted incentives for long-term investment is essential to foster innovation and strengthen global competitiveness in life sciences.
  • Make the EU a leading centre for life sciences manufacturing: The EU should establish itself as a key life sciences manufacturing centre with resilient infrastructure, efficient approval procedures, competitive tax regimes and access to skilled professionals. The creation of a European area for health data in close cooperation with the life sciences industry plays a decisive role here.

The BDI therefore supports the call for a life sciences strategy for a healthier, more resilient and more competitive future.

Further details on the recommendations can be found in this position paper.

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