Catching up on digitalisation and closing the innovation gaps
Recommendations for the European legislative period 2024-2029
Technology openness first, regulation second. This is a prerequisite for Europe to catch up on its digital lag the United States, China, and other competitors. Specifically, this means creating an uncomplicated, capital-strong innovation environment in which new technologies can thrive sustainably. It also means investing in the skills of the workforce, in vocational training, and in attracting digital talents. Those who want to take the technological lead in the future and secure future markets must set technological standards. Considering the significant innovation gap, speed is crucial in this regard.
What matters now
Instead of immediately regulating new technologies, the EU urgently needs to strengthen the societal technical openness to ensure its future viability, invest in expertise and vocational training, and actively promote the development of new innovative technologies. The European Commission should now give the numerous digital policy measures it has adopted time to take effect and develop uncomplicated, industry-adapted implementation concepts within the framework of implementing acts, with close involvement of the industry.
The EU should advance the establishment of EU data spaces. There should be no introduction of additional regulatory initiatives; instead, the recent EU legislative acts should be critically evaluated and adjusted.
The advisory services provided by European data protection authorities for businesses should be enhanced, and more practical implementation guidance should be made available. Above all, a harmonized interpretation of the GDPR across Europe is to be aimed for. For transatlantic data exchange, a durable and legally effective adequacy decision concerning the transfer of personal data is urgently needed. Additional adequacy decisions should also be adopted for transfers to other third countries.
The focus should be on innovation-promoting measures, such as real-world laboratories. Furthermore, compliance obligations for high-risk applications for SMEs and startups should be designed to be quickly implemented, cost-effective, and uncomplicated.
The European Chip Act, also known as the EU Chips Act, aims to strengthen the semiconductor ecosystem in the EU. To contribute to technological sovereignty and the resilience of supply chains, a transparent and practical process for subsidies is necessary, accessible to companies of all sizes. Governance-wise, the EU Semiconductor Board must be operational as an advisory body and made accessible to companies interested in participating. Additionally, the process for achieving strategic and technological sovereignty and addressing the EU's 20% target must continue beyond the EU Chips Act, including closing the skills gap and initiating Microelectronics II under the Important Project of Common European Interest (IPCEI).
The concrete use cases of the industrial metaverse are still in an early stage of development. Currently, European companies are heavily investing in research and development activities to integrate existing technologies into a fully matured industrial metaverse. Therefore, at this stage, regulation should be avoided to prevent stifling innovation in its early stages.
The DMA regulates particularly powerful digital platforms. In implementing the law, the focus should be on clear guidelines and procedural steps for companies and effective enforcement. Additional regulatory initiatives in the platform economy beyond the DMA are currently not necessary, especially since it became binding only on May 2nd, 2023.
The EU should adequately fund Horizon Europe with new financial resources to ensure sustainable support for innovative research projects. Additional financial resources are necessary to drive scientific progress and support the innovative capacity of the industry. Mission-oriented and evaluated project funding is required to unite all stakeholders in society under a common goal.
The European Commission must ensure a uniform implementation of the NIS 2 Directive throughout the EU and ensure that companies operating across Europe only need to report incidents once. Furthermore, the European Commission must support the industry in implementing the Cyber Resilience Act by promptly publishing the necessary standardization mandates.
With the Cyber Resilience Act, all products with digital elements will be required to meet risk-appropriate cybersecurity requirements in the future. Consequently, the development of cybersecurity requirements for individual product groups under the Cybersecurity Act (CSA, Cybersecurity Law) is no longer necessary and should be suspended for the sake of norm clarity. In ongoing development processes, only technical security requirements should be defined, with close involvement of the industry.
