Pillars of the EU’s Digital Future: Skills, Innovation, and Partnerships

By Riccardo Masucci, Managing Director of EU Affairs, Head of Brussels Office, Intel Corporation

How can Europe ensure its big tech-breakthrough? How can we make Europe’s digital ecosystems more competitive and secure? These pressing questions were at the heart of a recent panel debate on the next EU Strategic Tech Agenda hosted by the Alliance for Internet of Things and Edge Computing Innovation (AIOTI). The EU stands at an inflection point in shaping its digital future as we embark on a new legislative cycle. Digitalisation is a driver for competitiveness, innovation and security. The Draghi report has underscored the necessity for a robust, forward-thinking, and well-financed tech agenda. At Intel, we believe that to realize the full potential of the EU's digital policy ambitions, the EU must prioritize closing the digital skills gap, improving regulatory coherence, and reinforcing international partnerships.

Skills: Building a Future-Ready Workforce

As the Draghi report lays bare, more than 40% of Europeans lack even the basic digital skills. In practice, this means that roughly one in three workers do not know how to set up an email account, put their ideas into a digital document, or look up accurate information online. If Europe is to succeed in the digital economy of the future, tackling the skills and labour gaps requires a multi-pronged approach. There is a need for robust up- and re-skilling programmes (driven by Member States and not by individual companies), facilitating multidirectional talent migration to and from the EU, as well as making school curricula fit for the digital age through a close collaboration with the industry, to meet the job market expectations. All along we mustn’t forget that this is not only about a highly educated workforce of engineers and PhDs; technicians, operators, and other skilled professionals with the combination of hard and soft skills (STEM, languages) are in high demand.

Regulatory Coherence: The Freedom to Innovate

Mario Draghi is spot on when he says that Europe’s problem is not a lack of ideas or ambition. It is that all too often their pursuit is “hindered at every stage by inconsistent and restrictive regulations.”  Fixing this problem and securing Europe’s digital ambitions is not about unhinged deregulation. It is about creating an innovation-friendly regulatory framework. If Europe seeks to provide a clear, coherent and predictable environment for businesses to innovate confidently, then simplification and harmonization are arguably more important than drastic policy changes.

In other words, we could also say: “make the Single Market work better.” We fully endorse Enrico Letta’s point that scale matters to drive competitiveness and innovation – especially in the digital sphere. And if start-ups, SMEs or industry innovators must spend their time decoding the different legal regimes and incoherent regulations, Europe will only keep falling further behind its global competitors. His idea for adding a fifth European freedom – the freedom to innovate – addresses this issue head on and should be embraced unreservedly. This is why the “Implementation Dialogues” suggested by President von der Leyen in the Commissioners-designate's mission letters will play a critical role in ensuring regulatory viability and coherence.

International Partnerships: Collaborating for Global Solutions

Lastly, by the interconnected nature of the digital world, nobody can stand in it alone. Whereas tech sovereignty and economic security are increasingly prominent in EU policy discussions, promoting tech leadership and innovation in Europe and protecting the EU citizens and the digital infrastructure, should be as important as partnering with likeminded countries to create truly interoperable digital ecosystems. Many of the challenges we face are borderless (e.g. decarbonisation) and supply chains will remain global. Rather than retreating into silos, the EU must actively seek international partnerships to address issues such as AI governance, cybersecurity, and standardization.

The transatlantic is one of the most important of these international partnerships, and there is a lot at stake for both the EU and the U.S. in keeping the dialogue active for the next 5-years. Because without the other, neither will de-risk its supply chains, reach the desired security of supply, promote international standards, nor make trade freer or fairer.

New Cycle, New Opportunities

Both the Draghi and Letta reports have sounded the alarm bells on the prospects of the EU economy and that tackling the aches of the European digital economy will be neither cheap nor easy. Still there is good reason for optimism. Next to a sober analysis of the present, both reports also offer plenty of ideas for improvement. With a concerted effort from policymakers, industry leaders, civil society, and educational institutions, I am confident the EU can find the smart policy mix to turn these ideas into a reality.