Ericsson, Nokia, ASML and SAP call for measures to secure the EU’s technological future

Ericsson, Nokia, ASML y SAPseveral of the main European technology companies, They held a summit in Brussels about the technological future of the EU, and what they have called New industrial ambition for Europewith the aim of giving a technological and economic boost to the region’s position in innovation, investment, technological leadership and success in digitalization.

The summit discussed the need to promote the implementation of measures in all the territories of the European Union that guarantee the future success of the digitalization of the region. For them, these measures must include a more business-friendly regulatory environment, as well as making the region more attractive to investors.

Several prominent EU officials attended the summit, including the Executive Vice President of the European Commission for Technological Sovereignty, Henna Virkunnen; and the Deputy Minister of Digital Affairs of Poland, Dariusz Standedrski. They have also participated Börje Ekholm, CEO and President of Ericsson; Pekka Lunkmark, CEO and Chairman of Nokia; Christian Klein, CEO of SAP, and Christophe Fouquet, CEO of ASML.

For them, among the measures that would be necessary to take are the application of the Draghi and Letta reports on European competitiveness. The first, published early last fall, includes various recommendations and measures to encourage innovation, incentivize investment in technologies considered key, enable growth and reduce fragmentation. This report is based on the Letta, published in April 2024 to the European Commission and Council and which is focused on strengthening the EU single market.

Connectivity, key to the technological future of the EU

At the summit it was clear that the participating technology companies see that the sector in Europe is behind that of the United States and China, and various data have been presented that make this clear. Like the R&D spending of the top seven US technology companies is equivalent to half of all R&D spending by the public and private sectors in Europe in technology and other areas.

In view of this, it is clear that companies in the region are lagging behind in R&D. Also, they say, they are in capital formation, with a difference of 450,000 million euros in technology alone. This gap also contributes to an annual productivity disadvantage of 20%, and there is a risk that the region will fall even further behind, since US companies invest 60% more in R&D and are the ones that They are seeing increased productivity.

Despite these negative data, there is also reason for optimism about the European technological future, since Europe is a leader in the development of connectivity technologies, although this leadership is also at risk for different reasons. The participants in the summit have warned, in light of this, that it is necessary to urgently take political measures to protect Europe’s competitiveness in technological development.

It has also become clear that the networks, which currently support the economy and innovation of the area, must be secure and reliable, specifically highlighting advanced connectivity, described as essential to digitalize defense. Specific mention has been made of the package of security measures known as the 5G Tool Box, which has been described as vital, and has been called for to be extended to all telecommunications technologies and EU member states.

Enrico Letta, former Prime Minister of Italy and currently President of the Jacques Delors Institutewho also participated in the summit, recalled that in his report he underlined the need for Europe to urgently accelerate investments in advanced connectivity infrastructure, highlighting that to improve Europe’s competitiveness in the global digital economy it is essential to both allow more consolidation of telecommunications companies and also prioritize investments of a certain magnitude in advanced connectivity. All with the objective that Europe continues to be in leading positions in technological innovation.

Impressions of the companies participating in the summit

For Ericsson’s part, Ekholm highlighted that if other regions continue to overtake Europe in investment, the model will not be able to survive, while these other regions are already taking advantage of the opportunity presented to them through investments, policies and support in terms of standards, unlike what happens in the EU. As for Lundmark, from Nokia, he pointed out that, given the current situation of inequality, Europe must create an environment in which companies want to invest, especially in advanced technologies.

Christian Klein has also opted to promote digitalization in all sectors, and has highlighted that policy makers can support growth in the technology sector in Europe by reducing regulatory burdens, encouraging R&D throughout the economy, digitizing and modernizing the administration. public and remodeling education to adapt it to the needs of the future in terms of technology and the areas that are related to it.

As for Fouquet, from ASML, he recalled that there are trends such as AI, widespread computing and the energy transition that are driving the creation of value and economic opportunities in all types of sectors. He believes that the region can participate and benefit from these trends, based on chips and advanced connectivity. Of course, he has warned that the challenge is great, and that to make progress it is necessary to have the appropriate regulatory, political, commercial and economic frameworks.

For the participants in the summit, the application of the Draghi and Letta reports would encourage innovation and incentivize investment in key technologies. But they also see that it is necessary to strengthen R&D and facilitate access to capital, support the main technology companies in the area, and reduce and simplify regulation. Implement a digital single market It would also be useful for the development of the technology sector in the region, according to most opinions.

Of course, given the importance of security in technology, it is necessary to implement all 5G security tools, due to the importance of this technology, as well as fiber, for digitalization. Reliable networks are essential for innovation and economic resilience. It is also necessary to reform the guidelines on competition, functions and acquisitions to support market consolidation.

Among the keys to the advancement of the sector and the technological future of the EU is also Align connectivity with EU green goalsy set concrete objectives for 5G deploymentexchanging the spectrum fee for deployment. Likewise, the participants in this summit have concluded that fair commercial practices must be applied, and proposals that are considered harmful, such as the current one on essential patents, must be withdrawn.