Commission introduces strategy to boost startups and scaleups
The European Commission has introduced the EU Startup and Scaleup Strategy ‘Choose Europe to Start and Scale’ to support innovation and enhance the EU’s competitiveness. The ultimate goal is to make the EU the leading destination for innovative, technology-driven companies.
The Commission reiterates its commitment to enhancing Europe’s competitiveness by making startups, research, and innovation central pillars of its economic agenda. Its new EU Startup and Scaleup Strategy ‘Choose Europe to Start and Scale’ supports founders, innovators, and investors in establishing and growing successful businesses within the EU. It outlines a comprehensive framework of legislative, policy, and financial measures, implemented at both European and national levels, to meet the specific needs of startups and scaleups throughout their lifecycle.
Why the Strategy is important
Startups in the EU often face complex financial, regulatory, and administrative barriers that hinder their ability to grow into mature, profitable businesses. As a result, many relocate to more innovation-friendly environments such as the United States and Canada.
In response to this trend, and to the recent Letta Report on the future of the Single Market and Draghi Report on European competitiveness, the Commission is taking decisive action to close the innovation gap with its global competitors. Startups and scaleups play a vital role in driving innovation, attracting investments, creating quality jobs, and establishing new markets where the EU can take global leadership. For these reasons, the Commission has launched the EU Startup and Scaleup Strategy, in line with its broader ‘Choose Europe’ initiative, which promotes scientific excellence and research.
Eliminating the barriers
The Strategy is based on tackling the challenges that startups and scaleups face in bringing their ideas to the market or successfully scaling in the EU.
To address these, the Commission proposes a comprehensive set of actions in five main areas:
- Innovation-friendly regulation. By introducing the European 28th regime, the European Business Wallet, and the upcoming European Innovation Act, the Commission aims to tackle market fragmentation, administrative burdens, and red tape.
- Improving financing. The Commission expand investment opportunities via the Savings and Investments Union initiative and the European Innovation Council. A new Scaleup Europe Fund will support deep tech companies, while a European Innovation Investment Pact will strengthen the EU venture capital landscape.
- Fast market uptake and expansion. The Lab to Unicorn initiative will support the journey from research to commercialisation, with new European Startup and Scaleup Hubs connecting university ecosystems across the EU.
- Attracting and retaining talent. The Strategy introduces the Blue Carpet initiative, focusing on entrepreneurial education, tax-related aspects of employee stock options and cross-border employment. The Blue Card Directive and fast-track visa schemes for non-EU founders will further boost talent retention and attraction.
- Facilitating access to infrastructure, networks, and services. As one of the main challenges is the slow time-to-market and commercialisation, the Charter of Access for industrial users will harmonise and simplify access conditions, helping reduce time-to-market and accelerate commercialisation.
Progress on the implementation of the Strategy will be tracked using global key performance indicators. The Commission will publish a comprehensive report on the Strategy’s achievements and outcomes by the end of 2027.
