Finland urges R&D funding for Europe’s industrial policy in Berlin

During an industry conference in Berlin on September 18, a Finnish government representative emphasized the importance of research and development (R&D) funding for Europe’s industrial policy. He argued that R&D should be prioritized over direct state aid to enhance Europe’s competitiveness in the global market. Finland, alongside Germany, Belgium, and Austria, is noted for its high R&D spending relative to GDP, which positions it as a leader in innovation within the EU. The representative called for EU funding to focus on excellence and open competition, likening it to the Champions League of competitiveness funding. The discussion comes at a time when EU officials anticipate significant debates regarding funding, especially with Germany's influential role as the largest net financial contributor. President Ursula von der Leyen has highlighted the need for a balanced approach to competitiveness and security in the EU’s economic strategy. This is particularly relevant as the EU seeks to bolster its domestic semiconductor industry, which has faced setbacks, including Intel's decision to pause its factory plans in Germany and Poland due to financial issues. The Finnish representative's remarks reflect a broader concern about Europe’s ability to compete globally, especially against the US. The emphasis on R&D is seen as a crucial step in addressing the competitive gap that Europe faces. As the EU navigates its industrial policy, the focus on innovation and research funding is expected to shape future economic strategies. In conclusion, the call for increased R&D funding underscores a shift in how Europe might approach its industrial policy, moving away from subsidies towards a model that prioritizes innovation and competitiveness. This approach aims to ensure that Europe can effectively respond to global economic challenges and maintain its position in the international market.