{"id":2624,"date":"2026-03-25T04:49:00","date_gmt":"2026-03-25T11:49:00","guid":{"rendered":"https:\/\/www.wiki-living.com\/index.php\/2026\/03\/25\/europes-innovation-strategy-is-failing-heres-how-to-fix-it\/"},"modified":"2026-03-25T10:44:51","modified_gmt":"2026-03-25T17:44:51","slug":"europes-innovation-strategy-is-failing-heres-how-to-fix-it","status":"publish","type":"post","link":"https:\/\/www.wiki-living.com\/index.php\/2026\/03\/25\/europes-innovation-strategy-is-failing-heres-how-to-fix-it\/","title":{"rendered":"Europe&#8217;s innovation strategy is failing. Here&#8217;s how to fix it"},"content":{"rendered":"\n<div id=\"article-body\">\n<p id=\"f6cd142a-5438-4133-a4f5-b96986d2b6d1\">Europe faces what many economists call the mid-technology trap: Many companies based here are too advanced to compete with emerging markets with low-cost manufacturing, but they have not evolved enough to compete with the high-tech innovations of the US and China.<\/p>\n<p>While many government subsidies and innovation initiatives have been introduced to help bridge the gap in entrepreneurship, many have struggled to make a meaningful impact. For example, Horizon Europe, the EU&#8217;s flagship program for research and innovation, has committed almost 100 billion euros by the year 2027, but less than 5% of those funds have led to real &#8220;innovation&#8221;.<\/p>\n<div id=\"slice-container-person-8pioqDUmtKP6Zf68BPFqo8-cg2cxVVRFCfGbF87R1ivGJ9SGLFDBgJQ\" class=\"slice-container person-wrapper person-8pioqDUmtKP6Zf68BPFqo8-cg2cxVVRFCfGbF87R1ivGJ9SGLFDBgJQ slice-container-person\">\n<div class=\"person person--separator\">\n<div class=\"person__heading\">\n<div class=\"person__name-socials\"><span class=\"person__name\">Manoj Mehta<\/span><\/p>\n<nav class=\"button-social-group person__social-buttons\" aria-labelledby=\"button-social-group- person__social-buttons\">\n<p>Navigating Social Links<\/p>\n<p><span class=\"button-social__icon button-social__icon-website\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"icon-website\" viewbox=\"0 0 1000 1000\"><path d=\"M1000 500A501 501 0 0 0 503 0h-6A501 501 0 0 0 0 500c0 275 223 499 498 500h4a501 501 0 0 0 498-500zM529 936V765h133c-31 90-79 154-133 171zM337 765h134v171c-54-17-101-81-134-171zM61 539h176a899 899 0 0 0 22 167H110a439 439 0 0 1-49-166zM471 64v191H331c31-101 82-173 140-191zm199 191H529V64c58 18 109 90 140 191zm270 226H763c-1-59-7-115-18-167h155a438 438 0 0 1 40 167zm-235 0H529V314h156a857 857 0 0 1 19 167zM471 314v167H296a859 859 0 0 1 19-167h156zM237 481H60a438 438 0 0 1 41-167h154a921 921 0 0 0-18 167zm59 58h175v167H320a837 837 0 0 1-24-166zm233 167V539h175a831 831 0 0 1-24 167H529zm234-166h176a436 436 0 0 1-49 166H741a893 893 0 0 0 22-166zm104-285H731c-20-68-47-126-81-169a443 443 0 0 1 217 169zM350 86c-33 43-61 101-81 169H133A443 443 0 0 1 350 86zM148 765h127c20 59 45 110 75 150a442 442 0 0 1-202-150zm502 150c30-39 56-91 75-150h127a442 442 0 0 1-202 150z\"\/><\/svg><\/span><\/nav>\n<\/div>\n<aside class=\"person__role\"\/><\/div>\n<div class=\"person__bio\">\n<p>President EMEA at Cognizant.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<aside data-block-type=\"embed\" data-render-type=\"fte\" data-skip=\"dealsy\" data-widget-type=\"seasonal\" class=\"hawk-root\"\/>\n<p id=\"c36fdaa8-9998-4677-b5f6-ec149ceb6e43-0\">Although programs like Horizon Europe play an important role in Europe&#8217;s technological future, they are not enough on their own. In order to break out of the trap of centralized technology, Europe must develop the strengths it already has, rethink traditional industries such as automobiles, telecommunications and energy through digitalization, sustainability, and AI tools, and update the governance model to reflect the new needs and realities of the digital age.<\/p>\n<p><span class=\"article-continues-below block py-2 text-sm\">The article continues below <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" class=\"inline-block w-2.5 h-2.5 ml-2\" fill=\"currentColor\" preserveaspectratio=\"xMidYMid meet\" viewbox=\"0 0 1000 1000\"><path d=\"M1000 100L500 900 0 100h1000z\"\/><\/svg><\/span><\/p>\n<aside data-component-name=\"Recirculation:ArticleRiver\" data-recirculation-type=\"inline\" data-mrf-recirculation=\"Trending Bar\" data-nosnippet=\"\" class=\"clear-both pb-0 pt-2 mb-4\">\n        <span class=\"&#10;            flex&#10;            after:content-[''] after:flex-1 after:ml-4 after:my-[0.7rem] after:border-t after:border-solid after:border-t-[#ccc]&#10;            before:content-[''] before:flex-1 before:mr-4 before:my-[0.7rem] before:border-t before:border-solid before:border-t-[#ccc]&#10;            font-article-heading pb-0 !text-base uppercase sm:text-sm font-bold&#10;        \"><\/p>\n<p>            You might like it<br \/>\n        <\/span><\/p>\n<\/aside>\n<p>Leaders understand both the urgency and the challenge. A recent study found that 85% of senior executives are concerned or very concerned that their existing technology environment will hinder their AI efforts, and 63% said modern complexity will be a major obstacle. Nevertheless, this challenge must be addressed. To that end, I offer a few suggestions.<\/p>\n<h2 id=\"aligning-for-change-3\">It coincides with change <\/h2>\n<p id=\"0f2fb4ab-68a0-4339-ad91-1239687e8a86\">The latest CxO Growth Survey from Forbes Research found that digital transformation and innovation were among the most divisive issues among senior leaders today, with 37% citing it as a point of common debate. And therein lies the problem: most leaders probably argue about technology and tactics instead of keeping up with what really matters: strategy, governance, goals and metrics.<\/p>\n<p>For the innovation agenda to be successful, the entire organization needs to be equipped for change, aligning functions such as procurement, legal, and staff development to service an agreed innovation agenda and management model.<\/p>\n<p>Consider buying. Traditionally focused on cost control and supplier management, procurement is now a driver of innovation\u2014AI-driven diagnostic testing, adaptive risk assessment, and sustainable materials strategies that reduce emissions and improve resilience.<\/p>\n<div id=\"slice-container-newsletterForm-articleInbodyContent-8pioqDUmtKP6Zf68BPFqo8\" class=\"slice-container newsletter-inbodyContent-slice newsletterForm-articleInbodyContent-8pioqDUmtKP6Zf68BPFqo8 slice-container-newsletterForm\">\n<div data-hydrate=\"true\" class=\"newsletter-form__wrapper newsletter-form__wrapper--inbodyContent\">\n<div class=\"newsletter-form__container\">\n<section class=\"newsletter-form__top-bar\"\/>\n<section class=\"newsletter-form__main-section\">\n<p class=\"newsletter-form__strapline\">Sign up for the TechRadar Pro newsletter to get all the top news, ideas, features and guidance your business needs to succeed!<\/p>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<p>By rethinking how it evaluates and partners with suppliers, procurement can open the door to faster, smarter innovation across the business\u2014creating space for legal teams to modernize contracts around data sharing and behavioral AI, and for HR teams to develop employees.<\/p>\n<h2 id=\"finding-the-innovation-balance-3\">Finding new balance <\/h2>\n<p id=\"796b360e-0d45-4abd-ac27-eda62204ddb8\">Organizations tend to fall into one of two camps when it comes to the innovation agenda: those where it&#8217;s pushed by a select few\u2014what I call forced innovation\u2014and those where it&#8217;s expected of everyone, everywhere, all the time\u2014free-flowing innovation.<\/p>\n<p>In fact, companies need to balance both. High downward pressure will lead to project delays and backlash from middle managers, who doubt the scale, readiness or need for the new technology. On the other hand, leaving positions can create chaos as new ideas are pursued without a clear purpose.<\/p>\n<aside data-component-name=\"Recirculation:ArticleRiver\" data-recirculation-type=\"inline\" data-mrf-recirculation=\"Trending Bar\" data-nosnippet=\"\" class=\"clear-both pb-0 pt-2 mb-4\">\n        <span class=\"&#10;            flex&#10;            after:content-[''] after:flex-1 after:ml-4 after:my-[0.7rem] after:border-t after:border-solid after:border-t-[#ccc]&#10;            before:content-[''] before:flex-1 before:mr-4 before:my-[0.7rem] before:border-t before:border-solid before:border-t-[#ccc]&#10;            font-article-heading pb-0 !text-base uppercase sm:text-sm font-bold&#10;        \"><\/p>\n<p>            What you can read next<br \/>\n        <\/span><\/p>\n<\/aside>\n<p>The goal is not to take an always-open approach to innovation, but to always ensure consistency with the innovation strategy, working towards common goals and measuring progress consistently and continuously.<\/p>\n<p>In addition, companies need to remember that &#8220;innovative breakthroughs&#8221; do not only come from high-tech sectors or fast-paced startups. It can come from rethinking products, services, or traditional processes within established organizations.<\/p>\n<p>Take, for example, financial services. According to the European Banking Authority (EBA), 92% of EU banks are already deploying AI, with common applications including customer profiling, risk management, and automated document summarization.<\/p>\n<p>Deutsche Bank, for example, uses AI to create personalized \u201cnext best offers\u201d for wealth management clients, as well as to detect financial crimes such as fraud, money laundering, and tax evasion. Amsterdam-based neobank bunq, which serves more than 17 million users, uses AI to improve fraud detection.<\/p>\n<h2 id=\"modernizing-goals-and-metrics-3\">Making goals and metrics current <\/h2>\n<p id=\"e32b61a5-1e00-4e29-b81f-0c8ef9d24557\">For innovation to deliver value, initiatives need to focus on key areas that will differentiate the business, such as customer experience, productivity, or revenue enablement. Traditional performance metrics cannot capture the agility, flexibility, and business impact required in an AI-driven environment. Therefore, in order to improve, organizations must move from performance-based goals to results-based governance.<\/p>\n<p>This means building structures around desired outcomes such as sustainability, supply chain optimization, or product innovation, and managing governance across all those dimensions\u2014rather than in functional silos.<\/p>\n<p>For example, the automotive sector, especially in Europe, is under great pressure as prices, increased competition from China, and reduced product cycles have created a perfect storm that few were prepared to weather.<\/p>\n<p>While digital innovation has boomed, many automakers remain tied to rigid structures, legacy controls, and key priorities. Therefore, the innovation strategy cannot simply focus on rolling out AI, IoT or 5G, but rather on delivering broader objectives related to growth, profitability and sustainability.<\/p>\n<h2 id=\"reinventing-innovation-through-effective-governance-3\">Reinventing new things through effective governance <\/h2>\n<p id=\"d12532a9-7e52-48d3-b383-dca9a86114f9\">Today, only four of the world&#8217;s top 50 tech companies are European\u2014and not a single domestic company valued at more than \u20ac100 billion was founded from scratch in the last fifty years.<\/p>\n<p>Through these statistics we see a clear need not only for innovation, but for the reinvention of the innovation strategy. Those that cling to legacy models will only fall into the middle of technology, while those that align purpose, governance, and strategy with innovation can define Europe&#8217;s next competitive era.<\/p>\n<p id=\"90731373-ab3b-47c2-a4ef-3c32d78fc620\"><em>Read our list of the best productivity tools.<\/em><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Europe faces what many economists call the mid-technology trap: Many companies based here are too advanced to compete with emerging markets with low-cost manufacturing, but they have not evolved enough to compete with the high-tech innovations of the US and China. While many government subsidies and innovation initiatives have been introduced to help bridge the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":{"0":"post-2624","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-smart-home-gadgets"},"_links":{"self":[{"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/posts\/2624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/comments?post=2624"}],"version-history":[{"count":1,"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/posts\/2624\/revisions"}],"predecessor-version":[{"id":2626,"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/posts\/2624\/revisions\/2626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/media\/2625"}],"wp:attachment":[{"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/media?parent=2624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/categories?post=2624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.wiki-living.com\/index.php\/wp-json\/wp\/v2\/tags?post=2624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}