Technological and digital sovereignty are high on the European Union’s agenda. This ambition may be turned into action when it is translated into budgetary commitments. The opportunity to do so comes as the EU’s future multiannual budget is negotiated.
Under the current Multiannual Financial Framework the EU has already invested significant amounts of public money in digital research and innovation and has made steady progress in digital transformation over the decades. At the same time, people, businesses, and institutions in Europe remain heavily dependent on digital services and products provided and controlled by non-EU corporations. Rising geopolitical tensions and shifting alliances have made the precarious position this creates for Europe increasingly clear.
The report “Putting money where your mouth is? Insights into EU R&I funding for digital technologies” analyzes the European Union’s approach to funding digital technology research and innovation, focusing on the allocation of resources under the Digital Europe and Horizon Europe programs. It situates this analysis within the broader landscape of EU technology policy, its reliance on digital innovation for economic competitiveness, and the ambition to maintain—or perhaps rather, achieve—technological sovereignty. Based on our analysis, we draw the following conclusions and recommendations.
Key findings
- There is an overreliance on the potential and promise of “disruptive” technologies. The EU’s funding strategies are heavily influenced by the idea that breakthroughs in AI, quantum computing, and other emerging fields will be a silver bullet that will turn things around for Europe’s competitiveness.
- The approach to R&I funding is technology-centric rather than need-centric. Funding for digital innovation remains overwhelmingly focused on developing new technologies (“digitization for the sake of digitization”) rather than addressing well-defined, evidence-based needs and solving problems (“digitization as a means to an end”).
- Funding agencies fall for tech hype. EU funding programs often reflect industry-driven narratives about new technologies and their potential. This approach lacks critical rigor and analytical nuance in assessing the actual potential of different technology areas.
Recommendations
- Prioritize Public Digital Infrastructure (PDI) — EU funding should strengthen public digital infrastructure rather than chase disruption. It should ensure that publicly funded digital tools serve the public interest.
- Align industry support with public interest — EU funding decisions in support of industry should prioritize meeting public needs, with the goal of enhancing both individual and collective autonomy.
- Adopt a more critical approach to technology investments — Decision-makers should move beyond techno-deterministic and techno-optimistic narratives and take a more critical approach to assessing technologies.
