Europe’s innovation momentum grows despite recent slowdown

The European Union has made strong long-term progress in innovation, with overall performance rising by 12.6 percentage points since 2018, according to the latest European Innovation Scoreboard (EIS) 2025 released today. However, the data also signals a slight slowdown, with a 0.4-point dip in performance between 2024 and 2025, underscoring mounting pressure from global competition.

The report, which tracks innovation trends across the EU and beyond, shows all Member States have improved since 2018, though at varying rates. Estonia recorded the most significant leap with a 30-point increase, while Luxembourg saw the smallest improvement at 0.9 points.

Sweden has reclaimed its title as the EU’s top innovator, driven by robust performance in lifelong learning, business R&D expenditure, and cloud computing. Since 2018, Sweden’s innovation score has risen by 12.9 percentage points.

Meanwhile, Ireland now leads the Strong Innovators group, boasting a 13.3-point rise since 2018, supported by high performance in cloud adoption, CO₂ productivity in production, and SME collaboration.

In another major shift, Croatia has advanced into the Moderate Innovators group after a notable 19.4-point gain over the same period.

The Regional Innovation Scoreboard (RIS) reveals a broad-based improvement across Europe’s regions. Between 2018 and 2025, 233 out of 241 regions enhanced their innovation scores by an average of nearly 12 points. However, 82 regions experienced declines between 2023 and 2025, exposing the uneven nature of recent progress.

Northern and Western Europe continue to dominate among top-performing regions. But promising signs of convergence are emerging in Central, Eastern, and Southern Europe, with regions like Praha, Catalunya, País Vasco, Madrid, Navarra, and Comunitat Valenciana outperforming the EU average.

Despite these gains, the slight downturn since 2024 is prompting EU leaders to call for renewed urgency.

Raffaele Fitto, Executive Vice-President for Cohesion and Reforms, said: “The 2025 findings confirm that Europe’s innovation engine is resilient, but the global race for technological leadership is intensifying. The EU must accelerate its digital and green transitions to close the gap with global competitors.”

Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, added: “The decline in SME collaboration and R&D investment in some Member States is a red flag.

“We must simplify regulations, boost cross-border digital infrastructure, and foster partnerships between startups and established businesses to unlock Europe’s full potential,” he added.

Ekaterina Zaharieva, Commissioner for Startups, Research and Innovation, noted: “The 2025 scoreboard confirms our long-term progress but also highlights the urgent need to do more and to close persistent gaps between the different parts of Europe.

“We are already making meaningful steps forward – through our strategies for startups and scaleups, life sciences and AI in science. Next week, we will table proposals for the EU’s next long-term budget and the next research and innovation programme. These will be key to driving a more sustainable and competitive Europe in the years ahead.”

The EIS and RIS are central tools in the EU’s New European Innovation Agenda, guiding major policy efforts like the Competitiveness Compass, Startup and Scaleup Strategy, and Choose Europe initiative. With the Innovation Act on the horizon, the EU aims to deepen reform and ensure innovation becomes a powerful engine for sustainable growth across the continent.