Europe in the Intelligent Age: From Ideas to Action

Europe faces a €700 billion annual corporate investment gap compared to the US, particularly in technology, risking €2 to €4 trillion in annual GDP contributions by 2040. The report argues that Europe is competitive in only 4 of 14 critical technology domains and proposes a three-pronged approach: tailored strategic postures for different technologies, private sector-led 'lighthouse initiatives' to create momentum, and ten public sector 'grands projets' to reform the investment environment. Key focus areas include AI, quantum technologies, semiconductors, and advanced connectivity, with a strong emphasis on overcoming market fragmentation and simplifying regulation.

• European corporations invested €700 billion less per year than US counterparts between 2015 and 2022, with €450 billion of this disparity occurring specifically in technology.
• Europe is currently competitive in only 4 out of 14 critical technology domains, leading to a projected annual loss of €2 trillion to €4 trillion in gross domestic product (GDP) contributions by 2040.
• The report suggests a tailored strategic posture for technologies based on maturity and Europe's position: cementing leadership where it leads, scaling fast in nascent areas where it is well-positioned, leapfrogging in areas where it trails, and securing capability transfer where it is far behind.
• To accelerate competitiveness, the report proposes ten public sector 'grands projets', including the creation of a '28th regime' of simplified, uniform business rules across the EU and a 'pension booster' to increase venture capital and private equity funding.
• Europe's AI position is characterized by low market share (less than 5% in cloud infrastructure) and slow corporate adoption, trailing US counterparts by 45% to 70%.
• In the semiconductor sector, Europe leads in early-stage R&D and equipment but lacks scale in front-end manufacturing, which accounts for less than 10% of global capacity.
• Europe has a strong talent base in quantum technologies but struggles with retention and funding, with only 9% of private quantum technology investments flowing to the region.
• Advanced connectivity in Europe is hindered by a fragmented operator landscape, with 34 mobile network operators compared to three in the US and four in China.
• The report identifies a critical skills gap, noting that 37% of the workforce lacks basic digital skills and one-third of top AI researchers are leaving Europe.

APA

World Economic Forum (2025). Europe in the Intelligent Age: From Ideas to Action. https://reports.weforum.org/docs/WEF_Europe_in_the_Intelligent_Age_2025.pdf

Chicago

World Economic Forum. Europe in the Intelligent Age: From Ideas to Action. 2025. https://reports.weforum.org/docs/WEF_Europe_in_the_Intelligent_Age_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Europe in the Intelligent Age: From Ideas to Action |date=January 2025 |url=https://reports.weforum.org/docs/WEF_Europe_in_the_Intelligent_Age_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025europe, author = {{World Economic Forum}}, title = {{Europe in the Intelligent Age: From Ideas to Action}}, institution = {World Economic Forum}, year = {2025}, month = jan, url = {https://reports.weforum.org/docs/WEF_Europe_in_the_Intelligent_Age_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }