Georgakaki, A., Kuokkanen, A., Letout, S., Mancini, L., Koolen, D. et al., Clean Energy Technology Observatory, Overall strategic analysis of clean energy technology in the European Union – 2024, Publications Office of the European Union, 2025.

This report by the Clean Energy Technology Observatory (CETO) provides an updated strategic analysis of the EU clean energy technology sector. The EU's renewable share in gross final energy consumption rose to 24.5% in 2023, and to 44.7% of gross electricity consumption. The electrification rate however has remained almost unchanged at 26% over the decade to 2023, indicating slow progress on decarbonisation of transport and heating sectors. The EU renewable energy industry saw growth in turnover and gross value added in 2023, outperforming the overall economy.

European Commission: Directorate-General for Communication, A competitiveness compass for the EU, Publications Office of the European Union, 2025.

The competitiveness compass establishes competitiveness as one of the EU’s overarching principles for action. Europe can only match its continent-sized competitors if EU and national policies are aligned around the same objectives and reinforce each other. The compass is composed of three transformational imperatives to boost competitiveness and five horizontal enablers necessary to underpin competitiveness across all sectors.

Biagi, F., Deuster, C. and Natale, F., A demographic perspective on the future of European labour force participation, Publications Office of the European Union, 2025.

While the Draghi report primarily focuses on increasing labour productivity, it also makes a compelling case for mitigating the decline in the workforce by using the untapped potential of labour force participation and employment. Forward-looking analyses of the EU labour force require taking into account the ongoing process of women’s empowerment and emancipation, changes in the population’s educational profile, and varying assumptions about international migration.

European Commission: Directorate-General for Research and Innovation, Roth, F. and Mitra, A., EU competitiveness – The critical role of intangible assets in EU labour productivity growth, Publications Office of the European Union, 2025.

This paper examines the drivers of EU labour productivity before and after the 2007 financial crisis, across goods and services sectors, tangible and intangible assets, and Information and Communication Technologies (ICT) and non-ICT tangibles. It provides insights into the pathways through which the EU can bolster its labour productivity growth. It aims to contribute to to the discourse on sustainable economic development within the EU, with a particular focus on the pivotal role of the service sector.

European Commission: Directorate-General for Research and Innovation, Renda, A., Balland, P.-A., Soete, L. and Christophilopoulos, E., A European model for artificial intelligence, Publications Office of the European Union, 2025.

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There is a consensus on the urgent need for a cohesive European response to the challenges posed by Artificial Intelligence (AI). Increased investment, policy alignment and skill development, are crucial to leverage the emergence of this ground-breaking technology of AI for societal good. The potential of AI in science, government, and industry, underlines the need for the EU public sector to use its unique position in developing and supporting a strategic, transborder and cooperative approach to AI development in Europe, in a unique European model for AI.

Bonnet, P., Ciani, A., Molnar, J. and Nardo, M., EU’s strengths and weaknesses in the global semiconductor sector, Publications Office of the European Union, 2025.

This report provides an in-depth analysis of the European Union's (EU) position in the global semiconductor industry. The analysis reveals that while the EU has long been a significant player in the global semiconductor market, it faces challenges and dependencies that could impact its future competitiveness. The report examines the EU's trade dependencies, equipment ecosystem, chips' market, and implications for end-using sectors, identifying areas of strength and vulnerability. It also delves into the automotive sector, a key driver of the EU semiconductor demand, and highlights the complex and evolving nature of the automotive semiconductor supply chain. This report provides valuable insights for policymakers and stakeholders seeking to strengthen the EU's position in the global semiconductor industry.

European Commission: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs and Verwerft, D., Evaluation of R&D subsidies in the case of industry-specific technology stocks with spillovers, Publications Office of the European Union, 2025.

The objective of this paper is to gain insight in and compare the macroeconomic effects of increasing wage subsidies for researchers in Belgium in different industries. Starting from the observation that the implicit wage subsidy rate for R&D workers is not distributed evenly across industries, the paper wants to contribute to answering the question whether the current distribution of subsidies can be improved upon.

The project ‘Building capacity for evidence-informed policymaking in governance and public administration in a post-pandemic Europe’ was inspired by the need of Member States to respond to complex policy issues requiring specialised knowledge, such as the COVID-19 pandemic. The pandemic led to a widespread recognition in governments that the use of evidence in advising policy is vital but has not been as effective as necessary. Meanwhile political agendas have shifted in the past two years towards geopolitical threats, competitiveness, misinformation and democratic upheaval. Societal challenges are huge, while trust in national governments has declined in many countries over recent years. This erosion of trust leads to a decreased ability to deal with these problems in a publicly supported way.

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European Commission: Directorate-General for Research and Innovation, Fusion Expert Group opinion paper – Towards the EU fusion strategy, Publications Office of the European Union, 2025.

The Fusion Expert Group (FEG) supports the development of an EU Fusion Strategy, expected to be published in view of the proposal of the Euratom Research & Training Programme for 2028–2032. This FEG Opinion Paper envisions fusion as a sustainable energy source and provides recommendations to accelerate its commercialisation. It identifies five key pillars that leverage research and ITER outcomes, foster a competitive industrial ecosystem, develop a skilled workforce, and drive innovation. The report emphasises the need for regulatory harmonisation, international collaboration, and an effective EU-level decision-making process in order to position fusion as a cornerstone of Europe’s energy future.

CEPS Centre for European Policy Studies, European Economic and Social Committee, Balland, P.-A., Grabova, O., Marcus, J. S. et al., Generative AI and foundation models in the EU – Uptake, opportunities, challenges, and a way forward, Publications Office of the European Union, 2025.

This report examines the burgeoning generative artificial intelligence (GenAI) and foundation models landscape within the European Union, and analyses its impact, technological advancements, and regulatory implications. It details the GenAI value chain, identifying key players and investment trends, revealing a significant US dominance. The report then explores GenAI applications across various sectors (automotive, renewable energy, and education), highlighting opportunities and challenges. A SWOT analysis assesses the EU's position as a producer and as a user of GenAI. The report concludes with policy recommendations for fostering a competitive, ethical, and inclusive European AI ecosystem, including identifying needs for increased investment, more skills development, and greater regulatory clarity, as well as a need for enhanced collaboration with civil society organisations.

European Investment Bank, Ferrazzi, M., Schanz, J. and Wolski, M., Growth and competitiveness in Central, Eastern and South-Eastern Europe – The role of innovation, European Investment Bank, 2025.

This paper examines the state of innovation in Central, Eastern, and South-Eastern EU countries. Despite increased innovation capacity, the region faces significant challenges threatening its growth and competitiveness, including severe skills shortages, uneven productivity, and barriers to commercialising innovation. The paper highlights the role of foreign direct investment in driving innovation, noting that firms established through greenfield investments exhibit higher productivity than their domestic counterparts.

European Central Bank, Labhard, V. and Saliba, M. C., The great supply shock and the euro area, viewed through a suite of supply indices, Publications Office of the European Union, 2025.

This paper examines the great supply shock following the pandemic and the invasion of Ukraine, using a novel suite of supply indices. The suite has indices for the euro area total economy, euro area industries, sectors and countries. The suite also computes the contributions to the indices from supply drivers at origin, in transport, or at destination. The results from the suite show that the supply shock has had wide-spread effects, and that their dynamics have been industry-, sector- and country-specific.

European Parliament: Directorate-General for Economy, Transformation and Industry, Beck, T., Bruno, B. and Carletti, E., How have European banks developed along different dimensions of international competitiveness?, European Parliament, 2025.

The analysis compares the competitiveness of European banks to their US counterparts. It highlights structural differences between the two systems, particularly Europe’s reliance on traditional bank intermediation versus US’s market-based model. European banks generally lag in profitability and market valuations, but remain central to credit provision and financial inclusion across the EU. US banks have benefitted from more favourable macroeconomic scenarios.

European Commission: Group of Chief Scientific Advisors, Directorate-General for Research and Innovation and King, R., Infrastructures for AI in science – Mutual learning exercise on national policies for AI in science – Second thematic report, King, R.(editor), Publications Office of the European Union, 2025.

This thematic report comprises an analysis of national strategies and policies for fostering AI in science infrastructure, current challenges, and policy suggestions. It explores the state-of-the-art of the infrastructures for AI in science, examines the potential for innovations such as ‘AI Scientists’, and assesses Europe's competitiveness in this field. It is based on a survey of AI infrastructure across MLE participating countries, desk research, a country visit to Pisa which took place on 21 and 22 November 2024, and Ross D. King's expert views. It discusses high performance computing, data, and advanced infrastructure including Foundation Models and AI scientists.

European Investment Bank, Investment report 2024/25 – Innovation, integration and simplification in Europe, European Investment Bank, 2025.

The European Union must solidify its position as a global leader in technology, innovation and clean energy. By addressing key challenges and leveraging existing strengths, Europe can enhance its competitiveness, foster economic growth and show the world how to successfully transition to green energy. In short, Europe needs to:Better integrate the EU single market and simplify access to it. Market fragmentation caused by regulatory and structural differences hinders the businesses’ ability to take full advantage of the wider European market. This is particularly true for innovative firms – 74% of them cite regulators inconsistencies as a barrier to expanding their business. Simplifying regulatory compliance could reduce costs, which currently account for about 1.8% of turnover for firms and 2.5% for small and mid-size companies

European Commission: Directorate-General for Research and Innovation, Dotti, N. F., Benoit, F., Cavicchi, B., Di Girolamo, V. et al., Public policies for startups, Publications Office of the European Union, 2025.

This literature review provides short summaries of recent scientific articles discussing the challenges of designing public policy for startups. In the 2024-2029 political priorities, startups were identified as a crucial element for European competitiveness. This growing interest aims to upgrade a longstanding commitment in a period of growing uncertainty and geopolitical tensions. Public policies for startups aim to address complex challenges, from Entrepreneurship and technologies, to kills, financing, and location. This review of recently published scientific publications aims to contribute to the newly setup EU Task Force for Startup and Scaleup.

European Commission: Directorate-General for Research and Innovation, Czermainski de Oliveira, I. and Cavicchi, B., RADAR, a system dynamics model – Analysing long-term impacts of R&I policy on competitive sustainability, Publications Office of the European Union, 2025

This study explores the role of the EU Framework Programme (FP) in supporting and accelerating research and development (R&D), market uptake and diffusion. Additionally, it explores pathways towards competitive sustainability. By recognising that R&I processes are complex and non-linear, the study uses system dynamics modelling to examine EU R&I policy impacts within mRNA technology and green hydrogen. By building on Key Impact Pathways from Horizon Europe, we assess medium- and long-term impacts using both traditional and alternative metrics, such as installed capacity and customer bases, to provide a holistic view of R&I progress. The model allows testing of various policy scenarios concerning the role of the EU FP for R&I, offering insights for FP10's design and emphasising data limitations that highlight the need for improved EU-level data collection strategies.

Benczur, P., Boskovic, A., Cariboni, J., Giovannini, E., Pagano, A. et al., Sustainable and inclusive wellbeing – Achievements and challenges of the European approach to prosperity, Publications Office of the European Union, 2025.

The key drivers of wellbeing are not solely economic factors. Other factors, such as social relationships, environmental conditions, and access to social and healthcare systems, also play a significant role. Wellbeing in the EU has increased over the past decade, but it varies across Member States, with some countries having a good situation in certain areas while struggling in others. Northern and Western EU Member States record the best overall sustainable and inclusive wellbeing, while Eastern and Southern Member States show a weaker situation. The framework Developed by the JRC and other Commission services highlights the need to balance prosperity with environmental sustainability, as well as today’s and tomorrow’s wellbeing to ensure intergenerational fairness.

European Commission: Directorate-General for Research and Innovation, Towards a European policy for technology infrastructures – Building bridges to competitiveness, Publications Office of the European Union, 2025.

This report presents the findings of the Commission Expert Group on Technology Infrastructures (EGTI), established in November 2023 to analyse, support, and provide recommendations for improving technology infrastructures (TIs) in Europe. The group explored critical topics such as the definition of TIs, assessing industrial needs, and addressing barriers to access for industry, SMEs and start-ups. With a focus on enhancing European strategic value chains and industrial competitiveness, this report offers actionable recommendations for TI governance and investment prioritisation at the EU and national levels. The report also addresses the need for developing funding instruments for building-up TI capacities to align with evolving industrial requirements.

European Parliament: Directorate-General for External Policies of the Union, Emlinger, C. and Guimbard, H., Trade aspects of the strategic dialogue on the future of EU agriculture and the impact of trade on the competitiveness and sustainability of European agriculture, Publications Office of the European Union, 2025.

This paper examines the trade aspects of the Strategic Dialogue on the future of EU agriculture and its impact on the competitiveness and sustainability of European agriculture. It highlights the dual role of trade as both a challenge and an opportunity for the EU agricultural sector. On the one hand, trade opens new markets and provides access to essential inputs, thereby increasing productivity and profitability.

European Commission: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, Transition pathway for the European metals sectors, Publications Office of the European Union, 2025.

In its updated 2021 industrial strategy, the Commission proposed a series of transition pathways to be developed jointly with EU Member States, industry and other stakeholders. These pathways identify the actions needed to achieve the twin green and digital transition, while giving a better understanding of the challenges, scale, benefits and conditions required. This transition will also strengthen the resilience of the metals sectors, an industry heavily affected by several headwinds e.g., low demand in the European metals value chains, high energy prices in the EU, third country trade distortions, spill-over effects of global metals excess capacity on the EU market, high regulatory burden, and difficult access to primary and secondary raw materials, exacerbated by the Russian war of aggression against Ukraine.

European Economic and Social Committee, Unlocking competitiveness for shared prosperity – EESC Employers’ Group priorities, European Economic and Social Committee, 2025.

The global economic landscape is undergoing far-reaching transformations, characterised by market fragmentation, rising protectionism and a damaging subsidy race. The Single Market continues to face distortions stemming from inadequate enforcement of common EU rules and the introduction of diverging national policies. This ‘new normal’ raises significant concerns, as the EU and its businesses have faced a prolonged relative decline in competitiveness and productivity, accompanied by a dramatic decrease in foreign direct investment in the region.

European Commission: Directorate-General for Research and Innovation, User needs for technology infrastructures – Analytical report, Publications Office of the European Union, 2025.

This analytical report “User Needs for Technology Infrastructures” complements the Expert Group on Technology Infrastructures report “Towards a European Policy for Technology Infrastructures, Building Bridges to Competitiveness”. The report gathers extensive evidence on user needs for TIs, presenting the findings of the Expert Group, mainly gathered through a public survey addressed to enterprises, as well as a comprehensive collection of inputs and analyses of other relevant bodies and initiatives.