EIC Forum Policy Orientations 2024: Strengthening Europe’s Innovation Ecosystem
On February 6, 2025, the European Innovation Council (EIC) Forum convened its first plenary meeting of the year to present the EIC Forum Policy Orientations 2024 report. This comprehensive document provides strategic recommendations designed to bridge Europe’s innovation gap, foster a competitive and resilient innovation ecosystem, and enhance its global leadership in cutting-edge technologies. The report underscores the need for regulatory and financial reforms to facilitate the growth of startups, increase venture capital availability, harmonize tax incentives, and improve innovation-friendly procurement policies.
Strengthening Europe’s Startup Ecosystem
One of the core priorities outlined in the report is the strengthening and unification of Europe’s startup ecosystem. Recognizing the fragmented nature of the European innovation ecosystem, the Forum emphasizes the importance of simplifying and streamlining regulatory frameworks to facilitate access to capital and support the growth of startups and scale-ups. These efforts align with the objectives of the forthcoming Startup and Scaleup Strategy and the European Innovation Act, which aim to establish a more cohesive and supportive framework for innovative enterprises. Key measures include reducing administrative barriers, ensuring better access to public and private funding, and fostering collaboration between industry, research institutions, and public authorities to accelerate the commercialization of new technologies.
Enhancing Venture Capital Availability
The Forum highlights the urgent need to improve access to venture capital as a means of closing Europe’s innovation gap. While Europe boasts world-class research and a thriving startup scene, many high-potential companies struggle to secure sufficient investment to scale their operations globally. The report recommends policies to attract and retain investment by addressing structural financing challenges. Among the proposed measures are the creation of pan-European investment vehicles, harmonized frameworks for cross-border funding, and new incentives to encourage private investment in deep-tech and disruptive innovation. Furthermore, the recommendations stress the importance of reinforcing financial instruments under the InvestEU program and the EIC Accelerator to support high-risk, high-reward projects that can drive technological breakthroughs.
Implementing Cohesive Tax Incentives
To enhance Europe’s attractiveness as a hub for innovation, the EIC Forum advocates for a harmonized tax policy framework that benefits startups and scale-ups. A key focus is the development of a unified employee stock option regime across member states. Currently, disparities in taxation policies create challenges for startups in offering competitive equity-based compensation packages, which can hinder their ability to attract and retain top talent. The proposed framework seeks to standardize the treatment of stock options, reduce tax burdens on employees and employers, and increase the overall appeal of working for European startups. Additionally, the report calls for tax incentives that encourage reinvestment of capital gains into innovation-driven enterprises, thereby fostering a more dynamic investment culture in Europe.
Advancing Innovation Procurement
Innovation procurement plays a crucial role in driving demand for innovative solutions, yet legal and financial barriers often prevent innovative companies from fully benefiting from public procurement opportunities. The EIC Forum underscores the need to remove these obstacles and establish a more innovation-friendly procurement landscape. A central proposal is the introduction of a ‘28th regime’—a harmonized framework across the European Union that encompasses corporate law, insolvency procedures, labor regulations, and taxation. By creating a unified legal environment, the EU aims to facilitate cross-border operations for startups and SMEs, ensuring that public procurement becomes a more accessible channel for innovation-driven growth. Additionally, the Forum encourages the adoption of pre-commercial procurement mechanisms to stimulate demand for new technologies and support early-stage innovators.
Fostering a Global Leadership Role
Beyond addressing internal challenges, the report stresses the need for Europe to position itself as a global leader in innovation by fostering stronger international partnerships. Strengthening transatlantic cooperation, engaging in global standard-setting initiatives, and ensuring regulatory alignment with key markets are identified as essential steps toward increasing Europe’s influence in emerging technology sectors. Moreover, the Forum highlights the importance of aligning innovation policies with the EU’s broader strategic goals, including the twin transitions of green and digital transformation. By leveraging public and private investments in sustainable and digital technologies, the EU can reinforce its leadership in areas such as artificial intelligence, quantum computing, clean energy, and biotechnology.
The EIC Forum Policy Orientations 2024 presents a strategic roadmap for enhancing Europe’s innovation ecosystem. By focusing on strengthening the startup ecosystem, improving venture capital availability, implementing cohesive tax incentives, and advancing innovation procurement, these recommendations aim to create a more integrated, competitive, and resilient European innovation ecosystem. As Europe strives to maintain its position at the forefront of global technological advancement, the implementation of these policies will be critical in driving sustainable economic growth, boosting competitiveness, and ensuring that European innovators have the resources and framework needed to thrive in the years to come. The EIC Forum remains committed to fostering collaboration between policymakers, industry leaders, and the research community to turn these recommendations into tangible outcomes that benefit European society as a whole.
