According to the latest Science, Research and Innovation Performance of the EU (SRIP) report, Europe's excellence in science remains undisputed, but the EU underperforms when it comes to translating research into economic productivity. The report gives advice on how to tackle these and other challenges.

On 1 October, the 2026 edition of the Science, Research and Innovation Performance of the EU (SRIP) report was published. This biennial report provides a comprehensive and detailed assessment of Europe's science, research and innovation landscape.

The report includes a series of analyses carried out by both European Commission's Directorate-General for Research and Innovation analysts and external experts. It provides both thematic and sector-specific insights into Europe's scientific output, research impact and industrial capability, as well as comparisons with other major economies, such as the United States and China.

Since 2019, a series of economic shocks have stifled Europe's growth, causing it to fall behind global competitors. Europe's economy grew 7% between 2019-2015, compared to 15% for the Unites States and 33% for China.

Paolo Pasimeni, Chief Economist at the Directorate-General for Research and Innovation and lead author of the 2026 SRIP report: "The SRIP report shows that the main driver of Europe's slower economic growth is a widening productivity gap. The only way to address this gap without undermining our environment or social model, is to invest in science, research, technology and innovation." - Interview with Paolo Pasimeni

Closing the productivity gap

A longstanding challenge affecting Europe's performance in science, research and innovation is the inefficient transfer of knowledge from research institutions to industry. More investment in research and innovation, both from the public and private sector, is required to overcome what is often referred to as Europe's 'innovation paradox' and help companies scale up.

Compared with the United States and China, Europe's capital market is very fragmented and risk averse. Consistent with the SRIP report data, the European Commission is taking actions to help target private sector investment to the most promising technologies, remove barriers that prevent the translation of research into commercial products and services, and accelerate market uptake. In today's heightened economic uncertainty, such initiatives are even more important to leverage private investment and maintain Europe's global competitiveness.

However, significant work remains. As Ron Boschma, Professor in Regional Economics at Utrecht University, explains, part of the problem is that Europe is trapped in a low growth 'middle-technology' economy, while global competitors are dominating in more profitable high-tech sectors, like AI and robotics.

Ron Boschma, Professor in Regional Economics at Utrecht University: "Europe is in a 'mid-tech trap', as investment tends to flow into established sectors, like automotive, leaving only small pockets of high-tech activity in chip production and pharmaceuticals. Transitioning to high-tech sectors requires a very active industrial policy and billions of euros in targeted investment." - Interview with Prof. Ron Boschma

Joining the right dots

The EU budget for science, research and innovation represents a fraction of the national spending. Aligning investment priorities across different levels of government, from regional to national and supranational, is crucial to realise the benefits of these funds and overcome fragmentation.

The report shows that EU funds are not crowding out national efforts in research and innovation, but rather that they reinforce each other. Increases in national investment correlate with improved capacity to attract EU funding from competitive programmes such as Horizon Europe. This vertical alignment is helping to establish different regions of expertise.

Place-based approach

Boschma has written a chapter in the SRIP report on the importance of a 'place-based approach' in future R&I policy. He argues that all regions should contribute to innovation in different ways, based on their local strengths and existing capabilities, and hints at Europe's untapped potential and lack of exploitation of complementarities across member states.

“Since 2014, the 'Smart Specialisation Strategy', a place-based European Union innovation policy designed to boost regional economic growth and transformation, has successfully guided EU innovation spending towards regional development. While more measures are needed to encourage collaboration between regions, it would be a mistake to abolish this policy in favour of centralisation as proposed in the draft for the next Multiannual Financial Framework (MFF),” Boschma warns.

The path ahead

Pasimeni is cautiously optimistic about the future. If politicians and policymakers accept that science, research and innovation is going to be the central driver of Europe's economy, he expects them to act swiftly and decisively to address the chronic lack of investment and embark on reforms that secure growth.

“We need to both step up productivity in sectors that we are already strong in, such as advanced manufacturing and green technologies, and better target our efforts in frontier technologies, where we are losing ground to the US and China,” Pasimeni says.

Putting the report findings into action will help turn Europe's scientific excellence into faster productivity growth, technological leadership and long-term strategic autonomy.

Useful link:

• 'Science, Research and Innovation Performance of the EU (SRIP) report', 2026

Related content:

• An expert's opinion: Interview with Paolo Pasimeni on Europe's science and R&I performance
• An expert's opinion: Interview with Prof. Ron Boschma on Europe's science and R&I performance