How can the EU Escape the Middle Technology Trap?

A joint report by a group of economists from France, Germany, and Italy criticizes the EU's innovation policy and the direction of research and development spending in Europe and calls for changes. The authors argue that the EU is losing the race to innovate, ceding economic prosperity as well as regulatory and geopolitical power. EU research investment is concentrated in the medical technology sector, especially the automotive industry, while Europe is falling behind in growing high-tech sectors such as the digital economy. The continent is caught in a mid-tech trap.