Technological lag of the European Union: Catchy slogan or a fact?

Abstract

Motivation: In recent years, the global race for technological leadership has intensified, with the United States and China consolidating their positions as frontrunners. In contrast, the European Union (EU) is often portrayed in public debate as technologically lagging behind its global counterparts. This view has gained prominence in political discourse and strategic policy discussions. The notion of a ‘technological lag’ has evolved into a widely repeated slogan. However, the validity of this claim has not been sufficiently tested through comparative data analysis. Understanding whether the EU truly faces a technological disadvantage is crucial for shaping its innovation policies and enhancing its competitiveness in the global economy.
Aim: The aim of this study is to critically assess the position of the European Union (that is, indicated by the EU’s member states) in the global technological competition in 2025 by evaluating its innovation performance relative to that of the United States and China.
Materials and methods: The research is based on a comparative analysis of secondary data from international reports and databases, including WIPO, IMD, the World Bank, the WTO, and strategic policy papers. To capture the current outlook for 2025, the latest available editions, i.e. from 2020, were selected. Key innovation indicators were also considered to emphasise the focus on the technological aspect of this study.
Results: The EU is not technologically lagging overall; however, it faces significant challenges in key future-oriented sectors, primarily due to internal disparities among member states. The EU maintains a strong position in robotics and automation, but does not fully exploit its digitalisation potential, falling behind in regulatory frameworks. The EU faces challenges in commercialising and scaling innovations. Despite the high ranking of EU universities and research institutions, the EU struggles to translate this potential into the market. Implementing changes may enable Europe to effectively compete with the USA and China in the digital era.