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In its latest European Innovation Scoreboard 2025, the European Commission praised the progress made by Member States in research, digitalization, and adopting new technologies. Despite this upward trend, the data also reveals worrying signals: uneven regional growth, a slight dip in overall performance last year, and big contrasts between northern and southern countries.

This raises a critical question: are current EU innovation policies — like performance scoreboards and community initiatives — enough to level the playing field across the single market?

Strong leaders, but no full convergence

EU innovation scores rose by 12.6 percentage points compared to 2018, with remarkable improvements in Sweden (+12.9), Ireland (+13.3), and Estonia (+30). Even smaller countries like Malta and Luxembourg gained 7.6 and 5 points respectively.

Despite universal improvement since 2018, clusters of nations, particularly in Central and Southern Europe, still remain below the innovation frontier. Croatia’s rise by 19.4 points into the “moderate innovators” group is promising — but most southern regions still lag behind the EU average. Has cohesion policy really been effective in bridging the development gap?

Slower narrowing of differences — is it enough?

The Regional Innovation Scoreboard (RIS) shows that 233 of 241 EU regions improved between 2018 and 2025, averaging nearly 12 points. However, 82 regions saw declines in the past two years. Regions like Catalonia, Madrid, or Prague outperform many periphery areas — but the broader pattern remains: Northern and Western Europe lead, while others grow too slowly to achieve real convergence.

Growth on deceleration: 2025 slump and structural risks

For the first time, 2025 results show a slight dip — 0.4 points lower than 2024. It’s a small drop, but potentially a warning sign amid global pressure from the U.S. and China. The Commission’s competitiveness compass emphasizes that maintaining the status quo isn’t enough — fast reforms, regulatory simplification, and infrastructure investment are essential.

Other concerns: declining SME collaboration, reduced R&D spending in some countries, and unclear impact of digital transformation. Stéphane Séjourné, EC Executive Vice‑President, stressed that strategies alone won’t cut it — real partnerships between startups and big firms, plus stronger digital infrastructure, are urgently needed.

Scaling ideas: policy without real impact?

Current innovation tools — from the Startup & Scaleup Strategy to the “Choose Europe for Science” campaign — rely on the premise that supporting micro innovators and tech clusters is crucial. The EIS and RIS scoreboards serve as a “system mirror” to guide policymakers based on real data.

The problem: there are no binding enforcement mechanisms to drive change. The upcoming Innovation Act may expand the Commission’s role, but it’s unclear if it will empower decisive action in lagging regions.

Action or diagnosis? Time for systemic responses

EU leaders don’t sugarcoat the challenge. Commissioner Ekaterina Zacharieva warned that lingering regional gaps threaten the Union’s long-term competitiveness. Proposed new multiannual budget and innovation programs may help — but only if they bring real reform to supply chains, the single market, and cross‑border cooperation — especially in less developed areas.

Innovation today isn’t a luxury — it’s a necessity for survival in global competition for capital, talent, and tech.

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