On the ultra-high security third day of Italian Tech Week, European Commission president Ursula von der Leyen aimed a rousing speech at the continent’s startup founders, urging patience as the tech race heats up.
“We know that the number of unicorns is still too small, and one third of them end up leaving our continent. This is a warning sign,” she said. “We cannot accept that our most talented may have to leave in order to thrive. You must find the right soil to flourish here in Europe.
“I want Europe to be worthy of you.”
In particular, she wants AI talent to find what it needs in Europe.
“I believe that my job is to create the best conditions for you to thrive, right here in our continent. This is the mission that drives me every day. I want the best of Europe to choose Europe. And I want the future of AI to be made in Europe,” she said.
The three obstacles
In order to achieve that, she thinks there are three main obstacles that must be overcome.
Number one: The lack of funding — specifically, the lack of risk capital.
In Europe only 24% of households’ financial wealth is invested in equity, compared to 42% in the US, she said. “We must catch-up, and we must do it fast.”
The Scaleup Europe Fund is one solution, she added; a multi-billion-euro fund the EU plans to create, in partnership with private capital. It will make direct equity investments in sectors considered strategic for the continent — like AI, quantum and cleantech — and would be privately managed.
Number two: Fragmentation of the single market. “We live in an age where a line of code can cross the continent in a millisecond – while the startup behind it gets stuck at the border,” she said.
“Too often, it is easier to expand to another continent, than across Europe. It can be a nightmare to deal with 27 different bureaucracies and legislations.”
Her big solution? The ‘28th regime’ — an idea to create one single and simple set of rules for innovative companies, so that they can scale across Europe as easily as a San Francisco-based startup can scale across the US.
(She was, it’s worth noting, not wearing an EU Inc cap on stage.)
The third challenge: The uptake of new technology. “We must speed up AI adoption across the board,” she said.
In particular, she spoke of plans to create “a European network of AI-powered advanced screening centres” to accelerate AI adoption in healthcare, help diagnose treatable diseases faster and accelerate medical discoveries.
“And we will incentivise hospitals and pharma companies to take up innovative AI solutions,” she added. “Because AI can save lives. And Europe must lead the way.”
In a nod to the home of Italian Tech Week, Turin, and its long history of car-making, she also called for Europe to become a leader in driverless cars and automotive innovation.
“The automotive industry is a European pride. And now technology can save jobs, and breathe new life into the sector. The future of cars – and the cars of the future – must be made in Europe.”
AI in Europe
To end, she turned to AI.
“Too often, I hear that Europe is late to the AI race. The sceptics say we will repeat the mistakes of the past. And another generation of European talents will be forced to leave,” she said. “I disagree.”
The AI race is just warming up, she said; Europe’s come from behind before, it can again.
“We will spare no effort to make Europe an AI continent. We will spare no effort to make you choose Europe. Because this is the great mission of our times.”
Readers, what do you make of von der Leyen’s plans? Get in touch.
