EU Strategy on Start-ups and Scale-ups
Other Domains
 
News
In May 2025, the European Commission launched a new strategy to foster the creation and growth of innovative businesses across Europe. The objective is to strengthen Europe’s global competitiveness by supporting start-ups throughout their entire lifecycle. Progress will be measured through the increase in the number of start-ups, “centaurs” (valued above EUR 100 million), and “unicorns” (valued above EUR 1 billion), as well as by comparing Europe’s performance with global competitors. The strategy is structured around five pillars: innovation-friendly regulation, better access to finance, faster market entry, support for talent, and improved access to infrastructure and networks. 1. Innovation-friendly Regulation Challenge: Regulatory fragmentation between Member States and the slow pace of legislative adaptation discourage investment and hinder the uptake of innovations. The Commission aims to reduce administrative burdens by 25% for companies and by 35% for SMEs. Key actions: • Introduction of a 28th European regime with harmonised rules for businesses (Q1 2026). • Proposal for a European Innovation Act, including cross-border regulatory sandboxes (Q1 2026). • Launch of the European Business Wallet to provide a unique digital identity for companies (Q4 2025). • Introduction of a voluntary “innovation resilience test” for national legislation, resulting in non-binding recommendations (Q1 2026). • Sector-specific simplifications in biotechnology, advanced materials, medical devices and defence (from 2025). 2. Better Access to Finance Challenge: Europe’s capital markets remain small and fragmented, limiting the ability of start-ups to secure large-scale investments, especially for deep-tech and high-risk innovations. Key actions: • Expansion of the European Innovation Council (EIC) and simplification of rules for high-risk financing, including staged ARPA-type funding (2025). • Launch of the “Scaleup Europe” Fund with public-private co-financing (2026). • Establishment of a voluntary European Pact for Innovation Investment with major institutional investors (2026). • Development of financial instruments enabling the use of intellectual property as collateral, in cooperation with EUIPO (Q2 2026). • Revision of the definition of “undertaking in difficulty” to facilitate access to State aid (Q2 2025). • Review of the Horizontal and Non-Horizontal Merger Guidelines to reflect dynamic criteria such as innovation competition (2027). • Creation of a network of large European companies to integrate start-ups into value chains (2026). 3. Faster Market Entry and Scaling-up Challenge: The transfer of research results to the market is slow, while public procurement and support for spin-offs are not fully tailored to innovators’ needs. Key actions: • Launch of the “Lab to Unicorn” initiative to accelerate the commercialisation of research (2026). • Establishment of cross-border university networks to support spin-offs (2026). • Guidelines on intellectual property transfer and State aid for start-ups. • Modernisation of public procurement to foster innovation, including in the defence sector (2026). • Integration of start-ups into global value chains through Global Gateway. 4. Talent and Skills Challenge: Cross-border mobility is hindered by administrative barriers, challenges in the recognition of qualifications, and complex taxation for distributed teams. The underrepresentation of women, the lack of entrepreneurial education, and the insufficient valorisation of research further exacerbate the talent gap. Key actions: • Launch of the “Blue Carpet” initiative to attract and retain global innovators (2025). • A European visa strategy for innovators, researchers, and founders (2025). • A package for fair labour mobility and updated rules on remote work (2026). • Expansion of the EURAXESS platform for talent recruitment and integration. • Entrepreneurship and digital skills programmes through universities and Erasmus+. • Dedicated initiatives for women entrepreneurs and mentoring networks. 5. Access to Infrastructure and Networks Challenge: Innovation ecosystems in Europe are uneven, and start-ups often face limited access to testing facilities, clusters, and international networks. Key actions: • Development of a Charter on Access to Research and Technology Infrastructures, and financial support for start-ups using AI computing facilities (2025). • Enhanced access to infrastructures through the European Innovation Act (Q1 2026). • Guidance on State aid for access to infrastructures (2026). Conclusion Through this strategy, the Commission sets out a coherent framework of legislative reforms, financial instruments, talent investment and infrastructure support to build a more competitive and integrated European innovation ecosystem.