This slowdown is closely linked to sluggishtechdevelopment.
He also warned that history might repeat itself.
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The problem is not that Europe lacks ideas or ambition, the Italian former premier said.
But innovation is blocked at the next stage: we are failing to translate innovation into commercialisation.
The data speaks for itself.
According to the report, merely four of the worlds top 50 tech companies are European.
This includes chip machine manufacturerASMLand Germanys software provider SAP.
The bloc is also currently falling behind in advanced technologies, such as artificial intelligence.
Since 2017, approximately 70% of foundation AI models have been developed in the US.
The scaling-up process is also affected by market fragmentation across the bloc and complex regulation.
The EUs regulatory stance towards tech companies hampers innovation, Draghi said.
This includes the AI Act, whichcame into forcelast month.
Another problem is the limited number of European universities that make it to the top.
Much of the knowledge generated by European researchers remains commercially unexploited, he stated in the report.
Its still unclear whether his suggestions will become part of the new European Commissions agenda.
Von der Leyen will announce the members next week.
Story byIoanna Lykiardopoulou
Ioanna is a writer at TNW.
With a background in the humanities, she has a soft spot for social impact-enabling technologies.
