Wind of Change: Is ‘Fairness’ the New Road to Innovation and Economic Growth?

In the early 2020s Europe entered into obligations to prioritise a digital and green transition process. In so doing it challenged not only the design of policy frameworks but also demanded a shift in the relationship between industrial policy and competition policy within the European Union. The digital and green transition seeks to reset the EU’s global competitiveness. To achieve this, a coherent policy and legal framework that continues to safeguard the principles underpinning the interface between competition law and intellectual property rights is important.<br/><br/>The report The Future of European Competitiveness, published in September 2024 by Mario Draghi, outlines a policy agenda aimed at reinforcing the productive base of the European economy. The Draghi Report outlined three key barriers to innovation: firstly, lack of investment in research and innovation, both private and public, which has resulted in start-ups seeking funding elsewhere – predominantly in the US where venture capitalists are more open to offering financing. Secondly, that fragmentation in the internal market causes problems for companies in scaling up production both in relation to finance and regulatory issues. This results in companies either choosing to remain small or scaling up outside of Europe – again, as the Draghi Report noted, mostly in the US where less intervention and regulations allow for more leeway and growth. And thirdly, Europe has a significant number of regulatory barriers to innovation which are fragmented and costly, such as the national systems of applying for IP right protection and data protection compliance rules.