EU study highlighting strengths & strategic gaps

BDVA is glad to announce its community that the European Commission has published a new study, “The EU’s Critical Digital Capacities: Deployment Beyond 2027”, a comprehensive publication for which many consultations and workshops were organised, where members of our team (such as former Secretary General Ana García Robles or Senior Technical Lead Big Data and AI ecosystems Daniel Alonso Román) have participated and contributed extensively. The document is outlining both the progress and challenges facing Europe’s digital transformation, as policymakers prepare the next Multiannual Financial Framework for 2028-2034.

The report paints a mixed picture of the EU’s digital landscape. While Europe has developed a robust ecosystem of digital innovators and enjoys recognised strengths in areas such as trusted regulation, data protection, interoperability and open-source technologies, we are still facing significant obstacles in the deployment of advanced digital solutions.

According to the study, the EU was home to more than 20,000 advanced digital start-ups in 2025. However, only a small proportion successfully scaled into large businesses or achieved unicorn status, highlighting a long-standing weakness in turning innovation into sustained commercial growth.

The Commission notes that technologies such as artificial intelligence, data analytics, cybersecurity and cloud computing are gaining traction across Europe. Nevertheless, adoption remains uneven, with investment, skills shortages and fragmented markets slowing progress. High upfront costs, limited access to finance, legacy IT systems and differing national regulations continue to make large-scale deployment difficult for businesses and public administrations alike.

The study argues that Europe has a significant opportunity to improve competitiveness by accelerating the use of digital technologies across industry, business and public services. However, private-sector investment in critical digital technologies remains relatively low, and many organisations continue to struggle to convert research and innovation into productivity gains and commercial success.

The report also warns of continuing strategic dependencies on non-EU providers in key sectors, including cloud services, semiconductors and AI infrastructure. These dependencies, it says, could expose Europe to vulnerabilities at a time of growing global technological competition.

Looking ahead, the findings will inform the Commission’s preparations for the EU’s next long-term funding programme. Policymakers aim to ensure future investment supports faster technology deployment, strengthens Europe’s strategic autonomy and builds on the bloc’s existing digital advantages.

BDVA representatives were very active especially in the development of Annex IV, allocated to AI, and Annex 8, addressing Data analytics and data sharing technologies.

Addressing the underinvestment, tackling skills shortages and reducing market fragmentation will be essential if the EU is to realise its ambitions of becoming a globally competitive and resilient digital economy.

BDVA, in its capacity, as a European non-profit association with over 250 members from industry (including SMEs, startups, and large companies), research, academia, and the public sector, stands ready to support the European Commission, the Joint Undertaking, Member States, and other partners in making a global leader in digital technologies. The goals of the European Commission are also central to BDVA’s mission and objectives: to create value for society and industry through data and AI innovation.

Summary report on stakeholder and expert consultations available here.