European Commission Announces €1.4 Billion Investment to Boost Deep Tech and Strategic Technologies

The European Commission has unveiled a comprehensive five-year strategy aimed at enhancing the competitiveness of European industries. Central to this initiative is a substantial €1.4 billion investment in deep tech and strategic technologies, reflecting the EU's commitment to fostering innovation and economic growth.

This investment, allocated through the European Innovation Council (EIC) under the Horizon Europe research and innovation programme, represents an increase of nearly €200 million compared to the previous year. The funding is designed to support high-potential start-ups and research initiatives in critical sectors such as artificial intelligence (AI), biotechnology, and quantum technology.

A key component of the strategy is the introduction of the EIC Strategic Technologies for Europe Platform (STEP) Scale-up scheme. This initiative aims to provide enhanced access to scale-up equity funding, addressing a market gap in deep tech investments within Europe. The STEP Scale-up scheme is set to commence with a budget of €300 million in 2025, with projections to increase to €900 million by 2027. Under this scheme, the EIC Fund will offer investments ranging from €10 million to €30 million per company, encouraging private co-investment and facilitating larger funding rounds.

In addition to financial support, the Commission plans to implement measures aimed at simplifying business regulations and expediting investment processes. The forthcoming "Clean Industrial Deal" is expected to assist energy-intensive industries in decarbonising and boosting the production of clean technologies. This initiative aligns with the EU's broader environmental goals and seeks to reduce energy costs for manufacturers.

The strategy also includes plans to streamline sustainability reporting requirements for businesses, aiming to reduce administrative burdens and foster a more supportive environment for innovative companies. These efforts are part of a broader agenda to cut business reporting requirements by at least 25% over the next five years, potentially saving €37.5 billion in costs.

Furthermore, the Commission intends to bolster support for start-ups and scale-ups through various programmes, including the EIC Challenges, which will allocate €120 million to emerging technologies such as autonomous robotics, climate-resilient crops, and medical diagnostics. An additional €250 million is earmarked for early-stage companies working on high-potential projects in generative AI, agri-tech, and new mobility solutions.

The overarching goal of these initiatives is to position Europe as a global leader in technological innovation, reducing dependency on non-EU technologies and enhancing regional autonomy. By investing in strategic sectors and simplifying regulatory frameworks, the European Commission aims to create a more resilient and competitive industrial landscape.

This strategic investment underscores the EU's commitment to fostering innovation and economic growth, ensuring that Europe remains at the forefront of technological advancement in the coming years.