In the race for a digital future, Europe is often seen as having an “innovation deficit”; however, it is investing significantly in technology, people and systems. With innovation closely linked to the notion of a digital future, Europe is seen as having been technologically overtaken by Asia and the United States, running the risk of falling substantially behind in its strategic focus on research and education in digital technology fields.
Following research into how companies in Europe are developing digital technologies to enhance human physical and mental capabilities, it was found that the drivers of innovation and its implementation are focused on three key areas:
- Technology – the digital technologies that European companies are choosing to invest in, their motivations for doing so, and how those technologies are being implemented;
- Human factor – the implications these digital technologies will have in the future with regard to work, and how companies are using digital transformation to develop cultures of innovation;
- Innovative organisation – how processes are being designed to create organisations that foster and stimulate innovation.
Despite current perceptions, investments in data analytics and cloud computing are well advanced. Companies are prepared to invest even more in the potential of new technologies, and around 88% expect to have budget for innovation to increase over the next two years.
Europe still demonstrates strong capacity as an innovation powerhouse. Traditional levers provide an indication of vitality and, despite what may be perceived at present, show that Europe has not been left behind in the race towards a digital future. A sense of urgency, strategic focus, and a strong sense of Europe with the necessary economic scale are essential to the continued realisation of this immense potential.
