Europe must wake up. There are astronomical losses

This is also bad news for Poland. European ICT companies (and not only these) lag further behind their American competitors. The gap is already 60 to 80%.

There are many highly efficient companies operating in Europe, but compared to their American counterparts, they are growing more slowly, have lower profits and invest less in research and development – according to a report by the McKinsey Global Institute.

A worrying regularity emerges from the data from 2014-2019 – large European companies grew at 40%. slower than their American counterparts, investing 8%. less and spend 40 percent. less on research and development than American companies.

The ICT and pharmaceutical sectors accounted for 80%. investment shortfalls, 60% growth gaps and 75 percent. Gap in R&D spending compared to US players.

The losses will be astronomical

As indicated, without improving business efficiency and developing innovation, European businesses and whole sectors of the economy will become less and less competitive with the world.

As a result, the technology gap could mean €2-4 trillion less in added value generated by European businesses by 2040, analysts have calculated.

To compare the amount of money it is, that equates to up to 70%. projected GDP growth for Europe over this period, six times the gross amount Europe needs to fund zero emissions by 2050, or about 90% of total current social spending on the continent.

Where Europe is leading and where it is lagging behind

According to the report, technologies such as artificial intelligence and cloud computing are currently determining the competitiveness and development of enterprises.

However, Europe is only a leader in two of the top ten technologies. According to the report, these are: new generation materials (nano materials, composites, semiconductors) and clean energies (solar, wind, hydraulic, nuclear).

Other key technologies where Europe is lagging behind are:

automation of processes (industrial, robots, virtualization),

the future of connectivity (5G and IoT),

cloud and edge

next-generation computing (such as quantum computing),

application of artificial intelligence (such as RPA, NLP, decision-making optimization),

the future of programming (Software 2.0, no-code, low-code),

trust architecture (such as blockchain, zero-trust security),

the bio revolution (such as bioinformatics, biomachine interfaces).

According to the authors of the report, if Europe fails to catch up with the leaders in these fields, it could lose its position in the future also in the industries that have so far been a strong point of the region.

An example is the automotive industry in which Europe is a leader, but without the development of artificial intelligence, it will not be able to rapidly develop the production of autonomous vehicles, explains McKinsey.

What can help

According to the report, Europe must acquire strategic autonomy in critical technologies. Chasing the world requires, among other things, cross-border consolidation, funding capital like venture capital structures, regulation for fast-growing companies, increased public funding for research and development, accelerated decisions for regulators, etc. .

Poland could earn PLN 121 billion from cloud innovations

Investments in the development of new technologies are also of great importance in Poland. Digitization would allow national companies to increase their competitiveness in global markets.

According to a study by McKinsey & Company from 2018, with the full use of digitalization potential, Poland’s GDP could increase to PLN 275 billion by 2025.

The 2021 report shows that the fuller use of the cloud in Polish companies and the public sector could bring the economy an additional PLN 121 billion in 2030. That’s even 4%. the current GDP of the country.

The amount of benefits would be the result of innovation and the emergence of new companies, the creation of which will enable or accelerate cloud computing, as well as the modernization of traditional companies thanks to the cloud (for example by reducing costs, l process automation).

The main beneficiaries of these changes in Poland are expected to be three sectors: retail, FMCG and transport and logistics, the report says.

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Information can be found in the McKinsey Global Institute report “Securing Europe’s Future Beyond Energy: Closing the Business and Technology Gap”.

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