Europe’s connectivity leaders Nokia and Ericsson are at the heart of a technology and economic drive to secure European prosperity through innovation, investment, tech leadership and digitalization success on the global stage.

Supported by European technology leaders ASML and SAP, Nokia and Ericsson are organizing a unique New Industrial Ambition for Europe summit in Brussels today, January 16.

The summit aims to catalyze momentum across the EU to implement the actions required to deliver future European digitalization success – including a more supportive regulatory environment and making the region more attractive to investors.

The summit will be joined by senior European political figures – including Henna Virkkunen, European Commission Executive Vice President for Tech Sovereignty, Dariusz Standerski, Deputy Minister of Digital Affairs for Poland; and former Italian Prime Minister, Enrico Letta – to discuss how Europe can act on the warnings from respected European technology CEOs and implement the Draghi and Letta reports.

The summit will also be addressed by Pekka Lundmark, President and CEO of Nokia; Börje Ekholm, President and CEO of Ericsson; Christian Klein, CEO of SAP; and joined by Christophe Fouquet, CEO of ASML.

These CEOs are united in their conviction that digitalization leadership is central to delivering future European prosperity. The CEOS have significant insight and knowledge about how to drive this forward.

Implement the Draghi and Letta reports

The September 2024 Draghi Report recommendations on the future of European competitiveness span a range of actions to foster innovation, incentivize investment in key technologies, enable scale, and reduce fragmentation.

The Draghi Report followed Enrico Letta’s own April 2024 report for the European Council and European Commission called: Much More than a Market: Speed, Security, Solidarity – Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens.

Fact Box: The current reality

Europe’s tech sector lags the US and China.

The ‘Magnificent Seven’ US tech firms’ R&D spend in 2023 alone was equivalent to 50 percent of Europe’s ENTIRE public and private sector R&D spend across technology and other areas.

European companies trail in R&D and capital formation (EUR 450 billion gap in tech alone).1

This gap contributes to a 20 percent productivity disadvantage per year.2

US firms invest 60 percent more in R&D and lead productivity growth.3

Europe therefore risks falling further behind.

During the summit Europe’s leadership in connectivity technology development will be highlighted as an example of the how the region has established competitive advantage – but which is currently at risk. Urgent policy actions are required to safeguard Europe’s technology development competitiveness compared to other regions.

The participating CEOs will emphasize that the networks forming the backbone of Europe’s economy and future innovation must be secure and trusted. Advanced connectivity is also critical for the digitalization of defense. The 5G Security Toolbox is vital and needs to be extended to all telecom technologies with its implementation needing to be completed all member states.

A defining moment

Taking the start of the new European Commission mandate as a defining moment for critical action, summit participants will stress that urgent reforms are essential to securing Europe’s future competitiveness, prosperity, and global influence.

Nokia President and CEO, Pekka Lundmark and Ericsson President and CEO, Börje Ekholm are among senior European technology leaders who have been vocal about the need for urgent action to support Europe’s technology sector. The summit marks the first time that Nokia and Ericsson have come together to organize and drive an industrial vision initiative – underlining the importance and urgency both companies give to the issue.

Enrico Letta, President of the Jacques Delors Institute and former Italian Prime Minister, says: “In my 2024 report, I underscored the urgent need for Europe to accelerate investments in advanced connectivity infrastructure to secure its future. The leadership demonstrated by companies like Nokia and Ericsson in fostering collaboration with other European tech innovators, such as ASML and SAP, is commendable. However, to enhance Europe’s competitiveness in the global digital economy, it is essential not only to allow greater telco consolidation but also to prioritize substantial investments in advanced connectivity. This focus is vital for addressing the connectivity gaps across the continent and ensuring that Europe remains at the forefront of tech innovation.”

Pekka Lundmark, President and Chief Executive Officer, Nokia, says: “European competitiveness already has one foot in the morgue. Our real GDP is 30% less than the U.S.’s, the EU’s share of the Fortune Global 500 is still falling and our digital future looks less certain than ever. The good news is that we can still turn this tanker around. Europe must create an environment in which businesses want to invest, especially on technologies such as AI, cloud and advanced connectivity. This cannot be a decade-long endeavour. Europe must act right now on issues like the 5G Toolbox and telco mergers. If Europe gets this right, it’s a massive opportunity. Draghi and Letta already provided the framework. So, let’s act.”

Börje Ekholm, President and CEO, Ericsson, says: “The unique coming together of four technology leaders highlights the urgency facing Europe’s economy to decision makers in Member States. Companies like Ericsson already invest disproportionally more in R&D in Europe. If other regions continue to race ahead this model cannot survive. Those regions are embracing opportunity through investment, policy, and regulatory support. Europe is not. Yet the solution is well known. The EU must implement the Draghi and Letta Report recommendations to enable the technology sector to play our part in delivering future European prosperity.”

Christian Klein, CEO, SAP, says: “New technologies will bring growth and higher productivity for Europe. That is why we need to act and drive digitalization across all sectors. Policymakers can support a European tech renaissance by reducing regulatory burdens, incentivizing R&D across the economy, digitizing and modernizing public administration, making Europe more attractive to tech talents, and reshaping education so as to give the next generation a deeper understanding of today’s complex relationships between technological and economic success.”

Fact Box: Action calls

Don’t debate the Draghi and Letta reports – implement them to foster innovation, incentivize investment in key technologies, enable scale, and reduce fragmentation.

Strengthen R&D, capital access, and tech champion support.

Reduce and simplify regulation and enforce a digital single market.

Fully implement the 5G Security Toolbox: 5G and fiber are critical for digitalization; Secure, trusted networks are vital for economic resilience and innovation.

Reform competition/M&A guidelines to support market consolidation.

Set clear targets for 5G deployment and trade spectrum fees for rollout.

Align connectivity with EU green goals.

Enforce fair business practices. Withdraw harmful proposals like the current legislative proposal on Standard Essential Patents.