Boosting tech deployment beyond 2027: New study highlights digital opportunities and challenges for the EU

The European Commission has published a new study, "The EU’s Critical Digital Capacities: Deployment Beyond 2027", revealing both strengths and gaps in Europe’s digital transformation ahead of the next Multiannual Financial Framework.

The study finds that next EU funding programme must address challenges around underinvestment, skills shortages, and market fragmentation, while building on existing strengths in green digital solutions, open source and a trusted regulatory and data protection framework.

Key findings: challenges and strengths

Europe has built a strong digital start-up base but still struggles to turn innovation into scale. EU counted more than 20,000 advanced digital start-ups in 2025, yet only a small share had scaled up or became unicorns, exposing a persistent weakness in growth-stage development.

AI, data analytics, cybersecurity and cloud are already gaining ground in Europe, but the deployment of advanced digital technologies remains uneven across the EU economy. Investment, skills shortages and market fragmentation continue to slow progress. High upfront costs, weak access to finance, legacy IT systems and differing national rules are making it harder for companies and public administrations alike to deploy advanced digital technologies at scale.

Europe has an opportunity to boost its competitiveness by applying digital technologies more effectively in business, industry and public services. However, private sector spending on critical digital technologies remains low, while many firms still struggle to convert research and innovation into practical applications, profits and productivity gains.

Europe has clear strengths in trusted regulation, interoperability and growing entrepreneurial hubs, but still lags global rivals in key technologies. The study warns that the EU remains dependent on non-EU providers for areas such as cloud, semiconductors and AI infrastructure, creating strategic vulnerabilities.

Next steps: a competitive digital future

The study’s insights will support the Commission’s preparation for the next programming period (2028-2034) ensuring future EU funding accelerates deployment, ensures strategic autonomy, and harnesses Europe’s digital strengths.

Read the full report and annexes:

Last update

14 July 2026

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