Europe in the Intelligent Age 2025

39. Sven Smit, Magnus Tyreman, Jan Mischke, Philipp Ernst, Eric Hazan, Jurica Novak, Solveigh Hieronimus, and Guillaume Dagorret, “Securing Europe’s future beyond energy: Addressing its corporate and technology gap.” McKinsey,” May 2022, https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/securing-europes- competitiveness-addressing-its-technology-gap. 40. Enrico Letta, “Much more than a market,” April 2024. https://www.consilium.europa.eu/media/ny3j24sm/much-more- than-a-market-report-by-enrico-letta.pdf. 41. Ibid. 42. Ibid. 43. Martin Sandbu, “Finding the money to make Europe great again,” Financial Times, November 2024, https://www.ft.com/ content/dd739c02-305e-49d0-b07d-5d89a0109161. 44. Mario Draghi, “The Future of European Competitiveness: In-depth Analysis and Recommendations,” September 2024, https://commission.europa.eu/document/download/ec1409c1-d4b4-4882-8bdd-3519f86bbb92_en?filename=The%20 future%20of%20European%20competitiveness_%20In-depth%20analysis%20and%20recommendations_0.pdf. 45. Examples of government derisking commercialization investments by creating demand for the private sector include the Defense Advanced Research Projects Agency (DARPA) and Advanced Research Projects Agency – Energy (ARPA-E) in the US. 46. Alexander Sukharevsky, Eric Hazan, Sven Smit, Marc-Antoine de la Chevasnerie, Marc de Jong, Solveigh Hieronimus, Jan Mischke, and Guillaume Dagorret, “Time to place our bets: Europe’s AI opportunity,” McKinsey, 1 October 2024, https://www.mckinsey.com/capabilities/quantumblack/our-insights/time-to-place-our-bets-europes-ai-opportunity. 47. Ibid. 48. European Commission Digital Skills and Jobs Coalition, 2022, https://digital-strategy.ec.europa.eu/en/policies/digital- skills-coalition. 49. 1 million workers educated, trained or reskilled is an ambition based on McKinsey analysis showing a tech workforce shortage of 1.4-3.8 million workers by 2027 in the EU-27. See Sven Blumberg, Melanie Krawina, Elina Mäkelä, and Henning Soller, McKinsey, January 2023, “Women in tech: The best bet to solve Europe’s talent shortage,” https://www. mckinsey.com/capabilities/mckinsey-digital/our-insights/women-in-tech-the-best-bet-to-solve-europes-talent-shortage. 50. Comprising companies that manufacture capital goods and services that support other businesses and manufacturers rather than consumers. See https://www.bloomberg.com/markets/sectors/industrials. 51. Based on the High-Level Dialogue on Europe in the Age of Intelligent Economies hosted by the World Economic Forum, October 2024. 52. Additional information for each technology can be found in Lareina Yee, Michael Chui, Roger Roberts, et al, “McKinsey Technology Trends Outlook 2024,” McKinsey, 16 July 2024, https://www.mckinsey.com/capabilities/mckinsey-digital/our- insights/the-top-trends-in-tech. 53. Sven Smit et al, “Securing Europe’s competitiveness: Addressing its Technology Gap,” McKinsey, 22 September 2022. Value at stake is based on 2040 market size from underlying research data. https://www.mckinsey.com/capabilities/ strategy-and-corporate-finance/our-insights/securing-europes-competitiveness-addressing-its-technology-gap. 54. Mathieu Pollet, “Europe eyes bigger, fewer telco firms in envy of US and China,” Politico, September 20204, https://www. politico.eu/article/telecoms-profit-fund-european-industry-cutting-edge-ecb-mario-draghi-digital-networks-act/. 55. Pitchbook, McKinsey analysis. Based on average investments between 2018 and 2023, excluding corporate investments. 56. Pitchbook, McKinsey analysis. 57. Based on conversations with leaders and subject-matter experts. 58. “A future-proof network for the EU: Full fibre and 5G,” European Parliament, April 2024, https://www.europarl.europa.eu/ RegData/etudes/BRIE/2024/762298/EPRS_BRI(2024)762298_EN.pdf. 59. Mario Draghi, “The Future of European Competitiveness: In-depth Analysis and Recommendations,” September 2024, https://commission.europa.eu/document/download/ec1409c1-d4b4-4882-8bdd-3519f86bbb92_en?filename=The%20 future%20of%20European%20competitiveness_%20In-depth%20analysis%20and%20recommendations_0.pdf. 60. Digital Europe, The EU’s Critical Tech Gap, https://cdn.digitaleurope.org/uploads/2024/07/DIGITALEUROPE-CRITICAL- TECHNOLOGIES-REPORT-FINAL_JULY_WEB.pdf. 61. Lareina Yee, Michael Chui, and Roger Roberts, et al, McKinsey Technology Trends Outlook 2024, McKinsey, 16 July 2024, https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-top-trends-in-tech. 62. “Quantum Technology Monitor,” McKinsey, April 2024. 63. Lareina Yee, Michael Chui, and Roger Roberts, et al, McKinsey Technology Trends Outlook 2024, McKinsey, 16 July 2024, https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-top-trends-in-tech. 64. “What is quantum computing?” McKinsey, 5 April 2024, https://www.mckinsey.com/featured-insights/mckinsey- explainers/what-is-quantum-computing. 65. “Shaping the long race in quantum communication and quantum sensing,” McKinsey, 21 December 2021, https://www. mckinsey.com/industries/industrials-and-electronics/our-insights/shaping-the-long-race-in-quantum-communication-and- quantum-sensing. Europe in the Intelligent Age: From Ideas to Action 34