The European Commission has proposed a new European Innovation Act, designed to help Europe’s most innovative ideas be developed, financed and scaled up within Europe. The proposal is also intended to support the EU’s long-term competitiveness, prosperity and technological sovereignty.
Strengthening the EU innovation ecosystem
A key objective of the proposed legislation is to make it easier for innovative companies to access finance. Many startups and scaleups hold valuable ideas, patents and other intellectual property, but these assets can be difficult to value, which may make it harder to attract investment. To address this, the Act would promote a common EU framework for valuing intellectual property. It would also create a digital marketplace connecting buyers and sellers of intellectual property, alongside expert support to help companies bring their ideas to market. According to the Commission, these measures are expected to generate around €35 million in administrative cost savings and unlock €10.2 billion per year in additional financing through IP-backed venture capital and debt.
The Act would also establish a common procedure for R&D procurement, with the aim of providing greater legal certainty and helping new technologies reach the market more quickly, including those that could address shared societal challenges such as health, education and clean mobility. It is also intended to make it easier for public buyers from different Member States to carry out joint R&D procurement. The Commission says these measures are expected to generate €1 billion per year in savings for public buyers and €25.92 billion in additional annual profits for companies.
Regulatory sandboxes
Alongside the Innovation Act, the Commission has published a specific proposal on regulatory sandboxes. Regulatory sandboxes already exist in some areas of EU law, but the absence of a common European approach has created fragmentation and uncertainty. The proposed Council Recommendation seeks to address this by establishing a common EU reference framework for regulatory sandboxes in areas not yet covered by EU legislation. It would draw on lessons learned from Member States and existing EU initiatives, while giving innovators more room to test new solutions and ensuring that public interests remain protected.
