Europe is falling behind other parts of the world when it comes to technology, whether that’s in venture capital funding or innovation. That’s soon going to compromise the region’s security, predicts Wolfgang Ischinger, a top German diplomat and former head of the Munich Security Conference.The continent is “definitely not in good shape” in its attempts to keep pace with defense and security technology, Ischinger told Politico.“This, I think, is probably the single biggest long-term challenge for the European Union: the technological gap,” he said. Europe’s security concerns have heightened in recent years following Russia’s invasion of Ukraine, prompting the European Union to increase defense spending. Brussels allocated €7.3 billion for defense-related technology investments between 2021 and 2027, including automation software, 5G networks, and more, Wired reported. Despite the recent move from Europe to up its defense game, the region still has a long way to go before it can match up to its peers in China or the U.S.“My optimism is somewhat limited, because I don’t think that government institutions, whether they’re at the national level or at the EU level, can actually do it,” Ischinger said. These comments come straight from the horse’s mouth—Ischinger was a former German ambassador to the U.S. and has advised Europe on defense, security, and foreign policy for much of his career. He also led the Munich Security Conference, dubbed “Davos with Guns,” for 14 years. The conference, held every February, brings the world’s top leaders together on matters of international security, and is now led by NATO Secretary General Jens Stoltenberg. Is the ‘Europe falling behind’ narrative too old?The story of Europe falling behind the U.S. and China is hardly new.CEOs have been weighing in on the subject for many years. Finnish giant Nokia’s CEO Pecca Lundmark wrote in a Fortune column in July that Europe’s innovation engine was “running low on steam” and it needed to “master new technologies” to become competitive again. In a recent podcast interview with the Financial Times, the Norwegian sovereign wealth fund’s CEO Nicolai Tangen highlighted that Europe is “far behind” because it has few large tech companies. “Will we manage to catch up? I’d be surprised if we did. Instead, what we do is to put in place a lot of regulation,” he added. The brewing concerns about Europe’s tech ecosystem are not unfounded. Even the European Central Bank’s Mario Draghi highlighted what the region is losing out on in a scathing report last month. The stakes around national security and the global AI race are ramping up quickly, too. At least Europe can be proud of its high regulatory standards, which seem to be inspiring the world. The danger is balancing that without making it a deterrent to the region’s tech progress.Recommended newsletter Data Sheet: Stay on top of the business of tech with thoughtful analysis on the industry's biggest names. Sign up here.
