How do we close Europe’s innovation gap? Start with advanced connectivity and a strong intellectual property rights framework 

Do you think the European governments and industry leaders like Ericsson who began collaborating on the Global System for Mobile Communications (GSM) standard four decades ago could have envisioned the conversations we’d be having about advanced mobile connectivity today?  

Not likely, but times have changed.

The creation of a single cellular standard, which would have once felt like science fiction, has grown from something we dreamed of to the foundation of a mobile-first world. It has become a driving force behind major cross-industry trends such as electrification, decarbonization, resilient supply chains and industrial automation.

What we’re really talking about here is advanced connectivity that will enable European competitiveness.  As the cornerstone of digital innovation across Europe, it is a driver of Europe’s tech leadership, enabling progress in artificial intelligence (AI), quantum and clean tech. So, if advanced connectivity is vital, why are we treating it like an afterthought?

The European telecom market has suffered from an investment gap since the 4G era, with other regions securing digital leadership and seeing a stronger emergence of digital businesses. So, what needs to change? We need to prioritize advanced connectivity and create the conditions for it to thrive.

6G technology will be vital for driving the next innovation cycle that Europe needs to stay competitive with the US and China. Ericsson is already heavily investing in 6G research and leading the development of this next-generation technology, positioning itself as a key partner in securing Europe’s competitive edge on the global stage.

As Mario Draghi’s report on the future of European competitiveness makes clear, Europe’s telecoms sector needs significant investments if it is to remain strong. This means the right incentives to make those investments attractive, which in turn necessitates the right legal and regulatory framework to maximize the force and effect of European innovation.

What we need, therefore, is a ‘new deal for mobile’, with the same political focus and commitment to delivery that drove the GSM success over 40 years ago. At the heart of this should be reinforcing standardization and an intellectual property rights (IPR) framework that incentivizes innovation by rewarding inventors and protecting their rights.

Reinforcing global standardization for European innovation

Shared connectivity standards are crucial for driving innovation – but they also possess power beyond that, shaping the technology ecosystems that set the foundation for Europe’s economic growth and global influence.

Mobile networks are one such engine for growth. Every generational advance in connectivity starts a new wave of innovations because these are built on standardized technologies, and we want to see that continue.

With 3G, phones became smart; 4G led to the app revolution; and 5G is enabling everything from AI and self-driving cars to telemedicine. The standardization underpinning these advances in connectivity is achieved through the 3rd Generation Partnership Project (3GPP).

As a global European champion in the telecoms sector and a key contributor to 3GPP, Ericsson is actively leading the development of global standards for all major communication systems, creating the largest innovation platform for consumers, industries and society.

Advances in global connectivity coupled with global ubiquity have connected billions of people and contributed a significant proportion of global GDP. We want to see this growth continue, but to do so we need Europe to continue to lead by actively supporting the critical role that standardization plays in enhancing access to technology and innovation and promoting the participation of European companies in the process.

For European companies to continue to invest in innovation and contribute to the development of global industry-led standards, there must be fair compensation that can sustain the innovation cycle and corresponding investment needs. Draghi rightly emphasizes the critical role of patents in delivering these incentives and ensuring a return on investment for innovation.

Getting the IPR framework right now to unleash long-term innovation

EU policies adopted in the next five years will be foundational for Europe’s innovative ecosystem to thrive in the long term, improving conditions for the next wave of intellectual property lifecycles that can take over a decade to bear fruit.

A smart and strategic policy approach to standardization, security, future spectrum, research and AI will all play a role, as will improved investment conditions for advanced connectivity, but it ultimately comes down to how policy on IPR and innovation plays out in the new mandate.

If we want innovative companies to be able to effectively invest, protect and commercialize their research and development output, we need to ensure a robust, efficient and predictable IPR framework. Draghi’s report sees this clearly, calling for the simplification of IPR procedures, particularly through the support and further adoption of the unitary patent system.

To accelerate innovation and future-proof Europe’s competitive advantage, we need to avoid creating bureaucratic hurdles. But the proposed Standard Essential Patents Regulation threatens to do exactly the opposite, stifling Europe’s ambition to lead in global standardization and jeopardizing its status as a net exporter of innovations in advanced connectivity.

To support innovation, EU institutions must urgently reassess this regulation and reformulate its approach. This starts with improving on what we already have rather than upending existing systems.

We must take the opportunity to recognize the importance of European IPR and policies that strengthen the global standardization system. Serving the world well, that system also assures leadership, prosperity and security for Europe.

Only then can we ensure that innovation in telecoms continues to support European competitiveness.