Revitalizing Europe’s Tech Sector: A Transatlantic Approach

By Ylli Bajraktari & André Loesekrug-Pietri – Project Syndicate

Europe stands to benefit significantly from establishing a concrete, technology-focused relationship with the United States. A thriving, technologically advanced Europe is also beneficial for America. As China advances its global tech agenda, it is crucial for these old allies to align their strategies.

As the tech revolution accelerates, Europe finds itself lagging behind, especially in AI, which poses a risk not only to Europe but also to the Western alliance. The rise of technology-focused ambitions in other regions could lead to Europe becoming digitally irrelevant if there isn’t a revitalized transatlantic partnership prioritizing technology.

The ongoing dominance of US tech giants has left Europe with few champions in the AI landscape. This is not due to a lack of talent, but rather the result of fragmented markets, cautious investment climates, and a regulatory environment that stifles innovation. Consequently, Europe has become increasingly reliant on external technologies, which limits its ability to influence the digital future according to its values.

For the US, a weaker Europe implies a less capable partner in tackling global challenges. As such, both the US and Europe realize that they need each other’s strengths. Emerging tech hubs in East Asia and the Middle East signal a shift in global technology power dynamics, which Europe must address to regain its competitive stance.

China’s ambitions in AI dominance by 2030 present the most significant challenge. The Chinese “Digital Silk Road” initiative is expanding its technological influence, and failure for the US and Europe to propose an alternative could mean the world’s digital infrastructure leans towards authoritarian models.

A clear strategy is necessary, proposing a transatlantic technology pact that fosters a positive AI agenda—focused on advancing science, improving healthcare, and facilitating environmental initiatives. Europe is recognizing the need for change through various initiatives, including the Draghi report, the Paris AI Action Summit, and NATO discussions.

This new transatlantic approach should prioritize joint R&D in critical AI technologies and workforce development, emphasizing cooperation and the pooling of resources. Existing mechanisms, such as the Joint European Disruptive Initiative and the NATO Innovation Fund, can be leveraged to ensure competitiveness in strategic technologies.

Interoperability in defense technologies is also critical, especially as both regions move towards reindustrialization—a chance to enhance collaborative efforts in digital systems and supply chains. Investment in a shared digital infrastructure will provide the needed backbone for AI ambitions.

The transatlantic cooperation should demonstrate an alternative to China’s digital growth, particularly in developing nations, through open-source technology and democratic values. Moreover, rejuvenating democracies in both regions is essential to lead in technological advancements rather than react to external challenges.

Ultimately, a Europe that shifts from being a mere consumer to a creator of critical technologies will elevate its global voice and influence.