Europe at a Crossroads: The Leadership to Scale Innovation and Shape the Future
Europe at a Crossroads: The Leadership to Scale Innovation and Shape the Future
Europe stands at a strategic inflection point. The continent that once set the pace of global progress now risks falling behind—not for lack of ideas, but for lack of acceleration.
In a recent panel discussion at our Alumni Executive Summit, Fredrik Persson, Chair of BusinessEurope, delivered a candid, compelling analysis of Europe’s global position. Over 80% of legislation affecting Swedish companies comes from the EU. Persson’s central warning is clear: Europe regulates faster than it grows. That imbalance is unsustainable.
“In too many cases, compliance teams are now the same size as R&D. That is not sustainable.”
Our panel consisted of:
Fredrik Persson
President of BusinessEurope and a leading voice on European competitiveness.
Hélène Barnekow
Non‑executive board professional and Partner at leadership consulting firm, Gaia Leadership.
Martin Lundqvist
CEO of Arundo Analytics, a company specialising in AI-driven analytics solutions.
Thomas Nilsson
Lieutenant General Thomas Nilsson leads Sweden's military intelligence and security operations.
A mindset shift
Persson pointed to a need for leaders to shift mindsets toward smart growth, responsible innovation, and strategic courage. Without this change, Europe risks losing relevance in the next industrial revolution.
The issue isn’t lack of innovation. Europe still invents, especially in green technology and artificial intelligence. But the critical gap lies in scaling. “80% of European start-ups move to the US to commercialise”, he stated. The question for leaders is not whether we can innovate, but whether we can accelerate. What is needed is to build the economic engine, necessary to turn invention into impact.
Persson argues that overregulation dampens Europe’s dynamism.
“In five years, the EU made 13,000 legislative proposals compared to 3,500 in the US. The regulatory burden is not just a bureaucratic hurdle; it is a strategic handicap.”
Persson is not calling for deregulation but for smarter regulation. The rules should enable, not inhibit. The system must see innovation as a societal good to champion, not just a risk to manage.
And herein lies the leadership imperative. Europe’s leaders—in politics, business, and boardrooms—must summon the clarity and courage to rebalance. Economic growth is not a trade-off with values—it is the foundation of Europe’s influence, security, and sustainability.
As Persson aptly notes: “If Europe had matched US growth rates over the past 20 years, our defence budgets would be vastly larger. Growth matters for security, too.”
In a world shaped by great-power competition and rapid technological change, Europe does not need to be a military superpower. But it must become an economic one—a force setting global standards in ethical AI, green transition, and inclusive digitalisation.
That starts with leadership that is willing to challenge the status quo. Boardrooms should prioritise innovation alongside integrity. Institutions must simplify, not add to, complexity. A new generation of leaders should see growth as a strategic necessity, not just an economic abstraction.
Crucially, Persson broadens the lens to a dimension often overlooked in European debates: China. “We talk endlessly about the US, but rarely about China—despite its extraordinary rise” , he says.
Persson notes that China has moved rapidly from imitation to world-leading innovation. Industries once dominated by Western players are now being redefined by Chinese advancements in AI, green tech, and digital infrastructure. Europe cannot afford to remain passive or distracted.
Persson calls for smarter interdependence and proactive positioning. Rather than mirroring US policy or ignoring China’s role, Europe must develop its own strategic posture—one that defends its interests, leverages its values, and engages with clarity, not complacency.
“Europe doesn’t have to be a military superpower—but it must be an economic force. Innovation is not just business; it’s our contribution to safety, sustainability, and influence.”
The global equation is shifting, and Europe must decide whether it will be a shaper or a spectator. The leadership moment is now.
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