The EC continues to support competitiveness through the Startup and Scaleup Strategy

The strategy proposes a series of actions aimed at boosting the innovation environment and supporting talented innovators.

At the beginning of her term, European Commissioner for Startups, Research, and Innovation, Ekaterina Zaharieva, received a mission letter outlining several key tasks. These aim to harness research and innovation as drivers of the European economy, while providing the research community with the right conditions and resources. A cornerstone of this vision is the newly published Startup and Scaleup Strategy (subtitled Choose Europe to Start and Scale), which also responds to long-term priorities outlined in the Draghi Report. The strategy proposes specific measures at both the European and national levels—from improving financing and talent support to more effective technology transfer, better access to infrastructure, and removing regulatory obstacles.

Supporting the innovation environment and removing regulatory barriers

Complex and fragmented regulations are hindering innovation and the growth of young companies. The strategy therefore proposes simplifying and harmonizing rules, including the introduction of so-called regulatory sandboxes for testing new technologies, and the consistent enforcement of existing digital regulations across Member States. A key tool will be the creation of the so-called 28th Regime – a special legal framework offering startups an alternative to national rules. This regime should enable company formation within 48 hours, lower the cost of potential failure, and cover areas such as labor, tax, and insolvency law.

Improving funding conditions for Startups and Scaleups

European startups have long suffered from a lack of growth-phase financing. For example, in the U.S., late-stage financing is about seven times larger. To close this gap, the EU plans to launch a public-private Scaleup Europe Fund to support promising tech firms in expanding and preparing for IPOs. Additionally, the Commission wants to simplify access to venture capital and encourage private savings to flow into investments through the Capital Markets Union and the Savings and Investment Union.

Technology Transfer and market uptake

One of the strategy’s most significant new initiatives is Lab to Unicorn, aimed at facilitating the creation of companies from academic and research environments. The Commission is addressing a traditionally weak point of the European ecosystem—its ability to quickly bring research to market. The initiative will be implemented through European Hubs for Startups and Scaleups, supporting university spin-offs.

This includes supporting so-called venture builders within universities and research organizations to help with the entrepreneurial aspects of scientific projects. The strategy also proposes clear frameworks for revenue-sharing from licenses and patents to streamline and accelerate commercialization.

Talent support

The lack of skilled workers is one of the main barriers to the growth of European startups. The strategy therefore promotes easier mobility of talent from both within Europe and third countries. It proposes simplifying the rules for hiring foreigners and introducing the Blue Carpet tool—a residence and work permit for highly qualified professionals.

Access to Research and Technology Infrastructures

Infrastructure often poses a barrier for startups due to high costs and difficult access. The strategy supports connecting startups with research centers and universities, creating an Access Charter for industrial users, and strengthening the role of innovation centers and incubators. The goal is to better share resources and knowledge across the European innovation ecosystem and reduce initial barriers to market entry.

The strategy emphasizes practical implementation, which will be measured using key performance indicators (KPIs) such as the speed of company formation, investment volumes, or the number of new spin-offs. The first evaluation is scheduled for 2026, when the Commission plans to publish its first report on the impact of the measures.

You can find the full strategy on the European Commission's website.

A simplified infographic of the Strategy is also available on the European Commission’s website.