STRENGTHENING EUROPE’S DEEPTECH ECOSYSTEM: CHALLENGES, PRIORITIES, AND STRATEGIES FOR INCLUSIVE GROWTH

The DeepTech sector in Europe, encompassing startups with high technological content (AI, robotics, blockchain, biotech, quantum computing, etc.), plays a strategic role in the EU's competitiveness and digital sovereignty. Despite numerous initiatives launched across various Member States, the ecosystem remains unevenly distributed, with regional disparities, varying levels of access to resources, and insufficient cross-border collaboration.

Findings from the AccelerAction EU project highlight that incubators and accelerators play a crucial role in supporting DeepTech startups—provided they align with the EU’s priorities, including sustainable development, gender equality, and territorial cohesion. This analysis explores the barriers and opportunities to establishing a truly European DeepTech ecosystem—one that is more inclusive, competitive, and capable of addressing major societal challenges.

1. Emerging Challenges for DeepTech in the EU: Untapped Potential

DeepTech is at the forefront of innovation in critical areas such as the green transition, advanced healthcare, and cybersecurity. European startups in AI, biotech, and quantum computing demonstrate that the EU possesses world-class scientific and entrepreneurial resources. However, a persistent challenge remains: startups often struggle with a lack of visibility and cooperation at the European level, limiting their potential to scale into global industry leaders.

Research from AccelerAction shows that in high-innovation countries (such as France, Sweden, Estonia, Portugal, and Ireland), proactive public policies have successfully fostered growth through initiatives like special visas, tax incentives, and national incubation programs. However, less innovative regions face difficulties in accessing these resources or integrating into international networks. For DeepTech, in particular, shared infrastructure and easy access to key players (labs, corporations, investors) can mean the difference between an isolated project and a hyper-growth startup.

The EU’s New European Innovation Agenda seeks to address these gaps by emphasizing skills development, cross-sector collaboration, and support for traditional SMEs to accelerate the adoption of DeepTech solutions.

Additionally, the notion of technological sovereignty is becoming crucial. European innovations must not rely entirely on non-EU platforms or technologies. With fierce global competition in AI and blockchain, the EU must build a robust internal ecosystem capable of developing hardware, software, and services that align with European values and regulatory frameworks. Achieving this will require:

✅ Massive investment in fundamental and applied research.

✅ Stronger synergies between universities, research centers, and industry.

✅ A unified governance framework to coordinate national strategies effectively.

2. Incubators, Accelerators, and Public Policies: Lessons from AccelerAction

Incubators and accelerators—key support structures for early-stage startups—play an essential role in driving innovation. The AccelerAction EU project, funded under Horizon 2021-2027, identified best practices and issued operational recommendations to enhance the impact of these organizations.

✅ Long-term and selective funding: Short-term financing (one-year programs) forces incubators to focus more on securing funding than on mentoring startups. Multi-year funding (three years or more) enables stronger competency-building, reliable partnerships, and well-established networking opportunities.

✅ Targeted distribution of funding: Resources should prioritize high-impact incubators and accelerators specializing in key sectors (AI for health, green robotics, quantum computing, etc.). Simultaneously, emerging structures should receive mentorship and networking support from more experienced organizations.

✅ Collaboration over competition: The DeepTech ACT online ecosystem, launched under AccelerAction, demonstrates the benefits of connecting high-innovation and low-innovation regions. Cross-border networking enhances access to investors, IP management expertise, and advanced production methods. This model ensures that startups in less-connected regions gain visibility, while well-established entrepreneurs discover new talent, supply chains, and niche markets.

✅ Public-private partnerships: Involving corporations, universities, and regional governments creates more sustainable support programs, ensuring access to state-of-the-art infrastructure and potential public procurement contracts. This combined institutional and entrepreneurial approach has driven success in ecosystems like Stockholm, Paris, and Lisbon.

3. Promoting Gender Equality and Diversity in DeepTech

One of the key areas for improvement is gender diversity in entrepreneurship. The AccelerAction EU project confirms earlier findings: 📉 Less than 15% of DeepTech startups are founded or co-founded by women.

📌 Why?

➡ Gender biases in STEM fields (Science, Technology, Engineering, and Mathematics).

➡ Limited access to venture capital funding.

➡ Lack of visible female role models in the industry.

However, studies show that higher female participation leads to more innovation, improved performance, and stronger job creation.

Policy and business recommendations:

🚀 Targeted programs in incubators and accelerators, including leadership training, mentorship for female founders, and awareness modules addressing biases in recruitment and investment.

🚀 Public policies supporting work-life balance, such as affordable childcare, financial literacy programs, and entrepreneurship education for women in universities and high schools.

🚀 Incentives for VCs and investors to increase funding for female-led DeepTech startups, thus diversifying innovation and boosting Europe's creative potential.

Fostering gender inclusion in DeepTech is not just a social imperative—it is an economic advantage that strengthens the EU’s competitiveness.

4. Towards a Unified European DeepTech Framework

Based on AccelerAction’s findings and successful policies in leading countries (France, Portugal, Sweden, etc.), several policy directions emerge:

📌 Create a pan-European coordination body A central EU agency should standardize best practices, align objectives, and streamline networking across the ecosystem. Supported by the European Commission and Member States, this body could:

✅ Certify incubators and accelerators based on quality criteria (sectoral expertise, mentor qualifications, etc.).

✅ Develop standardized performance metrics to evaluate the effectiveness of DeepTech initiatives.

✅ Encourage cross-border cooperation through shared funding mechanisms.

📌 Encourage interdisciplinary innovation DeepTech thrives on cross-sector applications:

✅ AI + biotechnology

✅ Robotics + blockchain

✅ Engineering + creative industries

The EU should introduce interdisciplinary grants and collaborative challenges, incentivizing incubators to foster hybrid innovations.

📌 Align DeepTech development with broader societal goals DeepTech programs should integrate EU sustainability and resilience objectives, such as:

✅ Carbon neutrality initiatives.

✅ Energy security and renewables.

✅ Circular economy and smart manufacturing.

Sweden’s model—combining green incentives, tax benefits, and regional networking programs—illustrates the economic and environmental benefits of such a strategy.

📌 Enhance global visibility and market expansion To attract top talent and investors, the EU should:

✅ Expand startup visa programs to encourage highly skilled entrepreneurs to establish businesses in Europe.

✅ Offer market-entry support for European DeepTech companies seeking international expansion.

✅ Leverage EU trade agreements to open non-EU growth opportunities for European startups.

Conclusion

Europe’s DeepTech ecosystem holds immense potential to drive growth and technological independence. However, as highlighted by the AccelerAction EU project, success depends on:

🔹 Stronger collaboration across Member States.

🔹 Well-funded, long-term incubator programs.

🔹 A clear governance structure for scaling innovations.

🔹 Greater diversity and inclusion in entrepreneurship.

To remain competitive, Europe must support sustainable DeepTech aligned with societal goals while ensuring that talent and innovation flourish across all regions. A proactive approach—combining public and private investment, regulatory support, and a pan-European coordination framework—will unlock the full potential of European DeepTech, securing its place as a global leader in high-tech innovation.

🔗 EU Innovation Strategy: New European Innovation Agenda

#DeepTech #AccelerAction #Innovation #Competitiveness #Inclusion #DigitalSovereignty #Startups #EuroScope