This blog post is based on an article published in El País on the 16th of March 2025. The original article can be found here.
In an era of uncertainty, international tension, and eroding trust, Europe appears paralysed by its supposed inability to lead in key technological sectors. “Let them invent, then, and we shall benefit from their inventions,” said Miguel de Unamuno in 1906, expressing his reluctance that Spain needed to become an industrial power. Time has proven that this is not the path to follow. Crucially, the lack of technological leadership is not merely an economic problem, but also a threat to EU’s security.
The numbers speak for themselves. Under the Lisbon Strategy, the EU set a target of investing 3 percent of GDP in Research and Development (R&D), yet spending has persistently fallen short, stagnating at just over 2 percent. Meanwhile, economies such as South Korea and the United States allocate 5.2 percent and 3.6 percent, respectively. The gap is even more pronounced in the private sector. Unlike in the US, where nearly 80 percent of R&D expenditure comes from businesses, in Europe, companies contribute just 66 percent of the total. The contrast is particularly alarming in sectors at the technological frontier, where investment across the Atlantic is nearly two and a half times higher than in Europe – widening the productivity gap between the two economies.
Europe’s R&D deficit carries not only economic consequences but also security concerns. Today, advanced computing, artificial intelligence, and the rapid and secure transmission of data are critical to national defence. Moreover, the traditional flow of technological innovation, where military advancements trickle down to the civilian sector, is likely to reverse. In the near future, it will be military firms integrating breakthroughs from civilian industries, not the other way around.
The most advanced AI systems, which will be decisive in security matters, are being developed by private companies. As a result, the interplay between civilian and military technology will become far more pronounced. If the chips in our smartphones end up being more powerful than those in military aircraft, the ability to defend ourselves will hinge on whether we have a thriving ecosystem of cutting-edge civilian tech firms.
The recent shifting tides of international alliances have underscored the consequences of underinvesting in security – whether in operational support, cybersecurity, or military equipment. In absolute terms, the US spends nearly a trillion dollars annually on defence, while all EU countries combined allocate just $344 billion. This stark disparity leaves Europe heavily reliant on external allies, particularly on an increasingly unpredictable United States.
A change of course is urgently needed. The EU must ramp up its R&D and defence investment to approach 8 percent of GDP. A recent study by ECIPE estimates that this would require an additional €315 billion in R&D spending and €380 billion in defence investment – amounting to a total increase of nearly €700 billion. Countries lagging behind the EU average would need to make an even greater effort.
Boosting research and development, will require a reallocation of resources. It is crucial that political leaders make clear that Europe’s security and technological progress depend on these investments. A commitment to a pioneering and resilient Europe must be matched by political leadership that believes in the EU’s economic future and security.
The time has come to put an end to the era of “Let others invent and defend us” and start a new phase – one where Europeans invest in their own prosperity and security.