The upcoming Horizon Europe 2028–2034 initiative marks a pivotal moment for the European Union, shifting focus from mere research funding to a comprehensive strategy aimed at enhancing the continent’s industrial competitiveness. As Europe grapples with sluggish productivity and increasing capital outflows, the need for a robust industrial framework has never been more pressing. Orgalim, representing a significant portion of Europe’s engineering and technology sectors, emphasizes that this program must not only foster academic excellence but also bolster the industrial base essential for technological sovereignty.
Strategic Importance of Europe’s Industrial Sector
Orgalim’s advocacy highlights the critical role of industries that contribute approximately €2.7 trillion in annual turnover and employ over 11.5 million individuals across the EU. These sectors are foundational to advanced manufacturing, renewable energy technologies, and the processing of strategic raw materials, including lithium, which is vital for Europe’s battery supply chains. The organization argues that success should be measured not just by research outputs but by the ability to translate these into scalable industrial production and global market presence.
The Innovation Gap: Research vs. Industrialization
Despite Europe’s strong research capabilities and patent generation in fields such as hydrogen systems and advanced batteries, there remains a significant gap in large-scale commercialization. While Europe leads in innovation, it often falls short in deploying these advancements into practical applications, resulting in a growing dependency on external markets for industrial production. Orgalim asserts that Horizon Europe 2028–2034 presents an opportunity to address this disparity through systemic reforms rather than superficial changes.
Budgetary Considerations: Volume vs. Structural Reform
With an indicative budget of nearly €175 billion proposed for Horizon Europe, Orgalim acknowledges the importance of funding but stresses that mere financial resources will not resolve existing challenges. The focus must shift towards applied research and higher Technology Readiness Levels (TRLs) to ensure that funding translates into effective industrial outcomes. Without addressing governance structures and enhancing industrial engagement, additional funding could perpetuate inefficiencies.
Governance Reform: Aligning Industry with Policy
A key aspect of Orgalim’s proposal is governance reform aimed at integrating industry perspectives into Horizon Europe’s framework. Historically, program priorities have been shaped by political agendas rather than direct input from those involved in commercialization processes. To enhance innovation throughput, Orgalim suggests establishing an industry-led Technology Council that would align research initiatives with real-world market dynamics and regulatory environments.
Navigating the “Valley of Death” in Innovation
The transition from research breakthroughs to market-ready products remains one of Europe’s most significant challenges, often referred to as the “valley of death.” Orgalim calls for increased support during mid-to-high TRL phases where technologies related to lithium processing and clean manufacturing must demonstrate their viability. The introduction of an Industrial Innovation Booster is proposed to facilitate seamless transitions from applied research to full-scale industrial validation.
Competitive Risk-Sharing Mechanisms
Orgalim raises concerns regarding standardized funding caps that may hinder capital-intensive industrial research. European firms face stiff competition from global counterparts with more favorable public risk-sharing conditions. Without competitive funding structures, there is a risk that Europe will continue to finance early-stage innovations while allowing value creation to occur outside its borders.
Public-Private Partnerships: A Path Forward
The organization views public-private partnerships (PPPs) as essential conduits between European strategies and industrial execution. Effective long-term transformation in advanced manufacturing and clean technology requires stable frameworks that recognize both cash contributions and in-kind investments such as expertise and infrastructure. Misaligned funding requirements could stifle participation and innovation.
Prioritizing Applied Research
Orgalim advocates for allocating 60% of Horizon Europe’s budget to applied research under Pillar 2, emphasizing its significance in enhancing Europe’s competitive edge globally. While foundational research remains crucial, the continent’s weaknesses lie in scaling up innovations effectively within the context of supply-chain resilience and control over critical raw materials.
Investment in Key Enabling Technologies
The focus should be on sustained investment in key enabling technologies such as advanced manufacturing systems, automation, and digital infrastructure. These technologies are integral across multiple industries and can yield substantial economic returns while reinforcing Europe’s position in sectors like automotive and clean tech.
Horizon Europe: A Tool for Industrial Survival
Ultimately, Orgalim positions Horizon Europe 2028–2034 as essential for Europe’s industrial survival rather than merely a research initiative. The challenge lies in effectively translating EU-funded research into tangible production capacity and skilled employment within Europe itself. Without this translation capability, increased budgets risk subsidizing innovations that benefit foreign industries.
A Defining Moment Ahead
As negotiations progress, European policymakers face a critical decision regarding Horizon Europe’s role—whether it will primarily generate knowledge or serve as a strategic lever for industrial power amid global competition. Orgalim warns that without deeper integration with industry needs and a focus on applied research, Europe risks becoming a hub of ideas without corresponding industrial capacity.
