MEP Angelika Niebler - We must ensure that Europe not only competes – but leads – in global health and science innovation
The life sciences sector plays a vital role in Europe’s journey towards greater innovation, resilience, and global competitiveness. As we stand at a crossroads shaped by geopolitical uncertainty, it is clearer than ever that fostering a strong, self-reliant, and future-ready pharmaceutical industry is essential—not only for our economic well-being but for the health and security of our citizens.
The whole industry contributes over €120 billion annually to the EU’s GDP and employs more than 850,000 people directly, with millions more supported indirectly. Europe accounts for approximately 22% of global pharmaceutical R&D expenditure, second only to the United States. However, the gap is widening: in 2020, the U.S. invested €72 billion in pharmaceutical R&D, while the EU invested €39 billion—a disparity that Europe cannot afford to let grow.
The EU has traditionally been a global leader in health innovation, but rising regulatory complexity, investment fragmentation, and global competition now threaten our position. In this context, the strategic importance of sites like Daiichi Sankyo in Bavaria, which employs over 1,000 people and plays a key role in global oncology research, cannot be overstated.
To safeguard and strengthen Europe’s role in global innovation, we must modernize our regulatory landscape. This begins with the Competitiveness Compass, which provides a clear path toward simplifying rules, boosting industrial productivity, and cutting red tape that stifles innovation. For example, businesses in the EU currently face administrative costs that account for nearly 4% of GDP, and pharmaceutical companies often wait 150–250 days longer than their U.S. counterparts for new medicines to be approved. Streamlining these processes is not just beneficial—it’s necessary.
The new Competitiveness Coordination Tool promises better alignment between EU and national-level industrial and research investments. Manufacturing of critical medicines—some of which are now at risk due to supply disruptions — will be among the first focus areas, ensuring Europe can respond more effectively to health crises and reduce dependence on external suppliers.
The proposed European Biotech Act will be pivotal in creating a regulatory framework that supports innovation in biotechnology and facilitates modern approaches to clinical trials and health technology assessment. Public and private biotech investment in Europe currently lags behind the U.S. by almost €15 billion annually—a gap we must bridge to remain competitive.
Public and private biotech investment in Europe currently lags behind the U.S. by almost €15 billion annually—a gap we must bridge to remain competitive
In parallel, the Union of Skills initiative will help develop the next generation of talent, particularly in STEM disciplines. By 2030, Europe will need 20 million ICT specialists to meet demand, yet we currently face a shortfall of over 11 million. Addressing gender imbalances and making STEM careers more attractive will be essential.
Digitalisation and advanced technologies also present enormous opportunities. The upcoming Apply AI Strategy aims to integrate artificial intelligence into industrial processes, including pharmaceutical R&D and manufacturing. AI in healthcare alone could save the EU over €200 billion annually through improved diagnostics, predictive modelling, and personalized medicine.
The ITRE Committee’s proposals for the upcoming 10th Framework Programme (FP10) will set the stage for the next wave of European innovation. Building on the success of Horizon Europe, FP10 must focus on better coordination with industry, increased funding for health innovation, and reducing fragmentation of research efforts across member states.
Summarized: The pharmaceutical sector plays a critical role in responding to medicine shortages, developing breakthrough therapies, and addressing unmet medical needs. We must succeed together to remove structural barriers, foster a thriving innovation ecosystem, and restore Europe’s competitive edge. Only together can we ensure that Europe not only competes—but leads—in global health and science innovation. Let us seize this opportunity to build a resilient, forward-looking Union that prioritizes the health and prosperity of its citizens. The time for bold action is now.
MEP Niebler visits Daiichi Sankyo’s site in Pfaffenhofen, Bavaria
Dr. Martin Fensch - Europe stands at a pivotal moment. The pharmaceutical sector can play a leading role to support the vision of making Europe an innovation leader on the global stage
Europe is at a crossroads navigating an era of undergoing change with international trade at a slower pace, fracturing geopolitics, health emergencies and stagnating economies.
Europe has the science, the technology, the talents, the infrastructure, however latest evidence from recent EU-wide studies, such as Draghi’s EU competitiveness report, and Letta’s report on the Single Market’s future confirm that Europe’s innovation and attractiveness is falling behind global regions. In particular, Europe is competing globally to attract research investment as a location for life science, clinical trials, for manufacturing and as a location to launch innovative medicines.
The new European mandate and its leadership can work to reposition Europe as a leading attractive region for research, innovation and industrial competitiveness securing strategic capabilities. However, the current legislative environment is fragmented and leading to contradictory and incoherent policies that negatively affect life science companies operating in Europe. For example, Germany has seen a decline in clinical trial starts, which has in part, been attributed to extensive negotiation times between companies and research institutions, and highly stringent data protection laws which may slow patient recruitment.
Europe has long history with its first-class research talents, significant R&D infrastructures and outstanding technologies. By prioritising investment in research and creating incentives, harmonising policies and streamlining processes between EU Member States, Europe can build a well-functioning innovative ecosystem.
The current legislative environment is fragmented and leading to contradictory and incoherent policies that negatively affect life science companies
operating in Europe
Additionally, the uptake of innovative health technologies (m-RNA, gene therapies, ADCs), integrating digital solutions and introducing better conditions for biotech funding can be enablers to boost European leadership in the sector. Cooperative efforts among start-ups, larger companies, research teams and healthcare providers could nurture innovation needed to give patients new options and to optimize existing treatment and to make healthcare systems more efficient. Strategically it will be important to shape now those infrastructures that allow Europe to be the place for the technologies of tomorrow, not as a follower, but as leader.
The pharmaceutical sector and its economic footprint can be pivotal to support the vision of making Europe an innovation leader in the global stage. At Daiichi-Sankyo, we recently invested €1bn until 2030 to expand our production and development site in Pfaffenhofen, Germany, further committing towards the development and manufacturing of top-quality pharmaceutical goods to meet increasing patient demands and demonstrating our vision for Europe’s competitiveness growth.
While transforming our manufacturing plant in an international innovation center, we recognise the need to find solutions that reduce the environmental impact of pharmaceutical processes and products without threatening access to life-saving treatments. However, regulations like the Urban Waste Water Treatment Directive, which disproportionately targets only human pharmaceuticals and cosmetics to cover pollution costs, fail to encourage greener practices across all sectors, undermining the European Green Deal.
Investing in health isn’t just a societal must—it’s a potent catalyst for economic vitality and a crucial component of environmental sustainability. Europe stands at a pivotal moment to shape a comprehensive strategy that harmonises and revitalises its policy framework, with the pharmaceutical sector well-positioned to drive this renewed ambition for innovation and leadership.
By bringing together EU decision- makers, industry leaders, patient groups, and healthcare professionals, we can collaboratively achieve the ambition to enhance healthcare outcomes across our continent.
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