INESC TEC contributes to shaping the European strategy for start-ups and scale-ups

More funding and flexibility in proof-of-concept programmes, reduced regulatory and bureaucratic complexity, tax incentives and simplified investment conditions to attract international capital, reduction of regional disparities in access to finance, and promotion of consortia within the European Union – these are some of the actions proposed by INESC TEC to overcome the barriers that still hinder the growth of European start-ups and scale-ups.

With extensive experience in technology transfer, the creation of tech-based companies, and active participation in international projects, initiatives, and collaborative networks, INESC TEC recently contributed to the debate on the new European strategy for start-ups and scale-ups, responding to the European Commission’s call for input through the public consultation “Have your say”.

The Institute shares a clear perspective, which is available online, on the challenges these companies face. It presents a concrete set of suggestions to overcome those challenges based on decades of accumulated knowledge in innovation and deep-tech entrepreneurship. “Despite the recognised European talent in research and development, start-ups continue to face major difficulties,” says João Claro.

According to the Chairman of the Board at INESC TEC, access to finance, regulatory and bureaucratic complexity, market-entry, talent attraction and retention, the availability of technological infrastructure to validate solutions, and international visibility and competitiveness – particularly when compared to markets such as the US or China – are among the main obstacles to the development and expansion of new tech-based businesses in Europe.

“Effectively addressing these challenges is crucial to boosting tech-based entrepreneurship across Europe and creating conditions that allow companies to grow, scale, and contribute significantly to technological and economic progress,” João Claro emphasises.

In this context, INESC TEC proposes specific measures to the European Commission, including expanding and making more flexible the funding mechanisms for proof-of-concept, inspired by successful models implemented in the UK and the US; simplifying conditions for international investment; streamlining and enhancing the efficiency of European regulatory processes; promoting structured collaborations between scientific teams and experienced entrepreneurs; and strengthening investment in infrastructure and highly specialised acceleration programmes.

“We also recommend reducing the disparities in available funding across EU regions, providing greater uniformity and clarity in the incentives offered to international investors, as well as strongly encouraging the creation of European consortia that facilitate the integration of these new companies into strategic global value chains,” adds the INESC TEC Chairman.

João Claro concludes that, with policies targeted at funding, market access, and structured support for deep-tech entrepreneurship, “Europe can build a more competitive ecosystem for start-ups, capable of accelerating technological innovation and promoting sustainable economic growth.”

The European Commission’s initiative “Have your say – Public Consultations and Feedback” on the European strategy for start-ups and scale-ups closed on 17 March, receiving nearly 600 contributions, which are available to consult online.