European Regions

In Europe, innovation driven by regions in France, Germany and the Netherlands

Stuttgart wins for investments, Ile de France for training, Brabant-Wallon for researchers, the Dutch Utrecht for infrastructure. Lombardy ranks first in Italy, but is only 39th in the Regional Innosystem Index 2024 Thea

by Anna Migliorati

18 June 2024

4' min read

4' min read

It is in the France-Germany-Netherlands triangle that the heart of innovation in European regions lies, with the Italians remaining on the margins. This is the map that emerges from the Regional Innosystem Index 2024 drawn up by The European House - Ambrosetti, which evaluates the performance of the innovative ecosystems of 242 European regions. A heart that is firmly French, with Ile-de-France confirming its first place (with a score of 7.37 on a scale of 1 to 10), followed by the Stockholm region, which gains one position compared to 2020, ahead of Denmark's Hovedstaden, while Finland's Helsinki-Uusimaa drops off the podium. A sign that innovation does not always rhyme with northern Europe. But certainly with targeted policies.

Four parameters

Looking at the four parameters examined, i.e. economic development, human capital, talent for innovation and digital infrastructure and technology, the game is all played out within a handful of kilometres in the heart of Europe. For research and development, the podium is made in Germany with Stuttgart, Braunschweig and Tübingen occupying the top three positions. For human capital, it is the Ile de France that excels, with eight universities in the top 100 in Europe and the highest GDP in the EU. For talent for innovation emerges Brabant Wallon in Belgium. Finally, for infrastructure, it is the Utrecht region in the Netherlands that comes out on top.

REGIONAL INNOSYSTEM INDEX 2024 E 2020

The first Italian in 39th place

The Italian regions are not among the top of the class. In the overall ranking, the first to appear is Lombardy in 39th place, gaining a few steps up from 43rd place in the Regional Innosystem Index 2020, followed by the Autonomous Province of Trento in 48th place, while the 49th region in Europe for innovation is Lazio.

Also in the top 100 are Emilia-Romagna in 76th place, Piedmont 82nd, Tuscany 90th and Friuli-Venezia Giulia 97th. Among the last in the ranking, however, Sardinia is 175th, Apulia 178th, Basilicata 179th, Sicily 180th, and Calabria 191st. Behind, the last European positions fall to Greece with Ionia Nisia closing the ranking.

The recipe for innovation that translates into economic development in Stuttgart, capital of the federated state of Baden-Württemberg with 2.8 million inhabitants, passes, explains the study by The European House-Ambrosetti, from its supremacy in terms of investment in research and development. From here comes 16% of the research expenditure of the whole of Germany, which translates into wealth in an ecosystem that holds together innovative research and the industrial system.

Among the Italians, Emilia-Romagna ranks first in the Regional Innosystem Index 2024 for R&D expenditure, 59th in Europe, followed by Piedmont and Lazio. When it comes to patents, however, the leading region is Lombardy, tenth in Europe. But the gap is not small: Upper Bavaria, still in Germany, is first in the ranking and files almost five times as many patents.

Lithuania leads the way in supporting human capital

When looking at the human capital to focus on for innovation, the European regions with the highest percentage of graduates are Sostinės in Lithuania, Walloon Brabant in Belgium and Warszawski Stołeczny in Poland, with rates of over 60 per cent. The top Italian regions appear after the 150th position, with Lazio on the top step followed again by Lombardy and Emilia-Romagna.

Lithuania's winning recipe is called financing. Here, the policy implemented in recent years guarantees financial support for those from low-income families to continue their studies up to the highest grades. And as of this year, the financial parameter falls away altogether, with merit being the only indicator for financial support for education. Funding that, among other things, also leaves the doors of education open to those with a few years behind them, recognising the importance of an evolving education.

A policy that also pushes the Swedish regions up in the European rankings when it comes to innovation, where education reaches the highest rates among adults, according to the principle of lifelong learning. A cornerstone when it comes to innovation.

The ability to attract talent

But it is in talent that Italy lags behind. In terms of researchers committed to being a driving force for research, in addition to the leading region of Brabant Wallon in Belgium, the regions of Budapest and Prague win. Among the Italians, the highest rate of researchers in relation to the population is in the Province of Trento, which, however, only ranks 55th among European regions, followed by Lazio, 66th, and again Emilia-Romagna at 73rd. If, in addition to research, we consider workers employed in the scientific and technological sectors, the Italian regions all fall in the second half of the ranking, with Lazio in first place at 118th.

Once again, it is the policies put in place that make the difference. Prague's winning strategy is to have become the epicentre of Czech start-ups and technology companies, due to the relatively low cost of living, favourable tax rates and strategic positioning in Europe. Innovation in IT security, software and hardware development in the Czech government's plans should take off between now and 2030.