Ericsson and Nokia have launched an urgent call to industry and policy makers to secure Europe’s technological future. At a summit held in Brussels, both companies, together with ASML and SAP, highlighted the need to boost innovation, investment and technological leadership to maintain European competitiveness on the global stage.
The summit, called “New Industrial Ambition for Europe”, brought together prominent political and business leaders, including Henna Virkkunen, Executive Vice President of the European Commission for Technological Sovereignty, Dariusz Standerski, Deputy Minister of Digital Affairs of Poland, and the former Prime Italian Minister Enrico Letta. Also participating were Börje Ekholm, president and CEO of Ericsson; Pekka Lundmark, president and CEO of Nokia; Christian Klein, CEO of SAP; and Christophe Fouquet, CEO of ASML.
During the event, the implementation of the recommendations of the Draghi and Letta reports was discussed, which propose measures to foster innovation, incentivize investment in key technologies and reduce fragmentation in Europe. The Draghi Report, published in September 2024, and the Enrico Letta report, presented in April 2024, underline the need to accelerate investments in advanced connectivity infrastructure to guarantee Europe’s future.
Ericsson and Nokia: Europe’s technological future
The European technology sector is lagging behind the United States and China. In 2023, R&D spending by major US technology companies was equivalent to 50% of all European R&D spending in technology and other areas. This gap contributes to a 20% annual productivity disadvantage. American companies invest 60% more in R&D and lead productivity growth, which puts European competitiveness at risk.
Summit participants highlighted the importance of taking urgent political measures to safeguard European competitiveness in technological development. They stressed that secure and reliable networks are essential for Europe’s economy and future innovation. Furthermore, advanced connectivity is essential for defense digitalization. The 5G Security Tool Box must be extended to all telecommunications technologies and its implementation must be completed in all Member States.
Ericsson and Nokia make an urgent call to European industry and policy makers to secure Europe’s technological future
For their part, Börje Ekholm, president and CEO of Ericsson, and Pekka Lundmark, president and CEO of Nokia, called for urgent action to support the European technology sector. This summit marked the first time that Ericsson and Nokia came together to drive a joint initiative, underscoring the importance and urgency of the issue. Enrico Letta, president of the Jacques Delors Institute and former Italian prime minister, said: “Europe must accelerate investments in advanced connectivity infrastructure to guarantee its future. “The leadership demonstrated by companies such as Ericsson and Nokia is commendable, but it is essential to enable further consolidation of telecoms companies and prioritize substantial investments in advanced connectivity.”
Meanwhile, Börje Ekholm highlighted the urgency of the situation: “Companies like Ericsson already invest disproportionately more in R&D in Europe. If other regions continue to move ahead, this model will not be able to survive. The EU must implement the recommendations of the Draghi and Letta reports so that the technology sector can contribute to future European prosperity.”
Similarly, Pekka Lundmark added: “European competitiveness is already on the brink of collapse. Our real GDP is 30% lower than that of the United States. Europe must create an environment where companies want to invest, especially in technologies such as AI, cloud and advanced connectivity. “Europe must act now on issues such as the 5G Tool Box and telco mergers.”
