The Nordic Association of Engineers (ANE) has released a detailed analysis that demonstrates a big shortage in STEM skills with a subsequent negative impact on Europe’s competitiveness, calling for immediate policy actions and stating that without a robust pipeline of STEM talent, the EU Competitiveness Compass will experience navigation failures.

Titled Reclaiming Europe’s Edge: Competitiveness through STEM Talent, the report provides an unprecedented analysis of the essential role of STEM (Science, Technology, Engineering, and Mathematics) professionals in driving innovation and technological development – crucial cornerstones of competitiveness.

Drawing from a broad spectrum of sources, including EU policy documents, reports from international organisations like the OECD, think tank publications, and academic research, ANE has made a set of strategic recommendations for the European Commission’s 2024-2029 agenda.

Integrating STEM skills into the European Council Agenda

The report concludes that strengthening STEM competencies is essential for enhancing Europe's global competitiveness, particularly in high-tech industries where innovation drives economic growth. While education is primarily a national responsibility, addressing STEM shortages requires broader, cross-sector efforts at the European level. Therefore, ANE recommends that STEM competencies become a distinct and recurring topic in European Council discussions, especially those focused on industry, prosperity, competition, and technological sovereignty. Additionally, STEM should be a specific focus in the European Semester reports on education, training, lifelong learning, and employment.

Increasing Public Funding for R&I

Increasing public funding for research and innovation (R&I) is crucial for stimulating technological advancements in Europe. This funding addresses gaps for deep-tech startups and fosters an environment that supports innovation, driving economic growth and sustainability. By reducing the perceived risks associated with funding deep-tech innovations, increased public funding can also attract more private investment.

”ANE recommends that the EU boost public funding for R&I and prioritize investments in breakthrough technologies to enhance competitiveness and innovation capabilities. Additionally, the EU should develop and promote funding programs for scale-up financing and review national innovation systems and cross-border collaborations to identify barriers and enablers for a connected European deep-tech ecosystem.” Inese Podgaiska, Secretary General of ANE.

Given their long-term investment horizons, pension funds are well-suited for venture capital investments, which require time to mature. The EU should encourage large pension funds to invest in venture capital and form investor consortia to share the risks associated with deep-tech investments.

A cross-sectoral EU STEM Strategy

STEM talent development involves more than just education. It must also encompass research, industry collaboration, and workforce development to create a robust ecosystem that supports innovation and competitiveness. ANE recommends that the EU Commission develop a resilient, cross-sectoral EU STEM Strategy. This strategy should focus on enhancing early interest in STEM, improving vocational education, attracting students, especially women to STEM fields, promoting lifelong learning, and supporting global mobility and talent retention in STEM professions.

Call to Action

We urge the new EU Commission to listen to engineers and make STEM skills a top priority on their agenda. Ignoring this critical issue risks Europe falling further behind in the global innovation race.

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Download recommendations and report: Reclaiming Europe’s Edge: Competitiveness through STEM Talent

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About the Association of Nordic Engineers

The Nordic Association of Engineers (ANE) is the voice of over 500,000 engineers in the Nordic countries, championing their interests and advancing their collective goals. We promote cooperation between the engineering trade unions:  
 

• The Swedish Association of Graduate Engineers (Sveriges Ingenjörer) 
• The Danish Society of Engineers (IDA) 
• The Norwegian Society of Engineers and Technologists (NITO) 
• The Association of Chartered Engineers in Iceland (VFÍ) 
• Engineers Finland representing the Finnish organisations: the Academic Engineers and Architects in Finland (TEK), the Technical Association in Finland (TFiF), the Union of Professional Engineers in Finland (ILRY) and the Engineers in Finland (DIFF)