Former European Central Bank president Mario Draghi¡¯s report on boosting Europe¡¯s productivity should be a ¡°final wake-up call¡± for the region, sector leaders have said.

In?, prepared by Dr Draghi at the request of the European Commission, the former Italian prime minister warns of an ¡°existential challenge¡± to Europe should it fail to become more productive, identifying ¡°low innovation¡± and inadequate funding for research and innovation as central challenges.

Among his??are a €200 billion (?169 billion) budget for the next European Union research programme; better coordination of strategy through a ¡°Research and Innovation Union¡± and a ¡°European Research and Innovation Action Plan¡±; a greater emphasis on excellence among universities and research institutions; and a focus on closing the ¡°skills gap¡± in science, technology, engineering and mathematics (STEM) fields.

Speaking to?³ÉÈËVRÊÓƵ, leaders cautiously welcomed the report, commending aspects including the doubled budget for the next framework programme while calling for greater clarity on some of the new initiatives proposed.

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Kurt Deketelaere, secretary-general of the League of European Research Universities (Leru), said his association had given input for the report, commenting: ¡°Let¡¯s hope that this final wake-up call to member states and EU institutions has the necessary effect.¡±

Dr Draghi said the successor to Horizon Europe ¡°should be refocused on a smaller number of commonly agreed priorities¡±, while more of its budget should go towards ¡°financing disruptive innovation¡± and the European Innovation Council should undergo reform to enable it to fund ¡°high-risk projects with the potential of delivering breakthrough technological advances¡±.

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Backing for fundamental research through the European Research Council should be doubled, Dr Draghi proposes, while an ¡°ERC for Institutions¡± programme, accompanied by a new funding framework, should be created in order to ¡°foster the emergence of world-leading research institutions¡±.

To address a lack of workers in STEM fields, the EU should establish a ¡°Tech Skills Acquisition Programme¡± involving a new visa route for students and researchers, a ¡°large number of EU academic scholarships¡±, and internships and graduate roles at EU research centres in order to ¡°[retain] competencies in Europe in the early phase of researchers¡¯ careers¡±.

Professor Deketelaere told?THE?that Leru was in ¡°full support¡± of the recommendation to ¡°scale up the budget for fundamental research¡± through the European Research Council, while a pilot of an ¡°ERC for Institutions¡± programme would be ¡°most welcome¡±.

The report¡¯s multiple references to dual-use projects ¨C technologies with both military and civilian applications ¨C were among its only ¡°warning lights¡±, he said: ¡°We want to keep these things separate and not mix them.¡± Professor Deketelaere also pointed to immediate political opposition to the overall report, which calls for an €800 billion spending increase, from ¡°frugal states¡± including Germany and the Netherlands.

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Thomas J?rgensen, the European University Association¡¯s director for policy coordination and foresight, said the EUA was ¡°very happy with the clear messages that Europe needs to boost research, innovation and education and that we need public spending for that boost¡±.

He was less enthusiastic about the proposed ¡°ERC for institutions¡±, however. ¡°Europe is a world leader in research with a networked, collaborative system, and there are no convincing arguments to concentrate research capacity in a few, localised super institutions,¡± Dr J?rgensen said. ¡°This is what you have outside Europe, but our edge is that we have bigger, networked institutions, and that works when it comes to research output.¡±

Jan Palmowski, secretary-general of The Guild of European Research-Intensive Universities, called the report ¡°an important, concise and comprehensive assessment of Europe¡¯s economic challenges for the future¡±, celebrating its emphasis on higher education, research and innovation.

Dr Draghi¡¯s recommendations on closing the skills gap ¡°should trigger a real dialogue about the kinds of skills employers need, how we can deliver them better, and what the logjams have been¡±, Professor Palmowski said.

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He supported the proposed Research and Innovation Union and European Research and Innovation Action Plan as a means of ¡°achieving critical mass in funding¡±, stressing, ¡°It is vital that the research communities contribute to the definition of priorities and that these priorities are expressed in terms of societal challenges instead of focusing on specific industries and technologies.¡±

But further commentary on specific proposals was ¡°impossible¡± without more information on how they would be organised and funded, Professor Palmowski said. He went on to address the importance of securing public approval: ¡°Without voters¡¯ support and their sense that their concerns are being addressed, a razor-sharp focus on competitiveness will fail.¡±

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emily.dixon@timeshighereducation.com