News
Europe is seeking ways to strengthen its technological sovereignty and global competitiveness. A new working paper by the Finnish Innovation Fund Sitra argues that the convergence of critical digital technologies – such as AI, cybersecurity, and semiconductors – can unlock this potential. To seize the opportunity, the EU must adopt forward-looking governance that supports hybrid innovation across sectors.
Johtava asiantuntija, Viestintä
Asiantuntija, Ratkaisut
Published
31.10.2025
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Growth from Critical Technologies
A new working paper by the Finnish Innovation Fund Sitra calls on the European Union to embrace technological convergence as a systemic approach to digital innovation. By integrating hybrid technologies into funding, regulation, and foresight, the EU can strengthen its strategic autonomy and unlock new growth pathways.
Europe’s ability to remain competitive in the global technology race increasingly depends on how well it can harness the intersections between its most critical digital technologies.
The working paper argues that the convergence of technologies such as AI, cybersecurity, semiconductors and quantum computing is already reshaping innovation – and that EU policy must evolve to reflect this reality.
The paper, Technological convergence – Pushing European innovation forward, highlights how innovation is no longer confined to single sectors. Instead, breakthroughs are emerging at the interfaces: where machine learning meets secure infrastructure, where chips enable quantum applications, and where data flows across domains.
These hybrid technologies are not just technical combinations – they represent new value chains, new markets, and new strategic dependencies.
Yet current EU policy frameworks often treat technologies in isolation. According to Sitra, this siloed approach risks slowing down innovation and missing opportunities for leadership in areas where Europe already has strengths.
“Technological convergence is not just a technical trend – it’s a shift in how innovation happens,” says Laura Halenius, Senior Lead at Sitra and project lead for the paper.
“To stay ahead, Europe needs governance that reflects how technologies are evolving – together, not apart.”
The paper calls for a more systemic approach to innovation policy: one that recognises convergence in funding, regulation and foresight. While the EU has made significant strides in supporting individual technologies, the next step is to connect them – strategically and structurally.
As Europe prepares for its next policy cycle, Sitra’s message is clear: the future of innovation lies not only in what technologies we develop, but in how we bring them together.
To support technological convergence and strengthen Europe’s innovation capacity, the paper recommends that EU institutions:
Critical technologies are key areas identified by the EU, such as artificial intelligence, semiconductors and quantum computing, which are crucial for economic security. Economic security refers to the EU’s ability to protect its economy from disruption, external threats and over-dependence
Specialist, Innovations
Senior Lead, Innovations