The pursuit of competitiveness and the high stakes of territorial myopia

"The European Union (EU) is facing a widening productivity gap in comparison to the United States and China, prompting a re-evaluation of its competitiveness agenda. Informed by the Draghi Report (2024), it seems likely that the EU strategy will focus on large-scale investments in technologies and sectors where Europe remains relatively weak. This article argues that, rather than attempting to outpace the United States or outproduce China in areas where it already lags, the EU should instead capitalise on its existing strengths. By fostering related diversification and promoting incremental technological adoption in sectors where Europe already performs strongly, the EU can draw on path dependence and brownfield digitalisation to enhance its competitiveness. A differentiated strategy rooted in territorial strengths may not capture headlines, but it offers a more grounded and politically sustainable approach. In doing so, Europe could both sharpen its competitive edge and reconnect with disaffected citizens, avoiding the risks of territorial myopia. For if Europe is bound to struggle at imitation and catching up, it might as well succeed at being itself."