A new EU study shows the strategic regions for research, innovation and startups in the digital sector
The study by the European Commission’s Joint Research Centre (JRC) reveals that Munich, Paris, and Madrid are among the most strategic regions in the European Union (EU) for digital research and innovation (R&I). The report evaluates nearly 6,500 research organisations across EU regions, offering a detailed view of the continent’s digital innovation ecosystem.
Europe’s digital innovation hubs
The study, based on the Digital Techno-Economic ecosystem (DGTES) methodology, ranks regions using key indicators such as the number of research players, startup presence, economic strength, and their role in digital knowledge exchange.
Munich (Germany), Paris (France), and Madrid (Spain) emerged as the top three regions in both global and EU-only comparisons. These regions play a central role in the R&I network, maintaining key roles in digital knowledge transfer, patenting, and collaborative projects.
Munich leads at the global level, mainly due to its vigorous patenting activity. However, within the EU-only network, it drops to third place, with Paris and Madrid taking the lead due to their higher participation in EU-funded collaborative initiatives.
Regional strengths and specialisations
Different regions stand out for various reasons. For example, Stockholm and Dresden demonstrate strong international relevance through global co-patenting. At the same time, cities such as Brussels, Barcelona, Milan, and Zuidoost-Noord-Brabant (Netherlands) are significant within the EU due to their high levels of intra-EU project collaboration.
This distinction highlights how some regions act as globally integrated innovation hubs, while others play a key role in EU-level cooperation.
Economic indicators and startup potential
To understand the economic context, the study also examined GDP per capita, employment-to-population ratios, and the presence of startups engaged in research and innovation (R&I).
Paris scored high across all these metrics, positioning itself as a strong performer both in economic terms and innovation capacity. Munich followed closely, with a balanced financial and innovation profile. Madrid, while slightly lower in GDP and employment indicators, still maintains a significant number of R&I-focused startups, underlining its strategic importance.
Regions such as Brussels-Hoofdstad and parts of the Netherlands showed fewer R&I startups, suggesting untapped potential for future innovation and investment.
Supporting innovation-led growth
The findings are especially relevant, given that the EU’s Startup and Scaleup Strategy was launched in May 2025. The strategy aims to boost the creation and growth of tech-driven companies across the EU. By identifying which regions already serve as digital R&I powerhouses, and which have room for development, the study provides a foundation for more targeted policymaking.
Tailored support for regional innovation ecosystems could help bridge the gap between Europe and its global competitors, while also reducing disparities between EU regions.
The future of EU innovation
By utilising the NUTS-3 classification, which provides detailed regional insights, the study delivers actionable data to inform the development of EU digital policy. The results highlight the importance of regional dynamics in shaping a competitive and innovation-driven Europe.
