Munich, Paris and Madrid regions among EU strategic areas for digital R&I

The top 10 most strategic regions for R&I in the EU are spread across nine different Member States. The study uses economic indicators to investigate the progress in competitiveness and support policy initiatives on closing the divide between EU and its global competitors. At EU level, the analysis can inform efforts to support and finance startups and scaleups.

The study offers a unique picture of the R&I landscape in the digital ecosystem, and allows to identify which regions are morestrategic, both globally and at EU level. The strategic importance of regions is assessed with the analysis of:

• Number of R&I players;
• An intermediation indicator, at global and EU level;
• Gross-Domestic Product (GDP), and employment-to-population ratio and the presence of startups

The study identifies nearly 6,500 research organisations, concentrated around major European cities like Barcelona, Paris and Berlin.

Two approaches for assessing regional strategic relevance

The intermediation indicatorshows which regions arevital nodes for knowledge exchange and collaboration in the digital ecosystem on R&I. This is assessed both at global level (considering the rest of the world as unique entity) as well as at the EU-level.

Results show how some EU regions play a key role both in the global and in the EU-only network, while some others cover a more specialised position.

In both approaches, at global and EU-level, the top three most strategic regions are München, Kreisfreie Stadt, in Germany, Paris in France and Madrid in Spain. However, while München is the most strategic region at global level, its position is weaker - ranking third - when considering only EU-regions, mainly in relation to its well-developed patenting activities.

Paris in France and Madrid in Spain, are in the top three positions with both approaches, with a leading role when considering only EU regions. This is due to several EU funded projects that entail intra-EU as well as international collaborations.

Some regions, such as Stockholm and Dresden, are more globally strategic due to their international co-patenting activities. Other regions, like Brussels, Barcelona, Milan, and Zuidoost-Noord-Brabant, are pivotal within the EU due to their intra-EU project collaborations.

Innovative startups and investing opportunities

A focus on the top EU regions in terms of GDP and employment-to-population ratio can unveil the economic environment in which the regions operate. The study suggests also how the presence of startups focusing on R&I activities in those regions can be interpreted as an opportunity for business. The bubble size of figure below corresponds to the number of startups identified in that region carrying out R&I activities.

Paris region stands out with high values of GDP per capita and employment-to-population ratio, in contrast with Madrid, which has lower metrics in these areas. München finds itself in an intermediate position. Despite these economic disparities, Paris, München and Madrid maintain a consistent presence of research and innovation (R&I) startups.

The lack of R&I startup presence in regions such as Erlagen, in The Netherlands, and Brussels-Hoofdstad, in Belgium, suggests potential for innovation and investment.

Overall, this study provides a first set of evidence that can inform the development of tailored policies and initiatives to enhance innovation-led growth in different regions, ultimately contributing to the competitiveness of the EU as a whole.

By understanding the regional dynamics of R&I, the EU can better address the innovation divide between its regions and global competitors, aligning with the goals of the EU Startup and Scaleup Strategy.

Background

In May 2025, the Commission launched the EU Startup and Scaleup Strategy, which aims to make Europe a great place to launch and grow global technology-driven, innovative companies. Analysing research, innovation, and startups presence in the digital ecosystem is crucial to understand the landscape on which this strategy will play its effects.

This study is based on the analysis of the Digital Techno-Economic ecoSystem (DGTES). A first application of the DGTES methodology has been used to analyse the 14 industrial ecosystems identified by the European New Industrial Strategy, among which the Digital ecosystem.

The analysis of this study is made on NUTS-3 regions. The NUTS (Nomenclature of Territorial Units for Statistics) is the official classification developed by the EU, and NUTS-3 refers to the small regions identified in each Member State for statistical purposes.

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