- Slower commercialization of innovations in Europe
- Regulatory fragmentation that stifles growth
- Insufficient public and private R&D investments
- A large base of SMEs struggling with tech adoption
- Brain drains to the U.S. due to a more innovation-friendly environment
- A focus on mature technologies over emerging ones
Our take: European CIOs need to bridge the innovation gap through bold actions. They must overcome regulatory barriers, increase investment in emerging technologies, and foster a supportive startup ecosystem.
Talent scarcity
Another unavoidable truth is the critical issue of talent scarcity. From IMF’s World Economic Outlook of October 2024, we know that 64% of business leaders identified talent shortages as a significant risk to business growth over the next 12-18 months. Industries like telecom, media, high-tech, life sciences, and insurance are particularly affected.
Our take: Talent scarcity is a significant risk. CIOs must focus on attracting top-tier digital talent and ensuring their existing workforce remains competitive. They must shift from a job title-centric approach to a skills-based model. Upskilling and reskilling should be core business strategies, emphasizing communication, collaboration, creativity, and critical thinking. Without the right talent, even the best technology and transformation strategies will fall short. (See also: CIO hiring on the rise: How to land a top tech exec role in 2025.)
