European companies must renew boldly to keep pace with intensifying international competition. According to trade and technology economy expert Hosuk Lee-Makiyama, the decisive factors are productivity, technology investments, reaching for new markets, and the ability to take risks.
Visiting the Turku Europe Forum on 27–29 August 2025, Hosuk Lee-Makiyama challenged European companies to look to the future both realistically and courageously. In his view, competition is tightening in both Asia and the United States, and Europe’s position can only be secured through continuous renewal and strategic investments.
Lee-Makiyama heads the Brussels-based European Centre for International Political Economy (ECIPE) and is among the continent’s leading experts on trade policy, technology regulation, and EU external relations.
Listen to Hosuk Lee-Makiyama’s keynote and the following panel discussion
in the Europe Forum program Finland in a Changing Europe.
Lee-Makiyama highlighted what European companies must do, in his view, to strengthen their competitiveness in a world that is changing faster than ever.
Don’t Rely on the Status Quo – The World Changes Faster Than Europe
- Companies must prepare for the reality that competitors in Asia and the United States will catch up and overtake them unless they renew their operations.
- Cost efficiency alone is no longer enough; technological progress and the courage to reinvent will determine success.
Productivity and Technology Investments Decide the Future
- The United States is permanently ahead of Europe in productivity, while China and India are growing significantly faster.
- European companies must dare to invest boldly in their own R&D instead of waiting for public funding.
- Higher margins enable rewarding risk-taking, attracting new talent, and fostering innovation.
Global Competition Means Market Reallocation
- If the United States closes its own markets, European companies must open doors to China or other rapidly growing markets.
- This requires a realistic approach to China: it is a geopolitical competitor, but also a crucial business environment where Europe’s position is under threat.
Regulation and Competition – A Double-Edged Sword
- EU regulation, such as the AI Act, may slow development if the rest of the world does not follow suit.
- Companies must be prepared to operate under stricter rules than their competitors but can also turn this into an advantage by emphasizing safety, reliability, and ethics.
Energy and Supply Chains as Strategic Questions
- If Europe cannot solve the issue of energy price parity, investments and production may relocate elsewhere.
- Companies should build supply chains and energy solutions that reduce dependence on geopolitically uncertain actors.
A Change in Mentality – Responsibility and Courage
- According to Lee-Makiyama, Europe’s weakness lies in excessive faith that things will continue well without change.
- Companies must adopt a mindset where global competition is seen as relentless: if we don’t renew, someone else certainly will.
- Responsibility cannot be left solely to politicians: companies too must take risks and make strategic decisions to secure the future. Not everything can be financed by taxpayers.
Practical Steps for Companies
- Invest boldly in AI and new technologies, not only when regulation forces you to.
- Build flexibility and the ability to shift to new markets.
- Find ways to raise margins and reward risk-taking – without this, European companies risk becoming mere wealth custodians rather than innovators.
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