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Open Source as Europe's Strategic Response to the Draghi Report's Call for Competitiveness

2024-09-12

The recent Draghi Report titled "The Future of European Competitiveness" underscores Europe's need to transform its economic structure and overcome several pressing challenges, including digital sovereignty, innovation stagnation, and strategic dependencies. At the EuroStack Initiative, we firmly believe that open source software (OSS) can be a cornerstone in addressing these challenges, driving innovation, economic growth, and strategic autonomy.

In this position paper, we will outline how open source software directly aligns with the core recommendations of the Draghi Report and why a shift toward open source adoption across Europe is necessary to enhance competitiveness, reduce dependencies, and foster a more resilient and dynamic digital economy.

1. Open Source as a Driver of Innovation and Productivity

The Draghi Report highlights Europe’s lagging position in innovation compared to the U.S. and China, particularly in advanced technologies such as AI, cloud computing, and quantum technologies. Europe's slower adaptation to the digital revolution has hindered productivity growth and weakened its standing in the global technology landscape.

Relevance of Open Source:

  • Fostering Innovation: Open source has proven to be a powerful catalyst for technological advancements. According to the European Commission’s 2021 study on the impact of open source software and hardware on technological independence, competitiveness and innovation in the EU economy, open source software contributes between €65 to €95 billion to the EU’s GDP, demonstrating its significant economic impact. The collaborative and transparent nature of open source accelerates the development of foundational technologies such as AI frameworks and cloud orchestration. Moreover, the report suggests that increasing open source contributions by just 10% could add an estimated €100 billion to the EU’s GDP, highlighting the growth potential of open technologies.

  • Closing the Commercialization Gap: The report recognizes that European innovators often face challenges in scaling their solutions commercially. Open source provides a path to overcoming this hurdle by lowering development costs, promoting collaboration, and offering a common foundation for small and medium enterprises (SMEs) to rapidly build and commercialize innovations. The open source ecosystem enables European companies to compete globally by leveraging shared resources and avoiding vendor lock-in, which is essential for achieving digital sovereignty.

Policy Recommendations:

The EU should pursue a dedicated open source industrial policy that aligns with major initiatives such as the European Green Deal and the AI Act. This includes setting up a European network of governmental units focused on accelerating open technologies and providing substantial funding through programs like Horizon Europe. Prioritizing open source solutions in strategic areas—such as AI, cloud computing, and green technologies—will foster productivity, technological leadership, and economic independence. This shift would not only enhance Europe’s competitiveness but also position the region as a global leader in open innovation.

2. Strengthening Digital Sovereignty Through Open Source

One of the Draghi Report's most urgent recommendations is for Europe to regain control over critical digital infrastructure and reduce dependency on foreign technologies. The report highlights how Europe is overly reliant on non-European cloud providers and proprietary technologies, which presents risks to security, data sovereignty, and strategic autonomy.

Relevance of Open Source:

  • Reducing Dependencies: OSS enables Europe to build its own digital infrastructures, free from vendor lock-in, allowing businesses and governments to take full control of their technology stacks. With open source, Europe can foster the development of sovereign cloud solutions and critical digital infrastructure, ensuring that data remains within European control.
  • Transparency and Security: OSS development provides inherent transparency by enabling public scrutiny of code. This reduces the risks associated with opaque proprietary solutions, where vulnerabilities may go undetected. Open source ensures auditability and security resilience, both of which are essential for safeguarding Europe’s digital sovereignty.

Recommendation: The European Commission should mandate a preference for open source in public procurement for digital infrastructure projects. Furthermore, OSS should be a critical component of Europe’s digital sovereignty strategy, including in cloud services and cybersecurity frameworks.

3. Enabling Decarbonization and Competitiveness with Open Source

The Draghi Report emphasizes the need for Europe to align decarbonization efforts with competitiveness. Europe has been a leader in clean technologies, yet it faces increased competition from state-subsidized industries abroad, particularly from China.

Relevance of Open Source:

  • Driving Green Technologies: Open source can significantly contribute to innovation in clean tech, including the development of energy-efficient software and open hardware solutions. This is essential for Europe to remain competitive in renewable energy, smart grids, and low-carbon infrastructure, where collaborative and transparent frameworks can accelerate progress and reduce costs.
  • Sustainable Innovation: Open source projects often rely on community-driven innovation, which is not confined to corporate priorities. This allows open source to adapt more quickly to emerging environmental challenges and incorporate the latest research, aligning with Europe’s green ambitions.

Recommendation: The EU should integrate open source solutions into its decarbonization plan, specifically in sectors like energy management, transport, and manufacturing, ensuring that clean technology innovation is fostered through collaborative and transparent platforms.

4. Enhancing SME Participation and Innovation

The Draghi Report identifies the importance of boosting innovation in Europe’s SME sector, which forms the backbone of the European economy. However, the complexity of the regulatory environment and limited access to venture capital are significant barriers for SMEs in scaling their innovations.

Relevance of Open Source:

  • Economic Multiplier for SMEs: OSS allows SMEs to innovate at lower costs by leveraging shared codebases and collaborative platforms, reducing the need for large upfront investments. By supporting open source, the EU can empower SMEs to enter competitive markets like AI, cybersecurity, and cloud services, reducing their reliance on non-European proprietary solutions.
  • Fostering a Talent Pool: The open source ecosystem is a key contributor to skill development, as it encourages collaboration and provides a global platform for European developers to participate in cutting-edge projects. This aligns with the Draghi Report’s call to upskill Europe’s workforce in digital technologies.

Recommendation: The European Commission should introduce open source-specific grants and incentives for SMEs, encouraging them to adopt and contribute to OSS projects. Additionally, digital skills programs within the EU should incorporate open source methodologies and tools to cultivate a new generation of European tech talent.

5. Public Sector Digitalization

The Draghi Report calls for the digital transformation of public services as a critical step toward improving efficiency and reducing costs. However, it warns against over-reliance on non-European software solutions, which undermine Europe’s long-term digital sovereignty.

Relevance of Open Source:

  • Open Source for Public Sector Efficiency: Public administrations across Europe can benefit significantly from adopting OSS, which ensures interoperability, cost-efficiency, and data sovereignty. Open source offers flexibility and scalability, allowing public institutions to avoid the vendor lock-in associated with proprietary solutions.
  • Data Control and Security: By adopting open source, public institutions can ensure that sensitive citizen data is managed and stored within Europe, enhancing security and compliance with regulations such as GDPR.

Recommendation: A dedicated open source strategy should be implemented across Europe’s public sector, with clear guidelines for public procurement that prioritize OSS solutions. Furthermore, public sector entities should be encouraged to actively participate in open source communities, contributing code and collaborating on the development of public software infrastructure.

Conclusion

The Draghi Report presents a roadmap for revitalizing Europe’s competitiveness in the global economy. Open source software can be a powerful tool in addressing many of the report’s most pressing recommendations, including digital sovereignty, innovation, decarbonization, and the transformation of public services. We call on the European Commission to place open source at the heart of Europe’s digital strategy, ensuring that Europe’s future remains innovative, competitive, and sovereign in the face of global technological challenges.