2025-01-17
After Brexit, the EU lost a key advocate for life sciences. To reclaim leadership in pharmaceutical innovation and manufacturing, Europe needs unity and strong alliances, argue industry leaders from Denmark, Finland, and Sweden.
A Challenging Global Landscape
Europe is losing ground in the global life sciences race. Once a powerhouse, the continent now struggles to compete with the U.S. and China. Former ECB President Mario Draghi’s influential report on EU competitiveness highlighted this urgent issue, naming life sciences as a critical sector for Europe’s future.
The stakes couldn’t be higher. As the most research-intensive industry in Europe, life sciences see an annual investment of €44.5 billion in R&D. The sector employs 2.7 million highly skilled workers across the EU and contributes more to the EU’s positive trade balance than any other industry. In Sweden, for example, pharmaceuticals were the top export product in 2023, contributing SEK 82 billion to the trade surplus, while in Denmark, two-thirds of economic growth is linked to the pharmaceutical industry.
But Europe’s competitive edge is slipping. A decade ago, research investment levels in the EU and the U.S. were roughly equal. Today, the U.S. invests at least €25 billion more annually. In the 1990s, half of all new medicines originated in Europe. Now, it’s just one in five. The same trend is evident in clinical trials: Europe’s share of global clinical trials has plummeted over the last decade, with Denmark standing out as a rare success story. Through political focus and initiatives like Trial Nation, Denmark has managed to increase clinical trial activity.
Turning the Tide
Europe is at a crossroads. The downward trend in competitiveness must be reversed, starting with a revision of EU pharmaceutical legislation. This revision must encourage investment and align with environmental regulations in a way that supports, rather than hinders, growth in pharmaceutical manufacturing within the EU. Furthermore, all regulations impacting the sector must be reviewed with an eye on competitiveness.
The European Commission has taken a positive step by initiating work on a new life sciences strategy. However, Brexit left a leadership void in the EU’s ability to drive progress in this field. A unifying force is sorely needed.
The Nordics: Small But Mighty
Although small in population, the Nordic countries are powerhouses in digitalization and societal innovation. Finland, Denmark, and Sweden consistently rank in the top ten of the World Intellectual Property Organization’s Global Innovation Index. In life sciences, Denmark and Sweden lead the way, while Finland’s health data infrastructure is a model for others.
However, even the Nordics face challenges. Our healthcare systems are losing ground in their ability to adopt and utilize new medicines. If Europe, including the Nordics, wants to remain a hub for cutting-edge research, knowledge, and innovation, this must change.
The Nordics have the building blocks for success: thriving companies, national life sciences offices offering a cohesive perspective, and experience with national strategies that could be scaled to the European level. Together, the Nordic countries should step up to lead life sciences initiatives within the EU. By partnering with nations like Germany and the Benelux countries—who also seek stable frameworks to foster innovation—we can create the strength Europe needs.
Building a Competitive Life Sciences Ecosystem
To secure Europe’s competitiveness, we propose the following actions:
By acting decisively, the EU can create an environment where innovation thrives, ensuring patients have access to the treatments of tomorrow while safeguarding Europe’s position as a leader in life sciences.
Ida Sofie Jensen, CEO of Lif – The Danish Association of the Pharmaceutical Industry
Anne-Mari Virolainen, CEO of Pif – Pharma Industry Finland
Sofia Wallström, CEO of Lif – The Research-Based Pharmaceutical Industry in Sweden