Europe losing tech race to China and US, Nobel Prize winner warns
Europe ‘needs to wake up’ and take steps to cut government red tape, said economist Philippe Aghion after winning this year’s award
French economist Philippe Aghion issued a stark warning to Europe shortly after winning this year’s Nobel Prize, saying the continent was losing the technology race to China and the United States.
“Europe needs to wake up. We’re falling behind technologically compared to the United States and now China,” the newly minted laureate said during public broadcaster France 2’s evening news programme on Monday.
“Since the 1990s, they’ve been developing breakthroughs, hi-tech innovations, while we’ve remained confined to incremental, mid-tech innovation,” he said.
“Europe needs to become truly innovative, because otherwise its decline will be inexorable. It will be marginalised.”
Despite the dire warning, Aghion stressed that Europe was capable of turning things around and catching up with the US and China.
While many in Europe blame the continent’s lack of competitiveness on its social model – including generous social benefits and relatively short working hours – Aghion said the European way of life could be an asset, a crucial form of soft power.