EU proposes new rules to help innovative companies scale

The proposal is part of the EU Startup and Scaleup Strategy and the Competitiveness Compass. It seeks to make it easier for innovative companies to expand across EU borders and compete internationally.

A key part of the proposal focuses on access to finance. The Commission plans to establish a common EU framework for valuing intellectual property and create a digital marketplace connecting buyers and sellers of IP. Companies would also receive expert support to help bring their innovations to market.

The Commission estimates that these measures could save around €35 million in administrative costs and unlock €10.2 billion annually in additional financing through IP-backed venture capital and debt.

The proposal would also introduce a common procedure for research and development procurement. The aim is to provide greater legal certainty and help new technologies reach the market faster. Public buyers from different EU member states would also find it easier to conduct joint R&D procurements.

According to the Commission, these measures could generate €1 billion in annual savings for public buyers and €25.92 billion in additional annual profits for companies.

Alongside the Innovation Act, the Commission has proposed a Council Recommendation establishing a common EU reference framework for regulatory sandboxes in areas not already covered by EU legislation. Sandboxes allow companies, researchers and public authorities to test new products, services and technologies in controlled settings under regulatory supervision.

The Commission said a common approach would reduce fragmentation and uncertainty while giving innovators more opportunities to test new solutions and allowing authorities to assess how existing rules work in practice.