How To Encourage Innovation In A Digital Economy

Entrepreneurs involved in pan-European businesses that operate across borders want clear guidance from political leaders and governments on how their companies might be impacted by changes to industry regulations. London, UK has a thriving though small metropolitan ecosystems for startups. Though with Brexit looming on the horizon (March 29st, 2019), the increase in regulations on both sides of the English channel could put the desirability of the city for entrepreneurs – and their investors – at an all-time low.

Funding Innovation

It’s perhaps time for policy-makers and industry regulators to get serious and acknowledge that in order to achieve ‘frictionless’ trading post-Brexit, we must work together to help digital economies survive. Take for example the Office for the Mayor of London, which has established the “Civic Innovation Challenge” – a funding competition that challenges startups to propose and build prototypes of products or services that are aimed at tackling societal issues in the UK.

What The UK Can Learn From The EU

The European Business Awards for the Environment, which is an initiative by the European Commission’s Directorate-General for the Environment, provides a similar opportunity. These EU-funded awards recognize businesses that successfully combine competitiveness with impactful environmental performance – otherwise known as “eco-innovation”.

After Brexit, Will The UK Government Also Fund Such Initiatives?

The European Commission has for a long time been rewarding startups in Europe that champion innovations in green technology. Gilles Gantelet, Director at the European Commission’s DG Environment, said: “The EU is at the crossroads of its transformation towards a more sustainable economy, and businesses are vital to driving this change forward”.

Indeed, with the EU powering ahead with eco-innovation, the rest of the world (including the UK, if it steps outside the EU) will need to follow down this path of funding innovation at a national government level. Let us hope that the British government during its time as part of the EU has learned a couple of valuable lessons about how to foster a startup ecosystem and the importance of funding innovative tech startups through competitions and incentives.

You can following the European Commission’s DG Environment on Twitter as well as the Mayor of London.

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