In mid-February, the German Commission of Experts for Research and Innovation (EFI) presented its 2026 annual report to Federal Chancellor Merz and the German Federal Government. As a member of the Commission, Professor Dr. Joachim Henkel from the TUM School of Management contributed to this year’s report. In this interview, he explains the Commission's role, the key themes of the 2026 report, and why Europe’s technological sovereignty is more important than ever.
Professor Dr. Henkel, could you explain what the EFI is and what its role is?
The “Expertenkommission Forschung und Innovation” (EFI), established in 2006, is an independent scientific advisory body to the German Federal Government. Its mandate is to evaluate Germany’s research and innovation system and provide evidence-based policy recommendations.
At the core of our work lies a comprehensive report that assesses developments in science, technology, and innovation. Our goal is to strengthen Germany’s long-term innovative capacity and competitiveness in an increasingly dynamic global environment.
Although Germany has traditionally been highly successful in innovation, it is currently lagging in several key areas, such as microelectronics and software. In this context, independent scientific advice of the kind provided by EFI is essential for sound, forward-looking political decision-making.
What are the focus areas of this year’s report?
Our report addresses, for example, security-related innovation, European research and innovation policy, the proposed “28th regime” (“EU Inc.”), and artificial intelligence in Germany and Europe. This year, we place particular emphasis on two overarching themes: Europe and sovereignty.
Germany’s innovation system is closely embedded in Europe, and many key future technologies can only be advanced effectively through stronger cooperation and better alignment of funding and regulatory frameworks at the European level.
The second theme is safeguarding technological and economic sovereignty. In this context, sovereignty does not mean isolation or autarky, but the strategic capacity to act. Europe must strengthen its capabilities in critical technologies and reduce excessive dependencies while remaining open to global exchange.
Briefly, what are the main takeaways from the report?
We draw many conclusions and make numerous recommendations. Let me highlight three examples:
1. European R&I Policy
We strongly recommend that the European Research Council (ERC) maintain its independence and clear focus on excellent research. Europe’s strength lies in high-quality, curiosity-driven basic research, which often forms the basis for later commercial applications. If the ERC’s excellence principle is weakened or aligned too closely with short-term political priorities, a crucial foundation of Europe’s long-term innovative capacity would be at risk.
2. The 28th regime
The 28th regime aims to overcome the fragmentation of the European Single Market. We support establishing a European legal form that genuinely simplifies cross-border activities for start-ups and scale-ups and ensures uniform application across Member States.
Despite Europe’s strong start-up ecosystem, legal barriers to scaling within the EU remain high. A well-designed 28th regime could ease cross-border expansion, particularly in sectors that depend on large integrated markets, such as AI. To avoid renewed fragmentation, it should be implemented through a regulation rather than a directive, ensuring harmonized application and avoiding heterogeneous national implementation.
3. AI in Germany and Europe
On artificial intelligence, our recommendations again point to the European dimension. AI offers enormous innovation and growth potential, but the required investments in computing infrastructure, data, and advanced models are immense, and expertise is both highly specialized and scarce.
To remain competitive and strengthen our digital sovereignty, AI strategy must therefore be aligned across Europe. Pooling financial resources, talent, and infrastructure is essential to achieve the scale needed for AI value creation in Europe. Acting solely at the national level will not be sufficient.
Why is expanding EU-wide computing capacity so critical for unlocking Europe’s AI potential?
Advanced AI systems depend on high-performance computing infrastructure. At present, global compute capacity is heavily concentrated in the United States and China, leaving Europe at risk of falling further behind and becoming increasingly dependent.
To unlock its AI potential and reduce technological dependencies, Europe must significantly expand its own data center and computing capacities. Without sufficient hardware, excellent research and strong software capabilities will not translate into globally competitive AI systems.
Building this capacity requires substantial investment. We therefore call for ambitious European expansion targets and for mobilizing private capital alongside public funding. Only coordinated action across Europe will achieve the scale needed to compete internationally.
How can Europe turn its AI research excellence into greater market impact – and what will be most important in achieving this?
Europe’s research in artificial intelligence is world-class. Yet many European and German start-ups struggle to scale. They often encounter regulatory or financial limits within the EU and internationalize to the United States or other regions to continue growing. The challenge is therefore not knowledge creation but enabling scale within Europe.
Three elements are key. First, reducing market fragmentation. The 28th regime can facilitate cross-border expansion within the Single Market. Second, improving access to growth capital. Strengthening efforts toward a European Capital Markets Union (Savings and Investment Union) would help mobilize private investment for scaling. Third, ensuring workable data access. While data protection is essential, the current framework – particularly under the GDPR – can be restrictive and unclear for AI training. Greater clarity is needed to ensure legally secure access to data without undermining fundamental rights.
#Ultimately, Europe’s competitiveness in AI will depend not only on research excellence, but on creating the regulatory and financial conditions that allow innovation to scale within Europe rather than elsewhere.
The full 2026 report and additional information about the Commission’s work are available on the website of the Expertenkommission Forschung und Innovation.
