China's Race to Innovate in Critical Technologies: What Can Europe Learn?
This policy brief examines China's rapid ascent in frontier innovation across artificial intelligence (AI), semiconductors, and quantum computing, drawing on our recent analysis of patent breakthroughs in these critical technologies in China, the European Union (EU) and the United States (US).
The findings reveal a competitive landscape where the US maintains overall leadership, China excels in targeted subfields with remarkable speed, and the EU lags significantly in patent breakthroughs and knowledge diffusion. China's strengths stem from a hybrid innovation ecosystem blending public and private actors, enabling quick replication of global novelties despite external restrictions. In contrast, Europe's fragmented markets and reliance on public research hinder scale and commercialization. To bridge this gap, Europe must not only increase research and development in critical technologies but also further integrate its national innovation ecosystems.
About authors
Alicia Garcia Herrero
Chief Economist for Asia Pacific at Natixis, Senior Fellow at Bruegel, Non-resident Senior Follow at the East Asian Institute, Adjunct Professor at the Hong Kong University of Science and Technology
Economist specialized in monetary and financial issues in emerging markets, banking crises and resolution strategies, financial development
Michal Krystyanczuk
Data Scientist at Bruegel
Specialist in Deep Learning and Big Data techniques for various AI tasks