Recent EU study: Munich is one of Europe's most important regions for digital research and innovation

A recent study by the European Commission's Joint Research Centre (JRC) reveals that Munich is on par with Paris and Madrid as a leading hub for digital research, innovation, and startups within the European Union. The analysis provides valuable insights for the EU's strategy to promote start-ups and scale-ups..

The JRC study analyses Europe's digital research and innovation ecosystem

The comprehensive study of the regional research and innovation landscape in the EU's digital ecosystem aims to identify strategically relevant regions and assess their role in European and global innovation competition.

NUTS 3 regions across the EU were examined using economic and innovation-related indicators. NUTS (Nomenclature of Territorial Units for Statistics) 3 refers to small regional administrative units, such as counties and independent cities, which are comparable across the EU and primarily used for statistics, analyses and funding policy. The results are intended to inform political measures aimed at strengthening Europe's competitiveness and the targeted promotionof start-ups and scale-ups.

The ten most strategically important EU regions, spread across nine member states

This study identifies the ten regions in the EU that are most important for research and innovation, spread across nine member states. Strategic relevance was assessed on the basis of several criteria, including:

• Number of research and innovation actors
• A so-called intermediation indicator, which measures how strongly a region functions as a networking hub in the research and innovation system.
• Gross domestic product (GDP)
• Employment rate
• The presence of research and innovation-driven start-ups.

A total of around 6,500 research organisations were surveyed, most of which are concentrated in European metropolitan areas such as Paris, Berlin and Barcelona.

Munich is a central hub in the digital innovation network

At both the EU and global levels, Munich occupies a prominent position alongside Paris and Madrid.

• Munich is the most strategically important region in the world, but third in the EU. This is due in particular to its very high level of patent activity.
• Paris and Madrid are among the top three EU regions in both analysis approaches. Their strong position is due, among other things, to their significant involvement in EU-funded research and innovation projects with an international focus.

Start-ups, economic power and investment potential

Another focus of the study is the relationship between research, innovation and economic performance. The analysis shows that regions with a high GDP per capita and high employment rates often have a strong presence of research and innovation start-ups.

• Munich ranks in the middle of the European field.
• Paris stands out with its particularly high economic indicators.
• Madrid has comparatively lower values.

Despite these differences, all three regions have a stable and continuous startup landscape in the digital R&I sector. At the same time, the study identifies regions with a low startup presence to date, such as parts of the Netherlands and the Brussels Capital Region, as potential target areas for future investment and innovation policy measures.

Relevance to the EU's Startups and Scaleups Strategy

The results provide an important empirical basis for the EU's Startups and Scaleups Strategy, presented by the European Commission in May 2025. This strategy aims to make Europe an attractive location for technology-oriented, innovative companies with international ambitions.

Understanding the regional dynamics of research and innovation better enables the EU to develop targeted funding instruments, close regional innovation gaps, and strengthen Europe's long-term international competitiveness. Further information can be found here.

Do you have any questions about EU funding opportunities in digital innovation?

BayFOR supports Bavarian stakeholders from the worlds of science, industry and administration with EU funding programmes, searching for project partners, submitting applications and managing consortia.

Please feel free to contact us

Natalia García Mozo
Head of SME Advisory Services
Tel: +49 89 9901888-171
Email: mozo@bayfor.org