European Innovation Act: European Commission presents legislative proposal

Making it easier to use patents to secure financing and speeding up the public procurement of innovative technologies: On 9 September 2026, the European Commission presented its legislative proposal for the European Innovation Act. The initiative, first announced in 2025, is thus taking concrete legal shape. Its aim is to create better conditions for innovative companies, start-ups and scale-ups to finance new technologies and research results, bring them to market and scale internationally from within Europe.

The European Innovation Act aims to remove existing financial and regulatory barriers in the European innovation ecosystem and improve the framework conditions for innovation across the European Union.

Making it easier to use intellectual property for financing

A key focus of the legislative proposal is the commercial use of intellectual property (IP). Patents and other intangible assets often account for a significant share of the value of technology-oriented start-ups and scale-ups. However, these assets can be difficult to value, which can make it harder for companies to access finance.

The European Innovation Act therefore proposes a common EU framework for the valuation of intellectual property. This should make it easier for companies to use IP as a basis for venture capital and debt financing.

In addition, a digital European marketplace for intellectual property is planned to connect IP sellers and potential buyers. Complementary expert support is intended to help companies successfully bring their ideas and technologies to market.

According to European Commission estimates, these measures could unlock around €10.2 billion in additional IP-backed financing per year. This does not constitute new EU funding, but rather additional private financing that the new framework is expected to mobilise.

Common procedure for public procurement of research and development

A second focus concerns the public procurement of research and development (R&D procurement).

A common European procedure is intended to provide greater legal certainty and help new technologies reach the market more quickly. At the same time, it should make it easier for public buyers from different EU Member States to jointly carry out cross-border R&D procurement.

This could benefit innovative solutions addressing societal challenges in areas such as health, education and clean mobility.

Regulatory sandboxes: separate European Commission proposal

Alongside the European Innovation Act, the European Commission has presented a separate proposal for a common European approach to regulatory sandboxes.

Regulatory sandboxes enable companies, researchers and public authorities to test new products, services or technologies for a limited period in a controlled environment and under the supervision of the relevant regulatory authorities.

As regulatory sandboxes already exist in various sectors and EU Member States, the proposal primarily aims to reduce fragmentation and regulatory uncertainty. The proposed Council Recommendation would establish a common EU reference framework for areas that are not yet covered by corresponding EU legislation.

Regulatory sandboxes are therefore not part of the European Innovation Act itself, but a complementary initiative aimed at creating a more innovation-friendly regulatory environment.

Next step: EU legislative procedure

The presentation of the legislative proposal marks the next phase for the European Innovation Act. The proposal must now go through the EU legislative procedure.

The European Innovation Act is a key initiative under the EU Startup and Scaleup Strategy and the Competitiveness Compass. In the long term, it is intended to ensure that innovations developed in Europe have better conditions to be financed, commercialised and scaled within Europe – thereby strengthening Europe's competitiveness and technological sovereignty.

Further information: European Commission – European Innovation Act

BayFOR support for EU research and innovation funding

Would you like to learn more about EU research and innovation funding and the opportunities available to innovative companies, start-ups and scale-ups in Bavaria? The Bavarian Research Alliance (BayFOR) provides advice on suitable EU funding programmes and supports you in identifying relevant funding opportunities for your research and innovation project.

Your contact at BayFOR

Natalia García Mozo
Head of Unit SME Advisory Services
Phone: +49 89 9901888-171
Email: mozo@no-spam-pleasebayfor.org