The Capital Meets Policy Dialogue Ministerial Panel: Innovation-First or Regulation-First? The Right Model for Policymaking, Attracting Capital, and Enabling Innovation Is…?
Key Highlights:
1. Panel Context:
- Exploring how policy and capital intersect to enable or hinder innovation.
- Focus on how different regions—Lithuania, Albania, and Germany—approach digital transformation, innovation, and policy-making.
2. Lithuania:
- Pitch: Lithuania acts as a fast-track entry into the broader EU market of 450 million with minimal bureaucracy for foreign startups and innovators.
- Key Points:
- Heavy focus on digitalisation: 95% of public services are online.
- Innovation-first policies: Leading in financial technologies and cybersecurity.
- Example: Unicorns like NordVPN and Surfshark originated here.
3. Albania:
- Pitch: A growing economy with 300 days of sunshine, a multilingual workforce, and an open digitalized government offering low bureaucracy.
- Key Points:
- New legislation supporting tech parks with significant fiscal incentives.
- Challenges in education and digital literacy, but a strong focus on AI and digital transformation.
- Growth potential lies in aligning policies with EU standards while retaining flexibility.
4. Germany (Berlin):
- Pitch: Berlin as the startup capital of Europe, offering a vibrant ecosystem, inclusive policies, and robust government support.
- Key Points:
- Hosts 38% of Germany’s AI startups and is a leader in green technology.
- State-backed funding for startups, with additional incentives for women founders.
- Unique culture: A cosmopolitan hub with global talent and world-class nightlife.
5. Key Takeaways:
- Europe’s Innovation Struggles:
- Despite being resource-rich and educated, Europe lags in innovation due to regulation-first approaches.
- Contrasts with US (innovation-first) and China (replication and scaling).
- Regulatory Challenges:
- EU AI Act raises concerns about stifling innovation through excessive regulations.
- Differences in local regulatory frameworks across the EU complicate scalability.
- Green Economy & Sustainability:
- Berlin’s strong support for green startups and sustainability-focused innovation.
- Policy vs. Innovation:
- Risk aversion in policymaking poses challenges for entrepreneurial ecosystems.
- Examples of success include Lithuania’s fintech-friendly policies and Albania’s AI adoption.
6. Audience Preferences:
- Enthusiasm levels for starting up:
- Lithuania: ~20-25%
- Albania: ~15%
- Germany: Perceived as expensive but still favoured by some.
Watch Full Session
Speakers:
- Delina Ibrahimaj, Minister of State, Ministry of Entrepreneurship and Business Climate of Albania
- Karolis Zemaitis, Vice Minister of the Economy and Innovation, Ministry of the Economy and Innovation of the Republic of Lithuania
- Michael Biel, State Secretary, Senate Department for Economic Affairs, Energy, and Public Enterprises, Berlin
Moderator:
- Navin Suri, Chief Executive Officer & Founder, Percipient & Advisor, Global Finance & Technology Network (GFTN)