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.

 

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)
 
 

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