1、Europes deep-tech engine could spur$1 trillion in economic growthOctober 2025Copyright 2025 McKinsey&Company.All rights reserved.Cover image Oselote/Getty ImagesConfidential and proprietary.Any use of this material without specific permission of McKinsey&Company is strictly prohibited.By investing i

2、n deep-tech business building,Europes start-up ecosystem could create$1 trillion in enterprise value and up to one million jobs by 2030paving the way for sovereign prosperity.This report is a collaborative effort by Hannes Erntell,Markus Berger-de Len,Max Fltotto,Stphane Bout,Tobias Henz,and Tunde O

3、lanrewaju,with Ceren Safak Musai,representing views from McKinsey Business Building.For decades,Europe has lagged behind the United States when it comes to creating billion-dollar technology companiesand has also clocked lower GDP growth.But now it stands on the precipice of opportunity.Europe could

4、 become a global leader in launching and growing deep-tech companies,paving the way for more prosperity across the region and increased sovereign strength centered on intellectual property(IP).Europe has many strengths:a highly educated workforce,world-class research institutions,a deep industrial b

5、ase,and predictable legal environments.It also faces several unique barriers:fragmented geographic markets,limited growth capital,a lack of regulatory harmonization,and few global scale-up success stories that inspire serial entrepreneurship.Our research shows that if the European start-up ecosystem

6、composed of companies,governments,investors,and research institutionscan harness its strengths and overcome some of the barriers,a new economy centered on deep tech could emerge in Europe.This new economy could collectively create$1 trillion in enterprise value and up to one million new jobs across