Moody’s Talks - Global Economy Unwrapped

Mind the Innovation Gap

Episode Summary

In this episode, Gaurav, Barbara, and Kamil are joined by Paolo Pasimeni, Chief Economist at the European Commission’s Directorate-General for Research and Innovation, to examine Europe’s productivity challenge and what it will take to close the gap with the U.S. and China. Europe has considerable strengths in science and research, but struggles to translate them into innovation and investment at scale. The team explores why, looking at fragmented capital markets, the role of public and private investment, and Europe’s position in the global AI race. They also ask whether technological dependencies are becoming a strategic vulnerability and why boosting productivity increasingly matters not just for prosperity, but for Europe’s economic resilience and geopolitical influence.

Episode Notes

In this episode, Gaurav, Barbara, and Kamil are joined by Paolo Pasimeni, Chief Economist at the European Commission’s Directorate-General for Research and Innovation, to examine Europe’s productivity challenge and what it will take to close the gap with the U.S. and China. Europe has considerable strengths in science and research, but struggles to translate them into innovation and investment at scale. The team explores why, looking at fragmented capital markets, the role of public and private investment, and Europe’s position in the global AI race. They also ask whether technological dependencies are becoming a strategic vulnerability and why boosting productivity increasingly matters not just for prosperity, but for Europe’s economic resilience and geopolitical influence.