Europe's erosion of tech and pharma edge

In early July, analysts noted that Europe was increasingly outpaced by China in patent filings and technology manufacturing, signaling a broader competitive challenge for the continent. By late July, the European Federation of Pharmaceutical Industries and Associations released a detailed report showing that this shift extends to the pharmaceutical sector: while European investment, production and exports continued to grow, the share of new‑drug innovations originating from Europe fell sharply. Of the 104 new active substances launched worldwide in 2025, only 16 came from Europe, compared with 46 from China/Hong Kong and 28 from the United States. Correspondingly, Europe’s share of global drug sales dropped to 23.7 %, while the United States and Canada together held 54.7 %. Together, the snapshots illustrate a widening gap in innovation leadership, with Europe losing ground to both the United States and China across multiple high‑tech industries.