The European Investment Bank (EIB) has called attention to widespread underinvestment in blockchain and artificial intelligence technologies.
According to a Reuters study published on Tuesday, the 27-nation union trails behind the United States of America and China regarding technology spending.
While the United States and China account for more than 80% of the 25 billion euros in yearly equity investments in blockchain and AI, the European Union only contributes for roughly 7% of the total funds or 1.75 billion euros. According to the investment rate, the European Union has a 10 billion euro ($12 billion) gap in both technologies.
“Companies and governments in Europe are substantially underinvesting in AI and blockchain compared to other leading regions, and it has become clear that the European Union struggles to translate its scientific excellence into the business application and economic success,”the bank said in a report.
The EU thinks that the combination of these technologies can assist restructure the primary sectors, which the COVID-19 epidemic has severely impacted. The health and finance industries, as well as business intelligence, are examples of these industries. Despite acknowledging the funding imbalance, the EIB warned that the present market conditions might extend it much more.
According to the bank, EU and member state assistance programs may fill a portion of the deficit, but private markets will be required to make up the difference.
The EIB’s proposal comes when investors are enthusiastic about the American and Chinese stock markets. Some European developing tech companies and legacy institutions have chosen to go public outside of Europe, resulting in a lack of investment in critical nascent technologies. In addition to these difficulties, the EIB points to large upfront investment requirements, a lack of knowledge, and a scarcity of EU venture capital funds in both technologies.
The EIB, for its part, is developing a blockchain-based bond selling platform.