The technical revolution is underway, and just as factories once drove prosperity in Europe, today it is knowledge and innovation across new growth areas such as artificial intelligence (AI), cybersecurity, biotech, and green technology.
However, as existing workers retire from their roles, and demand rises from these new growth areas, there is a skills shortage looming for economies across Europe. A 2023 Eurobarometer study found that 78% of SMEs had difficulty recruiting skilled workers, while McKinsey’s “A new future of work” 2024 report highlights that demand for STEM-related professionals would grow by 17 to 30 percent between 2022 and 2030.
STEM skills, therefore, sit at the heart of Europe’s ability to innovate, to lead, and thrive in a world powered by technology. And as part of the upcoming the EIT Education and Skills Days event series, the EIT Deep Tech Talent Initiative will be hosting several panels and networking activities around deep tech and STEM education.
The rising demand for STEM talent in Europe
Across the EU, structural shifts in jobs and skills are transforming the landscape, and the EU STEM Coalition reports that Europe is currently short of 2 million science, technology, engineering, and mathematics (STEM) professionals, and the gap is only widening.
But the gap is not simply a case of not enough talent, it’s also putting economies at risk, with the shortfall risking slowing growth in key sectors. Robert-Jan Smits, outgoing president of the executive board at Eindhoven University of Technology, emphasizes the gravity of the problem, warning that in regions like Eindhoven alone, the industry will require an additional 10,000 university-trained engineers by 2030, a demand unlikely to be met.
Why STEM skills drive Europe’s global competitiveness
The 2024 EU Industrial Scoreboard revealed that while R&D investment by the 322 Scoreboard companies with headquarters in the EU outpaced US and Chinese companies, Europe still remains far behind in sheer scale and scope. According to WIPO, the EU spent roughly USD 410 billion on R&D in 2023, just over half of what either the US or China invested.
That gap matters for more than innovation bragging rights, because STEM’s value isn’t limited to labs and test tubes, it underpins Europe’s green transition. From modernising steel and cement industries to rolling out circular economies, climate innovation relies on deeply technical know-how and cross-sector skills.
Robust STEM talent doesn’t just fuel growth, it shields Europe’s economic sovereignty, builds industrial resilience, and lets the continent set its own course rather than follow others.
Closing the STEM skills gap
Across Europe, universities and vocational institutions are improving digital education, and the European Institute of Innovation and Technology (EIT) channels over €3 billion (2021–2027) into entrepreneurial education, training programmes, and industry collaboration across its nine Knowledge and Innovation Communities (KICs), to nurture a new generation of innovators. Additionally, the EIT Deep Tech Talent Initiative has skilled over one million people within deep tech fields to help address the talent gap by developing a strong European talent pool who can leverage the new technologies for the green and digital transition.
Closing the gender gap
At a young age, girls generally outperform boys in computer and information literacy, but as they get older and reach higher levels of education, girls tend to steer away from ICT and STEM subjects. As women account for just 1 in 3 STEM graduates, and 1 in 5 ICT specialists, targeted efforts are helping to begin to break down gender barriers in STEM. EU-backed programmes such as Girls Go Circular, STREAM IT, and the ESTEAM festivals are helping women improve their digital and entrepreneurial skills and be more confident in using them to take opportunities, innovate and create value for society
These early and institutional strategies aren’t just about closing gaps, they’re building Europe’s STEM backbone, layer by layer.
The role of policy and industry in STEM growth
Europe is building its own STEM talent pool, through initiatives such as Horizon Europe (2021-2027), the EU’s flagship programme for Research and Innovation with a budget of €95.5 billion across the programme, intending to deliver scientific, technological, economic and societal impact to strengthen scientific and technological bases, and to foster competitiveness. And the Digital Europe Programme is the European Commission’s new work programme for 2025–2027 with a historic EUR 1.3 billion investment in digital skills, AI, and cybersecurity. This phase accelerates the transition of key projects, from preparatory stages to full-scale deployment, and reinforces Europe’s digital transformation and tech sovereignty.
Additionally, from 2026-2028, the EIT Deep Tech Talent Initiative, together with other European Institute of Innovation & Technology (EIT) projects will add considerable value to the Union of Skills and the STEM Education Action Plan through its catalogue of training programmes, network of training providers, and funding opportunities for course creation.
Industry isn’t standing on the sidelines either. Across sectors, businesses are partnering with educational institutions to ensure training aligns with real-world technological needs, creating live pipelines of talent ready to plug into market demands.
Europe is also opening its doors to global STEM talent. The Commission recently unveiled a €500 million “Choose Europe for Science” initiative (2025–2027) to attract top researchers, reinforcing Europe as a magnet for global talent. In parallel, the EU Talent Pool and a forthcoming Visa Strategy aim to streamline pathways for skilled professionals to bring their expertise to Europe.
How to prepare for the future
According to Santander’s ‘Tomorrow’s Skills’ report (June 2025) updating skills is a necessity, not an option. It reveals that six in ten Europeans say AI proficiency will be essential to staying employable, with 80% feeling a need to continually expand their knowledge. From AI and big data to cybersecurity and systems thinking, the most sought-after skills are rapidly evolving, and they extend beyond bits and bytes, with traits like creative thinking, resilience, and lifelong learning are gaining equal importance.
The ENGAGE.EU alliance is a consortium of nine leading European universities in business, economics, and the social sciences, which aims to provide European citizens the set of skills and competences needed to tackle major societal challenges. ENGAGE.EU inspires active societal engagement in the current and future state of Europe, and beyond.
To succeed in this new future individuals will need skilling, reskilling, or upskilling in AI, data, coding, etc., as well as strengthening problem solving and creativity skills if they are to improve their employability, while businesses will need to invest in lifelong learning initiatives and forge partnerships that will link classrooms with real-world challenges.
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