A message to European leaders from Europe’s Life Sciences investment and innovation community
Dear Presidents, Heads of State and Government,
Europe must preserve and strengthen its leadership in Life Sciences at a time when health, economic security, and technological sovereignty are becoming increasingly important.
On 12 February, the European Life Sciences Coalition was launched in association with Invest Europe, bringing together venture capital investors and research organisations from across the continent. Together, the Coalition members have supported the creation of over 1,400 Life Sciences and biotechnology companies, sustaining millions of high-quality jobs across Europe.
The European Life Sciences industry is one of the continent’s most productive sectors: it contributes approximately 9.4% of EU GDP1 and adds nearly €1.5 trillion in value to the European economy. A leading position in Life Sciences is a strategic European asset and a cornerstone of Europe’s technological sovereignty, underpinning both economic and industrial resilience. Most importantly, it ensures that patients have access to novel therapies. Its importance is reinforced by increasing concerns over medicine shortages.
Europe’s Life Sciences sector is at a strategic crossroads
We recognise and welcome the significant efforts currently underway, in particular the European Biotech Act I and II and the EU Life Sciences Strategy, as well as ongoing Member State initiatives to deepen capital markets and mobilise long-term investment. These initiatives mark an important step forward and reflect a growing political awareness that Life Sciences is central to Europe’s future.
At the same time, Europe’s Life Sciences industry faces intensifying global competition. Europe is home to leading universities and continues to produce world-class science and some of the most innovative start-ups, but is increasingly unable to scale and retain its most promising companies. Translating scientific excellence into approved products requires significant, patient capital, and, too often, European innovators must rely on external investors and capital to grow. Today, the European Union accounts for only a small share of global Life Sciences venture capital investment compared to other major regions – 7% vs 63% for the US and 14% for China2 .
In addition to fragmented capital markets, regulatory inefficiencies and lengthy, unpredictable timelines can discourage companies from pursuing clinical development in Europe. The declining share of global clinical trials conducted in Europe is a sobering illustration of this trend.
We – investors, companies, and research-driven organisations operating across Europe’s Life Sciences ecosystem – share a common goal: to strengthen Europe’s investment and innovation ecosystem. With coordinated action, Europe can retain one of the most valuable pillars of its industrial and innovation landscape, along with the long-term security of supply, economic growth, innovation capacity, and patient access to therapies that the sector enables.
The path forward: Our call to action
Collectively, we therefore call on European Leaders to:
- Close the Life Sciences investment gap by mobilising public and private capital to finance biotech innovation across all stages of growth.
- Incentivise pension funds and other institutional investors to allocate more capital to high-impact Life Sciences ventures investment Funds under the Savings and Investment Union.
- Build deeper, integrated and liquid European capital markets to enable Life Sciences companies to scale and access growth capital within Europe, reducing reliance on non-European markets and listings.
- Remove barriers to capital deployment and enable seamless cross-border investment into funds and companies that drive European growth.
- Use public funding to “crowd-in” private investment by deploying European and national instruments – including under the European Competitiveness Fund – strategically to de-risk early-stage Life Sciences innovation and scale-ups.
- Simplify regulation and accelerate translation from research to patients by streamlining, via the EU Biotech Act, cross-border processes and eliminating fragmentation that slows clinical trials, regulatory approvals, and scaling so that European scientific breakthroughs become therapies faster.
- Strengthen Europe’s innovation ecosystem by supporting talent, infrastructure, and cross-border collaboration for Life Sciences companies in Europe so that discoveries can be developed, commercialised, and rolled-out here.
- Create a more competitive end-user market, which would allow European companies to grow sustainably, support the uptake of innovation, and contribute to economic resilience.
- Establish a structured dialogue with the Life Sciences industry on an equal footing with other sectors that have been singled out as strategically important to Europe’s security and competitiveness.
Europe has the talent and science to lead globally in Life Sciences. But without a financial and regulatory ecosystem that matches ambitions this leadership may erode. Coordinated action – both at EU and Member State level – is necessary to better channel the EU’s existing capital towards innovation at home.
As long-term investors and operators, we stand ready to work in partnership with the European Institutions and Member States to position Europe as a global leader in Life Sciences.
Yours sincerely,
The European Life Sciences Coalition and signatories.
The European Life Sciences Coalition (ELSC) was launched in association with Invest Europe on 12 February, 2026. Our members, venture capital investors and research organisations from across the continent, collectively manage more than €25B in Life Sciences-specific assets.