Europe spends less of its GDP on research and development than the USA, Japan or China. R&D intensity has been around 2.1% for years, compared to 3.45% in the US and Japan and 2.6% in China. Nevertheless, the continent continues to deliver top performance and produce world-class ideas and breakthroughs: the European Patent Office recorded a record number of patent applications last year.
Fortune’s most innovative companies in Europe The ranking, which is appearing for the second time and was created in collaboration with Statista, presents the companies that contribute to this achievement. The list includes 300 companies in 18 countries and 21 industries, highlighting organizations that push boundaries in areas ranging from healthcare and manufacturing to telecommunications, retail and financial services. Each was assessed across three innovation dimensions: product, process and culture.
Overall, the ranking paints a picture of a continent characterized by in-depth industrial know-how, fresh ambition and the ability to reinvent itself. At a time of rapid technological and economic change, these companies are helping to shape the future of Europe.
Europe is not winning the AI race, but it is driving it forward
Europe may lag behind the US and China in much of the technology landscape, but it has built an impressive semiconductor ecosystem.
ASML leads this year’s rankings. Behind the glass walls of the Dutch company’s clean rooms, white-clad engineers work with machines precise enough to print structures just a few nanometers wide on silicon, pushing the boundaries in making the world’s most advanced semiconductor chips.
ASML is driving the AI race forward with two groundbreaking innovations. The first is the Twinscan XT:260, a specialist tool for advanced chip packaging. The second is its high-NA EUV systems, machines that work like ultrafine laser pens, printing microscopic chip features that allow tech giants to pack record-breaking computing power onto a single silicon wafer.
The list also contains Infineon Technologies, NXP Semiconductors, ASM InternationalSTMicroelectronics and Ams-Osram from Austria.
Instead of trying to compete with the U.S. or China in large-scale chip manufacturing, Europe is doubling down in areas where it already has a competitive advantage, most notably ASML’s near-monopoly on advanced lithography equipment. This strategy shapes the EU’s industrial policy. Under the proposed Chips Brussels Law 2.0 aims to strengthen Europe’s semiconductor ecosystem as part of a broader push to boost investment in chips, AI, cloud computing and digital infrastructure.
Lasting legacies
The defining feature of this year’s ranking may be its longevity. Many of Europe’s most innovative companies are among the oldest.
In 1665, a French glassmaker was commissioned by Louis XIV to make mirrors for the French crown, including the mirrors in the Hall of Mirrors at Versailles. This company, Saint Gobainhas since become a leading provider of sustainable building materials again and is now ranked 35th on the list.
Many other companies were founded not in the last decade but in the last century or, in a few notable cases, the century before that. Siemens was founded in 1847 and Rolls Royce in 1904. By comparison, only a third of U.S. companies founded since 1994 survived a full decade, according to the Bureau of Labor Statistics.
The list includes 300 companies in 18 countries and 21 industries, highlighting organizations that push boundaries in areas ranging from healthcare and manufacturing to telecommunications, retail and financial services. Each was assessed across three innovation dimensions: product, process and culture
Michelin, New to the list this year and already in the top 10, it was founded in 1832 but is listed as newly established Michelin and a tire company in 1889. His pioneering removable pneumatic tire helped Charles Terront win the world’s first long-distance bicycle race in 1891. Today, Michelin is using the same materials expertise to develop airless moon boots for the next Lunar Rover.
The story of Nokia is also one of them Reinvention. Rank 22nd The list says the company started as a paper mill in 1865 before moving into making rubber products, cables and cell phones, and today is building the 5G networks that support the digital economy. The company’s 160-year history shows that the secret to longevity isn’t sticking with a successful business model, but rather knowing when to abandon it.
Germany’s industrial machine continues to deliver
If semiconductors are Europe’s technological backbone, Germany remains its industrial engine room. The country has more companies on the list than any other country (56 in total), with leading companies in technology, automotive, engineering and pharmaceuticals.
Headquarters in Stuttgart Bosch has reinvented itself since its founding in 1886, expanding from its automotive roots to include artificial intelligence and hydrogen technology. Its heavy-duty transport fuel cell drive module, essentially an engine for zero-emission hydrogen trucks, was recently awarded the German Future Prize for Technology and Innovation, one of the country’s most prestigious engineering awards.
The German economic model traditionally prioritized long-term investments over quick successes, contributing to this innovative strength. Its network of medium-sized enterprises (SMEs) and its dual vocational education and training system have produced an extensive pool of qualified engineering talent, contributing to the region’s global competitiveness in highly specialized industries, from precision engineering to advanced chemistry.
As the country faces increasing pressure from labor shortages and rising energy costs, Germany’s industrial champions are adapting these traditional strengths to the digital age.
Siemensat number 11 on the list, is a pioneer in smart manufacturing and is integrating AI, automation and digital technologies into its factory operations. The group recently launched its Digital Twin Composer, a tool that creates photorealistic virtual replicas of physical environments and allows engineers to test designs before they even leave the screen, reducing the physical prototyping that German manufacturers can currently least afford.
Building better companies from within
It is easy to focus on what is building Europe, but just as important is how it is building. About 28 companies including Adidas, Ingka Group, HeinekenLufthansa, RichemontCelonis, Babbel and Kirkbi (Lego) made the list for building innovative cultures.
Adidas encourages designers and engineers to collaborate through cross-functional hackathons. It’s an approach that has paid off. This year, the Adizero Adios Pro Evo 3 running shoe was introduced, which is lighter, grippier and more cushioned, helping athletes run faster. Two runners recently completed marathons that lasted less than two hours while wearing them.
Also on the list Ingka Groupthe Netherlands-headquartered company behind IKEA’s global retail business. Around 30,000 employees and 500 managers are currently being trained in AI skills to ensure that AI complements the workforce rather than replacing it.
Europe may not dominate the technology race, but this year’s list proves it continues to produce the companies everyone else relies on. From the machines that make AI chips to the factories, networks and materials that power the global economy.