Innovation as Europe’s Competitive Advantage [Issue Brief]

This issue brief complements We Are Innovation and Path to Smoke-free’s Briefing Paper ‘The EU Case for Innovative Nicotine Products’ by exploring critical dimensions of Europe’s approach to policy reform.

The innovation economy offers Europe a stark choice: harness new technologies within smart regulatory frameworks or watch prohibition drive both innovation and tax revenue to more welcoming shores. The contrast between Czechia’s seven-point decline in smoking and the EU’s one-point stagnation illustrates what is at stake. Nations embracing innovation are winning the public health race while fostering dynamic markets led by European small and medium-sized enterprises (SMEs).

The Swedish experience demonstrates that innovation and regulation can coexist without being adversaries. By creating clear frameworks that differentiate products by risk, Sweden has fostered a competitive marketplace where companies strive to develop increasingly safer alternatives. This is smart governance that harnesses market forces for the public good. When Greek policymakers reversed their prohibitionist stance, they not only improved health outcomes but also created opportunities for entrepreneurship and innovation.

Traditional tobacco control has reached its limits. The next phase requires embracing the technologies and business models that can accelerate change. European SMEs are already developing next-generation products that could revolutionize public health—if regulatory frameworks allow. The choice is between capturing this innovation dividend domestically or watching it flourish elsewhere while our smoking rates stagnate.

We Are Innovation and Path to Smoke-free’s Briefing Paper “The EU Case for Innovative Nicotine Products” demonstrates how Sweden, Czechia, and Greece have turned innovation into a competitive advantage by creating smart regulatory frameworks that harness market solutions for public health challenges. The evidence shows that embracing technological innovation can become a powerful driver of both economic growth and health outcomes rather than regulatory stagnation. We invite you to review how these forward-thinking approaches have positioned pioneering European nations as global leaders in both public health achievement and innovation-friendly governance.

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