Innovation is a key lever for accelerating technological transformation, increasing productivity, and strengthening competitiveness. In this process, the telecommunications sector plays a dual role: it is both an innovative industry and an enabler of innovation across the wider economy. The evolution from the first copper networks to fiber, 5G, and future advanced networks reflects a continuous process of investment, research, and technological development.
At the same time, the connectivity ecosystem is evolving rapidly. Telecommunications networks are increasingly interacting with technologies such as cloud computing, edge computing, data centers, satellites, digital platforms, and artificial intelligence, creating a broader and more interconnected ecosystem and expanding opportunities for innovation.
In this new environment, telecommunications go beyond providing connectivity: they deliver infrastructure and technological capabilities that enable the development, deployment, and scaling of new digital products and services. To achieve this, the sector drives a continuous process of research, technological development, and collaboration with other stakeholders across the ecosystem. At Telefónica, we promote this model across our markets. We combine our technological capabilities with an open innovation approach, collaborating with universities, research centers, startups, companies, and public administrations to test, develop, and scale new solutions by leveraging the capabilities and reach of our networks.
The European Challenge: Turning Innovation into Competitiveness
Over recent decades, the European Union has experienced a gradual decline in competitiveness, associated, among other factors, with a productivity gap and a reduced capacity to develop, adopt, and scale advanced technologies.
Reversing this trend requires transforming Europe’s scientific, industrial, and technological capabilities to innovate at scale. To achieve this, Europe needs companies with the capacity to invest and grow, as well as a simple, effective, and predictable regulatory framework that facilitates and promotes the entire innovation cycle, from R&D and technology transfer through to commercialization and scaling. In this context, a strong, innovative telecommunications sector with investment capacity is essential for European competitiveness.
Connectivity for European Strategic Autonomy
POLICY BRIEF 2026
