The concept of the Brain Economy yields benefits for the EU’s competitiveness in times of technological and environmental change. It posits that our brains are essential to the modern economy and acknowledges that people’s cognitive, emotional, and social capabilities are crucial drivers of both productivity and wellbeing.
Soul-searching is dominant in Europe today as its leaders try to break the impasse of suboptimal growth. Ever more so following the recent outcome of the US elections, they feel the strategic squeeze between the US and China, and the consequences of Russia’s aggression against Ukraine. In his diagnosis of EUrope’s ills, the continent’s veteran thinker-in-charge, Mario Draghi, recently called for a radical shake-up of almost everything that matters, including the way Europe approaches technology and implements the Green Deal, its net zero transition program. The areas of action Draghi recommends are intrinsically tied to the brain, especially the need to refocus on closing the innovation gap and overhauling the “approach to skills, making it more strategic, future-oriented and focused on emerging skill shortages.”
Policy solutions are on the table, but the trillion-dollar question remains: How can the bloc change when it is allergic to reform? Novel concepts that mark a break with sterile bureaucratic approaches are needed. One of these is the Brain Economy, or brain-positive economic transformation – an idea which posits that communities, societies, and countries need to use their collective brainpower to build the future. It argues that brainpower is key to smooth skill-based transitions. Policies geared towards enhancing cognitive functioning will accordingly boost human capacities, such as productivity and creativity, that help generate economic growth. The reason why it could benefit Europe in particular is that it is about the humanism Europe has always stood for, adapted to the age of technology, and the need to respect planetary boundaries and peoples’ wellbeing.
Brain Economy as driver of renewed growth
The strength of the Brain Economy concept is that it can make human creativity the central driver of renewed growth. It means aligning technological developments with the most prominent needs and aspirations of our societies today. Rather than waiting to see where breakthroughs take us, technology and investment would need to be thrown at the most pressing problems, with the human-in-charge showing her or his ingenuity in managing trade-offs and building consensus around resource allocation.
The Brain Economy is a circular economy, drawing inspiration from the brain’s energy efficiency. Using only 20 watts of power, the brain’s energy consumption can be compared to that of a dimmed light bulb. Circularity has emerged as a viable economic doctrine but needs to be radically scaled up if it is to help power the development of new markets. One example of the latter is the need to drastically step up recycling of critical raw materials. While the technology to do so exists, it will remain nascent without proper incentives. In the meantime, the EU remains reliant on imports from third countries, endangering its economic security.
Cognitive skills and the future of work
But there is a problem: the global toll of brain disorders, including mental health and neurological disorders, is massive, far beyond what most policymakers expect. The Institute for Health Metrics and Evaluation assesses it to be costing governments USD 2.2 trillion globally, equivalent to two-thirds of the Gross National Product of India. This cost is rising at 5% per year. These numbers will likely go up, as the demographic transition will lead to increasing numbers of older adults with chronic neurological conditions. Gladly, Europe is the first continent where national brain health plans have emerged, some of which, as is the case in Finland, have a strong brain capital component. With more efficient, systemic capital allocation, many more synergies can be created across government.
Brain health: preservation of good health
Brain health needs to be understood not only as the management of disorders but as the prevention of disease and preservation of good health. Yet even though 70% to 80% of a patient’s overall health results from socio-economic determinants, the way most health systems are designed means the bulk of expenditure is focused on health outcomes in clinical settings. In other words, many of the factors that contribute to poor brain health go untreated. The value of the Brain Economy is that it is a life-cycle approach: by bringing insights from brain science into the classroom, it foregrounds the need to look after early childhood development, thereby allowing children to make the most of their formative years. In addition, it includes measures to protect teens from cyber addiction, a priority underscored by President-Elect von der Leyen in her Political Guidelines.
Brain Economy Partnerships with the Global South
The Brain Economy is an asset which can allow Europe to strengthen its ties with the Global South. While the EU is planning to expand Clean Trade and Investment Partnerships and Global Gateway investments, it should also look to build broader, symmetrical relationships that address partner countries’ essential priorities. One example is the Yaoundé Declaration on Brain Economy, Brain Health & Brain Capital, adopted in July 2024 and strongly endorsed by the government of Cameroon, which is the chair of the 79th United Nations General Assembly.
In concrete terms, it means focusing the next EU policy cycle on crafting technology roadmaps to incentivise market creation in areas such as healthcare innovation, climate and environmental protections, reductions in the use of resources and materials, and social
fairness. In particular, it would support the rollout of AI across European industries. This would help, for instance, biotechnology and pharmaceutical companies better stratify patients and speed up clinical trials, or car manufacturers make the most of sensor technology in improving car safety and driving experience.
MFF: opportunity to develop Brain Economy Partnerships
The Brain Economy is the oil that makes the cogs of the growth agenda turn. It provides a motivating and aspirational framework, one that is deeply rooted in our sense of who we, as Europeans, are. As such, the Brain Economy approach is designed to optimise investments in wellbeing in the face of complex demographics as well as climate-related and environmental pressures. Europe is better placed than anyone to put this concept to work.
Harris Eyre is Lead and Senior Fellow for Neuro-Policy at Rice University’s Baker Institute for Public Policy and Executive Director of the Brain Capital Alliance and the Brain Economy Hub.
Elizabeth Kuiper is Associate Director at the European Policy Centre.
Paweł Świeboda is Senior Visiting Fellow at the European Policy Centre and Co-Founder of the Brain Capital Alliance.
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