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Research Paper (undergraduate) from the year 2020 in the subject Economics - Innovation economics, grade: 1,3, Hertie School of Governance, course: Technology Policy & Digital Transformation, language: English, abstract: When looking at innovation capabilities , Germany is amongst the front-runners in the world, according to different sources and studies. Also, many European countries are ranked in the top tier when it comes to innovation and competitiveness. Still, major players and business models in digital innovation and transformation seem to come from the United States.The topic at hand is whether Europe can become a world leader in innovation and digital transformation in the future by uniting their efforts and pool their capabilities and resources e.g. in a joint institution to gain the top spot globally and also stay there in the upcoming decades. This paper tries to introduce a concept of how Europe can bundle their capabilities, as this poses a significant challenge for Germany as the innovation leader in Europe as well as for Europe in general, inheriting so many capabilities in e.g. Switzerland, Sweden or the United Kingdom. The paper lays out some definitional foundations, followed by a brief overview of institutions in Germany and Europe and then tries to introduce a possible solution how to unite resources and facilities to strengthen the European path to innovation leadership, followed by a conclusion.