While Europe has maintained living standards similar to the US, its lagging growth and innovation pose future challenges. Restoring technological competitiveness is crucial for long-term well-being.

<p>Nobel laureate Paul Krugman has a point when he says that European living standards have largely kept pace with those in the US, despite flagging growth and innovation. But this will not remain true indefinitely: restoring Europe's ability to compete at the technological frontier remains essential to its future well-being.</p>