Germany only average: “Redstone University Startup Index 2026” reveals Europe’s untapped startup potential

445,000 additional startups within the next ten years, nine trillion euros in potential company valuations, and 13 million new jobs: These are the figures from the new “Redstone University Startup Index 2026” The study highlights the economic potential that lies dormant in Europe's universities. At the same time, it reveals significant differences between individual countries and institutions.

445,000 additional startups possible

For the index, the authors analyzed more than 1,000 universities and research institutions in the EU, the European Economic Area, the UK, and Switzerland. The central question: How efficiently do universities transform their resources into business start-ups?

The result is clear. If all universities achieved the efficiency of the top ten percent of their respective peer groups, around 445,000 additional startups could be created across Europe. This could result in company valuations of around nine trillion euros and additional economic output of five trillion euros.

According to the study authors, Europe's primary problem is not a lack of financial resources. Rather, there are significant differences in the promotion of entrepreneurship, technology transfer, and support for spin-offs.

Germany only finishes in the middle of the pack

The analysis is sobering for Germany. In a comparison of countries, the Federal Republic only achieves a mid-range ranking. Measured against the university budgets allocated, fewer startups are created in Germany than in several other European innovation hubs.

The Baltic states and France, among others, perform particularly well. Universities there are significantly more successful in transferring research results and entrepreneurial ideas into new companies.

The study authors see this as an indication that successful startup ecosystems do not depend solely on research strength or financial resources. Rather, functioning startup structures, entrepreneurial education, and access to networks and capital are crucial.

TUM is one of Europe's best universities for startups.

One important exception is the Technische Universität München. TUM achieves top rankings among major universities across Europe and is therefore among the most successful startup universities on the continent.

According to the study, in 2025 alone, a total of 38 startups were founded by researchers, along with another 235 companies by students and alumni. This makes the Munich university one of the most important drivers of the German startup ecosystem.

Why universities are becoming increasingly important for startup ecosystems

The study also shows that successful universities with a focus on entrepreneurship do far more than just conduct research. They create networks between academia, industry, and investors, foster entrepreneurial thinking, and support startup teams from the initial idea to the founding of their companies.

Especially in technology-intensive fields such as artificial intelligence, robotics, biotechnology or space travel, many of the most successful European startups now emerge directly from the university environment.

For innovation hubs like Munich, universities are therefore increasingly becoming a crucial competitive factor.

Europe's greatest untapped innovation potential?

Another finding of the study is particularly noteworthy: Public research institutions have enormous budgets, but produce comparatively few start-ups.

The authors see this as one of Europe's greatest untapped innovation potentials. If research results can be translated more quickly into marketable products and companies, universities and research institutions could play an even more important role in growth and competitiveness in the future.