White Paper on Public Funding for the Game Industry

Public funding serves as a critical pillar for the European game industry, functioning as a strategic necessity to ensure technological sovereignty, artistic independence, and global competitiveness. By prioritizing direct budget support, the European Union can empower small and medium-sized enterprises to retain their intellectual property and scale operations without succumbing to acquisition by dominant global conglomerates. This approach is essential for fostering a self-sustaining ecosystem where European studios can drive innovation in digital technologies, including artificial intelligence, cloud computing, and open-source engine development.

Current regulatory and financial frameworks require a fundamental shift to better align with the unique demands of the gaming sector. Existing structures, often modeled after film industry standards, impose administrative burdens that stifle agility and innovation. To rectify this, the industry requires a modernized state aid framework that recognizes gaming as an autonomous sector. Expanding the definition of research, development, and innovation to encompass business model and content evolution, alongside increasing aid intensity thresholds, will allow European developers to compete more effectively on the international stage.

Strategic investment must prioritize accessible, SME-friendly instruments such as grants, soft loans, and tax incentives. These mechanisms should be managed by industry experts who evaluate projects based on potential and team experience rather than restrictive, legacy criteria. By adopting successful national models that treat high-risk projects as opportunities for growth, the European Union can bridge the gap between initial prototype development and commercial success. Ultimately, a harmonized, robust funding environment will secure the industry’s role as a primary driver of digital transformation, ensuring that Europe remains a global leader in creative technology and original content production.