ABSTRACT
Innovation agencies have become central actors in Europe's evolving research and innovation (R&I) systems, yet their roles, forms, and future trajectories remain contested. This chapter traces the past, present, and possible futures of European innovation agencies, situating them within broader debates on missions, market shaping, and dynamic capabilities. While earlier generations of agencies were closely tied to industrial policy and technology transfer, recent decades have seen the emergence of mission-oriented, challenge-driven, and ecosystem-building agencies. The chapter argues that innovation agencies should be understood as an evolving organisational ecology, not reducible to singular “best practice” models. This is particularly salient in the context of Europe's search for strategic autonomy, where defence R&D highlights both the weaknesses of Europe's innovation capacities and the potential of distributed, capability-driven approaches. Drawing lessons from the DARPA experience – but rejecting simplistic replication – the chapter suggests that European agencies must cultivate dynamic capabilities. Only by doing so can they support the EU's twin green and digital transitions, while also addressing geopolitical vulnerabilities and democratic legitimacy.
