New research from the McKinsey Global Institute (MGI) unpacks where investment is actually happening, why, and what economies and sectors can do about it. Investment is one of the clearest signals of long-run competitiveness. The investment map has been redrawn over the past three decades. It has stalled in Europe, shifted in the US, and taken off in China. To restore balance, Europe would need to invest €800 billion more annually. The United States would need roughly $2 trillion in additional manufacturing investment to increase resilience and reverse import dependencies. Meanwhile China is adding productive capital at three to five times the rate of the US and Europe combined.
The webcast featured a presentation on the research findings by report author Jan Mischke, followed by a panel discussion moderated by Anna Kortis with leading McKinsey experts Benjamin Sauer, Fangning Zhang, and Henrik Polzer.
Questions discussed during the event included:
- Why investment has pulled ahead in China, and why the US, Europe, and China are now on such different investment trajectories
- What it would take to close Europe's €800 billion annual investment gap
- What the US's growing focus on software, R&D, and AI investment means for competitiveness
- What roles productivity gains, cost convergence, and smarter industrial policy can play in closing the cost gap
- What makes or breaks investment cases in automotive R&D, nuclear power, bio-pharma R&D, and semiconductors
For more on this topic, please watch the virtual event recording and read our report, Catalyzing competitiveness: Where investment happens and why.