spring 2026 How has Luxembourg’s economic model evolved – and why is R&D now so central? If you look at our history, we moved from agriculture to steel, then to financial services, where regulation, political stability and multilingualism were key dif - ferentiators. Today, Luxembourg’s competitiveness is built on knowledge, talent and innovation. Sustaining that advantage requires continued investment in R&D and the capacity to attract and retain skilled people. That is why, since the late 1990s and early 2000s, Luxembourg has been investing heavily in public and private R&D: by creating the University of Luxembourg, strengthening public research centres and supporting com- panies in building their own R&D capabilities. Increasingly, we connect public and private research to valorise academ- ic knowledge through industrial partnerships. Talent is often cited as a key factor. How does Luxembourg fare? Talent attraction has become much more competi - tive, and we are competing with locations worldwide. Benchmark studies still rank Luxembourg among the top European countries in attracting talent per inhab- itant. Salaries are competitive, the environment is secure and multicultural, and the quality of life is generally high. At the government level, a new talent attraction strategy has been defined aiming to attract, retain and develop talent across all qualification levels to sustain the competitiveness and diversification of the Lux - embourg economy. Luxinnovation contributes to this strategy by developing and promoting the “Work in Luxembourg” brand and portal, serving as the single point of entry for international professionals looking to work and settle in Luxembourg . What really tips the balance when an international group chooses Luxembourg for an R&D centre? Having brief communication lines and direct contact with decision-makers remains a significant benefit. One decisive factor is our ability to bring all key actors to the same table very quickly. I remember the first meet- ing with FM, a major international insurer that is now building a cutting-edge science and technology centre here: it included the university, LIST, Luxinnovation and representatives from the Ministries of Economy and Research. Companies interested in coming here can discuss R&D, location and broader strategic questions in a co- ordinated way. This kind of short decision pathway and tailored, cross-institutional support is something many larger countries struggle to offer . Beyond jobs and taxes, how do R&D centres really change Luxembourg’s economy? In a knowledge economy, you simply cannot remain competitive without continuous R&D investment. Innovation cycles are getting shorter. Where once a major investment could secure a competitive edge for a decade, digital technologies and AI have funda- mentally changed the rhythm of progress. Innovation is no longer a sequence of distinctive projects – it is a continuous process. By the time one initiative reach- es completion, the next must already be taking shape. That may feel like being on a treadmill, but it reflects the shift from a predominant finance-based economy to an economy based on knowledge. And I strongly be- lieve competitiveness and sustainability must go hand in hand – future-proof companies will be both innova- tive and sustainable . How do you measure success? Success is not only about attracting international com- panies or supporting R&D projects – it is also about raising the quality of the support we provide. We must understand business models, data readiness and AI use cases, and be able to connect the dots between companies, research and funding programmes. To be able to provide customised support for a wide range of business needs, we have built a multidisci- plinary team with deep sector expertise. This enables us to talk to companies at eye level and then tailor the right mix of partners, instruments and programmes . What misconception about Luxembourg’s innovation ecosystem would you most like to correct? Luxembourg is often perceived as a one-sector econ- omy dominated only by finance. Financial services remain central, but for over 20 years the country has been systematically investing in people, research, in- frastructure like data centres and high-performance computing, and in general-purpose technologies such as ICT that benefit all sectors. Rather than a single magic “USP”, Luxembourg of- fers a coherent set of advantages – from talent and infrastructure to connectivity and coordinated public support. For many R&D-driven companies, that mix is exactly what they need . INNOVATION AND R&D