LSE Consulting, a firm anchored within the London School of Economics and Political Science (LSE), recently released a report detailing a potential path toward European dominance in the emerging Web4 sector. 

According to the team, the formation of an Airbus-style industrial conglomerate dedicated to fostering innovation and growth in the metaverse is the European Union’s best bet to compete with the United States, China and other global sector leaders and potentially exploit Europe’s current technological and economic potential.

Airbus is a multinational conglomerate that was formed when a trio of French, German and Spanish aerospace companies merged in 2000. Since 2019, it’s been the world’s leading manufacturer of both airliners and helicopters.

Its relevancy to the metaverse market, according to LSE Consulting, is in its cross-border incorporation and company focus on ensuring Europe remains the dominant player in the international aerospace market.

Per the team’s report, adopting an Airbus model for the metaverse could help position the EU at the top of the Web4 hierarchy:

“An immersive industrial cluster will contribute to specialised internet engineering expertise in Europe. While national and regional governments must support engineering and research education programmes more broadly, immersive technologies can also make these programmes more attractive.”

The report cited a number of case studies from noteworthy European firms such as BMW, Ikea, Bosch Sensortec GmbH, Ericsson and STMicroelectronics. Based on the success of these and other European firms exploring metaverse technologies, LSE Consulting came up with three recommendations to advance the sector.

First, the aforementioned formation of an international conglomerate — the Airbus model — for European innovation in the metaverse is necessary to compete on the global stage, according to the report.

Secondly, LSE Consulting recommends prioritizing skills supply training to ensure that the European workforce is up to the challenge of innovating in the metaverse.

Finally, the report calls for government support in developing innovative cross-border solutions to emergent challenges and standards for adoption.

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Michael Barngrover, managing director of XR4Europe, said in a statement, “There are multiple viable paths ahead for the continent,” adding that “the recommendations presented by LSE’s researchers contribute to discussions around the paths we must consider.”