Governments all over the world have recognised that the future of any country's economy depends on the ability to turn it into a knowledge-economy. Especially in Europe there is a rising concern that the old continent could fall behind. There remains the question: what can European governments do in order to correct this situation? In a series of studies, Arthur D. Little asked European business leaders what they think the priorities are. Vantrappen, Bohlin and Bijnens present a summary of the results and present their ideas what policy-makers can do.