This report spends most of the time arguing that "Europe did not keep pace with the United States in the first technology wave centered on the internet and software" and as a result "Europe is in a weakened position in transversal technologies across sectors." According to the analysis, Europe leads in two of ten sectors: next generation materials, and cleantech. I would caution, however, that McKinsey's indicators are proxies, such as 'patents', 'number of companies' and 'amount of money invested' and miss entirely essential social initiatives such as consensus decision-making and open source software. The gist of the argument is that "Europe could reevaluate trade-offs on 11 policy and regulatory initiatives" to support (for example) "accelerated decision-making and failure tolerance." but I'm not sure the gains in productivity (assuming there are any) would be worth the advances Europe has made on sustainability and inclusion.
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