Since the term “metaverse” appeared in print for the first time through fiction in 1992, many definitions have flourished in scientific and interdisciplinary research. In its essence, the metaverse consists of immersive and virtual environments where physical and digital worlds seamlessly converge, and users share immersive experiences in three dimensions (3D). The metaverse forms a digital-physical continuum that reimagines how we perceive space.
While the term is also sometimes used interchangeably with “immersive technologies”, the latter refers to several technologies that enhance users’ presence in the metaverse. These include extended reality (XR), which encompasses virtual and mixed reality (VR and MR), artificial intelligence (AI), the Internet of Things (IoT). The metaverse will also require multiple connectivity networks like 5G/6G, Wifi and Bluetooth – and in particular, 5G/6G will be used for mobility use cases, and WiFi and Bluetooth for personal area use cases. The metaverse and its associated immersive technologies are a key pillar of the impending fourth generation of the web (Web 4.0).
The metaverse is likely to evolve incrementally over time, similar to previous evolutions of the internet. But there is already an assumption among European policymakers that the next iteration of the web will revolve around fully immersive experiences. In its 2023 strategic communication, the EU recognises that the metaverse and virtual worlds are “now technically and economically feasible thanks to rapid technological advances and an improved connectivity infrastructure”.
Despite these developments, research highlights low adoption rates and a general lack of awareness and prioritisation of metaverse technologies amongst European firms. Therefore, this policy brief aims to identify innovation policy recommendations to unleash the potential of the metaverse in Europe. In particular, measures to improve research, industry growth and talent development are explored. And the metaverse will also change how we interact with the Internet and must be grounded in human-centric dimensions of safety, sustainability, inclusion, diversity, and well-being.
This paper begins with a review of metaverse deployment. Drawing on existing literature and interviews with early adopters, macro and firm-level impacts are considered across a multitude of industrial sectors. The report then canvasses Europe’s strengths and identifies potential impediments to deployment, discussed among European firms and research technology organisations (RTOs). Based on identified gaps, the authors conclude with actionable policy recommendations on how Europe can develop innovation leadership.