Europe's Hidden Champions Must Become Hybrid Champions

Jan de Vries · 2026-05-24

### The Shift Europe Can't Ignore Europe's business landscape is full of quiet giants. You've probably never heard of most of them. These are the so-called "hidden champions" — midsize companies that dominate niche global markets. Think of a small German firm that makes 70% of the world's labeling machines. Or a Dutch company that produces the critical valves for every major oil pipeline. But here's the thing: being hidden isn't a strength anymore. It's a risk. In today's world, control is everything. If you don't control your digital ecosystem, your data, or your supply chain, someone else will. And that someone is often a Silicon Valley behemoth or a state-backed Chinese competitor. ### Why Being a Champion Isn't Enough These hidden champions are incredibly good at what they do. They've built decades of expertise, trust, and efficiency. But they're also vulnerable. They rely on external platforms for sales, external clouds for data, and external logistics for delivery. Every external dependency is a potential point of failure. Think about it this way: a hidden champion might make the best industrial sensor in the world. But if that sensor depends on a U.S. chip or a Chinese operating system, who really controls the product? The answer is uncomfortable. - **Digital dependency:** Most hidden champions use American or Asian software stacks. - **Data vulnerability:** Customer data often flows through third-party servers outside Europe. - **Supply chain fragility:** A single disruption in Taiwan or Vietnam can halt production for months.  ### The Hybrid Champion Model So what's the fix? The article from The European Business Review suggests a new category: the hybrid champion. This is a company that combines its traditional manufacturing or service excellence with modern digital control. It's not about abandoning what works. It's about adding a layer of strategic autonomy. A hybrid champion doesn't just produce a great product. It also owns the digital platform around that product. It controls the data. It builds its own software layer. It creates an ecosystem where customers depend on it — not just for the physical item, but for the intelligence and connectivity that come with it. > "The goal is not to become a tech company. The goal is to become a company that uses technology to defend its market position." ### Practical Steps for European Founders If you're a founder or CEO of a European startup or mid-cap, here's what this means for you. You don't need to build a giant tech stack overnight. But you do need to start thinking about digital sovereignty. - **Audit your dependencies:** Map every external service your business relies on. Ask yourself: could this be cut off tomorrow? - **Invest in proprietary data:** Your product's data is your moat. Don't let a cloud provider or platform own it. - **Build a digital layer:** Even a simple customer portal or API can shift control back to you. - **Think in ecosystems:** Partner with other European firms to create shared infrastructure. Collective control is better than no control. ### The Bigger Picture This isn't just about individual companies. It's about Europe's economic future. If the continent's hidden champions remain hidden and dependent, they'll slowly lose relevance. But if they become hybrid champions, they can set new standards. They can define how industries operate. The EU Inc proposal is part of this conversation. It aims to make it easier for startups to incorporate across Europe, reducing friction and encouraging cross-border collaboration. But legislation alone won't solve the control problem. Companies themselves must take action. ### A Call to Action Let's be honest: change is hard. Hidden champions are successful because they're focused and efficient. Asking them to also become digital operators feels like a distraction. But the alternative is worse. Without control, success is temporary. Start small. Pick one critical dependency and replace it with something you own. Build a simple API. Collect your own data. The future belongs to those who control their own destiny. For Europe's hidden champions, that means becoming hybrid. And if you're an American reader wondering why this matters to you — it does. A stronger, more autonomous Europe means a more balanced global economy. It means less risk of supply chain shocks. And it means more innovation, not less. We all benefit when champions step into the light.