A raft of recent policy changes in the U.S. touching trade, immigration, education, and public spending has sparked upheaval in research communities around the globe. The American economy, once the dream destination for the most talented, suddenly looks like it could lose its allure for the world’s brightest scholars. The sudden crisis of faith in the American innovation ecosystem has also sparked a fresh debate: Can the European Union seize the moment to attract disenchanted researchers and strengthen its own innovation ecosystem?

The opportunity is real for Brussels, and the stakes are high, as the EU continues to trail the U.S. on virtually every cutting-edge technology—including artificial intelligence. A recent BCG Henderson Institute report shows that that stricter immigration r

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