This report aims to contribute to our understanding of the relationship between technology, economic growth, and equity by analyzing the impact of technological progress on firm-level productivity, market concentration, and labor market outcomes of workers with different education levels. The analysis focuses on the effects that technology can have in European Union (EU) member states, addressing two main distributional challenges: (i) an increase in market concentration, with a few large and innovative firms hoarding the benefits of technological progress, and (ii) technological progress exacerbating income differences between highly educated and other workers. These two challenges, and the public policies aiming to address them, will shape the future relationship between technological progress, economic growth, and income distribution in Europe.