Germany's success has made the promotion of youth a priority, as has been proven by Fabio Capello's use of Jack Wilshere in recent matches, and Walcott, 22, sees the potential for more graduates to emerge over the next two weeks.
The Arsenal winger said: "The European Under-21 Championships has always been important. I was part of the team that played in the final against Germany and it is amazing to see what their players have gone on to do.
"Hopefully we will see the next generation come through in this country. It's important for the young players to go that one step further, like Jack Wilshere has proved.
"Stuart Pearce works closely with Fabio Capello and will recommend people to him."