Although permanent improvements have been made in the national infrastructure for new companies, particularly the new technology companies, the EU remocions lack an environment for innovation and the growth of technological startups. Many European companies still see Silicon Valley as a final destination, and talent to threaten to create a ‘brain leak’
Given the current mastery of the United States, the growth of Chinese technology and the lack of an obvious focal point, can Europe really compete with Silicon Valley? The answer is a resounding yes, but what investments and sacrifices should happen by the European Union to make that a reality?
Retain technological talent
Few places in the world seem to monopolize an industry like Silicon Valley with technology. The San Francisco Bay area is home to many companies that dominate large parts of our lives, from Google and Meta to Apple and Nvidia. Much of the hardware that we have and the software we use daily is derived from Silicon Valley, and that is where a large amount of investment in new technology companies is made. As a result, it has become a child or Mecca for many entrepreneurs and small technology companies worldwide.
However, the painted image of Silicon Valley would make you think that there is no other substantial technological start scene. The reality is considerably more nuanced, with new technology companies that are constantly emerging throughout the world. In fact, almost all countries that seek economic reset talk about making their country the Silicon Valley of their specific region, investing strongly in infrastructure and starting tools for business growth. This has been fruitful in several places, from France and the Netherlands to South Korea and Singapore.
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The trick for all these nations is not necessarily to build an environment that benefits new technological companies, but to keep them within their country or region. Ultimately, Silicon Valley’s attraction will always exist in the same way that soccer players always dream of playing for Real Madrid or Barcelona. Regardless of the financial benefits of being there or the state in which Silicon Valley is located, he feels like the place to be and the culmination of a trip to the success of the technological startups. So what can the EU do in particular to combat this and maintain technological talent here at home?
The EU Silicon Valley
Several CEO of the main European technological companies have joined to propose a solution: EU Inc. in an open letter, have presented the case of an EU entity dedicated to improving the conditions for new companies in Europe, instead of trusting the efforts of individual countries. This is considered more practical and useful as an important problem for European technology companies are EU regulations, which are applied throughout the block, regardless of the benefits offered by particular countries.
The interesting part of this proposal is that the signatories do not request legislative changes throughout the EU. On the other hand, what they propose is the use of the 28th EU regime, which allows legal frameworks to be established in which member countries can opt. This would provide a standardization form throughout the EU without imposing any new rule to countries. The hope is that a significant proportion of the main European economies would opt for such a framework, creating an environment for cooperation between Europeans.
An important advantage of this model would be a way of standardizing and obtaining investments from the entire EU, instead of the investment being limited to risk or monetary funds of risk within individual countries. Starting infrastructure could also connect and support entrepreneurs through borders, while measures could be taken to create options on employee actions, providing greater benefits for employees and support rapid growth. Providing a better investment to expand new companies is seen as an important problem in Europe, and it is something that France in particular has focused on improving. For more information, see our article on the starting ecosystem of French technology.
Opportunities for new EU companies
All this does not mean that technological companies cannot prosper in Europe at this time. Several countries have made great advances creating competitive and self -sufficient startup economies, partly in the technological sector. The scheme of Los Angeles technology has been the most successful of the thesis, with France repeatedly sending the greatest non -American contingent to the consumer electronics program in recent years to its flourishing ecosystem. Multiple technological centers specialized in cities throughout the country have caused infrastructure, resources, connections and investment routes for a variety of new French companies.
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What this needs to represent is a platform for a higher and wider improvement. Although the funds of schemes such as Horizon Europe have helped innovative companies throughout the block, more sustained and accessible financing sources are required, as well as a means to attract more independent investors. Although the infrastructure provided in France has been an impulse for local companies, financing and regulations could help increase investment and cooperation with the neighboring counter.
There are still possible barriers to overcome, but the shoulder of technological regulation is not one of the thesis. Because or fears of being out of such a large market, American technology companies have largely inclined the will of the European Union so far. As a result, the perspective of the privacy of the data or other regulations that suffocate companies should no longer be seen as the main concern that perhaps once they were.
What will be interesting is how the EU solves to address this problem in a way that benefits the entire European community. The obvious response can be to implement new directives and sources of financing that benefit more immediately to countries with an existing technological initial infrastructure, such as France or the Netherlands. But the EU has already fought against accusations of economic bias trailers towards the “largest engines” economies for many years. The measures that do not encourage investment and innovation throughout the block would only lead to a brain leak between European countries instead of Silicon Valley.
EU Inc. repeats an approach to solve this problem, which allows countries to opt for regulations and structures that would benefit new companies. But it is possible that more flexibility and more financing opportunities are required to correct balance and provide equal or greater growth to smaller EU economies. The problem that the EU will have to solve is how to maintain existing stories of technological success such as France, while encouraging investors to look out or Paris or Berlin. There is no lack of talent or business desire throughout the continent: the EU who has just earned wants people to move.
