The Technology Revolution is Leaving Europe Behind

Europe has created just 14 companies worth more than $10 billion over the past 50 years compared to 241 in the United States, underscoring the continent's struggle to compete in the global technology race despite having a larger population and similar education levels. The productivity gap has widened dramatically since the digital revolution began. European workers produced 95% of what their American counterparts made per hour in the late 1990s, but that figure has dropped to less than 80% today. Only four of the world's top 50 technology companies are European, and none of the top 10 quantum computing investors operate from Europe. Several high-profile European entrepreneurs have relocated to Silicon Valley, including Thomas Odenwald, who quit German AI startup Aleph Alpha after two months, citing slow decision-making and lack of stock options for employees. "If I look at how quickly things change in Silicon Valley...it's happening so fast that I don't think Europe can keep up with that speed," Odenwald said. The challenges extend beyond individual companies. European businesses spend 40% of their IT budgets on regulatory compliance, according to Amazon surveys, while complex labor laws create three-month notice periods and lengthy noncompete clauses.

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