Europe is no longer an innovation leader. Here’s how it can get ahead

When it comes to technological innovation, Europe is now lagging behind not only the US and Japan, but also China. Recently China overtook the EU with R&D expenditure equivalent to 2.1% of GDP. Today, of the world’s 15 largest digital firms, not one is European. This loss of leadership is important not only in terms of jobs and growth. It also has much wider ramifications, like being best positioned to shape standards and rules globally.

While there may be no shortage of innovative ideas, great minds or entrepreneurial spirit in Europe, most new European companies do not make it beyond the start-up phase. Or, if they do, they move their business out of Europe. Cases like Skype, Beddit, Shazam or Minecraft – all bought up by the likes of Apple and Microsoft – are just a few well-known examples.