The European tech industry lags behind the US, but this gives the continent a chance to write the rules of the game

Date:

Europe invests heavily in research, publishes and patents many ideas. But it doesn’t compete with the US and China when it comes to translating innovation efforts into large, global technology firms. The seven largest US technology firms, Alphabet (Google), Amazon, Apple, Meta, Microsoft, Nvidia and Tesla, are 20 times greater than the seven largest in the EU and generate greater than ten times more revenue.

This doesn’t mean that Europe doesn’t have technology success stories. The world leader in music streaming is Spotify, a Swedish company. The Dutch company ASML produces the most advanced in the world computer chips and Danish drugmaker Novo Nordisk leader an especially profitable marketplace for weight reduction drugs.

- Advertisement -

European start-ups are also really: higher arrangement for enterprise capitalists than the American ones. However, they rarely grow to be significant global players. The principal reason is that Europe regulates more.

Studies have shown that Europeans do less optimistic than Americans in terms of social mobility, they need redistribute income greater than in the US and are more cautious of their relations owning dangerous assets. This leads to some very predictable results. Indicators related to the environment, inequality and life expectancy perform higher in Europe, while purely economic indicators perform higher in the US.

This is not necessarily bad news. In the competition to define the rules of the technology game, the combination of America’s vast tech ecosystem and Europe’s obsession with regulation could also be the best chance to protect consumers, free speech, accountability and transparency around the world.

Europe has a chance to write global rules for the technology industry according to its own values.
symbiote/Shutterstock

World leader in regulation

The US Food and Drug Administration (FDA) does accelerate faster approving latest medicines than the European Medicines Agency. Pharmaceutical firms even have greater profits: on average, there are greater than thrice costlier than in the rest of the OECD.

Therefore, it is sensible for pharmaceutical firms to develop their products in the US first. The same applies in the event you want to develop a latest synthetic meat, modified crop, or artificial intelligence (AI)-related product.

Europe could grow faster by changing its model. But ask European leaders what specific regulations they’re willing to chill out and you may hear deafening silence.

The UK is probably the best illustration of this. A big part of the Brexit project was to simplify European rules, which were considered excessive. However, eight years after the referendum, the UK has yet to make any major regulatory or government changes shows no interest when changing the beat.

In the US, innovation goes hand in hand market concentration and market power. When firms have high market power, they could have less incentive to innovate. They are also starting to gain political power.

Various app icons representing some of the largest major tech companies in the US, including Meta, Amazon, Apple, Netflix and Twitter, visible on an iPhone screen.
The United States is home to technology giants including Alphabet, Amazon, Apple and Meta.
Images Tada/Shutterstock

This is where Europe’s role as an independent regulator may be very vital. The largest firms they typically respect EU law because they need to maintain access to the EU. They also tend to offer the same products throughout the world, which implies that European regulations apply to everyone.

European rules have clear objectives. EU Digital Markets ActWhich comes into force in March 2024, it establishes laws and rules for giant online platforms – the so-called “guards” similar to Google, Amazon or Meta – to prevent them from abusing their market power.

Europe can also be credible when it comes to protecting consumers, residents and transparency. It can’t be suspected of favoring European technological champions, because there are none. Europe can e.g. Tiktok judge based on whether it violates child protection laws, reasonably than on fears that a Chinese company will take market share from a European company.

Technology and democracy

Perhaps the best example of the advantages of old regulation in Europe and a liberated America is the current race for artificial intelligence. The United States is a market leader in artificial intelligence technology that may power products and applications similar to image generators, voice assistants and search engines like google and yahoo. About half of the world’s investment in artificial intelligence is currently happening in the USA.

At the same time, Europe has already taken several steps to introduce regulations. EU Artificial Intelligence Actdefines e.g different levels transparency and auditing of algorithms depending on how dangerous they could grow to be.

Europe will definitely not win the global AI innovation race. But he has a chance write global rules according to your personal values. This means it could hold firms accountable for the performance of their AI tools and ensure transparency of the data used to train them. This also means it might require an audit of the company’s AI algorithms.

The TikTok application logo on the smartphone screen and the flags of China and the United States.
The short video hosting service TikTok is owned by the Chinese company ByteDance.
Ascannio/Shutterstock

However, for the EU to write latest rules on artificial intelligence, Western firms must win the innovation race. The principal competitor is China, where firms gain mass access to government data, including facial recognition. The Chinese government largely can select your champions by deciding who gets access to the data.

China’s concerns about regulation couldn’t be farther from Europe’s. China shouldn’t be inquisitive about improving transparency and fair political competition – it wants to use data to promote policy Communist Party of Chinaand discipline and support for the national economy.

Far from competing between Europe and the United States for technological supremacy, Western democracies should see their different approaches as a unique opportunity to promote shared values. In this context, the lack of large, global European technology leaders may very well be a blessing.

Rome
Romehttps://globalcmd.com/
Rome: Visionary Founder of the GlobalCommand Ecosystem (GlobalCmd.com | GLCND.com | GlobalCmd A.I.) Rome is the innovative mind behind the GlobalCommand Ecosystem, a dynamic suite of platforms designed to revolutionize productivity for entrepreneurs, freelancers, small business owners, and forward-thinking individuals. Through his visionary leadership, Rome has developed tools and content that eliminate complexity, empower decision-making, and accelerate success. The Powerhouse of Productivity: GlobalCmd.com At the heart of Rome’s vision is GlobalCmd.com, an intuitive AI-powered platform designed to simplify decision-making and streamline workflows. Whether you’re solving complex business challenges, scaling a new idea, or optimizing daily operations, GlobalCmd.com transforms inputs into actionable, results-driven solutions. Rome’s approach is straightforward yet transformative: provide users with tools that deliver clarity, save time, and empower them to focus on growth and achievement. With GlobalCmd.com, users no longer have to navigate overwhelming tools or inefficient processes—Rome has redefined productivity for real-world needs. An Ecosystem Built for Excellence Rome’s vision extends far beyond productivity tools. The GlobalCommand Ecosystem includes platforms that address every step of the user’s journey: • GLCND.com: A professional blog and content hub offering expert insights and actionable advice across business, science, health, and more. GLCND.com inspires users to explore new ideas, sharpen their skills, and stay ahead in their fields. • GlobalCmd A.I.: The innovative AI engine powering GlobalCmd.com, designed to turn user inputs into tailored recommendations, predictive insights, and actionable strategies. Built on the cutting-edge RAD² Framework, this AI simplifies even the most complex decisions with precision and ease. The Why Behind GlobalCmd.com Rome understands the pressure and challenges of running a business, launching projects, and making impactful decisions in real time. His mission was to create a platform that eliminates unnecessary complexity and provides clear, practical solutions for users. Whether users are tackling new ventures, refining operations, or handling day-to-day decisions, Rome has designed the GlobalCommand Ecosystem to meet real-world needs with innovative, results-oriented tools. Empowering Success Through Simplicity Rome’s ultimate goal is to empower individuals with the right tools, insights, and strategies to take control of their work and achieve success. By combining the strengths of GlobalCmd.com, GLCND.com, and GlobalCmd A.I., Rome has created an ecosystem that transforms how people work, think, and grow. Start your journey to smarter decisions and greater success today. Visit GlobalCmd.com and take control of your future.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Our Newsletter

Subscribe Us To Receive Our Latest News Directly In Your Inbox!

We don’t spam! Read our privacy policy for more info.

Advertisement

Popular

More like this
Related

A serious threat ending tonight as the cold front is pushed

New Orlean (Word) - the threat of adverse weather...

FM NIRMALA SITHARAMAN TABLE TABLES Income tax, 2025, in Lok Sabha

On Thursday, the Minister of Finance Nirmala Sithaman presented...

Students are not doing well and our task is to save them

During my eight -year teaching profession in Colorado, I...