Why is there no Silicon Valley in Europe? - VisualPolitik EN
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- เผยแพร่เมื่อ 22 ต.ค. 2022
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Silicon Valley is today the mecca of innovation and investment in new companies and products. Its consolidated position as a driver of new inventions and breakthroughs has become the envy of the world. The European Union, faced with the lack of novelties born in its territory, wants to imitate the Valley model in order to be able to place itself alongside the great world powers: the United States and China.
The European Union's path to creating new products and systems has stalled over the years, and the Union knows it, having become the Detroit of the globe. The push for measures to create technology hubs has begun, but it faces several problems, such as the lack of a unified military and industry.
But the war situation in Ukraine could change the course of the European Union, it could redirect its path and move from becoming the world's Detroit to possibly becoming the world's Silicon Valley. However, there are many efforts to be made by all the countries of the Union.
Why has the European Union lagged behind the United States? How is the Union becoming the Detroit of the world in terms of innovation? Is the Ukraine war the big opportunity for the Union to take off? In this video we tell you about it.
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I will be the first one to watch the video
There is, it's called CERN. in the Center an Inteligence tech Agency, not far from the World Health Organization, many banks, Syngenta, Fifa, and many hqs
And Americans HATE Silicon Valley they censored the entire internet for secret societies kind of like the way Hitler burned books
... example type any subject in Google with Millions of results, about max will show is 65 pages mostly propaganda at first, and Google is The Proxy for most internet search engines... so in other words F SILICON VALLEY
There’s like a revolution happening in Iran
VisualPolitik: I’m gonna pretend I didn’t saw that
The ability for a US company to scale is far greater than European companies. In America a company can open in one state and open everywhere with very little resistance, not possible in Europe.
America is unique as It has the world's largest single consumer market, deep resources, market economy and competition between the states.
@@bighands69 China is now the world largest consumer
@@nomoresunforever3695 no they ain't lol
@@DirtyEdon china cannot become a global market like usa .it can only cater to local
@@M3ganwillslay that's why they focusing on developing nations to build them up so they will have future market as well as influence them politically
Innovation in Europe is extremely hard.
For instance if you were going to a medical device field, it is easy to get hospitals to help you, and scientists willing to document, engineers willing to build for free even, however the issues come with documentation and upholding patents during the process. You need a lot of documentation for getting funding in the first place. European investors are very conservative and not very willing to risk anything, so you often need to use the EU funding. Eu funding can be done, if you ally yourself with a university, but it is very limited and associated with tons of paperwork.
However the reality is that countries like Denmark and Estonia have very willing universities to work with private sectors, but funding is usually hard to get. Actually the same goes for Germany in most cases, but there is a wall of bureaucracy in Germany, that almost make it impossible for small businesses to get in to a sector. You have 2 choices if you want a project in the Europe to go through. 1. work for a big company with the legal team to do the documentation (then you loose your profit), 2. Fund it yourself (but this requires million(s) of euro, which is rare of people to have.). Your best bet for innovation is west-coast US (maybe East-cost with Florida and Texas will be future hubs, that will be good bets), here funding is very much easier. Personally I know of at least 3 companies within the last 5 years, who had a good idea, that simply moved to the US for funding.
Innovation isnt the problem, alot of startups leave the EU to scale up.
@@ab-gu2nh Yep. It is my point. You have tons of people willing to help you in the EU, but the wall of bureaucracy and hesitancy in investments really forces people to the US, especially the west-coast, as investments are more risk tolerant, there is also some bonuses in form of a good pipeline for electronics production. Product is usually developed in the EU, but scaling it to production or even running trials is where you can run in to a lot of problems.
@@1985rbaek Hopefully this is changing with EU funding some startups now. Daniel Ek is very optimistic and pro Eu tech.
@@ab-gu2nh yearh, I hope so too, but it is a mindset of big investors that needs to change, if they want more startups to succeed within the EU (I think most of the bigger investors are pension companies, who may have a very conservative mindset, when it comes to EU companies, so you would probably need to structure some incentives for investing inside EU). There are some bigger companies that do have innovation departments, but then the profits go to these giants, not new companies. Some De-regulation would also be nice, but this is different from sector to sector.
@@1985rbaek seems to be alot of political will atleast from the technocrats of the EU to push for innovation. I think the fruits will come in 10 years or so.
I have wondered if "investment leakage" to the United States is a factor that prevents innovation in Europe. It seems like there are a lot of European companies with a strong presence in the United States. If there are problems with regulation and taxation in the EU, it might just be easier to keep assets in the states.
there are european companies like ASML that were "born" in Europe(this case the Netherlands), but actually have the majority of their presence outside of Europe. Europe is actually a great place for innovation and is where a lot of innovation nowadays is taking place, the problem is once you innovate, you effectively can't do business sustainably in Europe, so most european entrepreneurs get their start in Europe in terms of ideas and maybe research and prototyping, but then grow their actual business side in the US, China, or literally anywhere else.
@@this_is_japes7409
ASML are a holding company and are made up of smaller America companies who the US government gave permission to be sold to ASML because the US has the idea that by allowing trade and prosperity to expand world wide that it would create a more stable world. Hence why the US helped China to set up an expand.
The issue is the funding. A lot of projects have been born in Europe, but the company moved itself to the US (traditionally the west coast), as it is an easy place to get funding compared to any nation in the EU. Investment in Europe is extremely conservative, the point where an investor wants to buy in to your company is usually beyond the point of proven profitability. The US investors are willing to take considerably more risks. You see a lot of European innovators in the US for this exact reason, where they will make their new company, so it becomes a US startup.
@@bighands69 Its a joint venture by two dutch companies. What are you on about
This video resonates with me, because something similar happens within the U.S. I currently live in Minnesota and have historically been connected to the semiconductor industry. During the same war-time push for production, Minnesota became central for the war effort. Companies like General Mills were pressed into making everything from bombs to airplane parts. The defense industry continued to have a significant role in the local economy throughout the cold war. In the decades that followed, the state played a huge role in the development of supercomputers (Control Data, Honeywell, Sperry UNIVAC). Minnesota still has a solid track record for innovation, but I have seen a very common pattern over the last thirty years. As mentioned in the video, funding is a critical ingredient. As soon as a start-up starts to achieve success, the venture capitalists buy it up and take it to one of the coasts.
Bureaucracy is killing innovation in most parts of the world and it's not only Europe going through this.
why are so many Europeans straight up denying things in this video. you gotta admit there is a problem first before anything can change.
I spend a lot of time on sites that Europeans comment on. Some have a very hard time admitting the US does something better than them.
@@jamesjacobs3753 this, i HATE the europeans who always cpmment under these videos thinking EVERYTHING in the US is terrible and only EU can be right. They literally watch a documentary or listen to random americans complain about poverty and immediately make up their minds. Still odesnt change the fact that many amvitious europeans end up just doing Uni or opening a business here anyway. completely unnuanced thinking is what will lead to their doom. What i love hearing about are those educated europeans who make like 40,000 euros a year and complaining how they are underpaid but will never move to the US because of health care and employye treatment. Do they not realize for their same degree and credentials they could make like $250,000+ a year and when u are making that much, health insurance is literally a second thought.
Because they are half-truths and misconceptions.
Comparing a city (Detroit) to the EU for example.
Beyond ridiculous... yet a convincing argument for many people.
In Europe, we have to admit that we have traditionally not been good at things like venture capital and global marketing. Much of this is due to non-integration (e.g. how a European company can comply with various national laws in many languages). However, there are also an enormous number of things that Europeans objectively do better than the US does. Work-life balance, paid vacation days, maternity/paternity leave, job security, etc -> The fundamentals are correct, the spontaneous 'creative destruction' parts have been tougher (although even that is changing rapidly)
Well I would say that a healthcare system which is gated by money and does not provide identical service to the last homeless person as to the first billionare is utterly immoral as every single human life has same intrinsic value which can not be measured in money.
And thus any healthcare system should be obligated by law to always render IDENTICAL service to every human with given condition.
It should NOT be possible to pay your way to better care then any other human has.
I almost stopped watching at your first EU to Detroit comparison because it is so laughable. In video after video you predict doom on the EU. But, you forget one thing the EU was founded to bring social and political stability between formerly warring neighbours. And it has done that well for over 7 decades. The EU model, just like the Japanese model you decried in your last video, is based on different values then the anglo saxon model. It is not all roses and yes many who do fundamental research go to the US when it is time to go to market (Biotech needing Pfizer and the French guy at Moderna) BUT the EU economic model is also much less susceptible to huge recessions because it has a lot more safeguards. Is that a barrier to some innovation? maybe but as a social model it matches European culture better.
In terms of innovation though ASML is a Dutch company and without them, you have no semiconductors and your iphone doesn't work (plus you have to add the Asian companies that actually use ASML tech to make these chips)
Also the gas issues is way overblown. most EU countries have a national utility company that can cushion increases and not all the EU are that dependent on gas. and when you look at the price trends, it seems to be going back down anyway. What they used to say in France during the 1973 and 1979 OPEC oil shocks: we don't have oil but we have ideas. anyways, thanks for your concern, and I know the EU blowing up sounds like a good story but it won't happen...
What could be more profitable than fear mongering... Those who fervently oppose the EU generally seem to forget why the whole thing was created in the first place.
You've got a point, but this video is about innovation in the EU, not anything else, and it's analysis is spot on.
The EU has many benefits, of course, specially on political stability and general well being of the population, but in the innovation perspective, things simply aren't working. The US has the opposite problem, innovation abaunds, but the country has tons and tons of social problems they simply won't be able to fix in the near future.
I’ve read somewhere linguistic fragmentation is a factor. Technologies only need to be written in English in the US, while it needs to be translated in dozens of languages in Europe to be scalable.
Everybody in Europe speaks English.
Hardly a problem
@@mishkosimonovski23.... most of them poorly
@@merlingeikie Not really. First, it depends on the country. Second, no matter where you go, people with higher education, especially in the tech industry, are fluent in english for the most part.
Yet Silicon valley is full of Russians, Chinese and Indians. I'm sure German would becomes language of science again once Europe gets its act together
Some things he fails to mention about the U.S.
1) while yes, we do have a large amount of tech companies, resources to build many of those tech products are becoming harder to obtain. (See youtube videos on DIGITAL DARK AGE).
2) The power of financialization and the financial companies that have taken over the United States Government and writes all policy has in many ways stifled innovation in the U.S.. He may cite hundreds of startups, however, very few of them last very long and really do not invent anything that is really useful.
3) Monopolization (another consequence of financialization) of the economy where we now have very few choices, and the big companies like Apple, Amazon and Google can crush them out of the starting gate to ensure that they remain the largest and only competitors in the marketplace. This is true throught the U.S. economy. This is done to help juice stock prices and make the stock market unrealistic in its valuations and operation that has put billions of dollars at risk.
4) Endemic corruption in the financial industry has spilled over the economy as a whole. Making decision more skewed to the quarterly profits than long term goals and benefits.
5) Our declining infrastructure (Detroit is not the only place in the U.S. in decline) has made transportation more difficult (rail roads and highways), adding to the overall cost of goods. Especially to areas underserved with transportation and communication infrastructure.
6) The desire for continued growth has caused many products and services to become over-engineered with gadgets and add-ons that do not add any real extra convenience. This also make them vulnerable to supply chain issues that cause the shortages that we have today. For example: cars have more computer chips on them today than they need. This makes them more complex when dealing with maintenance and repairs. Most of the technology that have been put into vehicles is never used. The chips are dependent on long supply chain routs that can be easily disrupted. That is why we have a shortage and they have become more expensive.
Europe may have its issues, but the U.S.A. is also facing serious issues as well. Europe's more practical approaches to problem solving will help them more than the U.S. where the nation is so polarized, that the future is not that certain.
Lots of quality points that speak to the slow decline of the US, sadly. And you point out places for improvement if only the people in power would admit to those weaknesses.
With regards to your point #3. Apple is not a monopoly. In US antitrust law you must have a 90% market share to even be considered a monopoly. In smartphones, the principal market, Apple has an 18% market share worldwide. Not even close to being a monopoly. In a recent court case with Epic, Apple was accused of being a monopoly, but officially found by the judge of not being one.
Also wrong is Apple crushing startups. Far from it. If they find a small company doing interesting relevant work, they acquire them. This not only provides an on-going opportunity for the young, smart, workers in the company it also makes the founders extremely wealthy.
Europe definitely has the skills, human resources and capital to develop a Euro Silicon Valley. The issue is vision, leadership and a change in priorities. This is where the. EU may get bogged down
ASML, Zeiss and IMEC developed and produce the machines that TSMC uses to bake the words chips. The Netherlands, Germany, Belgium and Taiwan.
th-cam.com/video/RO7E7RX0L2Y/w-d-xo.html
Only asml make Europe relevant today only that. Asia and America is leaders of cutting edge high end product just like you phone
I don't think linguistic barrier is the problem, For a New rising Example, IMF says India has 22 official languages, But today India is the world's Largest Bussiness Outsourcing Destination and has World's 3rd highest Number of Start-ups and Unicorns with Mammoth 75,000+ Start-ups and 107+ Unicorns, Only behind the US and China with a Combined investments of whopping $ 450+ Billion dollars and It is the World's 2nd largest English speaking Nation with over 220+ English Speakers and One of the Highly Skilled Workforces
Yeah but it's India. 🙄
@@Rjsjrjsjrjsj Yeah so what, In fact India used to have much more problems ,But Sydney and Toronto Metro rails are Made-in-India by Alstom,And India with a Per capita of 2500 dollars has Developed it's Own 5G and Cheapest Internet rates in the world and 40% of Entire Global Digital Payments are accounted by India overtaking China and the US and 40% of American and 25% of Medicines consumed by Europeans are Made-in-India and Just Yesterday India's Flagship Space Corp ISRO successfully launched 36 satellites belonging to UK based One Web into Geo-Orbit using one the world's heaviest Rockets
@@wishdomhighschool_46 Again, it's India. You folks had the same opportunities as China over the last 30+ yrs and didn't do 💩 with it. Now you're actually doing something in the midst of globalizations collapse. Too little, too late. You'll always be an "also ran".
@@Rjsjrjsjrjsj Yeah, That's why India is the World's Fastest Growing Major Economy and is set to Drive 25% of entire Global Growth in this Decade as reported by IMF and World Bank, While the EU is in a massive Energy and Economic Crisis you are talking China or India, Well your name sounds Polish, whether u are polish or not, Look what and where did Poland come from since 1991,From a puppet to the Frontline defense against Moscow and That's What China and India are doing,But there is a Lot of Difference between China and India
@@wishdomhighschool_46 Whatever you gotta tell yourself. It's easy to grow fast when you're at the bottom. Just ask China. 😉
Why do you think you're a major economy? 🤔
If India disappeared right now the world would chug right along without missing a beat.
One language, one set of rules, one huge market with 330+ million people.
The video did not do justice to this topic and feels forced. Some reasons mentioned are pretty dumb, and some of the more important factors are completely left out.
Cool examples…
In Germany what works good, is:
Construction
Industry (used to be, with lower energy costs)
And all the classic stuff, which is based on physics, mathematics etc.
But when it comes to creative stuff, there is a lack.
This has impact on software and coding
Could you elaborate? I’m kinda curious
That used to work good. But Europe is now being de-industrialized due to expensive energy from US LNG and Norway LNG. The US plan is for them to take over both Tech and Industry from Europe. The US already has Europe under their thumb when it comes to tech.
@@i2cybeast For example software is not interesting in Germany. Companies don't pay good money for software developers (contractors) in Germany. So we move mostly to the UK where the daily rates are much better. Clearly, more innovation is happening in the UK. Also, the Germans have this stupid habit to send emails without rates which in most cases doesn't happen in the UK (and then you find out the rates are much lower than what you get in the UK). Also many times they send it in German, not English. Clearly, they are not global players then.
One of the reasons might be they don't have enough new companies, so there is not enough competition. Clearly, there is a reason why no new software companies are starting in Germany. I guess they have much higher taxes than the UK. Then the second reason you might not find enough developers for your company (because all the good ones are in a different country working for more money). Also, getting some funding will be easier in London.
That's why most of the innovation is visible in the UK, clearly a lot of new things in the finance industry. For example, the faster payments scheme in the UK is working mostly everywhere now (real-time payments in seconds for free), the EU payments are still behind this, although you can send it for free across the eurozone, it's still not real-time. In the UK that works more than 10 years, I think. To make a limited company in the UK it's an easy, online process, taking less than a day and costing less than 20 euros. It's harder to open a bank account for the company than the company. Also, there are a lot of new digital banks (Mozno, Revolut, Chase, Marcus) in the UK. Why are they in the UK and not in the eurozone / EU (only Revolut is in the EU but works much better in the UK)? Clearly, the whole process is easier in the UK. And this level of banking and other infrastructure will drive innovation. I would say banking is even better in the UK than in the US. It maybe works with the domestic US market but international payments are very expensive from the US.
Construction works because most of the workers were Poles who work for cheap & send the money back home.
And with sex arbeit, plenty of Romanians and Bulgarians.
Eastern Europe is good for cheap labor but it won’t last forever.
Regulation was obvious but the interaction of universities and military contractors was something that I've only occasionally heard with respect to Israel. Thanks to this video it makes so much more sense why the US has been such a driver of innovation in the global economy.
Estonia: Am I a joke to you?
Yes
In Europe nothing new is produced? I think you are forgetting that a lot of the innovations we make in Germany are the bases of technological growth like better optics to make smaller Mikrochips 😅
With Germany paying record prices for US and Norwegian LNG, that won't last long. Germany's industry is being taken over by the US.
@@sophieedel6324 some easier manufacturing surely, but most highly specialized factory’s take years and millions to build, also America hasn’t got the the kind of qualified workers a lot of those companies need 😅 so if the prices don’t stay that high for a few years I don’t see those companies relocate
Yes, but that optics is not created by a new company, but it's made by an existing big company (Zeiss).
@@gpsoftsk1 that's the point, but there are many subcontractors and a few universities tied in and as long as there are big preexisting companies that are highly specialized and basically irreplaceable in a field new ones will emerge. The point is not that there isn't anything to change to bolster our economy, the point is it can't simply be taken over by America/ China or die out. The automotive industry is a big concern for Germany though because most companies have also diversified into different country for decades, but still decades with of influencing the government and building whole city's around their manufacturing plants aren't thins that are easily given up😅
@@GanzcastGermany gemany doesn't even a single university in the top 20 best universities of the world while usa has 12 out of top 20 best universities of the world
Gemany is ajoke and an embarasment compared to usa
"EU's job is to regulete"
Ffs that's every single government ever, regulate the playing field, enforce violence/justice and redistribute wealth (even USA has some sort of progressive taxstion).
And FYI I still rather would deal with 1 convoluted set of rules, than 27 but maybe I'm weird.
Indeed. Regulations ALWAYS stifle innovation, no exception. That politician showed how out of touch he or she was with the R&D process.
@@davidford3115 I'm curious, what's your take on regulation that prevents asbestos usage in residential buildings, mandates crash safety in cars (such crumple zones or belts), ensures drugs go through the whole due diligence process before hitting the market or even economic/financial ones such as preventing monopolies/ant-competitive behaviour or insider trading?
Should the nany state not bother with enforcement of these, and instead trust the companies as agents of the markets to bring about those desired features?
Generally this has not shown to be the case in many applications, if companies can complain about needing to pay extra for fire exits, they will, always.
@@gebys4559 You realize that most people in the US stopped using asbestos in buildings and cars in the late 80s? And that was driven more because of private company choices rather than government. Indeed, the major reason why asbestos continued to be used was BECAUSE of government intervention. The whole banning part was basically the government telling itself not to use it.
So yeah, the Nanny state has NEVER done anything correct, being the biggest aggravating factor in society's problems.
I suppose that must be an aspect of American exceptionalism at play because there are still countries in the world that use asbestos, and markets by themselves have not phased it out.
Certainly government in the UK went against BMA advice relating to asbestos' carcinogenic properties in order to protect the homegrown industries for decades despite mounting evidence. But that's another annoying side of government (or more like human nature) quangos, revolving doors and working for the industry (for kickbacks) versus the nation.
It's also just one example from an array I've provided, I'd be interested in your thoughts on other points. As far as I'm aware unless there is a regulation against misleading consumers, companies wouldn't even need to compete on quality and could just lie instead about some supposed merits. Free markets can only operate if there is transparency, and sadly little man can not expect same access to accurate information if they're shrouded by a veil of bs, false claims and can't raise money to fact check each item or service.
As far as I'm aware only place with next to no rules/laws is Western Sahara and that's not really a paragon of business friendliness.
@@davidford3115 Why is the EU the major driving of positive change in the world then
I love how you’re talking about economic zones in Europe like we’re talking about economic zones in China.
Maybe when your economic systems are being compared to China in terms of how restrictive they are, you’ve gone a little bit too far.
Probably because European governments tax the shit out of businesses and entrepreneurs.
Between overregulation, and taxes, it's really hard to replicate what the US has. Factor in the graduate school programs inside the US, it's hard to replicate because Europe has too many languages and barriers to moving between countries.
Look at French employment laws. You'd be insane to start a business there.
Some reasonable points, but too broad a statement - there are lots of low tax, business friendly countries in Europe. Integration, language barriers and cross-country venture capitalism is an issue however. Takes time
Really.
The Republic of Ireland is the second largest exporter of software and the third largest exporter of pharmaceuticals in the world.
The Heritage Foundation ranks Ireland’s Economic Freedom Index 3rd in the world.
I’m laughing at you because Silicon Valley is in California, which is literally the least business friendly state in the US. It is over regulated with high taxes. As an example to build a single public toilet in SF, it will take TWO YEARS for environmental studies and cost 1.7 million.
Mind you that this business unfriendly environment is driving some of the companies out of state. HP, Oracle, Tesla and others have all moved their HQ to Texas. Austin, TX will become the new Silicon Valley.
@@downinla4076 Texas had the highest number of violent crimes committed last year, totaling over 115,000 crimes.
Think I’ll stay away from Texas.
Ireland hahaha it's like the Panama of Europe, well technically they are not in Europe. And you have to be multi-billion dollar company to make it tax advantageous. Can you put at least a 100 million on the table?
It's funny cause Silicon Valley is actually facing serious issues.
That's right. Silicon Valley can easily become the next Detroit.
This video is a joke!
nyc was bankrupt in the 70s. look at it today
USA has grant funding for for various basic research projects as 1/2 of basic research results in actual things for both military or civilian uses.
Again that is just nonsense and not the reason why the American market is bigger and better than any european country.
"The fact that one of every baby born in the world is chinese doesn't mean youre fifth baby is gonna be chinese"
Ok that was enough TH-cam for today
Loved the stifled laugh when referring to Liz Truss right near the end!
Educate and aid bright, young, computer-savvy geeks to be on your teams. Don’t let them slip through the cracks. They will help shape and save the World!!
Europe is celebrating increased military expenditure by Germany 😂. LOL
The title of this video is misleading: There is lots of innovation in Europe. It’s just boring innovation. Let me explain: American companies, like FAANG, are very flashy and disruptive. Meanwhile European companies tend to be very incremental. They build a slightly improved version of their product every year. Just take a look at BASF, Bayer, ZF, Bosch, Zeiss and so on. These companies have been around for ever and managed to stay relevant.
This approach works also for hightec: Just look at ASML.
So, the lesson should be: You won’t get famous with an incremental approach. However, you will become really really good at what you do, without anybody noticing.
This comment holds some deep truth.
"Slightly improved" isn't innovation, it is called efficiency. The Japanese in the 1970s and 80s were masters of efficiency. Hell, the fact that they modernized so quickly to become a major military player leading up to WW2 was because of that proclivity for maximizing efficiency. But improving efficiency WILL hit a physical cap. Only recently have the Japanese gone from being masters of efficiency to becoming ACTUAL innovators, particularly in the area of AI.
Here's a problem with your reasoning innovation is often a revolutionary improvement to existing tech or condition not incremental upgrades and like @David Ford here has mentioned its efficiency not innovation and had succinctly put some historical events as well
Innovation is bold revolutionary improvement over incremental upgrades and innovation often leading creation of the new S curve trend line for tech eg m1 arm mac had the greatest ipc curve lead in laptop efficiency market compared to m2 incremental upgrades
Innovation is the bold initial starter value for tech for efficient optimizers to improve over the S tech curve til its limits
America takes innovation to extremes limits with pro entrepreneur friendly policies compared EU counterparts
I can also add few experience as well if you're a leading top worker or research you're more likely to get paid more in rewards in USA compared to EU salaries its insane
For example compare the average, median and top salaries of EU and USA for fin biz tech you can clearly see the differences
@@davidford3115 @David Ford True, but sadly, and ironically, they are really slowing down on matters of efficiency due to their social and cultural issues and drawbacks of their working industry.(They even have their own word Karoshi, which means Death by Overwork, which shows the dark side of their supposed "consistent productivity image")-..which also is one of -if not the main reason for their shrinking population, as well as the economic stagnation that they had to endure after their economic miracle. If they can only rectify many of the problems that have plagued them for a long time, and improve their working standards overall, then maybe, just maybe, they could be at a much higher plateau of in the economic standpoints than they already are now.
And as you have pointed out accurately: They were masters of consistent efficiency, we could say the same for the Europeans.
If not plagued by the stagnation, corruption, and divides, of various economies and institutions, they would not just be stable and consistent, they would've been one of the focal points for technological leaps like long ago.(they still are, in a way, but not to their fullest degree, they can do better.)
@@AizenVonKleiss Yeah, Japan's problems today are very much in large part a result of their titanic rise. Much like with WW2, they advanced rapidly only to be undone by their own hubris, resulting in the "Lost Decade" and the collapse of their workforce. Yes, Japan has great potential, but they need to find a way to moderate the excesses that have led to unproductive behaviors.
*Estonia* 🇪🇪 is the only brightspot . Meanwhile 🇸🇬 🇨🇳 🇮🇳 are growing in tech .
I dont think indonesia can match india or china. Only singapore or israel can hope to try. That too with india no chance against china.
@@Myanmartiger921 dunno about Indonesia, but India certainly is a land of red tape, tariffs and bribes.
He obviously means Europe since this whole video is about Europe and not Asia.
The only robust solution for the European situation in general is unification as a single country
The Kafkaesque hellhole that is SAP originating in Germany is poetic.
Bro you gotta brush ur teeth 💀
It's just so expensive to start a business in Europe, I mean seriously expensive.
And don't forget the taxes my god
Median US income is $70000 per year which is liable for about 12% tax and in Europe that income would be taxed at near 50%.
It is impossible in Europe to set up a small business and grow it.
@@bighands69 Totally true. Also in many countries in the EU you can't start a company without capital even if you are doing only services. They will require to put 5000 euros in basic capital (plus make a reserve fund as well). In the UK you can start a company with 1 pound.
@@bighands69 there is this life hack called “setup your business in a low tax EU country” 😀 not all European countries have high taxes.
It's actually much much simplier than everything -> it's called single market. Both US and Chinas has a bigger single language single market. That is why most of EU startups also move to US, because it's much cheaper to scale there, because you need to run ads in a single language and provide support in a single language as-well.
Preaty much when that will be possible in the EU, it will have it's silicon valleys.
China does not have a consumer market that is even competitive with what Europe has.
Uhm, Europe has twice the population of the US. The US simply buys up all European startups. And now the US are taking over Europe's heavy industry too because Europe no longer has cheap energy.
@@sophieedel6324 EU population : 446,828,803 . US population 332,403,650 .
Don't compare a country to a continent, because only the EU is trying to create a single market. Trying is the main word still. Cheap energy will return that is not an issue. For Europe that main issue is still nationalism that stops further integration, thus leaving us with 27 local markets with easy product imports / exports but problematic marketing and high IT costs. So it's pretty much a matter of time until majority in Eu starts speaking English - give it 50 years and EU will become a software hub due to better standrats of living than in US.
@@mindaugas884 EU is never going to match usa
Eu is ajoke at creating technology
The fact that 40 countries combined get their ases kickd by just one country tells you how pathtc and embarasng the europeans are.
@@larrybuchannan186 Not sure you know what you are talking about. We do create technologies. We can't scale them as fast, thus more often than not an US company comes in and buys it and then it becomes and US company. Google was co-founded by an European. The new strategy often in Europe is to dominate your local mini country and then go to USA. Because again, single language market makes it easier to grow faster. Than 40 languages.
Would recommend "Where is My Flying Car?" by J. Storrs Hall. Doesn't focus specifically on Europe but has a great exploration why innovation in general hasn't kept up with its pre-1970s pace
Europe's innovation is in term of quality.... life quality that is. The US depends on corporations for any 'improvement' in human life, except it defines 'improvement' as bigger houses, bigger houses, lots of useless stuff and junk food. This translates well in terms of GDP but not really in life quality.
On the other hand, I see European countries are much more balanced in terms of using both corporations and government policies to achieve better quality of life. For example, many European cities are re-thinking city planning to become more friendly to bikers and pedestrians, which doesn't translate well in terms of GDP (fewer cars sold) but are great in terms of pollution-reduction, healthier people and more pleasant city streets overall.
Another example is Buurtzorg, the Dutch nurse association that revolutionized community care. This model is nurse-led and aimed at helping the elderly maintain as much independence as possible, for example also asking neighbors to help out. Again, this means less GDP (compared to selling them expensive medical care options) but much higher quality of life.
Then of course we have the education model of the Nordic countries. Portugal also scored a big win in the fight against drugs (through humane treatment of addicts).
These are all necessary developments because modern society has gone overboard in terms of mindless consumerism, especially the type that makes people more miserable rather than happier. Europe is making the effort to achieve better life with less, which will also be a win for the environment.
Now, don't get me wrong, consumerism does have its good points, namely the extremely rapid development of new technologies that can have significant benefits to society (Google and TH-cam help people access more knowledge, and I view video games and mobile technology as funding cheap virtual reality which will one day likely play big roles in affordable immersive education, remote construction, remote healthcare etc). Still, corporations and profits should not make one lose sight of the real goal, which is a happier life for all people.
In an ideal world, yes , but in an international market , no. Weapons, trade , war, etc , innovation leads to prosperity.
What is the first stage?
Denial?
Lol cope harder
Omg you sound so European. Look at our free healthcare, look at our free colleges, look at how many vaction days we get, look at our urban planning, look at how safe it is, look at how bad things are in the states. Just ignore the fact that the continent hasn't seen real economic growth for over a decade or how it's quickly becoming just a museum and a retirement home. Where do think the money comes from to fund all this? Do you think it grows on trees?
Sure, maybe it's sustainable now but it won't be forever. Europe will have to make some very tough decisons in the near future. Without immigration, continued over regualtion, no economic diversificaion, the standard of living will inevitably decline. You guys don't seem to have a common plan to fix any of this either.
Bash on the states as much as you'd like but we're doing a lot right. I mean the US economy is now about the same size as all of Europe combined. We also have less than half you're population. Sure, we don't have as many social saftey nets as Europeans but our wages are much higher and our taxes much lower so it balances out. I'd even argue our system is better. It encourages people to work harder and not rely on the state as much. This might sound cruel but it's really not. I mean look at Spain and Italy both are technically developed economies but unemployment is so much higher there. People have gotten too lazy and reliant on the state over there. Dragging down GDP.
There is so much moe I could talk about. In short If I had to pick between the problems of the US system and the European system. I would vastly prefer the US model. The are problems for sure but it's much easier to fix than Europes.
Imagine two different worlds with no trade or exchange of ideas between them. A US world and a Europe world.
In which one of these worlds would you be sitting behind a computer, watching VisualPolitik on the internet, drinking a coffee ordered from an app and wondering when they will cure cancer? And in which one of these world would you be reading a newspaper by candle light?
You talk about quality of life but seem to have completely forgotten that quality of life is primarily based on technological innovation.
EU at its fundamental level is a ideological giant bureaucratic institution that rather wants to focus on issues like LGBT, immigration and climate politics. Those curry favour in a environment that is incredibly politically correct and a lot of politicans today aren't politicians because they want something better and willing to put themself on the line for it, they are there to make a career.
That's why we now have mounting issues that each year grows like tumours upon Europe that sooner or later will have to be solved or risk killing both the union and Europe as a successfull continent. Things like welfare based immigration from third world. Energy crisis, criminality, too high taxes, bureaucracy etc etc will have to eventually be dealt with. At the great dismay of some people on the continent.
That's why we see a surge in political parties that the left deem as "ultra fascist nationalistic nazis" that wants to take care of these problems and they will just continue to grow, and while most mean well for its people, i can guarantee there will be 1-2 countries in Europe that will let in people that will cause problems for all of us.
I honestly don't think a few tax cuts, reducing EU as a organisation and kicking out unproductive immigrants will fix anything. Sure it will make life easier for all of us. If we wish to be competetive in the future, we have to really change the way our politics, our goverments and laws function in order to set an environment that nourishes, not stifles the economy and the progresss of Europe as the greatest continent and people on the planet.
Come on, we literally set the basis for modern life. Our culture, our heritage has no equal. And we must set examples for the future of humanity by leading the way to a future where democracy, freedom and fairness are still corner pillars in the world. Trust me, we don't want China, Russia or the US set the stage for the next 200 years.
Please consider a video about the history, and present day, relationship between the Russians and the Iranians.
As an American with many European relatives my guess is that Europe will lag way behind in tech innovation due to over-regulation and cultural division, the EU cannot be compared to the USA I imagine Japan, Korea, Taiwan will be much more competitive, China is being held back by the CCP otherwise they could develop a Chinese Silicone Valley, but their best and Brightest move to the USA and make up a bid proportion of our Scientists.
NXP , Siemens , Infineon not the largest but leaders in theyr fields , nxp f.e. has a market dominance worldwide of 90+% in the nfc market , basically every credit debit card you have is from NXP , thats only the stuff i know about im sure there are others , size is not always the biggest determining factor //EDIT: AS AStranger very nicely points out ASML , Zeiss and IMEC . ASML basically alone has a worldwide monopoly in cutting edge semiconductor manufacturing maschines all the big names intel apple ect are buying from ASML
Throw in ASML, Zeiss and IMEC (all in the EU) and you have all the big names in Equipment manufacturing for semiconductors. They pretty much locked up the market for EUV technology. th-cam.com/video/RO7E7RX0L2Y/w-d-xo.html
@@astranger448 maaan im ashamed i forgot ASML leading cutting edge producer of chip producing maschines , everychip maker intel apple tsmc buys maschines from them
Its embarrassing being from the Detroit area. The shout-outs are never positive 🤣
Being from Detroit and Estonia: Detroit did die a horrible death, and Estonia is really, really tiny. Detroit is however being revitalized as we speak (and the car companies are still around).... and Estonia has the most Unicorns per capita in Europe. Just sticking up for the two underdogs :)
I heard a lot of folks who bought cheap properties in a few years ago are making major flips now. I wouldn’t sleep on it.
Detroit is in Michigan which as a state would be far nicer to live in than any European country. The median income in Michigan is $60000 per year which is still higher than any european country .
@@bighands69 The absolute income before tax doesn't say anything about the living conditions. Try to account also purchase power parity and then you will get different numbers. Also, when we are talking about the gross income you can't directly compare them because you usually pay your private healthcare insurance as well from it. In the EU you don't have to do it as it is part of your salary where the largest amount is paid by the company as an additional expense and not counted into your gross salary (rather goes into the "total cost of employment"), the same applies to state pension payments.
Not saying your analysis is incorrect, but Europe vs. Detroit is not a fair comparison: Detroit is 90% black, while Europe is not (yet).
In 2010, MEPs were talking day in day out how Europe has to create its own competition against Amazon, Facebook and Google, who by then just started up. Its 2022 now and nothing happened here.
The collective west should be working together on innovation to stay ahead of the new authoritarian axis. Splitting resources seems to be a waste imo. At least on big projects like semiconductors and quantum computing, don’t really care about fighter jets.
Europe has no market for semiconductors hence why it does not have anything like AMD, Fairchild or Intel. .
Because company fund universities, they could care less about the students; I would prefer a place I pay to get taught at care about what they are teaching
Actually, per capita, Israel has the most unicorns and the most venture capital investment by a longshot. Israel, with under 10 million people, gets more VC investment than all of Europe! Israel is the Start Up Nation.
Business are created for a need and online businesses aren't majority government independent corporations.
The answer is very simple and clear. We will have the UED, the United Europe of Detroit. I have lived many years in France, and I have become very familiar with the IER, the Inter-Europeans Resentment. Europeans suffer from the NPH syndrome, or the Not Produced Here syndrome. When an industry develops and flourish in California, you will never hear people in other parts of the USA complain or strongly object like they do in Europe. The mentality and the rivalry of the European soccer game is exactly the same is their social and economic rivalry. Most of the European imposed regulations are a mean to object and to resent other's innovation and success.
I don’t think you have a clear grasp of the university system in Europe, as I have only been/worked at German universities, I can only safely say the main focus here is not teaching, but research 😅 and in Germany it is almost mandatory to collaborate with private companies, because most of the bachelor or master thesis are written and researched on either while working at the company or financed by the company.
gemany doesn't even a single university in the top 20 best universities of the world while usa has 12 out of top 20 best universities of the world
Gemany is ajoke and an embarasment compared to usa
That feeling when older than Nestle :(
The taxes in Europe does not encourage business.
California which dominates US technology with the Silicon Valley and 35 of the Forbes 50 most promising AI companies in the world is known in the US for its high taxes.
As an American ex-pat here in Austria, I could host an entire lecture series on why there's no Silicon Valley in Europe. A lot of the problems here that hinder the development of technology are entirely self-inflicted, a few cases in point:
1. Austria is the first country in the EU to introduce a digital ID platform, meaning your drivers license, passport, etc. can now be digitally available on your mobile phone. So if you get stopped by the police, you can simply show them your drivers license on your mobile phone and they can scan it to check for authenticity. It's a BRILLIANT idea, which is why I made sure to sign up immediately. I went to the registration website, entered my details, and immediately got an error message saying that online registration is for Austrian citizens ONLY! To register as a foreigner, you have to make an appointment at one of the large police headquarters, plus you have to bring 1) one passport photo plus receipt proving that it's not older than 6 months, 2) proof of police registration, 3) your passport, 4) proof of health insurance, 5) a copy of your appointment confirmation, etc. It should be noted that at least 3 of the required documents are easily accessible by the police on their computers. What was an excellent idea has now turned into a nightmare for foreigners wishing to participate in the system. So while Austrian citizens are entirely exempt from having to make a trip to the police while lugging a suitcase full of documents, foreigners have to jump through several loops to obtain the same benefits. And this phenomenon is replicated throughout the entire Austrian/European bureaucracy. They seem singularly unable to comprehend that the unequal treatment of foreigners stifles investment and innovation while hampering integration into European society. One reason the US is so attractive for innovators is because everyone is treated equally. There are no separate procedures for American citizens and foreigners - equality before the law means that everyone is subject to the same rules and same regulations. This is one reason Asian computer programmers and engineers avoid Europe, preferring to go to the US instead.
2. Europe has become very hostile to tech companies as of late, you only have to examine the EU high court's rulings over the past few years. A favorite European pastime is writing laws with the specific aim of punishing the Big Four: Google, Apple, Microsoft and Facebook. For example France and Austria have just come out with laws specifically aimed at taxing American tech companies - not ALL tech companies, just AMERICAN tech companies. One German Green party parliamentarian recently declared that their aim wasn't to merely regulate American tech companies, but to DISMANTLE them altogether. The EU high court has come out with a string of decisions specifically designed to whack the Big Four in the knees, e.g. Google's no longer allowed to save data from EU citizens. EU citizens now have the RIGHT to remove any unflattering information about themselves from Google's search results.
3. For the longest time Google's Street View was not available in Austria because showing house numbers "violated" Austria's privacy laws. Yet to date no one has been able to explain the legal difference between millions of tourists taking pictures of museums and other attractions and Google's Street View cars doing the same. The only difference is that it was being done by Google, and that was enough for regulators to ban what was an obviously very useful tool for the entire country. After years of legal wrangling back and forth, Austrian authorities finally gave Google the green light, although with several limitations. Anyone who objects to having their house on Google Street View has the right to demand its removal from Google's maps. People here are simply unable to understand that by pursuing these hostile policies against tech companies, they're only shooting themselves in the foot.
4. Another massive resistance movement here in Europe is against "genetically modified" foods. All research on genetic modification is expressly banned on this side of the world, which means that Europe's missing out on all the technological progress being made in the US and China. I amuse myself on trips to the supermarket where the labels on every milk carton proudly contains the following caption: "free from genetic modification". Europeans don't seem to understand that everything we eat and drink has ALREADY been genetically modified. A natural cow in the wild is short, lean and very fast. In contrast the cows we raise on farms are morbidly obese and have been bred over the past 10,000 years, or in other words genetically modified through selective breeding, to produce twice as much meat and twice as much milk. A natural apple in the wild is oddly shaped, full of worms and bitter. The apples we buy in the supermarket however have a beautiful red color, are blemish free, parasite free, and are sweet and juicy. They have been genetically modified on the farm through thousands of years of selective breeding. There's no difference between the genetic modification that takes place on a farm and the genetic modification that takes place in a lab, only that we save ourselves a few thousand years. Try telling that to the average European who has been taught to see agricultural scientists as the most evil race known to mankind!
5. In addition, European society has turned its back on science over the past few decades, and is now decidedly hostile to science and technology. In Austria more than half the population now believes in the efficacy of homeopathic "medicine". Even medical doctors, i.e. SCIENTISTS, now prescribe homeopathic treatment to their patients. You can now get Master of Science degrees in "Homeopathic Medicine" and other quackery from Austrian universities and any academic worth his/her salt now has certificates in NLP or Energetics proudly hanging on the walls in their office.
6. And finally, probably the biggest setback to innovation in Europe, at least in Austria, is the tax system. Simply put, it makes no sense to work too hard or become too innovative in Austria. If you work hard and earn a lot of money, you'll simply be punished in the end by a brutally "progressive" tax regime that takes 50% of your earnings. I was looking around for a new job just before COVID. I found THE PERFECT job, a top managerial position with a yearly salary of about 100k Euros. I plugged this figure into the income tax calculator and then nearly fell out of my chair! A whopping 50% goes to the Austrian State, leaving you with a measly 4,167 Euros a month for overseeing a large staff, working 60+ hour weeks, plus all the risks and responsibilities that come with such a job. It simply makes NO SENSE whatsoever to become overly ambitious and aim for the stars here in Europe because in the end you'll only end up being punished by the taxman. The more you make, the less you earn. The tax regime was actually purposefully structured to DISCOURAGE high income earners. The only ones that profit under this system are your average employees that make no more than 2,000 Euros monthly after taxes. Beyond that, you start getting taxed so heavily that what you take home is inversely proportional to all the extra work you have to perform. All of this has a devastating effect on innovation. Creative geniuses may be smart, but they're not stupid - they also want to earn a salary commensurate with their above-average talents and contribution to society. Unfortunately, European societies do not reward creative ingenuity, they punish it. Which is why creative geniuses have no choice but to move to America, where they know their efforts will be richly rewarded.
I think you kind of have a point with 1. There is much less focus for businesses to scale fast and reach wider audiences. For the other stated reasons I'm not convinced.
2. It's not so much EU being hostile to tech companies specifically as it is a few tech companies starting to have outsized power that needs to be kept in check. It's the same mentality behind preventing mergers of large industry leaders, that happened before tech got as big.
I agree 3 & 4 are a bit silly, but seem to be more prevalent in the German speaking world than the rest of Europe to my knowledge.
5. Those income tax rates don't hinder innovation that much either iirc. Firstly entrepreneurs and innovators mostly care about capital gains. And secondly, accounting for rent, travel, and medical expenses the disposable income $PPP is much more in line with the US, although a gap still exists.
A truer word has never been written, incredibly well put.
Just curious, you did not take the 100k job for those reasons? Do you think the points that you listed could change in the future?
@@guyfawkes2105 No, I did not, it wouldn't have made much sense. I'm still in my old job with modest earnings, but with the added benefit of just a normal 40 hour week with limited responsibilities. If I'd gotten that top job I'd be working at least 60 hours a week, managing a large staff, being responsible for an entire department plus all the pressure and stress that comes with such a position. Sorry, but all that added work is definitely NOT worth donating 50% of my salary to the state. This is what I meant by the tax system discouraging overly ambitious talent in Europe. In contrast many of my friends back home in the US are making 100K+ salaries while NOT being penalized for their ambitions. Despite having the same education and talent as they do, I will never be able to afford their level of lifestyle here in Europe because of the tax system. Consider this, a single-family home is out of reach for most middle-class Austrians because you'll never earn enough to meet the stringent requirements for a mortgage loan, which they just recently tightened by the way, putting home ownership beyond the reach of all but the wealthy and inherited. In comparison many of my friends back home have long ago bought their own big, beautiful and spacious homes, which is simply unaffordable for most Europeans. It's not by accident that the average European has a much smaller and modest home in comparison to the average American.
Europeans are quick to point out however, that while you'll never earn American style high salaries in Europe, the tax system was designed to have a redistributive function, meaning that you won't be poor either. Both ends of the earnings extreme are purposefully counterbalanced, keeping 90% of society firmly (stuck) in the middle. To the European mind, this has a positive and stabilizing effect on society. The drawback of such a vigorously redistributive tax regime is however, that it discourages overly ambitious geniuses who worry that their creations won't be adequately compensated. As a result, most creative geniuses will invariably make their way across the Atlantic to realize their dreams there instead of here.
As to your second question, the answer is no, I don't foresee any change in the near future. But then again, I'm not necessarily an expert on these things. I'm simply speaking from my own experience and observations.
@@CurtisCT where in the world is it easiest to get rich?
Hint: it’s not the United States.
Much of Silicon Valley originated in California’s universities - the internet began at UCLA and Stanford. VCs funded great tech ideas and founders got rich fast without being taxed to death.
You forgot to mention that in Germany not the big companies do all the business and innovation, it's the SMEs, the small and medium-sized enterprises, that are the backbone of the economy. They are often world leaders in their niche, they build the machines that others use to produce. They rely on a well-educated workforce (dual education with paid on-the-job experience and vocational schools) and top engineers (educated in tuition-free universities). If a car manufacturer like VW would file for bankruptcy it would be a major hiccup but for all of the thousands of SMEs having the same fate, it would be more likely by a factor of 100 to win the lottery two times in a row.
All auto companies, wherever they are (not just Europe) are simply brand names that order parts from Tier 2 suppliers. That is not a specifically European phenomenon.
The only auto companies that own their own vertically integrated supply chains and are highly profitable are BYD and Tesla.
@@-whackd Part of the problem in the US is that vertical integrated supply chains run afoul of the Sherman anti-Trust statutes regarding monopolies. Standard Oil was broken up in part because it had just as much of a vertical monopoly as well as a horizontal one.
lol the cope is unreal
German camera-brands are not known world wide, but the well-known camera companies use German-produced lenses to make high-end cameras.
The US has a large number of SME's as well but they are not service providers to the larger companies and tend to trade independently.
There is that company in the Netherlands (ASML) that makes the machines that used in semiconductor factories. They are the only company in the entire world that produces machines to make the most advanced chips available.
is that a disc world shirt? i want it
moving to the Silicon Valley Model is nothing Europe should do, it`s need to stretch out more!
An interesting issue that has happened in the US university system is that the more business gets involved with the University’s, the more restricted and limited the thought process become.
basically you are paid to think and behave in a certain way because your professorship/chair, grants, books/teaching materials, labs, buildings and resources are all paid for by said industry donors/alumni. Any ideas or arguments that run counter to the donor/alumni is very quickly stamped out…
This severely restricts true innovation and creativity in the long run and even has potentially severe consequences for society as we’ve seen in recent years…
US corporations use university’s as their R&D department in a lot cases so the overall research community is thereby reduced. Usually University’s do basic research using student slave labor and business then only uses internal resources to fine tune the manufacturing process rather than the whole research workflow. Businesses also get dibs on any useful discoveries since they paid for the buildings, the labs, the professors, the teaching materials, grants, etc. This prevents others from innovating off the basic research as was done in earlier eras.
The problem in both cases is excessive regulation, perpetrated either by the government or private companies. There has to be a golden zone somewhere between financing and intellectual freedom.
Private donors also allow US professors to quickly, early and secretly start completely new science, way, way earlier than otherwise possible
Detroit had Robocop tho, so it had an awesome tech sector!
Fun Fact: Ford never took the bailout in 2009.
Eindhoven?!
My guess before watching is taxes too high, too many bureaucrats in Brussels, and so on
A huge issue is the legal system. The US follows a common law system - you are free to do whatever you want unless its forbidden by law. In Europe the civil law system is predominant - you can only do what the law allows you to. This obviously chokes innovation. You can see the same in ex-French African Colonies who still adopt the civil law system. There is now a wave to incetivise the adoption of common law in these countries.
As a European citizen working in the public sector I honestly CANNOT keep up with the laws coming from Brussels. I can't imagine how the public sector is able to keep up. I have heard of many stories of honest small businessmen giving up and closing shop in fear of unknowingly breaking a law, or fed up of keeping up with compliance.
Many of these laws are not even thought through enough, often hurried by the Commission without proper consultation with Member States and I cannot imagine how MEPs keep up with 50 laws a day. The EU is a buerocratic nightmare. Back in 2008, we used to hear the term 'inaction bias', reluctance to take action. Now is the other extreme - a bias to do something for the sake of justifying your role as relevant.
I used to think that the UK made a massive mistake with Brexit. I am sorry to say, but I see their point now. Not that I advocate for the exit of my country, but the EU really needs to back off and decentralise
Burocracy stops Innovation
Bureaucracy is the art of making the possible impossible.
How about ASML and Carl Zeiss AG? Without those companies there are no microchips and then the 4 of the top 5 wouldn't exist. Just saying ...
And without US technology and expertise ASML and Carl Zeiss will struggle.
@@chidubemnwaohiri113 That statement is true, however the reverse is also true.
China is working to make these two companies irrelevant...
@@georgekaradov1274 sure, not impossible... will only take a couple of decades
@@inomo
People keep bringing up ASML but they do not understand that it is based on US industry not European industry. The US government gave them permission to buy smaller US companies and US patents.
There cutting edge laser technology for example is completely US based.
Summary of the Video: 1:Unions 2: Over regulation 3: Lack of a proper of military spending.
People don't understand how important 3 is.
@@almisami often I just direct them to Israel, a small country with a big mil budget and look hoe advance they are.
Number 3 will get resolved when Europeans stops playing with their little armies their little nationalistic games and get one army command, one army procurement and one army budget.
@ sadly these things often only happen when the enemy is marching on your lands and you either learn quickly or be prepared for the next war.
@ The problem with Europe achieving number three is the same as in the past: too many princelings overly concerned with maintaining their fiefdoms rather than doing what is pragmatic. Each country wants personal control over the process rather than setting up a framework where individual nations in the block could buy the equipment, they like from a shared procurement source.
Perun has a great video on the basket case that is the German logistical procurement process.
The issue with the video is you never touched on the downsides there are a lot of issues with Silicon Valley.
There is but it is very distributed. Companies such as ARM, ST Micro etc plus a lot of other hardware and software companies.
Also notice that the european companies are more hospitality brands while American companies are huge tech and logistics firms. Europe has become a museum selling overpriced t shirts.
Hey look at Europe’s cars compere to American and I think you will find answers who is usually sitting in museum 😂
🙄🤦♂️Look at the top 10 wealthiest countries on the planet. Half of them are in Europe.
Top 20 - 10 are in Europe.
Somehow I think that's not from selling t-shirts 🙄
What you said though definitely shows what an uninformed simpleton you are.
@@00421lukas Auto industry is 3% of US's GDP. Not particularly important in a full comparison.
You know all and do mean all modern CPU’s are made on European machines?
@@00421lukas "muh cars" lmao where's the European social media, film industry, advanced tech industry, ect? Oh right you don't have any of that.
A Silicon valley can happen, but the EU is divided vy politics it may take time for one develop
I'm an American. Visualpolitik is a good channel, but this is where their neoliberal bent shows a bit much.
Where you high on something VisualPolitik? 🤣
Whoever wrote this was either promoting a very narrow political view or simply glued together a few points copied from somewhere else.
The biggest problem in Europe is obviously scaling, not the innovation.
Many small markets aren’t the same as a big one. “Maybe” you could talk about different taxes and rules between different countries in Europe. Hahahha the answer is probably more uniform regulation across Europe 😉
And the military spending??? Wtf. Most money is used to sustain the personal and equipment. The percentage applied in investment is pretty small.
A strong incentive to innovate can come from many areas. The military is just one of them
Isn't Eindhoven the silicon valley of EU?
One of them yes!
Eindhoven is more focused on hardware with companies like ASML and Phillips, and hundreds of smaller hardware focused companies.
@@buddy1155 Ah, okay
You totally forgot to mention the disastrous affects of rising unions on labor market and flexibility in Detroit. Mass strikes during prime times, extremely high wages multiplying the production costs, and impossibility of firing even the most inefficient workers undermined the functioning the car industry and led eventually the city to fall.
Indeed. The story of Atlas Shrugged by Ayn Rand is echoed in the fall of Detroit.
Liboş
Not to mention much of the manufacturing just went to the suburbs Metro Detroit has never actually lost population
Let's not forget good old-fashioned racism.
Smug europoors coping proves the video's point.
A lot of pro-capitalism in that, and anti-european views - quite common... But are they all true ?
"Why Europe has no Silicon Valley?"
Well, first of all, should we have a Silicon Valley ?
"You can fire anyone at will."
You proud of your ability to ruin people's life on a whim ?
But out of that, saying that Europe is no place for business and that nothing is invented there is far from the truth.
Scandinavia, home base of social democracy, is not any less innovative than say, London, or the US. The start-up scene in Denmark is said to be better than in London. Denmark ranks the 15th in the best places to do business.
"You can fire anyone at will."
You proud of your ability to ruin people's life on a whim ?
Soi let me ask you this, do you want to go through all of the legal challenges to firing unproductive employees? Businesses don't exist to provide you a paycheck, they exist to turn a profit. They are not "adult daycare".
Own and operate your own private business and you will quickly change your tune. I suggest starting with a restaurant.
Or they can limit they buyout of almost all European startups by big Government funded monopolies abroad.
You also forget an important part of the equation, industry. Europe might not produce as many consumer products, but pretty much any factory, machine shop, laboratory, etc. will have European machines in it because Europe is the main quality producer of them or the only producer int he world.
Europe is small fry compared to the US.
The Eurofighter can not be termed as a successful project despite the lack of export orders. Last successful project in that industry was the Jaguar or the Panavia Tornado 👍🏻
The content and the info were insanely nice and well searched however, the guy is sooooo fast, for your contents to be more effective and grab more audience you need to slow down! :)
It is a vary unbalanced argument. "Silicon Valley, Silicon Valley... no regulation... Also China." ???
As someone whose career is in tech, I've developed systems and products for US and European markets. US companies might be more innovative than European companies, but, in my experience, the most innovative consumer technology is *used* in Europe and Asia, not the US. Basically, our innovation is mostly an export, not used internally.
Interesting!
Which Asian markets are top priority?
Do they collabrate with Asian startups?, because most Indian startups are in the services sector, importing western tech and ideas and fine tuning them for local markets.
Most of the Items I buy locally from Indian firms have designed in the US or a made in China label.
@@danielBAC in my experience, when it comes to the tech industry, Southeast Asian countries are used as cheaper labor pools, and countries like South Korea and Japan are seen as strategic business partners, even as they're seen as competition. It's a crazy world lol
@@mammajamma4397
You are just living in a fantasy of your own making. European industry is not comparable to US industry.
If Europe as a whole wishes to match American innovation, I think federalization is the way to go. The huge population full of highly educated people with freedom to move throughout the continent and collaborate seamlessly will galvanize European industry.
The US got to where it is because of how easily smart people in, say, New York City, San Francisco, and Houston can work together without any issue. Had they been separate countries, surely the level of red tape would stifle their work. Similarly, I think it would be extremely advantageous to federalize, allowing unimpeded collaboration between businesses in London, Paris, Berlin, and so on.
London?
(p.s. we don't actually aspire to match america, we aspire to team up together so that u.s. and china can't manipulate us).
Would be a great solution. Will never happen.
@@tedcrilly46 britain is ajoke of a nation at innovation. Britain is literally one of the wostcountries in the world at it
US has 5 companies in the top 10 while britain has zero
@@larrybuchannan186 why are you telling me? i asked about London bucause the o.p. suggested federalization when uk isn't in the e.u.
London is the one major European capital that can't federalize (normal - Istanbul and Moscow don't count).
with that said, i can't agree that G.B doesn't innovate, Brits invented a tonne of stuff, especially the Scots (per capita).
bottom line: the sponsor of this video is based on California. 2:18
Holland has some innovation in agriculture and land fill...
The US is innovative in some areas and totally backwards in others. And so is Europe. The focus on market value of companies only tells half the story and many large companies in Europe are privately owned and not publicly traded.
Still, those companies are not as big as american megacorps. Not even close.
@@antiquehealbot6543 And yet the quality of life is better in the EU
@@antiquehealbot6543 like Amazon and Tesla😂
@@Fantastika Mississippi has a higher HDI than Latvia
@@Fantastika but for how long? Europe can very easily end up in the same situation as Japan. A relatively wealthy continent that stagnated for 30 years while it’s competitors out compete it while the population gets old and can’t work anymore.
Actually Silicon Valley had access to TWO of the most prestigious universities in America and probably the world-Stanford and University of California @ Berkeley!
Still not the reason why it existed as a center of innovation.
Maglev & high speed trains throughout Europe like Siemens & Japan, TSMC with only 25m people in Taiwan. Biotech companies & Royce Royce engine in UK. ASML chip machine, European cars in Europe + Japan & S Korea.
None of which require war investment.
Are we really praising how unregulated the US tech industry is? How good universities and drugs are when they inflict crippling debt? These unicorns don't come without a cost to society.
War, war is the mother and father of invention.
sadly enough it was so n the past and will be in the future.
New tech is developed or existing tech evolves exponentionel
In WW1: Diesel engines, chemical and aircraft tech.
In WW2: Jet engines, Electronics and nuclear tech.
ww3: rocks and sticks
Duct tape
There's no silicon valley in europe because of the lack of innovation, HIGH TAXES, TOO MUCH BEAUROCRACY,high inflation, the devaluation of the euro(below to dollar),ernegy and gas crisis, low manufacturing productivity, I mean many european companies fleeing to the us and unemployment
True
Exactly
I like your videos and information but omg those random moments where the background is louder for no apparent reasons really hurts my ears. Can we cool it with the laundry noises called music?
why does the energie cost be because of the gaz?
Stockholm, Sweden - most common job: Programmer.
Zurich is changing as well. Goolge, Facebook etc. are getting bigger and bigger. Environment is here just the US giants got it before we could build our own unicorn. A manager of Facebook explained that it is easier to find a specialist for working in Zurich than elsewhere.
You mentioned common fighter jet programs as hypothetical, while there are both common fighter jet programs and main battle tank programs between France and Germany. Whether they will actually happen is another story, but you should have mentioned it
They mentioned the Eurofighter.
@@oppionatedindividual8256 yeah but that's an old project now, they're saying things like: "Europe should get together and do this..." while it's already being done
@@antoineadam4564 yea not enough. European brain drain is a real problem for the continentals and even us Brits.
@@oppionatedindividual8256 there are still quite a few competent people left on the continent, but they don't have the funding to do anything. The problem is, that European countries (including the UK ) have been super stingy with investments, while the US and China have been investing and betting big on their future
@@antoineadam4564 the UK is actually very good with tech investment compared to the continentals, we also have more unicorns that countries like France and Germany
The challange will be deciding, which EU country is going to receive this lucrative position.
Problem of Europe is education. Our company, software company with 1,000's of developers in US and Canada, tried to open new development studio in continental Europe. But we could not get enough qualified developers to hire. So we scraped the plan and outsourced the work to India. Europe should improve their collage level education for modern job market. STEM education is more pressing matter that European countires should handle than LGBT. But hardly covered in Euopean politics or news media.
I have several family members working for American tech companies, and they do so from choice. They enjoy far better pay and conditions (including share options) than most European companies offer. They enjoy European holiday entitlements, and great opportunities that come from working in a fast growing organisation.
I have little confidence in Europe when it comes to solving concrete problems. The current EU just isn't designed to fix such issues. Too many countries are self-interested (France above all). Colaborations only interesting for countries that get a cut of the business. Values aren't really shared. Rather it's all just about getting more money out of the EU.
And the system itself seems impossible to change with too many cooks and too many ways to stall the process.
That's my impression as well, general direction isn't "let's make EU stronger", but rather "how can the EU make ME stronger?"
the economy has been destroyed by high house prices and 2nd home speculators.
so in a way, the older generation are starting to reap the utter misery they have sown.
There is, it's called CERN. in the Center an Inteligence tech Agency, not far from the World Health Organization, many banks, Syngenta, Fifa, and many hqs