Comment by LurkandComment
5 days ago
1. EU was slowly doing this in some tech industries and its really going to pick up speed
2. They don't have to replace a lot of US tech before the economic impact compounds to effect the US.
5 days ago
1. EU was slowly doing this in some tech industries and its really going to pick up speed
2. They don't have to replace a lot of US tech before the economic impact compounds to effect the US.
The problem is the EU is still suffering startup drain to USA entirely because of market and regulatory burdens. We just saw this most recently with Heart Aerospace. They warned EU regulators repeatedly that it was very difficult to develop frontier technology in Europe. And then they eventually just relocated to California completely.
https://www.heartaerospace.com/newsroom/heart-aerospace-relo...
These are political and societal issues that are very difficult to solve. Not to mention that energy insecurity and cost makes Europe non-competitive from the outset.
This particular example is hardly representative. The market they work on is difficult. They may have an ambition to become Tesla of airplanes, but it did not take a long time before traditional manufacturers learned from Tesla’s success and took over. VW builds more electric cars, and number one globally is a Chinese company. With airplanes, becoming an independent manufacturer is a long and risky path. In the end, their main choice is between being acquired by Boeing or Airbus if they are successful, or being outcompeted by incumbents or Chinese. I do not think this reflects the investment climate in Europe in general. There are fields where startups can do well, and fields where starting something new in Europe is generally a bad idea. I’m not sure that’s always because of regulations.
All the money is in Silicon Valley, that's why they move there.
If this was a US vs EU thing, I would love to hear a US tech giant that isn't in Silicon Valley or Seattle.
Fact is, even in US, no other city was able to replicate that success. For example, there would be no point to move your startup from EU to New York for example.
Micron was founded in Boise Idaho and is still headquartered there. Cymer, which makes the EUV light source in ASML machines, was founded in San Diego, and is still there.
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Just to name a few:
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Cisco — Research Triangle Park (Raleigh), NC
Dell — Round Rock, Texas
Epic Games — Cary, NC
HP — Houston, Texas
IBM — Armonk, New York
Lenovo — Morrisville, NC
Oracle — Austin, Texas
Redhat — Raleigh, NC
SAS Institute — Cary, NC
Tesla — Austin, Texas
Lots and lots of US tech giants are not in Silicon Valley or Seattle. In fact, Texas, North Carolina, New York, Georgia, and Virginia have huge hubs of tech giants - especially the Research Triangle Park in NC.
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