Europe does not need its own Silicon Valley - it needs its own solutions
date
Mar 2, 2025
slug
2025-europe-does-not-need-its-own-silicon-valley-it-needs-its-own-solutions
status
Published
tags
Europe
Tech
US
Silicon Valley
type
Post
summary
A safe haven to produce billionaires without connection to reality is not the solution to anything. Europe needs to think of a solution that fits its own conditions, with the state as an investor and a share of the profits.
Now that the 70+ years of US-Europe alliance has officially ended, pressure mounts for Europe to create its own Silicon Valley. This demand comes from observers who—correctly—criticize the continent's inefficiency in fostering innovation. However, reality is more complex. Silicon Valley represents the pinnacle of American individualism and winner-takes-all capitalism, a system now self-destructing through its own excesses. While the European Union and UK (divided by an ill-informed referendum) must boost innovation across sectors—from military technology to cutting-edge AI—simply replicating a system that produces Elon Musks and Jeff Bezoses cannot be the answer. Europe must find its own path forward.
Are there examples where Europe can compete head-to-head with the US? Certainly. Consider the commercial airplane industry. Boeing once dominated the global aircraft market as its sole leader. However, not only has Airbus closed this gap, but the American giant now finds itself mired in failures—likely stemming from its relentless pursuit of ever-increasing profits—which have led to preventable disasters. The capitalism that Trump will implement in America will only accelerate the fall of the empire, and all the corporations tied to it will pay a hefty price for adhering to it.
Capitalism as we see today is a crippled version of the system that liberal thinkers like Smith, Ricardo and John Stuart Mill defended. Today, meritocracy has been undermined by the resistance of elites to accept that they need to be replaced by more dynamic ones. What we see on both sides of the Atlantic is an oligarchy that prevents the system from finding more capable people, companies, and markets to redirect capital more efficiently. The revolution that capitalism started 300 years ago to eliminate nobility's privileges is ending with a dominant class again clinging to its privileges. Like so many historical ironies, we see the once freedom fighters becoming the tyrants. This applies to both the US and Europe.
Creating ways to make society less static would be a good start for Europe to build against its old allied, although most of the pre-revolutionary privileges never left. If Europe wants to have a chance against the US, it has to be able to locate and empower talent faster. Even as a dictatorship, China is much better to unlock talent than Europe and the US, because Chinese strength lies in empowered talent. How much locked talent is the places like the Max Planck Gesellschaft or in the CNRS? Why does these public-funded entities are not more integrated to society? Privilege is hardwired in Europe’s society and that’s an enemy to be fought.
Crucially, Europe must resist the temptation to concentrate wealth in a few trillion-dollar companies. Instead, it should aim for a more distributed model of innovation that spreads benefits across society. This approach could involve implementing stronger antitrust measures, encouraging the development of open-source technologies, and creating incentives for companies that prioritise social and environmental impact alongside profit.
The reform of media and information systems is another critical area where Europe can lead. By supporting diverse and independent media outlets, investing in digital literacy, and developing regulations that promote transparency and accountability in digital platforms, Europe can create a more robust and trustworthy information ecosystem.
Europe's unique position allows it to pioneer an approach to innovation that prioritises ethical considerations and societal benefits. This could involve developing technologies that address pressing global challenges such as climate change, healthcare accessibility, and social inequality.
By focusing on these areas, Europe can create a distinctive innovation ecosystem that drives technological progress while maintaining its commitment to social equity and democratic values. This approach will not only enhance Europe's competitiveness but also position it as a global leader in responsible and sustainable innovation.
The path ahead for Europe is challenging but filled with potential. By staying true to its values while embracing the need for change and innovation, Europe can forge a new model of progress that benefits not just its citizens, but potentially serves as a blueprint for the rest of the world. In doing so, Europe may find that its greatest strength lies not in mimicking others, but in charting a course that reflects its unique identity and aspirations.