{"text":[[{"start":3.5,"text":"Europe gave the world the printing press, the telephone and the worldwide web. And then? In areas of technology from super apps and defence tech to AI, China and the US lead by a country mile, and European rivals are barely off the starting block."}],[{"start":18.95,"text":"There are exceptions. Bending Spoons, an Italian tech conglomerate, went public in New York on Wednesday having priced its shares higher than expected. But with a market capitalisation of about $20bn, it hardly changes the thesis. It takes four of Europe’s biggest tech stocks, led by chip equipment maker ASML, to top $1tn. The US, meanwhile, has 10 listed tech companies that clear that hurdle single-handedly."}],[{"start":47.25,"text":"Or look at venture capital. The UK, Germany and France — the European trio that rank in the top 10 for start-ups — raised less than $50bn in the 12 months to the end of March, according to Dealroom data, one-tenth of the amount poured into US ventures. That’s despite having far more people and an economy that’s only a fifth smaller."}],[{"start":67.25,"text":"Having established that Europe has fallen behind the US, the question is why. Availability of capital, propensity to innovate and regulation are all variously indicated as the culprits, but two out of three of these ingredients are available already, or could be. "}],[{"start":83.25,"text":"Capital, being global, is only a partial barrier. EU investors account for just a quarter of funding for AI deals in the region above €25mn, but the rest still get done thanks to funding from elsewhere. These include German drone start-up Stark, valued at about €2.5bn and backed by US technology billionaire Peter Thiel. The US technology billionaire’s venture capital firm was an early backer of fintech Wise. "}],[{"start":111.4,"text":"As numbers get bigger, Europe’s policymakers have to get comfortable with greater foreign ownership of local treasures. SoftBank’s $24.3bn purchase of Arm Holdings put the UK chip designer into the hands of Japan’s biggest tech investor; Google’s takeover of DeepMind two years earlier put the British AI start-up under US ownership. Yet that burnishes rather than denies the value of European tech start-ups."}],[{"start":139.75,"text":"Ideas are harder to measure. Using patent applications as a proxy supports the gloomy view. The five most active countries in Europe together filed 43,000 applications last year, according to the World Intellectual Property Organization, less than 60 per cent of China’s tally."}],[{"start":157.05,"text":"Yet Europe doesn’t lack talent. It has clear niches in the tech sphere, including a leading role in fintech with the likes of UK-headquartered Revolut and Monzo. There are 300-plus defence tech start-ups, including German drone maker Helsing, valued at $18bn. Life sciences and biotech are well represented, including spinouts from universities. Only a fifth of venture capital money in Europe goes to AI, compared with a third in the US, but that may yet prove to be a sign of discipline rather than disdain."}],[{"start":189.20000000000002,"text":"That leaves regulation. Policymakers around the continent talk enthusiastically about removing red tape, but it remains a work in progress. Yet that, rather than more than money, is where the real bottleneck is. Doling out funds like the EU Defence Innovation Scheme is well and good. Devising ways for start-ups to set up shop and flourish is a better use of Europe’s energies."}],[{"start":218.50000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782982727_2184.mp3"}