How Europe lost its tech companies

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TechAltar : Here is the poll I promised: https://twitter.com/TechAltar/status/937639966074687488

Vecopotryx : That hair is "top notch" if you get what I mean :D

ash boon : When you mention Chinese tech companies, don't forget Korean (Samsung, LG) and Japanese (Panasonic, Toshiba) tech companies too..

Magnus Friberg : Reg startup ecosystem - Stockholm and Berlin are great ones. Stockholm is the 2nd capital in the world producing "unicorns" per capita. Of course scale will matter but from a relative perspective, we have some competitiveness.

Geoffrey Engelbrecht : You are far to pessimistic. I don´t have time to spend investigating this in detail but Philipps still makes tech gadgets for home automation (Hue lights for example) amongst many other appliances. Nokia is also pushing in that direction acquiring Withings. And you forgot about Logitech which is one of the most successful periferral manufacturers in the world. Do US companies make TV’s? Apple needs to go to Korea for OLED screens since as far as I am aware there isn’t a single company in the US that has that technology. Designed in California made in China. I am a North American who currently lives in the heart of Europe and am not under the impression that Europe is behind anywhere else in terms of tech companies. Many of the big named US tech companies have research centres here in Europe to access knowledge here like Google and GE. Yes Europe doesn’t do everything but nor does anyone else. We live in a Global economy and technology is so advanced today it is not possible to sustain leadership in every technology for everyone. Having worked for a big European tech company I know that big companies everywhere have so much built in momentum due to the number of managers required to make a decision without a Steve Jobs or Elon Musk at the helm they tend to miss out on the next opportunity and continue with a blind belief that people will still want old technology products again. That is why new technology tends to come more from small companies and startups than big existing companies and as you said there are plenty of these in Europe. There are as many phone companies in North America that missed the smart phone revolution and though still exist like Nokia are no longer at stage centre. I don’t think Europe is falling behind because Nokia and Siemens don’t make smart phones and Philipps don’t make TVs.

m : All the reasons you list here seem reasonable enough. Europe doesn't really have tech giants anymore (they get sold off to foreign companies before becoming giants, it seems). But are we really just gonna assume giant tech companies are inherently good to have? That's the one thing that bothered me about the video. It's not like Europe's economy is really hurting because of the lack of giant tech monopolies. I understand it's a pride thing or something, and a lot of people who worship the apples and googles of the world tend to associate those companies with the countries they are made in, but with giant companies (not just tech) come uncompetitive business practices and general douchebaggery. I think Europe will be fine without these companies.

alex mercer : i don't live in Europe but still amazed by your videos congrats 👌

justin doonan : When u say Europe, and compare it to USA or China, I think Europe will lag behind those two superpowers for a long time now. America has from world war two has had a real advantage in money since it wasn't damaged and indebted like the European powers were. Also was able to attract the brightest and best minds from around the world with a better life and politics, than say what was behind the iron curtain. China went through alot of damage too, and some of it self inflicted, but is now catching up rapidly through the hard work of a billion people (that's alot of work) and top down policy's geared to catch up with the West and one day go beyond. China still had alot of poverty, but some areas are second to none in innovation and if they didn't invent the product (say iPhone) they make cheaper and faster than anyone else, then copy the IP and take it to the next level which is what they are doing with their digital doppelgangers of YouTube, whatsapp, ebay. Europe we have to remember is made up of individual nations, and I belive the single market is the best thing about the EU, which allows our companys to quickly scale up and branch out, but it's still held back by many language barrier of not real borders. Also many companys could not compete and so were easily bought out by bigger foreign rivals like Ericsson mobile phone. And yes you are right in that envied and decent labour law instead of making us more productive put at a disadvantage for global market share, instead of our rivals upping their workers conditions, I fear its been a zero sum game for Europe. But I must say, that Europe is still a more interesting and free place to live with many opportunities and of USA and China are both competing to make great tech, we can just chill and enjoy the best of both worlds.

Ray Gao : EU is doing extremely well in automotive, aircraft and yachts last time I checked. EU is also doing well in luxury goods. So yeah, let other countries do the CES and CEBITs well

csanád Kedves : Magyar vagy? Ezt nem is tudtam...Jó tudni, hogy vannak magyarok is, akik angol nyelvű videókat csinálnak..csak így tovább :D

Master of the First Race of the Universe, The Ultimate Conqueror. : Camera market is NOT dominated by American companies. *repeat*

Pedro Arce : His hair looks like the iphone x notch

Timothy Lorenzo : It's a shame you completely forgot about the car industry. Also, while I get that you prefer to focus on the consumer market, it is unfair and makes the entire video obsolete imo. Especially concerning your comment about the attitude towards tech. Besides the above, great video. I completely agree with your statement about the tradeoffs towards the end.

Kay JB : I didn't know Alcatel is a French brand. Always thought it was some Chinese brand.

Xiaotian Wang : 自大而又充满偏见,你生活那么自在就因为会投胎罢了。想奋斗,来美国中国,反正这年头欧洲人骂中国骂美国肯定会有人点赞的。毕竟奋斗的人不会天天酸别人。

oditeomnes : Because Europe is too busy with heavy industry tech instead of consumer tech. Industrial and engineering(Siemens, Bosh, ABB, Schneider Electric) Automotive (Daimler, VAG, Exor), Chemical (BASF), Aerospace (Airbus), Defence (BAE). Information/consumer technology is not the only technology.

Miriam Bedford : Germany is doing amazing in artificial intelligence and robotics (lots of new technology).

Clement Moylan : ARM in Cambridge, England, design most of the mobile processors powering your phones and tablets. There's loads of European tech firms - they just don't tend to be consumer facing. Moreover, Japanese and American tech firms invest in Europe, and own research and development facilities in Europe. In our globalised economy, each region builds its own successful niche.

Paul Langford : What you have left out is that most of the high-tech manufacturing equipment comes from Europe. Especially, China would grind to a halt without equipment from Germany, France and the U.K.

Steph M : This video is about consumer electronics in Europe. The manufacturing is done in Asia because of the very low labour cost and the available workforce. The software is made in California (California specifically, not the US in general) because of the University and investors ecosystem. The labour cost in the Sillicon Valley is really high and company benefits for employees of Apple or Google are better than in European companies. Europe has invented GSM but the European phone makers failed to follow the smartphone evolution (10 years ago) which was software based.

Juncheng Chen : EUROPE HAS NO HOPE. OMG

KommentarSpaltenKrieger 129394032 : You can't compare Europe to China or the U.S. While the latter ones are administrative entities, the former one is a continent with lot's of different countries, rules mindsets and consumer markets. The only way Europe could compete with those global giants would be a single market with uniform legislation and taxes. Most Europeans however would reject such a decision, since it would mean that the nation states would have to give away sovereignity. Apart from that your explanation seems plausible. Problem is, why should Europe want to build giants as Microsoft or Apple when those giants already exist and work well enough? There is no reason to clone them or to make something, that resembles them as long as the consumers are satisfied with those companies and their services.

新一工藤 : Siemens & Philips make medical equipment, power stations..etc what about automobile and aerospace industry? mining equipment? all of this is technology. there is a world other than consumer electronics and software that constitutes as tech.

Mechant Loup : Video fails. The tech companies did not go anywhere. They just transitioned from the consumer space to B2B. In fact, more Europeans now work in high-tech than ever before, and Europe provides the majority of the world's tech-driven investment products, from cellural networks to ship engines to aerospace to biotech to what have you. Central and Northern European economies are BASED on high-tech exports. Yes: re-read that sentence. So, there are MORE tech companies in Europe now, not less. What you see is a dearth of Europe-based global CONSUMER tech BRANDS. Which is an altogether different thing than what the video attempted -- and naively failed -- to address.

Geir Sunde : Countries should look to Stockholm as its amount of successful tech start-ups relative to population size isn't paralleled by any other city in Europe. I don't think trying to mimic the US and Silicon Valley is going to work out for the vast majority of European nations.

Priyavrat Gupta : You should post more often. Your content is the best available

Erik Schmunzeler : Tech companies? I always thought Europe was just full of art museum and coffee shops.

Peter Faber : A lot of tec companies in europe are invisible. Not in the end user segment.

David Bires : About 15 yrs ago I started to read reports about declining birth rates in Europe. PIGS especially. Now, the results of this decline are coming to fruition. Europe is on the brink of financial, social, and ethnic collapse. Tremendous pressure, due to uncontrolled immigration , declining tax base and so many other factors. It is a real cause for worry.

Nabium : Yeah but in the US they have a lot of East Asians and Ashkenazi, which together stand behind a huge bulk of the brains behind tech innovation. Which is not surprise as East Asians and Askhenazi Jews are found to have the highest IQs in the world. Here in Europe, all our Askhenazi have either moved to the US, to Israel or been exterminated. Which contributed to the US rise in economy, as well as Europe's relative fall in the same period. If you look at the US economy, there are a lot of Askhenazi people who've helped rise up the US economy, even though they are only 2% of the US population they are more than 40% of the population with an IQ over 140 and is thus a tremendous boost to development. Imagine if they still have lived in Europe, things would have been different. IQ and economic development is highly correlated. In the end Europe will not stand a chance, it doesn't matter the policies. As China is now freeing up their intellectual capital after suppression from by a strict communist regime they are going to dominate. Only AI would be able to compete with the potential intelligence found in China. The only hope Europe have is to attract more intelligent people. And get them to stay, so they have children and brings with them a stronger tomorrow. Countries like Canada and New Zealand is doing this. But it will never happen in Europe, Europe is too busy figuring out what to do with the millions of people from the Middle East and Africa to start thinking about the positive long-term economic benefits of immigration of intelligent people. When the Askhenazi Jews came to America from Lithuania and else-where in Europe, they were poor and without high official education. Yet now, their granddaughters and grandsons are leading the way for America. Basically Europe should just start to accept any person with an IQ over 135, no matter where they are from, how poor they are, how uneducated they are or how much it would cost to house and feed them, just because of their genes would be an unspeakably good investment for the future. But talking about these things is not politically correct, and it gives kinda bad association with thoughts we had in Europe in the start of last century. Which is kinda sad, facts are facts, we should learn to just use the facts to our advantage and development, not be so anxious of being politically correct.

miiiikku : Look at a list of German IT manufacturing companies, look at a list of thousands largest IT companies in the world and how many people they employ in Europe, how much taxes they pay, how much revenue they generate in EU. How many patents are held by EU countries, how many patents are generated by population. Look at the job listings, there are millions of various job listings. There are various reports made by various agencies on IT issues on Europe, you could look into those. There are thousands niches you can't even imagine. Where is the value creation happening. What part of supply chain is some unknown tech company in Warsaw employing 4 people. Sennheiser is an European audio equipment manufacturer, but you forgot my collage classmates company from the list. When I look at the list of 20 largest Finnish IT manufacturing companies I haven't heard about 18 on that list. Not all news from hundreds of thousands of small tech companies make it into tech news sites, not even to niche ones and definitely not to tech section of mainstream news.

ヌリシルヴァン : The language problem is definitely a big issue. The fact that any app or ssytem you develop in the USA / China can reach a huge chunk of the population speaking one language under one set of legal rules makes it much more simple. Altough, while I can't talk for every european country (since I mostly know mine), I know France do produce a lot of technology but it is, as you said, bought by super giant.

Filip : Ehm... Urbanears?

1Jean K. : Velve ?

Niels : I don't agree about the lack of a startup ecosystem. Here in the Netherlands there is a very active startup scene

Neil Moulang : GTA was originally a Scottish game and even after it's acquisition by Rockstar inc. GTA V was developed completely by Rockstar North, a subdivision of Rockstar, who's headquarters are in Edinburgh. So GTA V was developed completely in Scotland

MrMakabar : Just have to put the tech giant SAP out their. Even thou it is not directly a onsumer software producer it surely is huge.

Ondawall Fly : Thank globalism for that.

Master of the First Race of the Universe, The Ultimate Conqueror. : actually Samsung is replacing most European electronic company. Germany is probably the last standing with senhheiser and bosch.

Cheese : Isn't Serbia the producer of Tesla TV's and Smartphones and Croatia of VIVAX TV's and smartphones??? And bro u forgot to add SCS Software from Czech Republic, 4A Games Limited from Ukraine and many many more. I must say that there are a ton of tech companies aka startups located and based in Russia, Ukraine, Deep Silver from Germany, Rebellion Developments Limited from England, Ideaworks Game Studio (IGS) also England, UBISOFT from France...

Moral Orel : The needs of the people are more important than the needs of the corporations. The caveat is if you want to have better living standards as opposed to successful giant corporations, like America.

Shubh Sharma : Europeans love their life, culture and sports more then technology

K J : I think it is a bit hard to compare one country (US or China) to a cluster of countries (Europe). While Europe tries to work as a single market, there are fundamental differences. As you pointed out, geography and demographics make it hard to take as a whole single unit than for example the states in the US. Thus I would say this is the main issue when trying to compare Europe as a single market to the US or China. While yes, you can have differences between different US states or China's provinces, countries are on a completely different level since they operate and have developed separately. One example of why things cannot be compared and are thus are too grossly simplified due to this is attitude. Estonia for example is a poster-child regarding positive attitude towards technology. From the everyday person up to the government - technology is used daily and developed (software mostly) on the governmental level to be used by the government itself and the citizens. And as many have pointed out, Europe in general is more towards B2B technology.

Xanto04 : You should really call this video "how Europe lost its consumer tech companies"... If you have a look at industrial tech there are so many companies in Europe with world leading technology.

breathLP : Isn't Beyerdynamic also German? In my opinion they produce better products than Sennheiser.

poi klip : What about Nokia and a Croatian company Vivax (I'm using one of their phones) etc.

Kabloosh : It's simple. SOCIALISM.

DragoN 3 FTW : As an European it seems to me that Europe is willingly more concentrated on the things in life that are more essential than consumer electronics. Great food, great clothing, cosmetics,furniture (Ikea etc.), all kinds of art, (paintings, sculptures, architecture, books, classical music etc.), cars(practically owns that department), great trains and transportation in general. All of those things are more essential for life compared to some laptop or tablet etc. At one point Europe just said :"Who cares, we will buy those little gadgets from far east or USA." It is not particularly difficult to make those gadgets anyways. I am from ex Yugoslavia and there are tech brands even from this part of Europe. Smartphones and Led TVs TESLA from Serbia, smartphones, Led TVs, Air conditionaires etc. VIVAX from Croatia, also i used to have Quadro Led TV from Croatia. Plenty of small brands around Europe. Even very resistent for outdoor use KONCAR laptops from Croatia. I see in a big techno mall in my city some great Phillips Led TV.Also i was surprised to learn that my Prestigio tablet was from Belarus, at least headquarters of that business group.Also 49% of Alcatel should still be French, and Nokia is making a comeback with Android. I remember seeing some great expensive gaming laptops from Germany. Even UK gaming channel Game Riot uses them. I read it in the description of his channel.Also many, and i mean many legendary games and publishers are from Europe. Witcher,(Poland) Stalker,(Ukraine) Serious Sam (Croatia), Just Cause (Sweden), Mafia (Czech Republic) etc. and what can we say about behemoth such as Ubisoft(France) . No one in the world is capable of making such colorful, fantastic open world like Ubisoft. Also talking about software,Linux is from Finland, Opera search engine is from Norway, Daily motion is from France. Also one more word is more than enough i think. CERN.(Switzerland)

the gaming dude : Quite similar conditions in some genres in india

oddball : ASML !