Why is there no Silicon Valley in Europe? - VisualPolitik EN

Summary

This video explores why Europe has struggled to produce tech giants like Google and why its business environment lags behind the U.S. and China. It discusses Europe's reliance on older companies, its lack of innovation, and over-regulation. The video compares Europe's situation to Detroit's decline and highlights Silicon Valley’s success due to venture capital and university collaboration. With rising energy costs and a lack of competitiveness, the video questions if Europe can transform its industries, possibly through military innovation, or if it will continue to decline economically.

Takeaways

• 💡 Europe struggles with innovation and lacks major tech companies compared to the United States.
• 🏛 Many of Europe's largest companies, like Nestlé and Novartis, are much older, originating from the 19th or even 17th century.
• 🚗 Detroit serves as a cautionary tale for Europe, as its automotive industry collapsed due to lack of innovation and external competition.
• ⚡ The energy crisis in Europe is creating a significant risk for businesses, potentially leading to economic decline.
• 💻 Silicon Valley thrives because of its strong connection between universities, private companies, and venture capital.
• 🔧 Europe's universities are more focused on teaching rather than research, making innovation difficult.
• 📜 European Union regulations, especially around sectors like AI and pharmaceuticals, are highly restrictive and impede innovation.
• 🛡 Europe's fragmented military spending and reluctance to invest in defense technology further reduce its capacity for innovation.
• 🌍 Estonia is one of the few European countries to adopt a more Silicon Valley-like model but remains limited by its small size.
• 🚀 Increased military spending due to the Ukraine war presents a potential opportunity for Europe to boost innovation, but significant structural changes are still needed.

Q & A

Why is there no European equivalent of Google or other tech giants?

Europe lacks the same conditions for innovation as the U.S., particularly in areas like venture capital, flexibility in business practices, and university-industry collaboration, which have fostered the growth of companies like Google in Silicon Valley.

What is the difference between the largest companies in Europe and the United States?

Many of Europe's largest companies, like Nestle and Novartis, were founded centuries ago, whereas most of the U.S. tech giants are much younger, indicating the U.S.'s stronger capacity for fostering modern, innovative companies.

How has the energy crisis affected European companies?

The energy crisis, with rising gas prices, has made it difficult for European companies to remain competitive, as they can no longer rely on the low-cost gas that used to be a major advantage for the region.

How does Detroit serve as a comparison for Europe’s potential future?

Detroit, once a booming hub for the automobile industry, declined due to competition and failure to innovate. The video suggests that Europe could follow a similar path if it does not address its current lack of innovation and competitiveness.

What role did military spending play in the rise of Silicon Valley?

During World War II, California received significant investment to support the U.S. military effort in the Pacific. This investment, combined with a highly educated workforce and entrepreneurial mindset, laid the groundwork for Silicon Valley’s later tech boom.

What are some of the key factors that contributed to Silicon Valley's success?

Silicon Valley thrived due to factors like a strong university-industry collaboration, a flexible business environment, and ample venture capital, all of which supported rapid innovation and company growth.

How does Europe's regulatory environment affect innovation?

Europe's heavy regulations, particularly in areas like artificial intelligence and pharmaceuticals, create barriers for innovation. This is in contrast to the more flexible regulatory environment in the U.S., which encourages rapid technological advancement.

Why is military spending important for fostering innovation?

Military spending often involves investment in cutting-edge technologies, many of which later have civilian applications, like GPS and the internet. It can drive technological progress and innovation within industries.

What challenges do European universities face in contributing to military or private-sector innovation?

Many European universities are restricted from participating in military research, and they generally focus more on teaching than on applied research. This limits their ability to contribute to innovation in industries tied to defense or technology.

What steps could Europe take to develop its own Silicon Valley?

Europe could focus on increasing military spending, fostering university-industry collaboration, easing regulations in tech sectors, and creating special economic zones to attract innovation and venture capital, similar to what exists in Silicon Valley.

Outlines

00:00

🌍 Europe's Innovation Challenge

This paragraph introduces Europe's struggle with innovation, questioning why Europe lacks a major tech giant like Google. The focus is on the disparity between American and European companies, highlighting the U.S.'s ability to foster new tech companies post-1975, while Europe's leading firms are much older, like Nestlé and Novartis. The energy crisis exacerbates this problem, pushing companies out of Europe as the region becomes less competitive due to rising energy costs. The paragraph sets up the video’s main theme of Europe’s lag in innovation and the urgent need to address this issue.

05:01

💡 The Success of Silicon Valley vs. Detroit's Decline

This section contrasts the rise of Silicon Valley with the decline of Detroit. It explains how World War II boosted Silicon Valley's growth, with investments in military technology and the establishment of strong ties between universities and private enterprises. Entrepreneurs thrived due to venture capital, flexibility in hiring and firing, and collaboration with academic institutions. Detroit, on the other hand, relied on a mature, slow-moving automobile industry that couldn't keep pace with innovation, leading to its eventual decline due to competition from cheaper Japanese cars.

10:04

🚗 Detroit's Fall and Silicon Valley’s Rise

This paragraph delves deeper into the reasons for Detroit's collapse, driven by union problems, tax issues, regulatory hurdles, and competition from Japanese automakers like Toyota. Detroit’s lack of innovation led to factory closures, population decline, and economic devastation. In contrast, Silicon Valley’s entrepreneurial ecosystem, supported by venture capital and flexibility, allowed startups to thrive and scale rapidly. The paragraph emphasizes the importance of innovation and flexibility for economic survival and growth.

15:05

🏭 Europe's Innovation Deficit and Regulation Problems

Here, the focus shifts to Europe's struggle with innovation. Unlike the U.S., Europe spends less on defense and R&D, limiting technological advances, especially in the military sector. Universities in Europe are often restricted from participating in military projects, which hinders innovation. This paragraph also highlights Europe's over-regulation, which stifles creativity and limits investment in areas like artificial intelligence and pharmaceuticals, making Europe a leader in regulation rather than innovation.

🦄 The Unicorn Deficit in Europe

This section highlights Europe's lack of tech unicorns compared to the U.S. and China. Despite producing some successful companies like SAP, Europe has significantly fewer billion-dollar startups than the U.S., with Germany having only 26 unicorns compared to America's 487. Venture capitalists like Sequoia Capital avoid setting up offices in Europe, further illustrating the continent's inability to foster a thriving startup ecosystem. The small but innovative country of Estonia is mentioned as an outlier within Europe, but its limited size restricts its influence.

🔋 Energy Crisis: Europe’s Wake-Up Call

This paragraph focuses on how Europe’s reliance on cheap Russian gas allowed it to remain competitive despite other structural disadvantages. With the energy crisis triggered by the war in Ukraine, European companies now face higher costs, threatening their competitiveness. The European Union is starting to look for ways to regain its edge, considering the creation of a Silicon Valley-like ecosystem as a potential solution to the economic challenges posed by the energy crisis.

🚀 Military Spending: A Path to Innovation?

In this section, the potential for Europe to boost innovation through increased military spending is discussed. The war in Ukraine has led to a surge in military investment across Europe, which could spark technological advances. The paragraph explains how military R&D can drive broader innovation due to its focus on applied research, private sector involvement, and the ability to mass-produce technology. However, challenges remain in ensuring collaboration between European states and universities in defense projects.

🌐 Collaborating for Europe’s Tech Future

This final section explores the key changes needed for Europe to translate military spending into broader technological innovation. It emphasizes the importance of cross-border collaboration between European nations and the need for universities to work closely with private companies. Relaxing regulations and creating special economic zones, where taxes and rules are more favorable for tech innovation, is proposed as a way to create 'mini Silicon Valleys' across Europe. The video concludes by posing questions about Europe's future: Will it achieve its own Silicon Valley, or will it continue to struggle under regulatory and energy pressures?

Keywords

💡European Google

The video questions why Europe has not produced a major tech company like Google. It suggests that despite having a strong business presence with old established companies like Nestlé, Europe lacks a modern, globally competitive tech giant that mirrors Silicon Valley success stories.

💡Innovation Gap

The 'Innovation Gap' refers to Europe's lag in technological innovation compared to the U.S. and China. The video highlights how the lack of young, dynamic companies in Europe is a key factor in this gap, with industries remaining focused on traditional businesses rather than fostering disruptive startups like Google or Facebook.

💡Silicon Valley

Silicon Valley is used as a prime example of a tech hub that has driven innovation, entrepreneurship, and economic growth in the U.S. The video contrasts Silicon Valley's success with Europe's inability to create a similar environment due to structural, cultural, and economic differences.

💡Venture Capital

Venture Capital is described as a crucial driver of Silicon Valley’s success. It provides the necessary funding for startups to scale rapidly. The video points out that the lack of venture capital in Europe, as evidenced by companies like Sequoia Capital not having EU offices, is a major barrier to the development of unicorn companies.

💡Energy Crisis

The energy crisis is highlighted as a new and urgent challenge for European businesses, which are facing skyrocketing energy prices. This crisis threatens Europe's industrial competitiveness and could accelerate the decline of its economic influence, much like Detroit's decline in the U.S.

💡Detroit

Detroit is used as a metaphor for economic decline, particularly in industries that fail to innovate. The video draws parallels between the fate of Detroit's automotive industry and the potential for European industries to face similar outcomes if they don't address competitiveness and innovation issues.

💡Military Innovation

Military innovation is noted as a key driver of technological advancements in the U.S., with Silicon Valley originally benefiting from military contracts during World War II. The video contrasts this with Europe's fragmented and underfunded military research and development, which limits its ability to foster similar tech ecosystems.

💡Regulation

The European Union's regulatory environment is portrayed as a major obstacle to innovation. The video argues that excessive regulation stifles entrepreneurship and prevents European businesses from competing effectively with their U.S. counterparts, especially in emerging fields like artificial intelligence.

💡Unicorns

A 'unicorn' is a startup valued at over $1 billion. The video discusses how Europe lags behind the U.S. and China in producing unicorns, largely due to a lack of venture capital, rigid regulations, and an inability to scale companies as rapidly as in Silicon Valley.

Highlights

Brilliant is a hands-on, problem-solving-based learning platform for STEM skills, with interactive courses that appeal to both students and professionals.

The United States dominates the global top five largest companies, showcasing its strong culture of innovation, while European companies tend to be much older and less focused on modern tech industries.

While Europe has produced innovative companies like SAP and Skype, the region lags significantly behind the United States in the development of young, tech-driven companies.

The current energy crisis, especially soaring electricity prices, is threatening European businesses, with many companies contemplating relocating outside the European Union to avoid high energy costs.

The automotive industry is crucial for European countries like Spain and Germany, accounting for a significant portion of their GDP, and facing disruption due to competition and economic challenges.

Silicon Valley's success was sparked by wartime investments during World War II, benefiting from its proximity to military industries and highly educated communities in California.

Professor Frederick Terman played a pivotal role in creating Silicon Valley by fostering close collaboration between universities and private companies to drive innovation.

Silicon Valley’s success lies in its ability to attract venture capital, creating an environment where startups can thrive, unlike Europe, which struggles to replicate this ecosystem.

Detroit, once a booming hub for the automotive industry, fell into decline due to lack of innovation, competition from Japanese manufacturers, and rising economic challenges, serving as a warning for Europe.

European universities are generally less research-oriented and have strict regulations against collaborating on military projects, stifling innovation that could benefit both military and civilian sectors.

Europe spends significantly less on defense than the U.S., and this lack of investment in military technology reduces opportunities for high-tech innovation.

The regulatory environment in the European Union is often seen as a hindrance to innovation, with rigid frameworks that make it difficult for new industries like artificial intelligence to thrive.

Estonia stands out as a European country with an innovation-friendly environment, with policies that promote digital infrastructure and tax benefits, although its small size limits its global impact.

The war in Ukraine has prompted the European Union to increase military spending, which could lead to greater investment in technological innovation similar to the development of Silicon Valley.

For Europe to create its own Silicon Valley, it needs more collaboration between states, reduced regulations, and stronger university-industry ties to foster innovation clusters.

Transcripts

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[Music]

here is the million dollar question in

Europe why is there no European Google

why does Europe seem to be an elephant's

graveyard when it comes to business

to give you an idea of the five largest

companies in the world four are American

and were launched after 1975. and Europe

however it is common for the largest

companies to have been started much

earlier some such as Nestle date back to

the 19th century and even the

pharmaceutical companies that created a

giant like Novartis were started in the

17th and 18th centuries no less

let's see credit where credit's due

these companies deserve a round of

applause for having managed to survive

in the market but it's significant that

no young European company is in this top

five well in the United States three of

the five largest companies are younger

than many of you watching this video

this indicates one thing the USA is way

ahead of Europe in terms of innovation

this does not mean that there are no

companies in Europe that have not been

Innovative sap which is a program used

by accountants in large companies or

Skype which we all know were conceived

in Germany and Estonia but they aren't

much when compared to the United States

until now this was one more debate among

many in Europe but now it is the most

important debate that will be have

raised in the coming years and that is

because of the energy crisis

[Music]

the current crisis is affecting all

citizens with stratopharynic electricity

bills but do you know who else is

affected by these price increases you

guessed a visual politic viewers the

companies many of which may flee from a

dying European Union that no longer

offers them low-cost gas the European

Union is no longer more competitive in

the United States or China in a few

years time we could be talking about the

Europe European Union as a continental

Detroit in fact as was the case in

Detroit the automotive industry is

extremely important throughout Europe

and not only in France and Germany in

Spain for example the automotive

industry accounted for almost eight

percent of the entire GDP in 2020. in

other words the comparison with Detroit

is no joke and if you're a loyal

follower to this channel you will

already know what it means to be Detroit

unemployment slums and crime so how can

this trend be changed how could Europe

move closer to the Silicon Valley model

could the war in Ukraine revive the

European union today we're going to

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history of two places

a visual politic had existed in the

1950s there would be two places we'd be

talking about non-stop Silicon Valley

and Detroit and you may be wondering

what do you mean Detroit well yes in the

1950s Detroit was mainly home to a large

automotable industry with a well-known

brand such as Ford and Chevrolet in fact

a lot of people started to move there

just as they said to Silicon Valley with

the population reaching almost 2 million

people meanwhile the other successful

sister city in the United States from

1950s onwards was and still is Silicon

Valley can you tell me where the initial

success of this value was to be found

well for those of you who don't know it

was no less than in the war

[Music]

you heard correctly during World War II

the United States was focused on

fighting Japan in the Pacific so

California started getting a lot of

investment and workers to open all kinds

of factories and businesses to supply

the military effort so you could say

that Silicon Valley was in the right

place at the right time Not only was it

located in California but it also had a

large university community in Palo Alto

and therefore highly qualified

professionals and as War not only

demanded Commodities but also

technologies that were very Advanced for

the time suddenly this place started to

take off for example many many companies

began to develop new semiconductors for

bombs here and so what would later

become known as Silicon Valley became a

key player during the war

but that seed soon sprouted because

Silicon Valley was a particularly

fertile ground for companies and one of

those responsible for this

entrepreneurial fertility was the man

you see on the screen right now

we are talking about Professor Frederick

terman the father of the connection

between universities and private

Enterprise Thurman understood that

universities produced knowledge but that

is the entrepreneurs who convert this

development into Innovation that is into

products that are useful to society with

this idea in mind he worked tirelessly

to open the university companies and

strengthen ties with them in line with

his vision companies would finance and

promote the University's research

projects which would give the university

many more resources and a guide of where

to go on the other hand collaboration

with the university would allow

companies to grow faster and therefore

eventually have more resources and so

the cycle continued however in order to

get the whole process started we are

still missing a key factor something

that entrepreneurs desperately need

so the million dollar question is what

could it be that these entrepreneurs

needed funding and that's where this

other gentleman you see on the screen

stepped in Lawrence Rockefeller the

creator of silicon Valley's first

Venture Capital fund van Rock Associated

the rest is history

[Music]

to put out another way silicon Valley's

success is not due to the fact that it

has many entrepreneurs there are

entrepreneurs everywhere the difference

is that in Silicon Valley the conditions

are right for a company to start from

scratch and end up listed on Wall Street

within just a few years this is the

story of Google Facebook apple and so

many other companies that have changed

our lives but the question is what does

Silicon Valley have that does not exist

in Europe flexibility comes first what

happens if you want to work for two

competing companies at the same time no

problem however if you want to fire

someone who is not being profitable and

hire someone else go ahead but that's

not all there are two additional key

factors in Silicon Valley University

industry collaboration and venture

capital on the other hand we have

Detroit

Detroit is the capital of the automobile

a very mature industry where there was

hardly any disruptive innovation better

cars can be made but there are still

cars so companies like Ford Chevrolet

and General Motors which were stocked at

the beginning of the 20th century

continued to do what they knew how to do

cars and it didn't take long for them to

encounter a fierce competitor offering

cheaper but just as good cars Japanese

companies companies like Toyota began to

dominate the U.S car market

thank you

what's more Detroit was left behind a

host of Union tax and Regulatory

problems of all kinds along with

ever-increasing crime rates and a

growing competition from new Asian

Brands caused American companies to

begin closing their factories in the

city because plain and simple they were

no longer competitive in fact the

debacle was of such intensity that the

city once home to nearly 2 million

people now struggles to maintain Amiga

670 000 inhabitants

as you can see both Silicon Valley and

Detroit started out booming like no

other territory but only one has managed

to survive and the key has been what

we've already mentioned innovation

[Music]

well in a way we could say the European

union today faces a very similar threat

over the years regulations of attacks

and labor policies have eroded the

competitiveness of established

businesses and now the energy crisis

threatens to be something of a final

straw this is a problem above all

because in Europe basically and

simplistically you could say that almost

nothing new is being produced

[Music]

so it is fair to ask is Europe heading

the same way as Detroit

Old Europe

[Music]

pay close attention to the following

graph as you can see Europe not only

spends much less on defense of the

United States but also the spending is

highly fragmented by country and almost

all of it goes to salaries and current

expenses in other words there is little

left to invest in r d and the

development of new military programs so

let's say that Europe does not have one

of the drivers of innovation that the

United States does and here we have to

keep one thing in mind whether you are

for or against military investment

unlike other types of public spending it

is mostly an investment in highly

Applied Technologies and that shows

but not only that even if all European

militaries were to agree to develop a

joint weapon for example a new missile

system they would encounter a huge

problem most European universities are

forbidden to collaborate on Military

projects just as you heard and the

internal regulations of many

universities is forbidden to do research

for military matters nor can it be said

that they are willing to collaborate

with private companies easily and this

is a problem remember that most military

Innovation ends up having civilian

applications take the example of GPS or

the internet itself

and of course we're not only talking

about military spending add to this the

fact that European universities are more

orientated towards teaching than

research we have talked about this on

previous visual politic videos

universities in the United States are

extremely expensive however that has an

advantage they generate results so

Europe does not have this other driver

of American innovation either to make

matters worse the European Union is a

regulation machine practically its main

job is to regulate everything that can

be regulated which makes Innovation very

difficult for example it's already

working on regulating artificial

intelligence to companies that want to

start researching will have to face a

lot of obstacles and requirements of all

kinds then drugs are another good

example regulations are so intense that

it can take decades for companies to

bring out new medicines barely any

investment in military technology

universities reluctant to collaborate

and with a lot of Regulation let's say

that we could summarize the general

feeling in this sentence

we cannot be leaders in Innovation let's

be leaders in regulation statement of an

anonymous MEP to visual politic Union

regulations may actually repel

investment in its innovation of course

there are always exceptions

[Music]

in Europe for example companies such as

sep the business management software

giant have been born if you work in a

large company you will surely be

familiar with it but it is curious that

one of the largest Venture Capital funds

Sequoia Capital does not even have

offices in the European Union they are

present in the United States the UK

India and China but they haven't even

bothered to open offices in any uu

capital and that illustrates why Europe

today has hardly any unicorns unicorns

are startups that are worth at least one

billion dollars and I'm sure you can

guess where most of them come wrong

that's right the United States the

country that has produced the most

unicorns are whopping 487 this is

followed by China with 301 and we have

to go to the fifth place of countries

with the most unicorns to find a country

within the European Union Germany with

26 unicorns

foreign

isn't there any country in the European

Union that resembles Silicon Valley well

perhaps the most similar case is Estonia

here on visualpolitik we have several

videos where we explain in depth the

Estonian model it's a country that is

sought to move away from almost all of

the policies that Prevail in Europe for

example it's created a very attractive

tax framework for companies has

developed its digital infrastructure

Beyond any other and it's fought hard to

limit regulations or at least make

compliance with them easier so what's

the problem it's an extremely small

country with only a little over 1

million inhabitants so obviously its

influence is very limited

so has Europe been resting on its

Laurels not interested in getting a

Silicon Valley of its own well visual

party viewers that didn't seem to matter

to the European Union until not so long

ago

[Music]

as long as Russian gas flowed smoothly

to the European Union and particularly

to Germany companies would remain

competitive and the territory attractive

for investment precisely because of its

low energy prices let's just say that

cheap energy was making up for all the

other factors however gas prices have

skyrocketed and now most of the gas is

liquefied and does not come from Russia

which means paying much more for that

energy source and so now the risk of

companies leaving has multiplied

visual politics communicate the European

Union is starting to look for a way to

become competitive again with the United

States and China the question is how

will it do it will it try to create its

own Silicon Valley is this option really

possible well pay attention because the

European Union has a golden opportunity

a new beginning

do you know how many European unicorns

are in the top ten you guessed it indeed

in the list of the top 10 unicorns is

dominated to no one's Surprise by China

and the United States

despite this absence it cannot be said

that the European Union has not tried

since 2008 several programs have been

launched to finance r d and boost

Innovation and of course many of the r d

projects paid for with European funds

are interesting however most of them

usually remain a nice academic paper

they never materialize into products

that make a difference and that can be

bought and sold on the market among

other things because public programs

tend to be very rigid very bureaucratic

and almost never focused on the market

itself the fact that civil servant or a

bureaucrat is responsible for selecting

the projects to be financed does not

seem to be a Cutting Edge strategy in

fact one of the most successful

countries in recent decades has been

Ezreal what they did was take these

bureaucrats out of the formula they made

Public Funding complement private

funding and therefore it was the latter

that was in charge of selecting the

projects that then had to be put their

own money in tune

however stay tuned because this

situation in Europe could change for one

simple reason the war in Ukraine

after Putin cited to invade Ukraine EU

States reacted with increased military

spending we found news like this Germany

reverses defense policy with historic

military investment increase in response

to Putin's War suddenly All European

states are going to double their

military spending it seems this new

military spending is going to go through

three phases in the European Union the

initial one of fine-tuning all the

military assets in place no more

broomsticks yikes Germany's army is so

under equipped that it used broomsticks

instead of machine guns a second phase

would be the renewal of outdated

equipment in other words buying f-35s

from the US as if there was no tomorrow

and finally a third phase of development

of their own Armament this is very

important because in this aspect the

development of new technologies is

fundamental in fact this could be the

seed that Europe needs for a Silicon

Valley to Blossom

[Music]

it has taken Europe to enter into a

crisis and unite against an enemy for

its high representative Joseph Burrell

to be heated either we invest heavily in

defense Innovation or we will become

defensively irrelevant Joseph Borrell EU

High representative for foreign policy

the problem Europe has 27 different

armies and it takes huge sums of money

to create a fighter jet or tank that

compete with those of the US there are

several European Union programs to

facilitate r d between organizations in

different countries but the results have

been rather modest what could be the

solution joint projects between two

three or more countries this was the

formula with Switzer's relatively

successful projects were created such as

the Euro Fighter or the eurodrone even

companies like Airbus which has a very

significant military division emerged

with the collaboration of several States

in this case we could see several

European nations coming together to make

a public competition to design a new

fighter jet or a new cyber security

system being several States they can

invest much more money

well the fact is that this new flood of

money into military research could end

up supporting as it did in Santa Clara

the emergence of new high-tech clusters

in this sense military research has

several advantages over other types of

public spending firstly the development

of Applied research is sought in other

words money is spent with a clear

intention of creating new products and

Technologies to be used for specific

products and services secondly military

research relies on private companies and

is closely linked to Industrial

processes and thirdly the ability to

export this technology is usually taken

into account this is because the

military-industrial process is very

Capital intensive and for a new

development to be profitable it usually

needs to be mass produced well these

three major advantages mean that

military spending tends to be relatively

efficient at least more so than other

types of spending when it comes to

boosting a technology industry of course

it is not enough on its own more is

needed

but what needs to change in Europe for

all this money to be translated into

Innovative companies

[Music]

mainly two elements are needed firstly

it is important the states are willing

to cooperate in defense and that is not

easy let's give an example imagine that

Spain France and Italy got together to

develop an artificial intelligence

project where will the factory be set up

which university will do most of the

research would France really be willing

to pay to finance a project that will

create jobs in another country these

kinds of discussions can delay projects

for years and they end up generating all

sorts of cost overruns secondly it is

essential for universities to be able to

participate in defense projects European

universities have to get used to working

with private companies

[Music]

and thirdly Europe needs to relax many

of the regulations that currently hinder

this type of Activity one idea could

figure eight a special economic zone

following the model proposed by Liz

truss in the United Kingdom economic

zones where urban planning rules

business rules or taxes are relaxed or

better adapted to the reality of this

industry this could make it possible to

turn the military race into a new

silicon valleys throughout Europe

now the questions though are over to you

will Europe see a Silicon Valley or will

Europe's declarations just fine words

will this compensate for the loss of

competitiveness due to higher energy

prices will the European Union manage to

avoid having several many silicon

valleys or will it end up becoming a

gigantic act Detroit instead you can

leave me your answers in the comments

below as always don't forget that here

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updates if you like this video like it

so we know all the best and I'll see you

next time

[Music]

foreign