The most important terms for success in technological innovation are probably not regulatory.
Europe is tightening its grip on big tech companies. This week, the Brussels agency expanded the list of companies it would classify “Guardians”and subject to strict regulations under Digital Market Act (DMA, for its identity.in English), with Adding Booking.com.
Critics point to this type of regulation to explain A casual greeting
Europe is tightening its grip on big tech companies. This week, the Brussels agency expanded the list of companies it would classify “Guardians”and subject to strict regulations under Digital Market Act (DMA, for its identity.in English), with Adding Booking.com.
Critics point to this type of regulation to explain The average achievement of the continent in creating Start and its growth to global success. American tech companies lobbied hard against tougher regulations, rightly so, at the European Union’s March hearing Compliance with restrictions imposed by DMA by Apple, Google and Meta.
Amazon, for example, warned of a report by consulting firm Oxera Then-approved legislation “risks stifling innovation in general.” But these kinds of complaints seem less sincere. A new report by Columbia Law School’s Anu Bradford expands the debate.
The regulations that are most important to the success of technological innovation are probably unregulated. Flexible immigration policies attract top talent; Many of America’s founding fathers came from outside the United States. Punitive bankruptcy laws stifle entrepreneurial spirit; The cost of failure in America is low.
Capital markets are also essential. American venture capital funding is not offered to the same extent as in Europe. As companies enter late D and E funding rounds, the share of European VC funding as a proportion of US VC funding falls in half.
However, that money is not limited by borders. Look at the amount of US capital that flowed into Chinese tech companies before regulators intervened. But still State generosity plays an important role. Los Manufacturing incentives provided by the US CHIP Act They have already released 450,000 million dollars (416,000 million euros) in private investment. Before long, Higher defense budgets increased research and development in the field at the national level. Not in vain, the United States, China and Israel are rich technology centers. Europe has recently signaled that it wants to spend more regionally in its defense budget.
But still The biggest drawback is geography. Google and its companies operate worldwide. But they had a large, homogenous national market to thrive on. The EU is a group of 27 countries with 24 different languages and even more cultures. Legal systems and laws make things even more complicated. For example, there is not yet an online copyright marketplace.
But even this should not be an insurmountable obstacle. The same applies to a lesser extent to Southeast Asian companies such as GoTo and Sea, which span markets divided by language, culture and borders. We have an example closer to home Processor of Streaming Music Spotify. The most famous technology company in Europe operates from one of its smallest member states.
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