{
  "id": 7300377,
  "title": "While Europe develops Tech, the U.S. backs its growth",
  "url": "https://urgent.news/2026/09/14/while-europe-develops-tech-the-u-s-backs-its-growth",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-14T10:58:06.000Z",
  "source": {
    "name": "EU-Startups",
    "slug": "eu-startups",
    "url": "https://www.eu-startups.com/2026/09/while-europe-develops-tech-the-u-s-backs-its-growth/"
  },
  "original_language": "en",
  "account": "While Europe develops its tech sector, the United States plays a significant role in its growth. The numbers tell a different story from the narrative of European startups mass migrating. Most companies remain where they were founded, and those that relocate often do so gradually, shifting functions rather than making a single move. Among European venture-backed companies, roughly 3.3-4.3% relocate fully or partially, compared to a mere 0.3-0.5% among non-venture-backed firms. The majority of those that do relocate retain operations in their original countries, moving elements like laboratories, engineers, manufacturing facilities, or parts of their teams. The U.S. is the primary destination for these moves, but the term \"relocation\" is misleading as it implies drastic changes, when in fact, the center of gravity shifts incrementally, function by function.\n\nSuccessful scaling-stage companies are particularly likely to relocate abroad, with around 10% of European scale-ups opting for international moves, with roughly 85% choosing the U.S. as their primary destination. Additionally, nearly 30% of European unicorns, established between 2008 and 2021, have shifted their headquarters internationally, with the vast majority moving to the U.S. This trend highlights Europe's risk of losing a substantial share of the value generated by businesses that grow into large international companies.\n\nIn the biotechnology sector, this disparity is particularly pronounced, as all 67 EU BioTech companies that went public between 2019 and 2025 chose to list on exchanges outside the EU. This does not indicate that these companies closed their European offices; rather, it suggests that the market for their initial public offerings, future liquidity, and subsequent stages of capital was predominantly located elsewhere. After the laboratory phase, European companies enter a different economic realm where money plays a distinct role. Early-stage capital is primarily used for research and technology development, while the next stage involves scaling manufacturing, navigating regulations, establishing international sales, securing hospital procurement, and hiring experienced executives.\n\nEuropean venture capital stands at approximately €930 billion, compared to €150 billion in the U.S. This significant gap is most pronounced at later stages when sums become larger and mistakes more costly and difficult to rectify. Founders are not merely choosing a check; they are selecting a system that reduces the likelihood of costly mistakes. The issue lies not with consultants but in the expense of navigation. European funding programs attract numerous consultants, grant writers, and intermediaries, leading to increased costs. For example, among Horizon Europe applicants, around 17% utilized external consultants, with the median consultancy fee reaching €7,500. EIC Accelerator applicants had consultants in 67% of cases, with application fees ranging from €2,000 to €12,000.\n\nThe trust gap is a significant challenge in Europe. While national contact points, the Enterprise Europe Network, and the EU|BIC quality mark offer some assurance, these mechanisms operate within individual programs and national systems, leaving private consultants unvetted. In contrast, the U.S. offers more visible entry points, such as the Small Business Development Centers supported by the U.S. Small Business Administration, state organizations through SelectUSA, and InBIA’s Soft Landings designation, all of which provide more transparent and vetted guidance for founders.\n\nWhile the U.S. offers capital and a vast market for hardware companies, China provides dense supplier networks and a swift path from prototype to serial production. A European Commission survey of over 12,000 manufacturing companies across 12 countries found that 19% had overseas production, with 70% neither changing nor planning to change their production locations. This suggests that Europe's manufacturing landscape is less globally dispersed than it may appear. These findings do not represent a complete picture of EU manufacturing but illustrate the existence of a durable international architectural framework.",
  "summary": "I do not believe the neat story of a mass exodus of European startups. The numbers do not support it. Most companies stay where they were founded, and those that change their geography rarely do so in a single decision. The more important question is what happens to the companies that begin to scale. A […] The post While Europe develops Tech, the U.S. backs its growth appeared first on…",
  "key_points": [
    "3.3-4.3% of European venture-backed companies relocate fully or partially.",
    "10% of European scale-ups relocate abroad, with 85% choosing the U.S.",
    "European venture capital is €930 billion, compared to $150 billion in the U.S."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}