The EU has been recognised to have some of the world?s best places for innovation.
Valuewalk recently published a list of the top ten cities in the world to launch a start-up, and six of them happen to be within the EU.
There are several factors responsible for the EU’s top position. For example, Copenhagen, the 8th city on the list, has been dubbed as one of the most favourable places to live. It offers a high quality of life, advanced health care and excellent education. All of these factors, directly or indirectly, influence the survivability of start-ups.
There is also the matter of financial assistance from the government. While R&D Tax Credits are certainly available for start-ups, countries like Ireland and Denmark have also established a start-up fund to support start-ups. The EU’s favourable atmosphere cannot be attributed to a single factor; it’s benefits are spread over a wide range of elements.
Europe has the world’s largest market
Statista shows that Europe had a GDP of about ?14.5 trillion in 2018, and that makes it the world’s largest economy. Start-ups need access to a wide market if they are going to thrive, and Europe’s GDP proves it can provide just that. Additionally, the EU is currently the top trading partner for more than 80 countries, which gives start-ups the necessary platform to reach the rest of the world, including obscure and emerging markets.
Europe has a large (and growing) talent pool
Another thing that’s desperately needed by start-ups for success is a good collection of brilliant and innovative minds. With some of the best universities in the world, the EU churns out a steady supply of intelligent minds every year – Oxford and Cambridge come to mind.
Technology-wise, the EU is also flushed with programmers and developers. According to Atomico, there are currently about 5.7 million developers in Europe. Considering that technology is a major catalyst for innovation, the EU is perfectly poised to supply start-ups necessary talent.
Technology hubs are growing in Europe
Silicon Valley is considered the central hub for digital solutions and technological advancements in the U.S. However, it doesn’t have a monopoly, because cities like Copenhagen and Stockholm are fast becoming hubs in their own right. The low costs of building a company combined with the rapid spread of information are making these European cities points of interests for concerned parties.
Investors are flooding to Europe
Since the continent is so rich with talent and opportunity, start-ups can grow at a remarkable pace. Investors have noticed this, and they’ve started pouring money into the start-ups. For example, Babylon Health, a digital health service based in London, was able to raise a total of ?495 million in its 2019 round of funding. Also, Klarn, a Stockholm-based e-commerce payment solution, raised ?410 million in an equity funding round. Smaller cities aren’t left out of the action because Edinburgh is currently the largest number of unicorn companies in the world.
It’s not hard to see why EU cities dominate the list of the most favourable cities in the world for start-ups. Europe has the world’s largest market, and it provides equally large access to markets all over the world.
Europe also has a growing pool of investors and talented individuals alike, making it the place to watch for the next major innovative company. In the coming years, we’re very likely to see more start-ups spring up in Europe as it continues to provide a conducive atmosphere for their development.
