Published By : 28 May 2018 | Published By : QYRESEARCH
With the U.S. and China emerging as formidable forces in the domain of startups, France and Germany now want the European Union to take initiatives to bring the region on a par with them. To that end, they want an EU-wide effort to fund cutting-edge research and development in tech start-up projects.
When compared to the U.S., powered by a solid venture capital funding ecosystem that has spawned the massively successful start-ups in the Silicon Valley, Europe has been trailing far behind. Even upcoming large economy China, with its zeal to make it big, has surpassed the EU when it comes to the tech startups building innovative products that the world will soon be not able to live without.
Regulatory Norms should be Conducive, observe the Two Nations
And it is not just the lack of funding or advanced ecosystem that is to be blamed. There is another major reason why Europe is lagging behind. It is the stigma of failure. Startups are less likely to try maverick stuff the next time if they fail the first time.
To overcome such hiccups and get startups up and running, the two nations have asked the European Innovation Council to provide funding for promising ones in the Balkan summit last week.
Joint effort, in addition, is also required to tweak regulations and make them more conducive. Most importantly, however, venture capital ecosystem needs to be improved. Germany and France are trying to implement reforms in this direction before the crucial EU summit in June. They want both national and EU initiatives to complement one another.