“It’s great to see that our efforts to get Europe back in the lead in global innovation are starting to pay off with strong growth in both startups and scaleups. This paints a picture of a European ecosystem which is not only catching up with other regions but also charting its course towards success”, commented Carlos Moedas.
Cross-ecosystems comparison: Europe is growing
Through an in-depth comparison of the world’s top ecosystems, the US unquestionably leads in terms of the number of scaleups with 22,910 as of the end of 2018 of which Silicon Valley accounts for 6496. China follows with 9,935, Europe with 7,034, and Israel with 1159. The rank is quite the same if we look at capital raised: US scaleups collected $730.7B of which Silicon Valley alone $304B, followed by China ($337B), Europe ($126B) and Israel ($19B).
However, the scenario truly changes when looking at the scaleup density and scaleup investing ratio*. With respect to these 2 indicators, Silicon Valley unsurprisingly shows the highest scores with 83.3 scaleups for every 100k inhabitants and with 60.7% of GDP invested in scaleups. Israel’s ecosystem ranks 2nd with 13.6 and 5.6%, followed by US with 7 and 3.6%. However, China is lagging behind with 0.7 and 1.3% along with Europe with a 1.2 score (an increase from prior year’s score of 1) and 0.53% (again an increase from prior year’s 0.45%).
“It comes as no surprise that Silicon Valley is truly a solo runner with ratios incomparable to those of Europe. More than half (61%) of the region’s GDP is invested into technology” commented Alberto Onetti, Chairman Mind the Bridge and SEP Coordinator, adding that “Israel’s data are impressive. This small 8 million population country scores better than Germany and France in innovation. Also, the Chinese dragon has definitively awakened. Since 2014 investments towards tech scaleups in China has moved by an order of magnitude and now are 2.5 times higher than that in Europe. The good news for Europe is that we, finally, spotted a sustained growth pattern. However, the gap with the US and China remains huge.”
Major players in the Europe Scaleup Economy