Keen On America Is It Game Over For Europe?
Jan 20, 2026
Carl Benedikt Frey, an economic historian and Oxford researcher, shares his concerns about Europe's competitiveness in the tech landscape. He emphasizes the urgent need for a true single market for services to avoid stagnation. Frey critiques Europe's delayed response to digital innovation and points out internal trade barriers as a major obstacle. He provides a hopeful yet cautious outlook, insisting that with the right political will, Europe can still lead. He also discusses the necessity for harmonization and how historical patterns of decline may inform current strategies.
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Bank-Led Capitalism Limits Innovation
- Europe's coordinated-capitalism model favored banks and infrastructure but poorly funds high-risk innovation.
- American decentralized capital markets better support funding for startups and disruptive firms.
Competition Policy Fueled US Tech
- Vigorous competition policy in the US enabled digital giants to emerge by opening markets.
- Europe lacks the same dynamism and its largest firms are far older and not tech-led.
China's Competitive Industrial State
- China succeeded through fiercely competitive local industrial policy and local governments vying to attract firms.
- That decentralized competition within an authoritarian framework is hard and undesirable for Europe to emulate.
