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Isn't the problem that European tech companies are sold to American companies? There are and have been countless of European chipmakers but they are usually bou
by flexie 6y ago
Isn't the problem that European tech companies are sold to American companies? There are and have been countless of European chipmakers but they are usually bought by Americans.
European companies grow to a certain size, and are then either sold to an established American company or relaunched from Silicon Valley with American investments.
I think most of this is tax driven. American tax rules allow venture funds and also private wealth to accumulate and grow easier than European counterparts. The American government simply allows its business and private individuals to accumulate money via off shore companies in the Caribbean. The US deliberately allows this.
- onlyrealcuzzo 6y agoAren't offshore accounts also very popular in Europe?
- dcolkitt 6y ago> I think most of this is tax driven. Disagree. Research has consistently shown that American multinationals consistently apply better corporate management practices than their European counterparts.[1] This is especially true in IT-intensive industries.[2] This is true even when comparing American multinationals operating in Europe. Any sufficiently large company in a globally integrated, competitive industry, is going to reap potentially large efficiency gains by replacing European management with American management. [1]https://nbloom.people.stanford.edu/sites/g/files/sbiybj4746/f/jep.pdf https://nbloom.people.stanford.edu/sites/g/files/sbiybj4746/... [2]https://nbloom.people.stanford.edu/sites/g/files/sbiybj4746/f/adib.pdf https://nbloom.people.stanford.edu/sites/g/files/sbiybj4746/...
- Daho0n 6y agoDo you have any non-American sources? You always needs to hear it from at least two different sides.
- dgdas9 6y agoNicholas Bloom the author of both papers is British. Also, it's not like in economics/business science there's a European vs American distinction in publications. The European Economics Association is quite small and most European departments hire out of the American association's market, for instance