Why Europe has not produced online tech giants

http://www.businessinsider.com/ap-why-europe-isnt-creating-any-googles-or-facebooks-2015-9

As technology upends industries and lifestyles at breakneck pace, the Old Continent is not producing any of the online giants like Google, eBay or Facebook.

Europe’s relatively cautious attitude to investment stands out as one of the biggest hurdles — and among the most difficult to change.

Investors in Europe want to see that a young company can generate revenue from the start. Europe’s many high-technology companies are focused on manufactured goods that can be sold right away to generate revenue — industrial equipment, energy turbines, high-speed trains, medical devices, and nuclear energy.

By contrast, Internet companies often have little to no revenue at the beginning. Twitter and Facebook, for example, first focused on building up their user numbers. Only once they were established as global forces did they put more attention to making money, through advertising and other strategies.

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