Ian Hogarth's opinion piece in the Financial Time echos previous remarks by Emmanuel Macron and Mario Draghi: technology drives economic growth and Europe is missing some ingredients that would enable the emergence of large technology companies.
Europe has the required talents: lots of AI breakthroughs were produced in Europe by Europeans, but with .... US funds (e.g. at Google-DeepMind in London or Meta-FAIR in Paris).
Ian points to a lower tolerance for risk in Europe than in the US, both from entrepreneurs and (perhaps more importantly) from investors. There is that.
But there is another important factor: almost all of the fundamental innovations in AI of the last dozen years did *not* come from startups. They came from well-funded industry research labs belonging to large and highly-profitable companies: Google, Meta, Microsoft, and a few others.
DeepMind would *never* have survived, let alone deliver breakthroughs, without being bought by a large company like Google. Their original business model as an independent company was never going to fly, in part because long-term research is expensive, and in part because they were overly optimistic about their time-line to AGI (their original plan for AGI based on RL was a complete failure).
Why haven't large European group started ambitious AI research labs in the vain of Google Brain, DeepMind, FAIR, or MSR?
European comapanies used to have world-class research labs, but not anymore. In the heydays of Bell Labs, IBM Research, Xerox PARC, and Microsoft Research, there were such labs Europe in the 1980s (e.g. Phillips Labs, Siemens, France Telecom, Alcatel). But they never valued research scientist careers like American tech companies have re-learned to do it, starting with MSR in the laste 90s.
European industry research labs became shadows of their former selves. But interestingly, they caused some interesting spin-offs to exist: the most valuable European tech company is ASML, which was created on the remnant of Phillips Labs.
The existence of ambitious industry research labs has an incredibly positive effect on the R&D and startup ecosystem. I witnessed this effect first-hand with the creation of FAIR-Paris in 2015: it almost single-handedly jump-started the AI startup ecosystem in Paris (which is now the most vibrant in Europe today).
The existence of FAIR-Paris, and later the Parisian branch of DeepMind sent a message to the young aspiring scientists: you can have a career in AI research in Europe, and outside of academia. It motivated and lot of talented students to pursue graduate studies, to learn how to do research by doing a PhD.
FAIR-Paris contributed to this by hosting PhD students in residence. FAIR graduates a dozen PhDs in an average year.
They have gone on to do wonderful things in the European ecosystem.
Some have founded AI startups and raised large amounts of capital .... but often from US investors.