Part 3/14:
One of Europe's most pressing issues is its failure to adapt and innovate. Productivity has stagnated, and no meaningful European company worth over 100 billion euros has been established from scratch in the past 50 years. Many of the continent's largest companies are nearly a century old, indicating a lack of dynamic growth and entrepreneurship.
Additionally, Europe's startups—particularly its unicorns—are fleeing to more business-friendly environments. Private investment in R&D remains at about 1.2% of GDP, roughly half of what the United States invests. Regulatory complexity, soaring energy costs, and rigid labor markets have all contributed to a brain drain of young, talented Europeans seeking opportunities elsewhere.