Large corporations are increasing their efforts to find innovative and disruptive technologies in the world’s most relevant technology hotspots, and through this search, they are branching out to locations with tight innovation ecosystems to engage with technology and talent. Silicon Valley and Israel are the most obvious innovation destinations.
Innovation is key to sustained corporate success. Innovative firms grow twice as fast, both in employment and sales, as firms that fail to innovate. However, European companies spend less on innovation than their competitors.
As established companies look to remain competitive and extend their life cycle, acquisition becomes a more viable and attractive strategy. Not the only one1, but surely the fastest route in a world when time is the most valuable resource. M&A deals are a boon for startups as well. No exit, no party, as we’re used to saying. While launching a thriving self-supporting business is still the end-goal for any startup, a buyout from a large company can render that problem irrelevant—or at least less urgent. And return the capital to investors, hopefully with a decent multiplier, thus, M&As are a key component of the startup economy.
Europe is a major actor in Silicon Valley. More than any other region in the world, Europe enjoys strong ties to the Bay Area through people, capital, and business. This report serves as our effort to combine the various research we have done working in and around the European Innovation ecosystem in Silicon Valley in each of its facets, i.e. corporates, startups, investors and institutions. Our data show that Europe plays a strong role in Silicon Valley.