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Both USA and Europe have highly developed economies with famous car, aircraft, food, oil etc. companies. However, when it comes to IT -

USA has Google, Facebook, Amazon, Dell, Cisco, Microsoft, Red Hat, HP, Apple etc. Europe has... nothing? (Nokia is dead)

Why?

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    $\begingroup$ Off the top of my head, I can think of SAP and Wolters Kluwer and Spotify. I am sure if I worked in the area I could think of more. $\endgroup$ – Dave Harris Jun 22 '17 at 23:46
  • $\begingroup$ Most people do not know about any of those companies $\endgroup$ – Draif Kroneg Jun 23 '17 at 6:09
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    $\begingroup$ Most people don't know about SAP or spotify? That's quite a strong claim.. I add to the answer of @DaveHarris SAGE. $\endgroup$ – user13650 Jun 23 '17 at 8:42
  • $\begingroup$ Moreover, Skype was European before being bought by Microsoft. Then you have Yandex in Russia, Opera Software in Norway, AVAST company, KING in Sweden. These are only some examples $\endgroup$ – user13650 Jun 23 '17 at 8:52
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    $\begingroup$ For instance, both SAP (Germany) and Amadeus (Spain) rank at the 3rd and 10th positions, respectively, on the Forbes 2017 ranking of the largest software and programming firms in the world. Therefore, maybe you should change a bit your question, because the topic itself is relevant. $\endgroup$ – user13650 Jun 23 '17 at 12:49
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The question should rephrase to "Why Europe IT companies are not as prominent as USA IT companies"?

Do you think Bosch is a IT company(when they supply software to VW)?

European capital model and ways of doing business is the opposite of US neo-liberalism models. If you don't believe, you can compare Europe public own company capital with privately own company capital. Even things like loan facilities, Germany private owns credit union/cooperative bank(more than 1000) total asset is around 818 billion EUR (2015). Loan facilities from these "small banks" are mostly base on prudent loan criteria and credit records. So Europe society and the government basically favor prudent and organic growth. However, this also means very conservative expansion. This explains why Northen Europe are less speculative. (with many historical lessons learned)

In addition, European private business owner also concerned about "meeting profits target", handle control over a board with huge shares. In addition, the profits target concerned also raise issues of "scorch and run" common practice in USA PLTD company, i.e. using mass layoff to boost profits per shares, which against the Europe societies values(with exception of UK, which scorch their industries under Thatcherism).

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  • $\begingroup$ Bosche, really? $\endgroup$ – Richard Hardy Jun 23 '17 at 18:21
  • $\begingroup$ @RichardHardy : it is a pun to Bosche IT roles in engine test rigging. $\endgroup$ – mootmoot Jun 24 '17 at 20:16
  • $\begingroup$ Did you mean Bosch? $\endgroup$ – Richard Hardy Jun 25 '17 at 6:19
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In Europe there is typical more regulations and more and higher taxes on profits, financial transactions, and on products and services. This means there is less incentive for entrepreneurs to create their businesses since they face for example higher yields and higher interest rate coupons, environmental regulations, state bureaucracy which increases the cost and decreases the incentive (profit). Since most of innovative companies are generally start-ups such as Facebook was, there is higher cost of funding once these companies are considered riskier. In Europe that cost is further increased by the tax system for example. There are also other factors such as education quality that differs. Europeans generally regards the US universities to be more prestigious and this is a decisive factor that makes lots of Europeans, typically the brightest to migrate to the US for further studies and higher wages since Americans can afford to pay more since there is less state interventionism. I hope I gave you some ideas of what might be going on. In economics there is no definitive answer so keep on investigating and asking other people. Sorry for the lack of data.

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    $\begingroup$ Downvoting without explaining the reasons is a coward act!! Please point out the mistakes, that is a way for improvement! $\endgroup$ – Pedro Gomes Jun 24 '17 at 14:59

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