Executive Summary For the past four years, we’ve produced an exhaustive deep dive into the European tech ecosystem by analysing the rich insights of our data partners. Every year the data busts another myth about our ecosystem: from pointing out that Europe actually has more developers than the US, to quantifying European advances in deep tech. Another record breaking This year we’re at risk of sounding like a $23 billion - up from $5 billion just five year for European tech broken record about breaking records years ago. European founders created - but we can’t dispute the data. In 17 billion-dollar companies. And in another extraordinary year, investment 2018, Europe produced three of the ten in European tech reached a record biggest venture backed public listings. Technology has become At a macro-level, Europe’s technology faster than the rest of the European a motor for growth in the sector is booming as the wider economy. This year’s report suggests European economy economy is stuck in the doldrums. that for a number of reasons, this As of Q3 2018, European growth was motor will only become more powerful. flatlining at 0.2%, the lowest rate for The importance of the tech to the four years. Europe’s software industry overall economy will only increase. is now growing at least five times European tech Last year we found that Europe was This all contributes to ‘density’ - achieving density experiencing a ‘Battle Royale’ for talent. which historically has been a crucial This year was the year Europe figured precondition for explosive growth. out how to effectively mobilise its Europe is certainly achieving density, deep pools of talent. The tech sector is but it’s doing it its own way. What is attracting more participants - whether interesting is that the developer pool is measured by the healthy increase in growing fastest outside those countries professional developers or the uptick that have historically attracted the most in talented executives moving into tech investment: Turkey, Spain and Russia’s from other sectors. The report shows pool of developers have been deepening dense areas of talent coalescing around the most rapidly. All this will lead to a universities, anchor tech companies, massive potential upside for the wider and innovation hubs, leading in turn European economy as capital eventually to increases in investment, and flows into these new communities. growth in anchor tech companies. Europe is a research This year’s report also shows science and tech converge further, powerhouse that we are only scratching the there is huge scope to strengthen surface of the potential of Europe’s the link between European STEM research community, and not fully and startups. Europe has a research harnessing our own cutting-edge community larger than U.S. and China science. An analysis by CERN, one - we need to make sure this becomes of this community’s most influential the hugely powerful differentiator it members, demonstrates that as should be. & 9 In Partnership with www.thestateofeuropeantech.com