Following President Ursula von der Leyen’s recent Davos speech on Europe’s competitiveness, new analysis from the Vienna Institute for Global Studies (VIGS) finds that Europe’s main challenge is not creating startups, but scaling them into global market leaders
VIGS
VIENNA, Feb. 17, 2026 (GLOBE NEWSWIRE) — Data from the Digital Entrepreneurship Ecosystem (DEE) Index, developed by VIGS, reveals that Europe’s weakness is not a lack of ideas or innovation. Over the past decade, Europe has created strong progress in supporting early-stage entrepreneurship. However, compared to the United States, Europe continues to underperform in producing large-scale digital companies. Even the best-performing EU countries, such as Denmark, lag behind the US when it comes to scaleups.
According to Prof. Dr. Zoltan Acs, Director of the VIGS Institute: “Even the best-performing EU countries, such as Denmark, lag behind the US when it comes to scaleups.”
Strong regulation, advanced digital infrastructure, and widespread utilize of digital financial solutions remain essential foundations. Yet the DEE Index demonstrates that these factors alone are insufficient to create globally competitive firms. Europe’s main bottleneck lies in the transition from startup to scaleup.
What is missing is entrepreneurial agency at scale. Building billion-euro companies requires experienced founders, growth-oriented management, access to late-stage risk capital, and specialised support actors, including international marketing experts and cross-border scaling professionals. These capabilities remain scarce across most European ecosystems.
The DEE Index also identifies an underutilized opportunity: attracting European entrepreneurs who have already built and scaled companies in the United States. These founders bring valuable experience in winner-takes-most markets and global venture capital environments. Tarobtained incentives, flexible regulation, and scaleup-focutilized ecosystems could encourage their return and strengthen Europe’s long-term competitiveness.
VIGS identifies three practical ways the DEE Index can support Europe’s competitiveness agfinisha. First, it enables policybuildrs to identify countest-specific bottlenecks rather than relying on one-size-fits-all solutions. Second, it supports a shift from startup-focutilized policies to scaleup-oriented initiatives, complementing efforts such as EU Inc. Third, it provides a framework for monitoring Europe’s entrepreneurial sovereignty—whether Europe creates its own global digital champions or consistently loses them to other markets.
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