Feb 03, 2026
3 min read
Innovative companies are on the run: Europe exports ideas, America grows them.It's time to change the rules
Several hundred new companies that were born in Europe and that were the result of the idea of a young European entrepreneur decided at some point to move to the United States.An estimate by the European Commission (Issn 1831-9424) shows that of a sample of about 11,000 venture capital-funded European start-ups, about 6% moved abroad, and the vast majority of them (about 85%) moved to the United States.This means that about 600 startups have moved, most of them to the United States.
An example of this is ToolsGroup, a company founded thirty years ago between Milan and Barcelona by the idea of an Israeli physicist and a Genoese engineer, which invests the use of probabilistic models and later artificial intelligence in the management of companies' supply chains.Twenty years ago, the company decided to move to Boston.It should have continued to grow, but that was no longer possible in Europe.Not because the market is too small.There are 450 million consumers in the EU, 100 million more than in the US, but because the European market is so fragmented.Opening a branch in another European country involves fixed costs (company registration, administrative support, notary, accountant, tax and business consultants, all functions specific to the destination country) that a growing but still small company cannot afford.Also because these activities distract the entrepreneur, taking away the time he should focus on the development of the company.ToolsGroup first went to the Netherlands, then England and Germany, but at that point growth in Europe had to stop.As growth was necessary for the company to remain competitive, ToolsGroup relocated to the US; simple registration here in Delaware allows you to operate anywhere in the United States.After less than twenty years in the US, the company was acquired by an American foundation.
The "single market" means that Europe can easily use its savings for its citizens and businesses.Every year three/four hundred billion dollars cross the Atlantic to invest in the American market.The paradox of producing a Europe that, due to the lack of integration, cannot use its savings in those companies and wants to grow in the Union.
Here is an example, just one, of a "single" market price that is still far from such.We have been talking about it for a few decades, but now the European Commission has decided to tackle this problem seriously.The idea is to create a "European Delaware", that is, a legal environment where a company from any EU country can do what it could do in the US.In March the Commission - which alone has the power to make proposals - will send its plan to the European Council.Especially since the Commission has a monopoly on applications, it is important to start in the right way because the change of decision once made is difficult.
In the past, Brussels made the same proposal, but it applied to all European companies, not just startups.It was a revolution, perhaps not even necessary, because it is easy for a large company to support the constant costs of moving within the EU (as seen, for example, with Exor and Stellantis).And in fact the European Council (also under pressure from professionals who were afraid of losing a large number of their clients, or simply because the politicians of the member states risked losing the power they exercise over businesses that are no longer European), rejected the offer.Nothing has happened since, which underscores the importance of starting on the right foot.
Two years ago, the Letta Report commissioned by the European Council took up the idea of a 'European Delaware', but again it was not limited to specific companies.In view of what has already happened, it is important that the proposal to be approved by the Commission on March 18 does not apply to all companies, regardless of their size, but to innovative startups and, perhaps, to certain other well-defined typologies, such as companies in the defense sector.It's not just about creating the right environment for business.Above all, it is to begin to understand that Europe is not limited to regulation, but is able to create the conditions, so that innovation is not a subject taught in universities.In recent months, in different ways, the European Union has understood that the world is changing.These obligations must also be answered through dialogue and openness.The approach led to agreements with India and Mercosur.It would be strange if, while the barriers to other continents are thrown down, those of the Union remain high.
1 February 2026 (changed 2 February 2026 | 00:38)
