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This is another real issue I've seen in some places, especially regions that are trying to "do" tech, but where it doesn't come naturally. It hurts me to watch systems full of broken incentives emerge and have money thrown into them repeatedly - there's "tech startups" (which would be laughed out of the valley due to their head-count and lack of any product market fit) receiving large ongoing subsidies to their payrolls while they slowly pretend to iterate on a product, all because they have "created" an agreed number of jobs, and need to keep those chairs full. Europe on the whole doesn't have a culture of taking the same level of risks with capital, and there's a real push to fund things that are "safe" and help cover up weaknesses in the market - funding a company to hire people into basic tech roles at below-market pay helps to reduce graduate unemployment, which covers up the fact their education isn't giving them the right skills. That's pleasing to government. On the other hand, giving 1m EUR to a small company with low head-count but a great idea could be a game-changer, and lead to far greater longer-term gains, but any government funding like this would be accompanied by so much red tape that you'd spend half of the 1m EUR on satisfying the monitoring requirements of the grant, attending monthly external progress review meetings, defending your progress to agreed (and inflexible) milestones etc. That last point is perhaps the killer for innovation - most of the innovation funding schemes I've seen require detailed project plans before receive a cent of funding, and then hold you rigorously to that plan. Need to pivot? Welcome to the multi-page "change request form", which must be approved by a panel of non-technical bureaucrats before you can dare to change direction. They'll get back to you within 3 months, until which time you should continue with your original plan, as you will still be judged by your previous milestone payment plan. Your idea not working? That's not an acceptable outcome - you simply must deliver what you said! Failure is not welcome, you must deliver exactly what you said, else they will complain you are causing them to under-spend by the end of the financial year (as they now won't pay you!)... |