[stygianguest]

Indeed.

Take netflix. Setting that in the 27 countries of the EU requires 27 different contract negotiations with the respective copyright organisations.

Another example would be the social web. Suppose a French and American facebook launch at the same date. Given the same growth rate (with the more or less exponential networking effect), the American can simply buy the French facebook after a small amount of time.

(Western) Europe is pretty good in technical niches, which seem to be mostly business to business. Just not quite as visible.

Yet, as a European (through and through I might add) I believe American innovation comes from some superbly creative and inquisitive minority. This: http://vimeo.com/19829560 we do not have in Europe.

Finally, do not forget that European population is shrinking and aging. That has a tremendous effect on all growth figures. Perhaps on innovation too, but that I doubt.