How Europe can succeed in the competition for technological talent.

      There is no doubt that Europe possesses ambition. Over the past ten years, we have established the groundwork for a successful digital economy, marked by regulatory leadership, technology-driven reforms, and rapidly expanding regional hubs. However, infrastructure by itself does not create the future; it is people who do. Currently, we are confronted with the very human challenge of attracting and retaining the talent that fuels innovation.

      We are witnessing a migration of highly skilled professionals, such as founders, engineers, and product leaders, moving their operations or careers to the US and, in some instances, to Asia. This trend highlights global competition at its peak, but it also prompts us to consider how Europe can uniquely attract and retain the tech talent it requires.

      Understanding why talent moves — and recognizing it isn't the whole narrative

      In a highly interconnected global market, talent seeks out opportunity. For instance, the US offers late-stage capital in a manner that is still challenging to replicate in Europe. Its unified domestic market enables startups to grow without navigating the complex regulatory landscape that often characterizes Europe. Particularly in fields like AI and deep tech, there are simply more extensive deployments and resources available to draw engineers eager to push boundaries.

      However, talent is not exclusively heading in one direction. Numerous entrepreneurs return with enhanced skills, not only to create European ventures but also to reconnect with their roots and achieve a better work-life balance. More frequently, founders are assembling cross-border teams, managing product and engineering operations from Europe while expanding sales or partnerships globally.

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      Europe is currently undergoing a test of its competitiveness and self-assurance in the global contest for talent. I am confident we can rise to this challenge, not by copying other ecosystems but by honing in on what distinguishes us.

      Sweden as an example of European strength

      Sweden exemplifies Europe’s strengths. With 41 unicorns, it ranks among the top 10 countries worldwide. Its capital, Stockholm, is only surpassed by Silicon Valley in terms of unicorns per capita. Swedish startups have scaled internationally while remaining anchored in a solid local ecosystem.

      This success is not solely due to capital; it also stems from a culture of trust, digital preparedness, innovative infrastructure, and long-term educational investments. Higher education is tuition-free for EU citizens, and digital public services like e-ID are seamlessly integrated into daily life. There is a consistent synergy between the public and private sectors in fostering entrepreneurship.

      While such a foundation doesn’t guarantee success, it does provide a platform for talent to flourish — and remain. Moreover, Sweden is not the only country nurturing these conditions. Throughout the continent, cities such as Tallinn, Lisbon, Berlin, and Málaga are cultivating tech ecosystems grounded in local strengths and specializations, transforming them into talent hubs.

      Europe's strengths are structural and undervalued

      Europe often faces criticism — sometimes justifiably — for being over-regulated, with policies that can slow down product cycles or complicate processes for startups. However, these standards serve a deeper purpose: to establish the trust that modern consumers and talent seek.

      Furthermore, Europe invests early and equitably in its citizens. Many nations offer universal healthcare, subsidized childcare, and free or affordable education, which mitigates the personal financial risk associated with founding or joining a startup. For employees, this engenders a broader sense of safety and support that goes beyond the workplace. Such stability can be invaluable, allowing more individuals the freedom to pursue significant entrepreneurial risks.

      Europe tends to cultivate a different growth environment for startups compared to other global markets. With access to hyper-scale capital being limited, companies typically grow at a more measured pace than their US counterparts. Stronger labor protections and a heightened awareness of a startup’s impact might also attract talent looking for more than just quick exits. For many contemporary builders, sustainability is not solely about metrics, but about values.

      Of course, the situation is not without issues. Fragmented regulations across EU member states, limited access to late-stage growth capital, and complex cross-border hiring practices all create obstacles. Recently, we have observed companies, particularly in fintech, tightening their operations or redirecting capital to the US, as global investors seek quicker returns in more predictable scaling environments. This trend risks driving top talent away from Europe.

      Nevertheless, these challenges are not insurmountable — and they should not lead to pessimism. They signal the need for rapid evolution, boldness, and greater cohesion across the continent.

      What Europe must prioritize next

      To prevent these forces from driving away talent, the initial step is to reclaim the narrative. Europe is not a junior partner in global innovation; it is already at the forefront in areas such as open banking, green technology, and privacy-first digital services. Instead of portraying all regulation as a burden, we should frame certain key regulations as competitive advantages, creating the