Attracting US Start-up Talent to the EU

The European Innovation Council (EIC) board believes that a marketing campaign should be launched this year to attract US start-up talent to the EU. The campaign should target European expats working in start-ups, foreign talent facing visa uncertainty, and "progressive Americans." This initiative comes as the US administration’s hostility to foreign tech talent has created a "rare window of opportunity" for the EU to act.

A Rare Opportunity

The EIC board proposes setting up a dedicated helpdesk to support relocation and a centralized recruitment platform for EU start-ups. Additionally, entrepreneurs who are granted a start-up visa in an EU country should be able to easily extend it to another member state. These recommendations complement the European Commission’s recently announced €500 million Choose Europe package, which aims to make the EU more attractive to talented international researchers.

A Warm Welcome for US Start-up Founders

A warm European welcome for US start-up founders and other key personnel would be timely, according to Clark Parsons, chief executive of the European Startup Network. Parsons identifies a "mind shift" in the European start-up community, including among Europeans working in the US. "An entire generation of founders and tech leaders is eager to contribute to making Europe a global tech player," he says.

Fragmentation and Funding

The EIC board wants to see more done to bring European start-ups and scale-ups into the policymaking process. A fractured market and start-up unfriendly regulation have "hurt [the Commission’s] relationship with the ecosystem" and left the EU with a "credibility gap" that requires greater engagement with start-ups to rebuild trust. The board proposes setting up a pilot implementation unit within the EIC to bridge the gap between the Commission and the start-up ecosystem.

Active Market-Making

On the issue of funding and finance for start-ups and scale-ups, the EIC board concedes that Europe will never be able to outspend the US and China. Instead, it should adopt a strategy of "active market-making." This would involve directing public and corporate procurement to create demand, with a "choose European tech" campaign to triple public and private sector procurement from European start-ups by 2030.

Aligned Priorities

The EIC board’s priorities are similar to those of other groups, including start-up and investor association France Digitale. France Digitale’s director of public affairs, Marianne Tordeux, says that improving access to finance, reforming public procurement, and achieving more harmonized laws across the EU are all interconnected. "Having more money through the Savings and Investments Union is great, but it’s not enough if at the same time we don’t also have public procurement to buy the solutions that were financed," she says.

A Start-ups to Tech Leaders Strategy

France Digitale would like to see Europe be more ambitious in its strategy, following start-ups throughout their entire journey. Instead of stopping at scale-ups, it should be a "start-ups to tech leaders strategy." This should include clear objectives, such as at least five European scale-ups to pass the $100 billion valuation by 2030.

Conclusion

In conclusion, the EU has a unique opportunity to attract US start-up talent and become a global tech player. By launching a marketing campaign, setting up a dedicated helpdesk, and adopting a strategy of active market-making, the EU can create a favorable environment for start-ups and scale-ups to thrive. With aligned priorities and a more ambitious strategy, the EU can achieve its goals and become a leader in the tech industry.