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A Slow, but steady, decline

Europe's high-tech industry continues its slow decline. Yet, technology plays a key role at all levels of the development of industry and services. A study by the firm A.T. Kearney paints a worrying picture of this sector in Europe. After the takeover of Nokia only 8 European groups figure still in the top 100 in the world. Just 2 years ago this number was 12. However Europe remains one of the most important consumer of high-tech products with more than 25% of the global market , for an amount of USD 678 billion. The Asian market is estimated to generate about USD 1000 billion and the US 850 billion. Analyses underline that in Europe the demand is there, it is a problem of supply. The main reasons that can explain this drop-out are: a high fragmentation with 28 different markets compared with 1 in the US and a larger and more unified market in Asia; but above all a shortage of funding, 4 billion invested in the European companies compared to 20 billion in the US firms (figures 2012); but also an innovation deficit compounded by a low patent rate; and finally a lack of engineers and in addition of course a high cost labor. As a result Europe's high-tech industry, despite a few large-scale ICT companies such as Ericsson, Alcatel-Lucent or SAP, is undoubtely losing ground in the global competition. Now, the European authorities are well aware of this situation and appear ready to reverse this trend. Brussels has decided a commitment to an investment programme up to € 80 billion by 2020. Yes, high-tech is more than ever a crucial element to the long term prosperity of most of the world's industrialised countries.

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