Slide 1 - The current bear market is mainly driven by the bad performance of tech stocks - At the same time, regulation of Big Tech firms is increasing

Slide 2 - The European tech sector outpaces the overall economy …

Slide 3 - … but still lags behind the US tech industry, which has more than doubled its gross value added since 2009

Slide 4 - European tech companies have added a large number of new jobs in recent years …

Slide 5 - ... and are now increasing their workforce at a faster pace than their US competitors

Slide 6 - On average, European publicly listed internet companies grew their revenues much faster than the average Stoxx Europe 600 member

Slide 7 - The difference is less pronounced in the US, where all companies saw stronger revenue growth when compared to Europe

Slide 8 - A comparison of the ten most valuable internet companies reveals the dominance of the US economy in the digital arena

Slide 1 - Mobile data traffic per smartphone is increasing at a record pace across Europe

Slide 2 - 5G is expected to grow steadily in the coming years, with Asia comprising more than half of global 5G subscriptions

Slide 3 - Although 5G promises unprecedented download speeds, the speed varies significantly in different regions

Slide 4 - The market for public cloud services is forecast to continue its strong growth

Slide 5 - Cloud infrastructure services are dominated by market players from the US and China

Slide 1 - The US and China have extended their lead in patent filings for digital technologies ...

Slide 2 - … but innovation capacity is more than just patents: European countries score high on Bloomberg's Innovation Index

Slide 3 - China has an edge in AI research, one of the most important and contested fields of innovation

Slide 4 - When it comes to private investments in AI, the US was able to extend its lead – The EU is catching up with China

Slide 5 - European countries have a long way to go to reach their goal of 80% of companies using AI by 2030

Slide 6 - Unlike in the US and China, high valuations for AI startups remain the exception in Europe

Slide 7 - However, the AI Readiness Index indicates that European countries are well prepared for rapid adoption

Slide 8 - When it comes to responsible AI adoption by governments, Europe is even in the lead

Slide 1 - Europe has no single equivalent to Silicon Valley – Instead, there are many tech clusters spread across the continent

Slide 2 - This geographic diversity also manifests itself in the distribution of major startup clusters

Slide 3 - Employee stock option programs help startups attract talent, but too few countries in Europe have a supportive regulatory framework

Slide 5 - Despite its economic power, the European Union is deeply divided when it comes to skills and access to digital applications

Slide 6 - The digital divide can also be seen in the education systems of different European countries

Slide 7 - However, in a global comparison of digital inclusion, Europe ranks in the middle of the pack

Slide 8 - When it comes to the top universities for AI-related research, Europe is trailing both the US and China

Slide 9 - ICT skills of tomorrow's researchers depend on teachers' ability to convey appropriate tools and methods

Slide 10 - Not all European countries provide a separate school subject to teach digital skills

Slide 11 - Especially the small European economies can boast a high share of bachelor graduates in ICT

Slide 12 - A significant share of AI applications are developed in the US and exported to the rest of the world

Slide 1 - Startups and scaleups have proven to be important job engines – And they do so at a much faster pace than established companies

Slide 2 - Startups also create jobs beyond the startup scene as the German example reveals – There are indirect and induced job effects

Slide 3 - International comparison shows Europe's need to catch up – Germany in particular has a lot of room for improvement

Slide 4 - The data for Germany show that thousands more jobs could be created if Germany leveraged its potential

Slide 1 - While VC investments in Europe have increased markedly in the last year, 2022 is likely to be a challenging year

Slide 2 - Following on from a steady decline in the share of later stage VC investments until 2018, this trend has reversed, reaching a new peak in 2021

Slide 3 - VC investments are on the rise across the globe – Yet Europe trails markets in the US and Asia

Slide 4 - While the US and Europe are almost on a par at angel & seed stage, Europe clearly lags behind on early and later stage funding

Slide 5 - The EU is catching up significantly when it comes to the number of unicorns and their valuation, albeit starting from a low level

Slide 6 - The beginning of 2022 does not look promising as global VC funding drops significantly

Slide 1 - Large digital platforms are the dominant key players of the internet economy, with huge market shares across the globe

Slide 2 - In Europe and the US, Google and Apple split the market for mobile operating systems among themselves

Slide 3 - The world of social media is to a large extent shaped by Facebook and Google's YouTube

Slide 4 - The market for mobile messenger apps mirrors this pattern – Large digital platforms divide the market among themselves

Slide 5 - Online hate speech skyrocketed during the pandemic – The Digital Services Act aims to combat illegal online activities

Slide 6 - Global advertising spend is moving to the digital sphere, with spending on mobile advertising growing in particular

Slide 7 - The digital advertising market has been growing by 20.3% each year since 2010 – Google and Facebook divide half of the market among themselves

Slide 8 - Digital platforms turn their market shares into economic success – Six of the ten most valuable companies are digital platforms

Slide 9 - The market capitalization of the six most valuable digital platforms is almost twice as high as the total of all Euro Stoxx 50 members

Slide 10 - Platform-based business models have outgrown traditional industry sectors in recent years

Slide 1 - The Web 3.0 seeks to revolutionize the internet by decentralizing and democratizing the way data is stored and shared

Slide 2 - Following the pandemic-related slump, shares of companies related to Web 3.0 performed significantly better than others, indicating growing institutional interest

Slide 3 - While investments in blockchain in general have increased sharply, the share of those investments in Web 3.0 has massively expanded

Slide 4 - Even though the number of Web 3.0 developers is still comparatively small, its developer base shows astonishing growth rates

Slide 5 - Compared to today's well known digital platforms, Web 3.0 related platforms have a small user base

Slide 6 - The potential market opportunity of the metaverse totals up to USD 12.5 tn, depending on the share of digital companies shifting to the metaverse

Slide 7 - This enormous market potential is also observed by traditional businesses, reflected by increased mentions in earnings calls

Slide 8 - Companies from several industries are already investing in the metaverse, as it offers a wide range of business fields

Slide 9 - The public awareness for the metaverse is on the rise, not only due to Facebook's rebranding itself Meta

Slide 10 - Virtual reality headsets are the gateway to the metaverse, and their worldwide unit sales are steadily increasing

Slide 11 - The competitive problems of Web 2.0 also carry over into Web 3.0 – The market is already dominated by a few major players

Slide 1 - Talent for the future: Support startups, simplify equity participation for employees, promote diversity

Slide 2 - Capital for growth and employment: Further improve access to late stage capital, strengthen exit channels and the equity culture

Slide 3 - Fair competition for innovation and growth: Regulate platforms, strengthen decentralized and interoperable single sign-on regimes

Slide 4 - 5G boosts innovation and new business models and therefore its potential should be leveraged by competitive telecommunications markets

Slide 5 - The next internet economy is here. Europe needs to ensure it has global champions in the emerging Web 3.0 and metaverse realms