AWS Whitepaper | Page 12

AWS

AWS

1.6 Startup risk: Europe North risks losing innovators

Even as startups lead the charge on not just adopting, but integrating AI, this widening gap is now beginning to reshape Europe North’ s ability to retain these advanced innovators. The highpotential AI startups that the wider region incubates are growing fast and quickly running into scaling constraints. The faster a startup moves, the sooner it encounters barriers that raise the cost of growth.

The priority, therefore, is to turn Europe North into an environment where scaling is as straightforward as starting. Without rapid action to remove scaling barriers, the region risks becoming a launchpad for innovation rather than a home for global technology champions.

A substantial share of startups are open to relocating to secure faster growth: 35 % of Nordic startups say they would consider leaving Europe to scale their business, while a similar figure is reported for Belgium. Two in five say they would not consider leaving, while 25 % are unsure.

Startups cite funding access, scaling speed and regulatory predictability as top reasons they would consider leaving Europe— with the US( 58 %) and Singapore( 22 %) preferred destinations.

Founder flight is not inevitable. Among startups that say they would consider relocating, stronger access to European customers and markets was among numerous cited factors that would encourage them to stay. Europe North nations already excel at creating startups – the next challenge is ensuring they can scale globally without leaving the region. If policymakers want the region to produce the next generation of global AI leaders, scaling conditions must improve.

1.7 Tackling barriers to deeper AI adoption

While the region is moving fast, several barriers and structural challenges must be addressed to ensure that momentum translates into broadbased, sustainable growth.

12 aws. amazon. com