Many of the world leading companies in deep tech are found in the US, but Europe also has strengths. Much of the leading deep tech companies in clean tech, biotech and robotics are found in Europe, according the recently launched Deep Tech Index. The Index, produced by the European Centre for Entrepreneurship and Policy Reform (ECEPR) with support from Nordic Capital, maps the leading deep technology centres, focusing on key, future-shaping technologies.
Most of the 500 leading deep tech companies are situated in the US, which has 1.58 of such companies per million adults. Countries leading in deep tech companies per million adults also include Israel, Ireland, Estonia, Switzerland. Denmark, Canada, Sweden, the Netherlands, and the UK also rank amongst the top-ten list. Seven out of the ten countries with highest concentration of deep tech companies in relation to their adult populations are in fact found in Europe.
Europe has particularly strong dominance in the areas of clean tech, as well as in biotechnology and robotics & communication. Fully 28 percent of the leading clean tech companies of the world are situated in Europe, making environmental technology the main relative strength of Europe in a global deep tech analysis.
Biotechnology is another field in which Europe is strong, as 20 percent of the globally leading deep tech companies in this field are European. Nearly all other leading biotechnology firms exist in the USA, with the exception of one in Canada and one in Japan.
In robotic & communication, 18 percent of the world’s leading deep tech companies are located in Europe. This is nearly double the amount of Asia, but still significantly lagging North America. Photonic & electronic deep tech development mainly occurs in North America, but 16 percent of the leading companies are found in Europe. Sweden, Netherlands, and the UK, have each a couple of the world´s leading deep tech companies in photonic & electronic.
London is a key European hub for deep tech, with 2.6% of the world’s top firms located there. Other major European centres include Paris, Amsterdam, Berlin, Stockholm, and Dublin, with Copenhagen and Cambridge also playing important roles.
The study identifies several factors contributing of high concentrations of deep tech companies per capita. These include strong private property protection, lower taxes, and high educational standards, particularly in STEM subjects. Countries with higher PISA scores and more top-ranked universities in engineering and technology tend to have more deep tech companies.
According to the QS World University Ranking, Europe is home to 30 of the top 100 engineering and technology universities, compared to 34 in Asia and 27 in North America. To maintain and enhance its position, Europe needs to boost educational outcomes, invest in top engineering and mechanical institutions, and implement growth-oriented economic policies.
| Clean Tech | |
| North America | 50% |
| Europe | 28% |
| Asia | 6% |
| Rest of world | 0% |
| Biotechnology | |
| North America | 78% |
| Europe | 20% |
| Asia | 2% |
| Rest of world | 0% |
| Robotic & Communication | |
| North America | 68% |
| Europe | 18% |
| Asia | 10% |
| Rest of world | 4% |
| Photonic & Electronic | |
| North America | 68% |
| Europe | 16% |
| Asia | 14% |
| Rest of world | 2% |
The tables show the geographical division of globally leading deep tech companies, as measured by the end of 2023. For questions, see the Deep Tech Index 2024.