There isn’t an issue with starting companies in Europe as much though - Skype, Nokia, Booking are examples. The issue is they don’t stay European owned. US companies buy them out because they run out of ability to grow.

FAANGs have European offices with work councils and all and aren’t considered unproductive, but they’re not the corporate headquarters because they didn’t start there.

Certainly some European countries prefer having a few old large companies because it’s easier to regulate. Asia has the same problem; it’s an everywhere except Silicon Valley thing.

edit: actually, ASML is an example of a European headquartered tech company where all the value is “actually” American. Not sure how that happened. Video game studios also seem a lot more international than other tech companies.