The development of innovative startups and tech based companies in European countries

Abstract

Introduction. The global structure of economy and business has been changing. New technologies and innovations occurred replacing or minimizing the role of old once. A number of traditional companies and industries must adopt new emerging technologies in order to survive on the international market. Moving from industrial society to Industry 4.0 society a few critical transformations should be taken into account. If it is understandable that innovations and technologies can benefit the whole economy and society in many ways, it is important to analyze what are the external factors that accelerate the development of innovative startups and technologies to boost the growth, development and welfare of societies and economies. Aim and tasks. The purpose of this article is to assess the development of startups and technology based companies in a number of European countries and to identify a group of countries that has the most favorable environment for startups and technology proliferations. Results. The findings of the research revealed that the most favorable countries for startup and technology-based companies’ creation are Scandinavian and Western European countries, the least ones – mainly Balkans. The findings claim that macroeconomic stability and skills (broaden concept is human capital) are the most important factors influencing the creation and adoption of startups and technology-based companies. Meanwhile the national market size is the least important factor. Conclusions. The conducted research presents that the most favorable countries for innovative startups and tech-based companies are mainly Scandinavian and Western European countries. It is important to notice that Scandinavian countries have exceptionally leading the list in this field. As analysis showed, macroeconomic stability and skills (to a broader concept human capital) are the most significant factors for technologies and innovations to occur. Finally, the market size seems to be the least important factor for technology and innovative startup development. It can be explained that startups and technologies by its nature are scalable businesses those market is entire globe.