While European firms remain competitive with regard to many innovations that have impacted the space industry, this leadership has rarely translated into a commercial advantage within the space sector. One of the reasons for this dissonance between European innovation and competitive advantages is the lack of upstream activities in Europe, as US firms dominate the upstream sector. European technology leaders are not active enough in space themselves, and the technology transfer is not effective enough. Additionally, risk capital funds are in limited supply for ventures that are looking to commercialize their innovative technologies. The scarcity of scale-up funding in Europe is a critical shortfall, which often leads to a flight of talent and companies to the US, where the financing landscape is currently more favorable.
Fore a more detailed information, check the report by European Investment Bank.