A recent report by Zeki Data sheds light on the competitive landscape of deep-tech talent between Europe and North America, revealing significant disparities in the production of deep-tech companies and the concentration of advanced-skilled talent. The report indicates that while the United States generates three times as many deep-tech enterprises as the United Kingdom, small startups in Europe boast a higher concentration of advanced-skilled individuals compared to their North American counterparts. According to the findings from the report entitled “The Deep-Tech Talent War: Europe vs. North America Showdown 2024,” both regions have experienced a dramatic decline in the formation of new deep-tech companies since 2020. Despite substantial governmental investments aimed at fostering deep-tech innovation, these efforts have been somewhat futile, hindered by high capital costs and the ongoing market consolidation. Tom Hurd, Chief Executive Officer and Co-Founder of Zeki Data, noted, “There is an intense competition for the finite pool of science and engineering talent essential for deep-tech companies to pursue their innovation goals. While governments are significantly investing in deep-tech startups to secure competitive advantages, our data suggests limited returns on investment due to challenges in the market.” The report presents various detailed observations: 1. Slow Growth Despite Investment: Notably, new deep-tech company formation has considerably slowed in both regions since 2020, despite government financial initiatives aimed at boosting this sector. 2. Focus on Cost-Efficiency in Hiring: Major tech companies such as Amazon, Apple, Google, Meta, Microsoft, Nvidia, and Tesla are prioritizing lower-cost, early-career hires amid market consolidation linked to generative AI technology. 3. Rapid Scalability of American Startups: Deep-tech startups in the United States are scaling at twice the rate of their European counterparts, signifying marked differences in growth potential. 4. Challenges in Engineering Biology Sector: Companies in the engineering biology space have become attractive acquisition targets but face difficulties in scaling operations to medium and large sizes. 5. Decline of Battery Technology: The field of renewable energy, particularly battery technology, has suffered a talent exodus since 2019, leading to decreased interest in the sector since 2022. 6. Demand for Software Engineering Talent: Industries such as semiconductor manufacturing, aerospace, and defense are competing fiercely for top software engineering talent, while many players in the cybersecurity sector appear to favor sales roles over software development expertise. 7. Exodus of Chinese Talent: The report highlights a growing trend of Chinese talent departing from Western deep-tech companies, with China emerging as the preferred destination for these professionals. In summary, the data illuminates the ongoing deep-tech talent war, emphasizing the necessity for both regions to attract and retain top talent as a fundamental strategy for future innovation and economic prosperity. The full report is accessible for free download at zekidata.com/talentwar.
Original Source: www.prnewswire.com
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