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1. 80% of french people have hight speed internet connection against 50% for american people...
2. Dailymotion, Netvibes, there are a lot of great french star-up.
American jounalist want to write about europe but americans don't know the "rest of the world".
They thinks there are still cows in Paris...
Though one could argue, that there is not much innovation going on over the pond either (me in Europe). I mean yes, there is facebook, myspace, google, and ... well, not much else (I am talking about new things). Pretty much after Silicon Valley formed, and most of today's giants emerged they stopped the innovation. There is a handful of new things coming up, and thats it. What we see IMHO are the spinoff of a once full-throttle industry.
Just read Hillary's speech on science and technology, specifically how she relates the space race of the 60-70's to the forming of Silicon Valley, and the boom of educated people in science. We don't see that much these days, and probably won't, even after the elections.
(to the list of European startups: Aquia, the startup of the founder and leader of Drupal just got 9 million dollars of investment. it'll be worth to keep an eye on)
I am getting a bit sick of seeing this as kind of the only measurement of success.