New high-tech firm formation rate
New employer firms in the information & communication sector, per 100k inhabitants.
Information & communication, employer firms (NACE J / NAICS 51+5415) · Eurostat business demography (bd_size) + US Census BDS
Live for the EU, D9+ and the US. Employer firms only on all sides, with the sector scope matched (NACE J vs NAICS 51 plus computer systems design), so the comparison is like for like.
The story
Every global technology company starts as a new business. This indicator measures the rate at which new high-tech firms are created relative to the size of the economy, providing insight into the strength of Europe's entrepreneurial pipeline.
Unlike indicators that measure scale or commercial success, firm formation captures the very beginning of the innovation lifecycle. It reflects how frequently entrepreneurs transform new ideas into businesses. Europe performs relatively well on this measure, suggesting that the continent is capable of generating innovative startups. The greater challenge lies in helping more of these companies survive, scale and become globally competitive.
Why it matters
A steady flow of new firms is essential for long-term economic renewal. Young companies introduce new technologies, challenge established businesses and drive competition across the economy. Although most remain small, a few grow into high-impact companies that create jobs, attract investment and shape entire industries.
Firm formation therefore measures the strength of an economy's entrepreneurial foundation. Strong startup creation increases the likelihood of producing future scaleups, unicorns and publicly listed companies. Without a healthy pipeline of new businesses, the innovation ecosystem eventually loses momentum.
Policy context
Europe has made significant progress in encouraging entrepreneurship and startup creation. Recent competitiveness initiatives increasingly focus on ensuring that this strong pipeline translates into more high-growth companies. This requires an ecosystem that supports businesses beyond their founding stage through access to finance, talent, research, customers and integrated markets.
The indicator therefore complements measures such as venture capital, unicorns and IPOs. While startup creation remains an important strength, Europe's long-term competitiveness will increasingly depend on improving the conditions that allow promising young firms to grow into global industry leaders.
How this number is calculated
Eurostat business demography for the EU side and US Census Business Dynamics Statistics for the US, per 100k inhabitants. Employer firms only on both sides, because the US data counts nothing else; counting all EU registrations would overstate Europe roughly fifteen-fold. Sector scope is matched by hand: Europe's information & communication (NACE J) against US information plus computer systems design (NAICS 51 + 5415).
Source & cadence
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