LondonNet News Headlines
|Germany Beats UK to Internet Gold Medal
- British web firms are less profitable than rivals, says report
BRITAIN is behind Germany as far as the success of internet start-ups goes, according to a new survey.
PricewaterhouseCoopers accountants found that over 30 per cent of the top 150 European internet companies were based in Germany, compared to a quarter in Britain. German web firms also out perform their UK counterparts on the balance sheet, with over half of German companies surveyed making profits, while just a quarter of their British rivals do so.
The survey will come as a blow to those economic planners, such as UK Chancellor Gordon Brown, who favours Britain aping the American approach to technological change. Brown and his ilk have constantly pushed the line that Europe needs to follow the US in labour market deregulation and share holder power in order to catch up.
Germany is often held up as an example of an over-regulated economy but the PricewaterhouseCoopers report suggests that the social democratic model can still produce the goods in terms of innovation.