Radical innovation in the transatlantic economy: Is a Silicon Valley possible in Europe

In this paper I will discuss the role of institutional frameworks and public policy in spurring technological, "radical" innovation in Coordinated Market Economies (CMEs) such as France. The main question asked is whether high-technology start-ups can be successful in Europe. This study will start by first explaining in detail the elements of the successful "Silicon Valley" model of technological innovation. I will then examine institutional frameworks in both CMEs and in Liberal Market Economies (LMEs) such as the U.S. and analyze the factors that are relevant to technological innovation. Building on this information, the third section will provide an analysis of the possibilities for radical innovation in Europe. Finally, this study will examine these possibilities through a case study of France. Public policy starting in the 1990s to the present will be given special attention, and examples will be drawn to prove that radical innovation is possible in Europe.