The Yanks love our quaint accents and we can’t get enough of their TV
shows, but things aren’t so chummy between Europe and the USA when it comes
to technology. Europe has just activated the first test satellite in its Galileo
network, designed to reduce our reliance on the current GPS navigation system,
controlled by the US military. Despite objections from the Pentagon, who feared
the systems might interfere with each other, Galileo is on track to have 30 satellites
spanning the globe by 2008, delivering more accurate navigation information than
the elderly GPS system.
The EU is also flexing its muscles against American software companies. The European
Commission fined Microsoft nearly half a billion Euros in 2004 for abusing the
dominence of its Windows operating systems. And commissioners are now threatening
to charge the software giant another 2 million Euros every day until it releases
further technical information to rivals.
Until recently, Europe and America used incompatible technologies for everything
from TV broadcasts to mobile phones. You couldn’t buy a camcorder in America
for use here, or even take your hairdryer on holiday, as the whole electrical
system was (and still is) different. Intel’s Chairman of the Board Craig
Barratt says, “If the whole world had gone to either 110V (USA) or 220V
(Europe) with a common plug years ago, this obviously would have been better for
consumers.”
It might have made trips to Disneyworld easier, but would it have been better
for European companies? Quirky local standards enabled smaller countries to resist
imports from the biggest global players, often the US. But those days are over,
according to Craig Barratt: “Some regions look at local standards as a way
to promote or protect local industry, without considering the larger impact. But
in the long term, this makes technology more costly to the local user, and inhibits
its spread abroad.”
Nowadays, both European and US companies are chasing customers in the rapidly
growing Chinese and Indian markets – and that means developing technology
that will work anywhere in the world. The region that can set the standards used
globally will have a real competitive advantage - and the USA has a massive head-start:
Microsoft alone is worth more five times the top 15 European technology companies
put together. The US writes more than 80% of the world’s software, produces
the most computer chips and, according to technology merchant bank Interregnum,
spends over three times as much on high-tech research as Europe.
There are two main reason for this, says Interregnum CEO Ken Olisa: “With
one or two exceptions, there are no European venture capitalists contributing
money and expertise to help early stage companies grow. On the other hand, the
US market contains hundreds of professional VCs, who last year invested over $20
billion in start-ups.” The US Government also subsidises smaller companies
to a much larger extent than the EU.
Moreover, the USA chases business at the expense of ethics, alleges EU Vice President
Margot Wallström. She’s worried about the way US companies like Google,
Microsoft and Yahoo are blocking access for Chinese citizens to sites discussing
democracy and human rights, at the behest of Beijing.
Whether Europe can turn its new-found confidence into technological dominence
is anyone’s guess but Interregnum CEO Ken Olisa is optimistic: “Things
are changing at a great rate. As a by-product of the internet boom, a new generation
of IT entrepreneurs has emerged in Europe.” And as the launch of the Galileo
satellite shows, the sky’s the limit.
Who'll win the tech Cold War?
High Definition TV - The next generation of digital broadcasts will
be in super-sharp HDTV. Although transmission standards will differ around the
globe, most 'HD Ready' sets should be usable worldwide - as long as you have the
right power socket.
Europe or America? Dead heat. A rare example of international cooperation.
Satellite navigation - The EU claims its Galileo sat navs will be reliable enough
to guide cars and planes automatically. But the American GPS system is already
up and running, and is getting more precise all the time.
Europe or America? The Yanks, unless Pentagon generals go bonkers and turn it
off before a battle.
Mobile phones - Despite there being almost as many mobile phone systems as there
are countries, most modern (tri-band) handsets will work in both the USA and Europe.
But the sluggish Americans have yet to even allocate frequencies for advanced
3G services.
Europe or America? Europe by a mile.
Video discs - To record or playback High Definition video, you'll need an all-American
HD-DVD player, according to Microsoft, HP and Intel. But Philips and Sony hope
their rival, higher capacity Blu-ray system will triumph.
Europe or America? Blu-ray has movies ready to go, and will be found in the new
PlayStation 3 console.
Power - The chances of getting either continent to change its entire electricity
grid and upgrade all devices with a plug are pretty slim.
Europe or America? Neither. Better get used to taking those multi-pronged power
adaptors on holiday.