London Tech Week: How can the UK and Europe compete with the US and China on technology innovation?

While the US and China have long been dominant forces in the development of transformative technology, the UK and Europe are increasingly becoming more influential in the space - a panel at London Tech Week considered how this trend can be solidified and developed in the coming years.

Popular telecommunications app Skype, which was retired by Microsoft earlier this year, was once the go-to platform for video calls. Created by Estonian developers, the app’s success inspired future Founder and CEO of delivery and micromobility rental company Bolt Markus Villig. 

Growing up in Estonia, Villig told delegates at London Tech Week he watched its progress and was convinced from an early age that he could also develop successful technology. “A lot of children don’t have that example,” he explained, noting that the same was not true of the US, where children can look to many successful tech founders for inspiration.

Alongside Starship Technologies, Bolt recently launched eco-friendly robot powered grocery delivery service in Estonia. Pitched as the first of its kind in Europe, the service offers residents in Tallinn robot deliveries from three Bold Market stores.

Bolt’s recent success led members of the panel to ask if Villig was planning to launch an initial public offering (IPO) and if it would be in Europe when it does. He noted that Europe has not had the best track record with IPOs in recent years. 

In the past few months, Swedish FinTech firm Klarna opted for a potential US listing, while fast fashion giant Shein is thought to be considering listing in Hong Kong after its plans to list in London stalled.

Villig said part of the reluctance to list in Europe is connected to an aversion to risk. “We’re raising 80% of our funding in the US, despite being Europe-based,” he explained. 

Suranga Chandratillake, General Partner at investor Balderton Capital, acknowledged that it was hard for Europe to compete with the lure of the New York Stock Exchange, but questioned whether this is even necessary. “Money is global,” he said. “As long as the people behind the company are based here, I don’t think it matters.”

Chandratillake said he was excited about the trajectory of technology in Europe, and the UK particularly. “Considering we started so behind, the fact we’ve been able to catch up has been really impressive,” he commented. However, he did suggest the UK could focus more on encouraging business leaders to stay and start businesses, rather than visiting the UK for study.

Mike Mattacola, Chief Business Officer at cloud computing provider CoreWeave, said the biggest challenge with basing a technology business in the UK remains the cost of energy. He noted the cost of energy in the UK is currently around double that in Nordic countries. “If you’re a startup raising money, around 70% of your costs can be spent on infrastructure so you need to be  very frugal,” he noted. “We have a lot of access to renewables - we need to be putting datacentres as close to that energy as possible.”

Mattacola welcomed the announcements from UK Prime Minister Keir Starmer earlier in the morning, including an extra £1 billion of funding for AI compute, which he claimed would increase UK compute power by a factor of 20. Starmer told delegates: “It means we can be an AI maker, not just an AI taker. More importantly, it means we have the digital infrastructure we need to make sure AI improves our public services.”

However, Mattacola also observed: “I applaud the commitments made, but the reality is we can’t celebrate for too long,” adding that the investment would not last long. “It’s great we have a start, but we need to ensure there is a pipeline of commitment coming into the UK.”

RTIH AI in Retail Awards

RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Wednesday, 3rd September.

This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.

Please email our Editor, Scott Thompson, if you have any questions or need further information: scott.thompson@retailtechinnovationhub.com

Key 2025 dates

Friday, 18th July: Award entry deadline 

Tuesday, 22nd July: 2025 finalists revealed

Wednesday, 23rd July - Friday, 8th August: Judging days

Wednesday, 3rd September: Winners announced at the 2025 RTIH AI in Retail Awards Ceremony, to be held at The Barbican in Central London.