In this article, we will take a look at the most innovative companies in Europe. If you want to skip the detailed analysis of the European innovative companies, you can go to the 5 Most Innovative Companies in Europe.
Background to Innovation in Europe
Innovation in Europe dates back to the beginning of industrialization in the middle of the 18th century. Industrialization in Europe was a gradual revolution that was triggered by the unusual rise in the population in the 1750s. At that time, the continent was producing a huge supply of workers. Moreover, the demand for products was also increasing which ultimately pushed more efficient methods of production. In addition, the United Kingdom had a remarkable number of creative inventors. For instance, Charles Babbage was a British polymath who derived the idea of a digital programmable computer. Babbage initiated the work on the “Analytical Engine”, the first computer in the world, and for that reason, Babbage is considered to be the “father of the computer.” Today we cannot imagine our lives without computers and computing devices are the centerstone of innovation in the modern world of technology. Computers have changed the way we live, making it more efficient and effective for humans to communicate, conduct business, entertain, and much more.
That was a major reason why groundbreaking discoveries at that time were emerging from the U.K., which gave massive momentum to the British homeland to dictate the progress to the rest of Europe from 1750 onwards for the next century or so. The biggest competitor to Great Britain was France during the 18th century. France was leading the race in cotton supplies to the textile industries compared to the British Isles. French manufacturers focused more on finished products such as luxury items including woven silk and leather goods. Later, Germany, Belgium, Switzerland, and the Netherlands followed the industrial revolution in Europe.
European Startups
Europe contains some of the strongest economic countries in the world including Germany, France, Italy, and the U.K., to name a few. With the strong economy of European Union countries, there is more opportunity for entrepreneurs to grow and scale their startups. European startups are mainly concentrated in the U.K., Germany, and France. According to Startup Genome, nearly two-thirds of Europe’s top 1,000 startups founded are based in these three countries. Germany and the Netherlands reported startup growth of more than 200% in 2021. Whereas Spain reported a growth of more than 400% that year. Even the smallest economies in the region gained momentum and more startups emerged. For instance, Estonia is one of the smallest countries in Europe, but it has 1,048 startups per capita and has raised investments of €1,967 per capita. This exceeds any other nation in the region. 2021 was memorable for startups in Europe as the capital investment, deal volumes, and exits all reached their all-time highs. With over 10,000 venture deals in 2021, the total capital invested was reported around €103 billion. Whereas in 2020, there were only 2,400 venture deals worth €3.6 billion.
Europe has grown massively in the tech sector. According to Dealroom.co, Europe attracts around 20% of the global venture capital funding, which is 5% higher than two decades ago. In the last decade, the European tech sector has peaked enormously to $2.5 trillion, both in the public and private sectors. The major sectors that have attracted a large portion of investment across Europe include Fintech, SaaS, and Health. These three sectors have attracted 40% of all venture capitalist funding in the last 20 years.
Today’s Developments
DeepMind, the U.K.-based AI firm, caught the attention of the world after Alphabet Inc.’s (NASDAQ:GOOG) Google acquired it for £400 million. Google announced the acquisition of the AI firm on January 26, 2014. On April 20, Alphabet Inc. (NASDAQ:GOOG) announced that it is combining Google Research’s internal team called Brain with DeepMind. The idea is to focus on AI development as things heat up in the AI segment. In a blog post Alphabet Inc.’s (NASDAQ:GOOG) CEO, Sundar Pichai said, “Combining all this talent into one focused team, backed by the computational resources of Google, will significantly accelerate our progress in AI.” Previously, DeepMind has made breakthroughs such as AlphaFold, which is an AI program that can precisely predict 3D models of protein structures.
European startups have made vital contributions to global industries. Among the most innovative companies in the world, Europe has some of the most historic companies that have changed the dynamics in their respective markets. For instance, Dassault Systemes (EPA:DSY) has been revolutionary in the software development of 3D products. Dassault Systemes (EPA:DSY) launched its first 3DEXPERIENCE platform known as CATIA in 1981. Today, the company has over 300,000 customers and 25 million users of its 3DEXPERIENCE platform across 12 industries around the world. On June 28, Dassault Systemes (EPA:DSY) announced the latest developments of its mining software, GEOVIA. GEOVIA allows companies to find solutions using end‑to‑end virtual twin experiences in the intersection of natural resources, infrastructure, and urban planning. The company is integrating GEOVIA into its 3DEXPERIENCE platform which will further enhance the software’s ability in geology, earth resources management, earth design, and geospatial segments.
Another major segment in which European companies have made revolutionary developments is automobiles. One of Europe’s largest automakers, Stellantis N.V. (BIT:STLAM) is innovating the automobile industry through its sustainable mobility technologies including hydrogen fuel cell technology, electrification, intelligent vehicles, and autonomous driving. On August 24, Bloomberg reported that Stellantis N.V. (BIT:STLAM) is potentially exploring a deal with Chinese electric vehicle manufacturers. Zhejiang Leapmotor Technology Co Ltd. (HKG:9863) is one of the companies Stellantis N.V. is seeking to partner. The European automaker has a joint venture with Chinese holding company Dongfeng Motor Group Co Ltd. (HKG:0489), to sell Citroën and Peugeot cars. Stellantis N.V.’s (BIT:STLAM) Chief Financial Officer, Natalie Knight, has already pointed out that China is a large EV market and they have a great opportunity to gain a large share in the untapped Chinese market.
From the time of the Industrial Revolution to the advancement in modern technology, European innovative companies have significantly boosted the region’s economy. In a blog post, the World Economic Forum mentioned that as per the Community Innovation Survey (CIS), nearly 53% of all enterprises in the European Union were involved in some kind of innovation between 2018 and 2020.
Now that we have discussed what European companies are currently up to, let’s take a look at the 20 most innovative companies in Europe.
Copyright: jenifoto / 123RF Stock Photo
Our Methodology
To obtain data for the most innovative companies in Europe, we took data from different publications including Forbes, BCG, and The Financial Times. We took four companies from each list with the highest stock returns over the past 10 years, as of August 23. Four private companies are ranked by their compound annual growth rate between 2018 and 2021. We took the compound annual growth rate for private companies as it describes the increase in revenues between 2018 and 2021, reflecting the increase in sales which is ultimately driven by innovative products and services. The companies with stock returns are ranked higher than companies with compound annual growth rates. Here is the list of the 20 most innovative companies in Europe.
20 Most Innovative Companies in Europe
20. Gift & Go
Compound Annual Growth Rate: 408.30%
Founded in 2017, Gift & Go is an on-demand gifting technology platform that allows businesses to launch powerful loyalty stores using Amazon.com Inc.’s (NASDAQ:AMZN) APIs. Gift & Go harnesses Amazon Prime’s technology to engage businesses with their potential customers. Gift & Go is one of the fastest-growing companies in Europe and ranks 20th on our list of the most innovative companies in Europe.
European companies have been at the forefront of innovation since the beginning of the Industrial Revolution across the region. Two of the leading European companies that have played a huge role in their specific sectors include Dassault Systemes (EPA:DSY) and Stellantis N.V. (BIT:STLAM). Whereas Alphabet Inc.’s (NASDAQ:GOOG) Google is embarking the U.K.-based AI firm, DeepMind, on a new journey in the AI world.
19. Silverstream Technologies
Compound Annual Growth Rate: 426.40%
Silverstream Technologies is a U.K.-based firm that was founded in 2010. The company has pioneered maritime clean technology for the shipping industry. The company’s Silverstream System is a breakthrough for the marine industry as the company is working to deliver proven 5-10% net fuel and emissions savings. Silverstream Technologies ranks among the most innovative companies in Europe.
18. WeCo
Compound Annual Growth Rate: 433.10%
WeCo is an Italian battery manufacturer that has designed one of the most advanced Battery Management Systems (BMS). WeCo’s BMS has an active and passive equalizer which provides real-time control over each cell’s battery. It comes with WeCo’s WiFi monitoring system which allows its users to monitor, detect, and control every battery pack connected. One of the fastest lithium-ion battery manufacturers in the region, WeCo is placed 18th on our list of the most innovative companies in Europe.
17. Marshmallow
Compound Annual Growth Rate: 659.80%
Founded in 2016, Marshmallow is another U.K.-based fintech firm that offers car insurance. Marshmallow’s target customer base is those who have moved to the U.K. Customers have almost a customized insurance plan where you can pay for what you want, along with extras including breakdown, legal, and discount protections, among others. The fintech firm is making car insurance easier and cheaper through convenient payment options. Marshmallow ranks among the most innovative companies in Europe.
16. Tripledot Studios
Compound Annual Growth Rate: 794.70%
Tripledot Studios has gone a long way since its inception in 2017. Tripledot Studios has grown from three founders to a company with more than 400 employees in six international locations. The company develops flagship mobile games, and two of its famous games are Woodoku and Solitaire, both available on both iOS and Android. One of the fastest-growing game companies in the world, Tripledot Studios is ranked 16th on our list of the most innovative companies in Europe.
15. Shell PLC (LON:SHEL)
Stock Return: 14.87%
Shell PLC (LON:SHEL) has seen an evolution in the oil market over the years. Before its inception, the oil firm had operations in the trade and transport sector in the oil market. Its historic red-painted cans made the company dominant in the market, reaping high earnings during the last quarter of the 19th century. Shell PLC (LON:SHEL) was ranked in our list of the most innovative companies of all time and also makes it to our list of the most innovative companies in Europe.
14. Mercedes Benz Group AG (ETR:MBG)
Stock Return: 20.16%
Mercedes-Benz Group AG (ETR:MBG) is one of the leading automakers in the world. Since 1886, the European automotive giant has pioneered some of the top-end advancements. Mercedes-Benz Group AG’s (ETR:MBG) first car was a one-cylinder two-stroke unit, which had the first stationary gasoline engine. The German company ranks 14th on our list of the most innovative companies in Europe.
13. Glencore PLC (LON:GLEN)
Stock Return: 35.18%
Glencore PLC (LON:GLEN) went public for trading on the London and Hong Kong stock exchanges in 2011. The natural resources company has been operating since its foundation in 1974. Glencore PLC (LON:GLEN) has a diversified portfolio in the minerals and metals sector. With various acquisitions over the years, Glencore has advanced into one of the world’s leading natural resources corporations. Glencore PLC (LON:GLEN) ranks among the most innovative companies in Europe.
12. Axa SA (EPA:CS)
Stock Return: 57.02%
Founded in 1946, Axa SA (EPA:CS) has had a massive impact on the insurance industry. The company has been offering investment management and other financial services. Now, the insurance company through its new program “AXA Next” is building new services and business models beyond insurance. Ranked 12th on our list, Axa SA (EPA:CS) is one of the most innovative companies in Europe.
11. Allianz SE (ETR:ALV)
Stock Return: 95.08%
Allianz SE (ETR:ALV) is a German multinational financial services firm that operates in the insurance and asset management business. Founded in 1890, Allianz SE (ETR:ALV) has been a game changer in the insurance industry, beginning as a regional provider of casualty and transport insurance to becoming a leader in global insurance and asset management. Allianz SE (ETR:ALV) ranks among the most innovative companies in Europe.
10. EssilorLuxottica SA (EPA:EL)
Stock Return: 99.83%
EssilorLuxottica (EPA:EL) is an Italian-French eyewear company. The company’s subsidiary Essilor International is a global ophthalmic optics company that designs and manufactures eyesight lenses. Essilor International’s history goes back to 1849. In 1959, Bernard Maitenaz, one of the founding members of Essilor, created the world’s first varifocal lens, which revolutionized the eyewear industry. EssilorLuxottica SA (EPA:EL) ranks 10th on our list of the most innovative companies in Europe.
9. Compass Group plc (LON:CPG)
Stock Return: 107.08%
Compass Group plc (LON:CPG) is a leading food and support services provider. The company serves various businesses including hospitals, factories, schools, offices, and department stores. Compass Group plc’s (LON:CPG) inspired strategy of sectorisation and branding is a major reason for its huge success. Innovating food and support services since 1941, Compass Group plc (LON:CPG) makes it to our list of the most innovative companies in Europe.
8. Adidas AG (ETR:ADS)
Stock Return: 108.96%
Starting its journey in 1949, Adidas AG (ETR:ADS) has become a global leader in the athletic apparel and footwear market. In the 1954 World Cup final, the German football team wore Adidas AG’s (ETR:ADS) boots, which helped the company get global recognition. Since then, Adidas AG (ETR:ADS) has been a leader in its segment and ranks ninth on our list of the most innovative companies in Europe.
7. Experian plc (LON:EXPN)
Stock Return: 133.70%
Experian plc (LON:EXPN) was formed in 1996 after the U.K. and U.S. businesses combined under GUS. The company had a huge role to play in the transformation of consumer credit reporting through its offerings. Ranked seventh on our list, Experian plc (LON:EXPN) is one of the most innovative companies in Europe.
6. ABB Ltd (SWX:ABBN)
Stock Return: 178.56%
Founded in 1988, ABB Ltd (SWX:ABBN) introduced a family of electric propulsion systems known as Azipod in 1990. During the same period, the company also launched a delta robot for the picking and packing industry. Serving the Robotics and Electrification industry, ABB Ltd (SWX:ABBN) ranks among the most innovative companies in Europe.
Where ABB Ltd (SWX:ABBN) has been instrumental in the robotics and machine automation industry, Dassault Systemes (EPA:DSY) and Stellantis N.V. (BIT:STLAM) have had a dynamic impact on their respective industries. In addition, Alphabet Inc. (NASDAQ:GOOG) is developing its subsidiary, DeepMind, to become the next big thing in the AI space.
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Disclosure: None. 20 Most Innovative Companies in Europe is originally published on Insider Monkey.