The Organisation for Economic Co-operation and Development has published a working paper examining factors associated with successful scaling among more than 190,000 innovative start-ups founded in the European Union and the United States between 2000 and 2025. The study distinguishes growth-oriented firms that raised at least USD 50 million from rising superstars valued above USD 1 billion. It finds that EU start-ups are less likely to reach advanced scale and generally take longer to do so, with rising superstars scaling after about eight years compared with just over seven years in the US. These differences appear structural rather than driven by sector composition. The main gaps arise in commercialising innovation, accessing late-stage finance and expanding across markets. EU firms that patent show comparable or higher invention intensity than US peers but take longer to scale after their first patent filing. Early financing paths are broadly similar, but US funding accelerates at later stages for a small group of rising superstars, while EU firms rely more heavily on internationally connected investors. Acquisitions are central to advanced scaling, with EU firms using cross-border transactions more frequently, while experienced founders and external chief financial officers are associated with faster scaling. Local spillovers vary by ecosystem and scaling event. A first growth-oriented firm is associated with increased start-up formation particularly in EU urban areas, while a first rising superstar is associated with stronger innovative start-up entry in the US. Venture capital inflows rise after scaling events in both regions, with larger estimated effects in the EU. The paper concludes that effective scale-up policies should jointly address late-stage finance, cross-border market frictions, managerial talent and ecosystem connectivity, while noting that many findings are descriptive associations rather than causal effects.
OECD2026-08-07
Organisation for Economic Co-operation and Development identifies structural drivers of the EU-US start-up scale-up gap
An OECD working paper finds that EU start-ups are less likely than US peers to reach advanced scale and generally take longer to do so. The gap is linked mainly to slower innovation commercialisation, shallower late-stage financing, cross-border expansion frictions and weaker ecosystem spillovers. It calls for coordinated policies across finance, market integration, talent and local entrepreneurial ecosystems.