alt Hacker NewsThe question is why doesn't Germany have any young upstart auto companies when the US and China do? The question being the rhetorical kind.
Replies
It's not like the US has that many either. It's not the kind of winner-takes-all network effects industry that attracts venture capital outside of the Musk reality distortion field.
Access to capital, mostly. The US has always been willing to grant hefty amounts of taxpayer money to startups, something culturally foreign to Germany (startups are risky, Germans don't want taxpayer money to be spent on risky adventures that might bring losses) and the US also has dozens of billions of dollars a month in 401k pension savings making their way into the asset markets.
And China, well, it's a dictatorship with effectively unlimited foreign currency reserves. They can do whatever they want.
Extreme over-regulation/regulatory capture. If you do anything worth doing in Germany and one of the established players doesn't like it, they find some reason to arrest you or raid your company and shut it down. As a result, people are afraid of doing things unless there's an explicit government-approved path to doing that exact thing. You can open a restaurant because there's a process for opening restaurants, but if you want to do something off the beaten path, its a bad idea.