I know people who started start-ups and spun out side projects here in Europe (both the UK and the continent).
One thing I noticed was that when it came time to raise money almost of all of them ended up needing American investment. We don't have anywhere near as much VC capital here in Europe and the banks are incredibly conservative.
Plus depending on the country the taxes/fees for being self-employed or starting your own business can be incredibly punitive.
> One interesting thing is that Europeans benefit from American innovation.
While we do benefit from American innovation I'd also argue it's a sort of 'digital colonialism' for want of a better term - we don't grow our own huge firms like Yandex, Baidu etc. and instead just hand our cash over to American ones (Google, Facebook etc.)