There is no such thing as "American innovation", it is all Apple, and to a lesser extent Google.
At this point, you can start drawing a trend. European successes are more the exception than the rule, which is kinda irrelevant anyway as 95% of European successes will end up being merged into a US behemoth...
VC as a model requires huge markets and huge amounts of financing. It doesn't require home grown innovation.
Europe has capital. You'll find a lot in Silicon Valley.