What is needed is capital, world leading expertise (yes, top of the field - the people who can command the famous $100M sign on bonuses we hear about), and more risk appetite. If you were, say, an investor ready to fund and grow companies with ready captial, I think your options would be more open.
There exist quite a lot of people in European countries who are risk-affine, but these are not necessarily good at handling the insane amount of red tape.
Believe me: in Germany, there exist quite a lot of people who would (assuming they could, and this criminal act will never be solved) immediately love to kill the politicians who made these red tape laws, and the bureacrats that enforce them.
It's sad, because Europe really has a lot going for it. It also doesn't HAVE to go the US/China route of course, but if it does it will need to make some very serious changes that go beyond just preaching about doing it from the political pulpit
Most baffling to me are the 25 y.o. graduates of engineering universities who can't write five lines of code in a programming language of their choice. All right you want to be a developer, where the hell have you been all these years? You can get to the senior level by that age, let alone learn one programming language.
And I agree with your second point too - I don't really know what's going on with education, or more generally, the culture surrounding it these days (old man yells at cloud I know), I'd like to see that improved, because in a lot of Europe this is being (effectively) paid for by the public, and if it's producing people with no hope then what's the point?