Not going to take sides but Europe does have innovation. It’s just not necessarily commercial or they have been bought out. JetBrains, Minecraft, Python, Linux, HTTP/HTML, ARM, DeepMind.
The scenario in my head is what if the US decides to put the same kind of sanction/embargos they have put on Russia, Iran and China how well will the EU handle such a economic/technological warfare, can we in the EU continue to function by flipping a switch and have cyber sovereignty. Because as far as i can see the EU tech sector got colonized by US companies, and i wouldn't be surprised if the same happen with India in 10~20 years.