Yes, but how is Europe monetizing those things? Just because something was invented here is irrelevant if people can't use it to pay rent or create new well paying jobs.
You DO NOT compete by paying more to the workers and having more workers than the competition. EU is doing the things you say are good, and that's why they are not competing as well with the giant US firms.
Europe making high volume low margin chips is not bad (especially in the current shortage) but is not the best position in the market you'd want to be in, especially long term with China hot on your heels. Just ask any business analyst.