European Tech Hubs: Paris vs Berlin vs London

Europe’s three largest tech ecosystems compete for talent, capital, and startups. Understanding how Paris compares to Berlin and London is essential for investors allocating capital across the continent.

Comparison Matrix

MetricParisLondonBerlin
VC Funding (2024)$13.2B$14.6B$6.8B
Unicorns25+50+18
R&D Tax Credit30% (CIR)20–27%Limited
FDI Rank#1 Europe#2 Europe#3 Europe
Startup CampusStation F (34K m²)FragmentedFactory Berlin
AI ChampionMistral ($6B)DeepMind (Google)Aleph Alpha
Cost of LivingHighVery HighModerate

Paris’s Structural Advantages

Tax incentives: The 30% CIR is Europe’s most generous. Centralization: France’s centralized government enables coordinated policy (France 2030) impossible in federal Germany. Talent: French grandes écoles (Polytechnique, ENS, CentraleSupélec) produce world-class STEM graduates. Quality of life: Paris attracts talent with healthcare, culture, and the French Tech Visa.