Over the last two decades the productivity gap between the United States and the European Union has increased. In the 1990s the EU was one of the leading countries in the IT (information technology...Show moreOver the last two decades the productivity gap between the United States and the European Union has increased. In the 1990s the EU was one of the leading countries in the IT (information technology) development. With huge firms like Nokia who introduced the GSM standard for mobile telecommunication the European Union was a significant player. However, since the 1990s the EU lost its important market positions to countries like the USA and China. Dominant companies like Google, Amazon, Facebook and Microsoft all have their roots in the American soil. the main question this paper wants to answer is: Why is the European Union lagging behind the United States in the development of the IT market?Show less