Last week the New York Times ran an article, “Building the Next Facebook a Tough Task in Europe“, by Eric Pfanner, discussing the lack of major high tech innovation in Europe. Eric Pfanner discusses the importance of such investment, and then speculates on the reason for the lack of such innovation. The ultimate conclusion is that there is a lack of venture capital in Europe for various cultural and historical reasons. This explanation of course makes no sense. Capital is geographically mobile and if European tech start ups were a profitable investment that Europeans were afraid to bankroll, American investors would be on the next plane.