Novo Nordisk, the Danish pharmaceutical giant, has become one of modern healthcare’s most profitable firms, riding a wave of global demand for weight-loss and diabetes drugs. The runaway success of Ozempic has turned it into a juggernaut; Ozempic alone generated nearly $17 billion in 2024. While millions around the world are getting leaner, the same can’t be said for Novo Nordisk stockholders’ bank accounts. Though its market cap has fallen from its $570 billion peak, it still stands at $385 billion, making it Europe’s most valuable company.

Novo Nordisk’s meteoric rise is both a boon and a risk for Denmark. For a time, its market cap even surpassed Denmark’s GDP. In 2023, the company accounted for most of the country’s growth, contributed 15% of its tax intake, and created 20% of new jobs. Some fear a “Nokia effect”—a downturn due to competition could hit Denmark much like Nokia’s collapse did Finland. “The more successful and impactful Novo becomes, the more the risk will increase for society, because you have a new normality around something that is abnormal and is creating expectations,” warns Martin Jes Iversen, a corporate strategy and innovation expert from the Copenhagen Business School.

The Mittelstand (Middle sized-Companies)

While global giants get all the attention, Europe’s strength lies in mid-sized companies, with their specialised niches. Nowhere is this more evident than in Germany’s Mittelstand, the cornerstone of industrial and technological excellence. Trumpf leads in industrial laser cutting, Herrenknecht dominates tunnel boring, and Zeiss sets the standard in optics and nanotechnology. Meanwhile, Kärcher is the go-to name for high-pressure cleaning systems. These firms may not make headlines, but they quietly define their industries with German precision, efficiency, and relentless innovation.

Most of the previously mentioned companies excel in tangible products—machines, aircraft, and pharmaceuticals. While Europe has produced successful software firms like SAP (Germany) in enterprise solutions and Spotify (Sweden), the world’s top audio streaming service, it remains unlikely to challenge US dominance in big consumer tech.

However, one area where Europe has carved out a strong position is video game development. CD Projekt Red (Poland) put Eastern European gaming on the map with The Witcher series. Ubisoft (France) continues to lead with Assassin’s Creed and Far Cry, while Larian Studios (Belgium) achieved global success with Baldur’s Gate 3. Other studios like Warhorse Studios (Czech Republic, makers of Kingdom Come: Deliverance series) prove that Europe is no longer just a consumer of digital entertainment—it is helping define it.

Play To Win

While there’s no point in downplaying Europe’s weaknesses, the reality is more complex. Software is an immensely profitable industry, but the global economy does not revolve around code alone. Manufacturing, advanced engineering, and industrial expertise still matter. As Donald Trump’s tariff-driven push to lure European manufacturers to the US demonstrates, Europe remains a vital player in high-end production and industrial technology.

Instead of chasing the US in a sector where the train may have already left the station, Europe would be wiser to double down on its existing strengths. That means fostering the natural competitiveness created by Europe’s decentralised nature , and—crucially—not sabotaging its own world-class industrial base (with, among other things, artificially heightened energy prices caused by CO2 emission allowances and uncompetitive tax rates). A continent that builds the world’s most advanced aircraft, turbines, and semiconductor tools should act like it—and play to win.

Statement

Europe is often dismissed as an overregulated, innovation-stifling continent, lagging behind the US and China in tech. Yet, in key industries, European firms don’t just compete—they lead.Instead of chasing US dominance in software, Europe should double down on its strengths—advanced engineering, industrial leadership, and cutting-edge manufacturing. If it plays its cards right, Europe has the tools to remain an economic powerhouse well into the 21st century.