Europe is increasingly producing significant talent and expertise in deep technology, ranging from artificial intelligence to virtual and augmented reality, robotics, and connected devices – catching the attention of the investors as well as global technology giants like Google, Facebook, and Amazon, according to ‘State of European Tech’ report published by Atomico and Slush ahead of Slush startup conference in Helsinki.

The report outlines three key trends underlying the growing influence and success of the European technology industry:

Deep tech is thriving and diversifying in Europe. 2016 was a bumper year with $88 billion spent in deep tech M&A, while more US and Asian tech giants are acquiring European deep tech companies and tapping into a growing deep tech talent pool.

New tech hubs are emerging across Europe beyond the traditional order of London, Berlin, and Stockholm. The report suggests Munich, Zurich, Lisbon, Madrid, and Copenhagen will be ones to watch over the coming years. Paris is starting to seriously challenge London and Berlin in a number of VC-financed deals and deal volume.

Traditional industries are awakening to tech. Two-thirds of Europe’s largest corporates by market cap have made a direct investment in tech companies while a third has acquired a tech company since the beginning of 2015.

“This year, one conclusion has shone through – that deep tech is thriving across our continent and as a result, the future is going to be invented here in Europe,” Teddie Wardi, Principal at Atomico, said in a statement.

Between 2011 and 2016, $137 million has been invested in deep tech companies in Finland.

“Finland continues to go from strength to strength and is more than just a hub for gaming. Finland possesses a healthy number of professional developers and more and more people are choosing tech as a career option for them after their studies so the pipeline is strong,” Wardi said.

“The fact that Magic Leap is going to develop their augmented reality and virtual reality expertise in Helsinki will act as an important spur for more deep tech companies to be founded and spun out in Finland,” he said.

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