On top of that you can add the ~40 years of tech industry brain drain from compensating their employees so poorly versus what US companies were/are willing to do.

The only thing that can build out a competitive EU tech industry is US venture capital, which will put down the enormous, very willing risk capital required to dramatically alter the landscape permanently. As US venture capital floods that market and spikes salaries, there will be no going back (most likely). That transformation process may be underway at present judging from US VC interest in Europe. The only other venture capital on the planet comparable in capability and scale is in China. If it's just left to EU VC, it'll take forever.