Most EU innovation happens in universities anyway. Private companies doing innovations around consumer facing products and services is something mostly the US excels at, not Europe (exception maybe Sweden).
Products like the first iPhone didn't have any innovative technologies in them created by Apple, they were built from commercially available off the shelf parts every other phone maker had access to. But the product as a whole package was still highly innovative and profitable. This is the kind of product innovation that's gone missing in Europe.
Stuff like the MP3 codec was an European invention at the Fraunhofer Institute, but it's not a product bringing in trillions in revenue for Europe even though it was a very important invention used in many commercial applications.
Europe is focused on niche innovations with little product scalability and low financial profitability. Exceptions do exist (IKEA, ASML, Airbus, Nono Nordisk) but those are very little compared to what the US cooked.
