Innovation in the European Union remains weak and there are relatively few signs of progress. In this policy contribution, Reinhilde Veugelers and Michele Cincera give evidence to show that compared to the US, the EU has fewer young firms among its leading innovators and the primary driver of this private R&D gap is due to the fact that young leading innovators in the EU are less R&D intensive than their US counterparts. This paper complements the Bruegel policy brief, Europe’s missing yollies.