Theseus, a German based project that is aiming to develop “the world’s most advanced multimedia search engine for the next-generation Internet.” will received a cash injection of $165 million from the German Government, under approval by the EU.
According to an AP report, the German Government will initially fund Siemens AG, SAP AG, Deutsche Thomson oHG and EMPOLIS GmbH to kick start the project with later funding to be given to small and medium businesses to build on the initial research.
Theseus was inspired by a perceived need by European countries to challenge American hegemony on the internet by Google.
Like just about everything in the history of Europe, France and Germany disagree. France is said to be discussing a similar subsidy plan with the European Commission that is aiming to deliver $112 million to a French Google competitor Quaero, a project previously supported by the Germans, which is led by French video-technology company Thomson.
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damn…that is one hell of an injection. puts barry bonds to shame.
i have a hunch it won’t turn out so well though. since it’s a “project” rather than a startup, does that mean there’s no equity? who would get the profits, assuming there are any?
p.s. my condolences for you guys having to read the ooma comments, i feel your pain!
I don’t think that any of these well funded projects will succeed, they’re just wasting their money. In the end a small team will make a killing project, just like the Google guys did.
Silly! Google is way ahead in search technology or atleast cash in hand to buy out a company that does something cutting edge in this field. Already a number of US firms are working on it and it makes no point if the Europeans did it just because they feared Google being American and is monoplizing Internet Search.
That is just stupid…
Google is human, misses earnings…
too much money, too many chiefs, and too much bureaucracy…..
As a side note, the century-old statement that France and Germany always disagree on everything has been wrong for the better part of at least 20 years.
In fact, on most big policy issues and their view of the world, both the heads of states and public opinions have shown very, very common core values.
If you want to talk about a real rift and differing values within the EU, try : new eastern countries vs France+Germany, or the UK vs well, everybody else
It’s true however, that both France and Germany have that (probably obsolete) culture of top-down, government-sponsored industrial projects involving the big national champions, and unfortunately very few startups.
I’m left wondering about the actual value of the technology research being undertaken here. Is this just a challenge for the challenge’s sake. I wonder if it’s just desperation to escape the perceived google dominance before it becomes too ingrained.
Renaud
They’re disagreeing over this aren’t they? 20+ years of pretending they like each other doesn’t make up for hundreds of years of prior history. Of course the EU (or the EEC and EC before it) was primarily the result of France and Germany combining together to be stronger (particularly in the face of the Warsaw pact, a economic confederation that countered the Warsaw Pact). As for Britain’s role, I’m always reminded by Sir Humphrey in Yes Minister explaining to Jim Hacker that the Russians weren’t the real enemy of the UK, France was, and 400 years of British Foreign policy has always been focused on that fact
At least R&D is taking place. Too many companies scared to fund technology innovation. A recent survey by the European Commission found that Europe’s R&D spending has been declining since 2000, standing at just 1.9 per cent of GDP – and almost half the rate devoted to research investment in China.
Being a European I think EU overall is a good thing, but this is a perfect example of the things that scares me. If the German or French government think it’s a bright idea (which it isn’t) with such a subsidy thats fine, as long as they spend their own money. But forcing other countries to subsidise their market distortions is not ok. The reason why France and Germany have problems competing (EU overall, Sweden included, have better growth then USA) is because they have too much government intervention.
EU should focus on the essentials, which is free trade (outside Europe too) and co-operation on crime, environment and other issues where the benefits of co-operation heavily outweighs the problem with giving up authority to Brussel.
/Alexander (Sweden)
Duncan,
re “20+ years of pretending they like each other doesn’t make up for hundreds of years of prior history”:
a) Germany (as it is known today) did not even exist hundreds of years ago. Usually, it is considered to have been founded 1870 (through, I give you that, a war against France). -> there is no hundred years here
b) “20+” should rather be since around 1950, no?
I dont know why you say that Germany and France always disagree. Got some facts to back that up rather than just some anecdotal evidence?
Michael, I think Duncan is referring to the 1st and 2nd world wars…
Either way, they have a heck of a lot of work to do with that money.
Well if its a choice between Google, Ze Germans and La France …. I will go for Google.
Now maybe George W. Bush is reading my e-mails as he speaks, but he isn’t pulling pages out of Google’s results pages like France and Germany do. I somehow doubt he would have any interest in modifiying the results to say put a French or German company up there …
Government intervention to fund a search engine will lead to more government control of the media … I don’t want my results run by Merkel or Sarcozy … I’m quite happy with Bush reading the occasional search thank you.
I hope EU approval doesn’t mean the EU is giving any of the funding, what France and Germany want to do with their money is none of my business but if they are taking my money, I will be angry … cheese-eating bureaucrats!
EU have lot of money. All they want is to get rid off American sick porns, America news propaganda, War with Iraq fabricators, great scam companies, McDonald fats, and great American fats.
They want something like Yandex. KGB did help them create cool search technology. I think pretty cool search engine.
For, German and France…They want to built stronger economy than U.S. You don’t actually see fat people in europe. They create the best health care search links in the world. :/
Yay, government subsidized startup. This will probably turn out like every other government run organization in the history of, well, governments — shitty.
Funny, there are always copy-cats in Europe whose main difference is that it’s either *from* Europe or that it is *for* European crowd or some such.
Bebo? Xing? Ringo? The latest one that I noticed is Netlog (see http://blog.simpy.com/blojsom/.....twork.html for some graphs), formerly known as Facebox (interestingly similar name to another social network, ha?).
Ah yes, the famous ‘government can’t do it’-argument. look into how much of the US current prosperity is due to government funding during the cold war.
What I don’t entirely understand is the fear of a US hegemony. My understanding of the google search algorithm doesn’t include a build in bias for american web sites. In fact, when using the german version of google, the results look… well pretty german. and that’s how it should be. (Let’s just hope that china doesn’t give everyone internet access because then we should better start learning chinese so we can read 80% of the web sites (and yes, I am being sarcastic here)).
Matt: Let’s just hope Duncan is not referring to the world wars - I am just giving him the benefit of the doubt that he knows those weren’t hundreds of years ago.
There is a specific difference between ‘disagreement’ and trying to bargain the best for each country. Just look at the recent discussion about EADS and Airbus - sure, it looks like disagreement but primarily it is a power struggle and everyone basically has the same goals in mind.
The point isn’t government can’t do it, its that they really shouldn’t …. a startup has bad odds of succeeding, we all know it … but it doesn’t matter to most people (just the ones involved), when the government bankrolls it … it matters to us all!
Government funded start-up will have a little less chance because of political interference …
Very interesting that the government is getting involved…that would never happen with the US government. Perhaps some politicians might sink some money into it, but you’d never see the US government backing anything. But I wish they would get their act together…
Imagine, E.U brought powerset.com and give founders citizenship, housing, etc.
With $165.8 million — they are planning to buy U.S search engine startup and give them E.U government honor & citizenship.
U.S will tell to you “No. built your search engine here! I will give you money.”
Michael (comment 12)
the 20 year reference was in relation to another commenter, but if you’re seriously arguing that French/ German relations have always been perfect since WW2, it’s you who needs to learn history, particularly that of the formulative years of the EEC and disputes over things like tarrifs, subsidies etc etc …but all up it’s a moot point: France and Germany have been traditional rivals for 500 years..and even before the formation of the modern German state in the 19th century that rivalry extended to the German Kingdoms as well, or did we forget the Napoleonic Wars and at least half a dozen other wars as well? Indeed, I double checked on Wikipedia, Franco-German enmity dates back to 1516.
But to be fair, no country likes France … most people polled don’t: Brits, Americans, Spanish, Germans … not to forget New Zealanders! Maybe they will bomb Google like they did the ‘Zealander ship?
*laughs*
The government, suing Google, props up a competitor and still claims to be impartial?
Sorry to say this, but couldnt you buy Google itself at $165 Million and just move it to Europe?
Much smarter idea
This is King Henry. I retract my earlier statement.
Seriously, can you say conflict of interest? Why is their government supporting this? Assuming this will be successful, I would still be furious if I were a EU/German tax-payer.
Reading the comments in this post, I really feel part of the Global Village.
EU VS US, Government VS Private, Globalization, innovation, History, … There should be an open debate! I am sure virtual rotten tomatoes woulf fly but at least people would talk instead of look down upon each other. Why do we need to feel superior to others? The world is complex and nobody is with us or against us …
By the way, Duncan, I am not sure Wikipedia is the best source for serious History … It’s a wiki after all, not a serious publication. You are probably American and never lived in Europe, neither did some serious talk with French or German to write such things.
If you ask French and German - I mean the real People in the streets - if they like each other, they will probably say: YES! The second World War ended up 2 generations ago, the political will was very strong to make us (I am French) friends !
However, read the British tabloids or ask French people in the street what do they think about British Food. Despite being allies in the last century, there is still a lot of hate btw the frogs and the roast beefs (rosbifs in French). As far as I am concerned, this is due to the lack of political will of both nations to make effort and learn how to live with each other. Maybe … There is also a strong divergence about how to organize society.
Business is driven by profit. Internet would have never exist without the US Army, the CERN … governments !!!
Jesse, I don’t think the EU are paying, they consented.
Who knows, it would be interesting if this is one of the few start up that works.
—
I can’t say I see much wrong with Google right now, when they start making every country follow the US constitution or the War on Terror before they offer search there, maybe I’ll care, but right now … its the best service.
I love the french. But most of my countrymen do not even if they say they do, and I would guess it’s true vice versa (in heart of hearts). Problems will always arise when it’s “EU” money used for a “German” or “French” company. Old rivalries etc.
But it’s nice to see some attempts at funding innovation before everything is owned by the US-China-India triangle. The EU can learn a lot from watching the infrastructure that supports innovation in the US, and US and EU can both learn a lot about how government supports innovation via the government by looking at China (and how NOT to do it by looking at India).
i agree with the guy who said about getting rid of American spam sites. Will EU create search engine which only available is Europe?
Governments are not efficient.
The larger companies are, often the less efficient and less innovative.
What on earth do they think they’re playing at? More insanity.
Case closed.
They would be better splitting up the cash and injecting $5m into 50 interesting european startups doing disruptive things in the space.
Could Theseus be a Google designed by committee? Will it do anything to address Frances political inferiority complex by creating a none English tool…? This is a concept born out of bureaucracy and will never be used by the politicans that sponsor tools they profer. More wasted tax euros.
Some of you asshats are fools to think all the spam sites are american and somehow a magical EU search engine will stop that (wrong on both counts). I’m not going to waste my time elaborating further since the people in question are obviously retarded.
Well there’s goes a pile of cash down the drain. If companies like Siemen’s really believed in this, then they wouldn’t have a problem funding it themselves. They’re certainly big enough.
This is a typical example of EU-thinking. Rather than creating successful companies organically, they get bureaucratically involved and try to push things from a nationalistic agenda.
It is unsurprising that a government-funded intitiative of this nature is coming out of Europe. If EU member states are so determined to challenge US hegemony over the internet, they are much better off focusing on structural reform and improving the business climate.
I agree that government involvement in this space is unnerving.
Wow!! Yesterday Google lost at least 7% and today this. Is it time to sell stock in Google? I’m thinking that the company still has a bright future.
GOOGLE NOT LIKE PUNY EURO COMPETITOR….GOOGLE CRUSH EURO COMPETITOR WITH SUPERIOR SEARCH TECH.
I wouldn’t mind a Euro competitor, it won’t come out of France or Germany with policy like this.
The UK and Ireland have the language advantage and their legislation is free market … also nations like Switzerland (not EU ), Sweden, Norway and Denmark seem pretty innovative … the ones you’ll probably not see anything out of is those reluctant to open the markets (France, Germany) aswell as Spain, Portugal, Italy and the socialist Czechs … Romania and Bulgaria have a better shot, they have done more in the 6 months they’ve been in to liberalize markets than France and Germany have done in years … they flout EU rules to push their nationalist, protectionist, marxist(?) agenda.
But the number issue is that nationality doesn’t matter much, Google is a good search engine - not because or inspite of it being American. Being European isn’t a feature … unless it can do something for Europeans that Google can’t? But it would be nice when some features from Google are rolled out to the US only/first, to have a European one which would focus on us first.
Wow, what an awesome domain name! I love Greek/Roman domain names. Glad to see they put out some money and get a good, relevant domain name for their company instead of making up dumb and stupid names like ooma, ujogo, kijiji, zattoo…just to darn many to list here. Bravo Theseus!
Maybe the EU should have named it Penisius…to compensate for their small “member” complex.
I really want someone to slap google in their place…and I’d rather see euros do it then some guys that copy code in china. But I have a problem with the EU suing companies such as google and ms and funding/promoting homegrown competitors. Not to mention airbus etc.
Alexi, the difference between Airbus and Boeing is that Europe is open about government intervention and subsidies.
Bob, much of Boeing’s success has come through technology funded by contracts with the US Department of Defense.
“Penisius” - lol
Kathryn, I know but there seems to be an attitude around here that America doesn’t get involved in that sort of stuff like Europe does …
Airbus also gets defense money along with funding subsidies for commercial aircraft. I don’t think anyone would dispute the military cash injections but the commercial side is what is disputed.
Anyway I don’t want to get too off topic. We’ll just have to wait and see what happens with this thing. I would hope washington gets their head out of their behind and funds the same kind of projects rather than all the defense, bloated government, and foreign aid. Well…..I can dream can’t I?
I worked 7 years for Siemens in Munich and the US. Because of their involvement it WILL NOT SUCCEED!!!
To much bureaucracy and Professors will kill the project. You need small Startup teams coming up with the ultimate idea on how to built a semantic search and as we have seen in the past, even the No 1 search engine will have problems and a newcomer will take over the field.
We will see what happens;-)
I doubt this will succeed any better than the floundering Quaero project. I’m not saying that government infusions of money are not useful for building infrastructure. They can be very useful when it comes to research and building, but they are almost never good for building companies.
A couple of the commenters above mentioned Boeing as an American example of a private company that is supported by a large government subsidy. And it is, but Boeing is not a good example of a competitive company that provides a good customer service. Boeing is one of the most poorly run companies in the US. It is supported by the US government, not out of envy and jealousy over foreign companies success. It’s supported largely for national security. The US has to ensure that the technological capability to build air planes remains on US soil.
Google, and most other companies in the US are not supported by the government. Even in industries where US companies are falling behind, there is no call to support or prop up those industries unless there is a military reason to keep the capability on US soil.
The reason is that government(no matter which country) does a poor job of running a business.
google search has incorporated to the human culture…
Theseus is NOT a search engine or Google Competetior. Please check your sources before you post bullcrap.
Theseus is a research project for semantic web, which is supported by the government.
Typical american news writing.