Many European leaders look with envy on the U.S. tech sector. But manufacturing plays a far greater role in the EU economy than in the United States. On average, manufacturing accounts for 16.4 percent of the EU’s gross value added compared to just 11 percent in the United States. The EU’s manufacturing sector employs 30 million people versus just 13 million in the United States. While U.S. tech is highly profitable, the industry employs just 6.5 million people.

The stagnant EU economy has fueled calls for Europe to prioritize high-tech sectors over its “old” industrial base. But while new technologies matter, this is a false dichotomy.