Europe has fallen behind America and the gap is growing (ft.com)

It's been that way. I ask myself this kind of question often, what do other major country blocks have to propel themselves into the future? There's been nothing new and big enough to gain global traction in decades where as America constantly looks for ways to expand its portfolio and often takes neighboring countries with it.

Look to major shakeups in labor and manufacturing next, China is not a good bet anymore so lots of it will move, plenty to Mexico or South America but unfortunately not much to the US still. Maybe chips because they will have massive subsidies for the security value of them but otherwise it's still too expensive.

What can Europe do? Maybe they will just have to accept the gradual slowdown as they wrestle with a lack of innovation

The EU is falling behind, but you can put 3.5T of that on UK leaving. When you account for its economy it's roughly 23T and 25T respectively.