Government subsidy / R&D spending would help with all of that. Less efficiently run? Ok, that extra money gives you more resources to try to make up for it. Take some extra moonshots. Give things longer runways.
Foreign companies hiring people away? Now you can pay more to compete.
Less well publicized? Buy yourself some attention just like US companies do.
You aren't trying to build the most immediately efficient company with the subsidies, but you're trying to keep local competition in the market, and be less at the whim of external companies.
Money is not usually the problem so 'subsidy' is not it.
A good example is that European companies are not interested in dealing with little startups that are not powerful. They like to deal with 'big brands'. They are unable to make institutional decisions based on more calculated merit, and instead go the safe route.
Entrepreneurs taking smaller risks.
Entrepreneurs not understanding how the VC cycle works.
A lack of proper exits.
The list is long.
Europe has plenty of money and 'competent, regular professional managers' but a dirth of the kind of focus required to make big plays.
Foreign companies hiring people away? Now you can pay more to compete.
Less well publicized? Buy yourself some attention just like US companies do.
You aren't trying to build the most immediately efficient company with the subsidies, but you're trying to keep local competition in the market, and be less at the whim of external companies.