>Or are you saying it's also institutional inertia and it's just a matter of time for them to end up the same?

Exactly. Britain has lost its industry long ago, while Germany did not. The situation right now is different, but I do not believe the trajectory is.

Especially when it comes to software, even the largest corporations in Germany just outsource to India. And justifying hiring people for 2x/3x//4x the cost at "home" becomes increasingly hard.