Those ideas have to come from educated, motivated people. Countries like France are losing some of their best and brightest people as they head to America, England and Canada for a better lifestyle. Yes, taxes matter. In a fast-paced New Economy, great ideas leave with those great minds. Money will gravitate to the areas where it is treated best.
People do the same.
Much of the success of England today is due to the dismantling and deregulation started with Margaret Thatcher's policies, carried on with John Major and now embraced even by Tony Blair and the Labor Party. In today's plethora of choice, the customer will get what he or she wants, one way or another. If your company doesn't offer it, customers will grab their mice and click away through search engines till they find what they want. Location is not as big a variable as it was before . As broadband services open more worldwide delivery of content, video becomes more plausible and Old World boundaries decrease.