I think that's pretty straightforward. The US VC funding is far greater and easier to obtain than in Europe or other western nations. But it's a bit of a chicken and egg scenario. The US VC space exists partly because of the wild success of silicon valley. Once it got a significant lead it became a self re-enforcing system.
To compete, other countries need their own VC system which is a bit tricky. It requires likely a level of government funding or other incentives to get it off the ground and ramping up. Then also, you need to incentivize VCs to stay in your country.
At least my 2cents.
There’s a “EU Inc” initiative which is aiming to fix things. Fingers crossed.
https://www.eu-inc.org/
They would also need to reform other rules such as bankruptcy.
I don't think we should have so much VC anyway. Most of that is just basically gambling. Most of these startups crash and burn. Here in Europe we frown on that, just like we frown on taking out loans and credit cards.
Here in Europe the best credit rating is for the person who's never needed a loan or credit before. It proves they're smart with money. But US citizens have to roll money between credit cards monthly.
The VC in the US mainly existed because interest was so low that money was easy to throw around and see if it stuck. That's no longer the case but these companies are from the time it was.
I don't think we should try to become another America. We don't want unconstrained ratrace capitalism here. And we can never out-US the US (even though China does manage to do that). We should just make alternatives in our own way. Solid with good foundations, play the game by our rules not someone else's.