[Rizla]

I think what you meant was not market size, but available market-share. It comes back to dominance of the market by a single product. Obviously Germany and France, etc, are huge markets, and yet smaller companies can thrive there. The difference between Europe and the US is that a single company is not yet dominant there, thus allowing smaller companies to introduce innovative products.

The UK is an exception where amazon is utterly dominant and their is no available market-share. France has Cybook, Germany has Tolino, the UK has nada. Though there may be other forces at work in the UK that stifle innovation.

The most innovative products appear to be coming out of Russia and the Far East, where Amazon has barely penetrated.