For example free education improves a software company's hiring prospects as there are lots of employee candidates available with good education. In some countries social mobility is a real thing. As a practical counter example, Sweden has massive taxation and something like most billionaires per capita and a very vibrant software and startup scene.
One could actually do some kind of survey what happens to European software companies. Take for example this one started by three Danish guys: https://en.wikipedia.org/wiki/Borland
