Yeah, they need to tweak Global Trade to spread slower, and Manufactories, Enlightenment and Industrial Revolution to spread slower and usually appear in Europe.
Manufactories and Industrialization should appear and spread in most industrialized areas on the world, which may be not Europe in particular campaign.
Enlightenment is somewhat more complex, it's partly a social change that cannot be done just by spamming universities everywhere, however in game 2 of 3 possible spawn conditions are already biased towards Europe.
It indeed makes sense to slow down spread of these four institutions, both neighbor-based and "natural growth". However, there should be more ways to speed it up then just development, e.g. Global Trade could progress faster in countries that have more merchants.
Requirements for natural growth could be made more strict. For example, now Farm Estate manufacory cannot spawn Manufactories institution but still allows to grow it, which results in more or less uniform speed of growth all over the world. If it e.g. required 20 dev, 15 dev neighbors, and non-farm manufactory (like spawning condition) to have any natural growth, in most parts of the world it would spread from neighbor to neighbor just like earlier institutions. However, if province satisfies these conditions it should be rewarded with high speed of growth, perhaps removing "wrong continent" penalty (e.g. if institution was spawned outside of Europe but Europe is sufficiently advanced, it should not slow down spread of institution there).
Spread of institution can have minimum technology requirements
