Scientists who spent years learning how to make replicas of the stone instruments used by Neanderthals and Homo sapiens have found the Neanderthal tools were just as efficient as anything made by Stone Age man.
And researchers believe that the demise of the Neanderthals – which has often been explained by the supposed inferiority of their technology – could not have come about solely as a result of their stone tools being worse than those of their rivals.
You have to gloss over the fact that early modern humans were also "stone age" and would remain so for another 30 to 70 thousand years, depending on where you were. This is one of the conundrums vexing researchers in Southwest Asia (the Near East). You have both Neandertals and early modern humans (barely) there and they are both using the same kinds of tools—the EXACT same kinds of tools. Modern humans didn't show up until possibly as early as 160 kya in North Africa (depending on how modern the Herto remains really are) and around 110 kya in SW Asia. The earliest modern tool assemblage, the Aurignacian, doesn't show up until around 43 kya in eastern Europe. SW Asian variants show up around the same time. These facts suggest to many that the relationship between the Neandertals and the early moderns was, shall we say, complex.