Concise Responsible Journalism
Concise Responsible Journalism
General
Innovation and entrepreneurship are proven drivers of economic growth, contributing 52% of GDP growth in high-income countries. Startups create 70% of new jobs, while innovative sectors lead productivity increases by up to 35%. Over the long term, this enhances living standards through higher incomes, better healthcare, and improved education access. By 2030, innovation could add $10 trillion annually to the global economy, fostering prosperity for all socioeconomic groups.
Contrary to claims, innovation has concentrated wealth rather than raised living standards universally—top 1% income share has surged to 20%, while real wages for the bottom 50% have stagnated for 30 years. Job creation often benefits only high-skill sectors.
According to NBER data, while innovation initially drives growth, 47% of gains are captured by the top 1%, exacerbating inequality rather than broadly increasing living standards. Moreover, productivity growth from entrepreneurship has slowed, with the U.S. annual rate dropping from 2.5% in the 1990s to 0.7% post-2000, raising concerns about sustainable long-term benefits for the broader population. This suggests innovation alone may not guarantee improved living standards for most.
The World Economic Forum shows that technological innovation has lifted over 1 billion people out of poverty since 1990, while global GDP per capita increased by 50%. Entrepreneurship remains a proven driver of economic inclusion and long-term prosperity for all.