The Importance of Innovation Ecosystems

Innovation is essential for long-term economic growth, but it requires a supportive ecosystem to thrive. Simply providing financial subsidies for research and development isn't enough; companies need capable human capital and an environment that nurtures creativity. The disparity between East and West Germany illustrates this need, as the gap in productivity and innovation persists due to insufficient support for the ecosystem in East Germany. A healthy innovation ecosystem should integrate educational institutions, skilled labor, and a culture that fosters entrepreneurship to drive sustainable economic development.