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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
Innovation's True Measure is Productivity
The perceived innovation gap in Europe compared to the U.S. often overlooks the complex dynamics of productivity and economic growth. While discussions focus on technology trends, the critical factor is how these innovations enhance productivity. Increased productivity directly correlates with GDP growth, emphasizing that true economic impact stems from the effective use of technology rather than its novelty. Understanding the vast gap between capital expenditures and revenue, particularly in the AI sector, requires recognizing the broader economic implications of productivity improvements driven by technological advancements.
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