innovation

Economists have been fascinated by the question of the origins of prosperity since the very beginning of their discipline. Today, we know much more about it than Adam Smith did 250 years ago when he wrote The Wealth of Nations. In the mid-20th century, economist Robert Solow developed a model explaining economic growth through capital accumulation and population growth.

I recently attended a discussion on Europe’s competitiveness. There was unanimous agreement that we are lagging behind in all applied technologies—perhaps with the sole exception of the pharmaceutical industry. The reflexive response from the participants was: “We’ve created a fund for that.” Too few startups? Create a startup fund.Weak AI performance? An AI innovation fund!

Advocates of state intervention and regulation believe that these mechanisms can improve the environment by suppressing the free market. Over time, they have become an increasing challenge for defenders of capitalism and the free market economy. The solution to global warming, air pollution, and so on is therefore said to be less market and more state planning.

EU antitrust regulations hinder innovation, which is the most effective way of fighting monopolies and strengthening the EU as a global power. That is ironic since the nominal purpose of those antitrust rules is to fight monopolies, not to empower them. The European Union needs to pivot its approach to businesses to be competitive globally, maybe even to fill the growing void left by the U.S.

I often hear the phrases \'real price\' or \'justified price\', for example, in the question of ambulances or hospitals. They make my economic hair stand on end. It reminds me of how deeply embedded healthcare is in the price thinking of planned economics. Before 1989 in Slovakia, the whole economy was run on the principle of price. A manager in a company calculated the price of steel, plastic, and man-hours to produce one Škoda 120 car, for example.

Connectivity has undeniably simplified life for people worldwide. However, the remarkable mechanisms behind this connectivity often go unnoticed as we simply enjoy its fruits. When talking to friends and family most do not know how exactly the Internet works. A study conducted in the US confirms this: 80% of respondents cannot explain how we get the Internet. It comes from the Wi-Fi, doesn\'t it?

The list of transformative innovations is virtually endless. But five technologies in particular could profoundly influence our society, our economy, and our fight against climate change in the coming years and decades. Autonomous vehicles will fundamentally change the way we get around. The blockchain will revolutionize business. Rapid charging stations will help electric vehicles achieve a breakthrough.

The global covid crisis has hit cities in Germany, Europe, and all around the world. A core characteristic of cities is the crowds of people you see in their centers. Cities are the place where people meet, interact, and exchange ideas.

The final instalment of Daniel Craig’s James Bond is finally in the cinemas but I had no high hopes for it given the plot-hole riddled previous movies. No Time to Die added to the pile of rubbish that was Spectre. Liberals, though, can learn from its mistakes. Beware, spoilers galore!

The startup ecosystem and its impact on Germany´s innovative culture and its economic success are important research and policy areas. FNF and the Bundesverband Deutsche Startups e.V. collaborated to create the Migrant Founders Monitor 2021, which looks at the role of migrant founders in the German ecosystem.