Spain | Constraints to growth: the role of entrepreneurs is key

Summary

Speaking at South Summit 2021, held in Madrid from October 5 to 7, Jorge Sicilia argued that innovation and entrepreneurship are key to healthy economic growth and enhanced well-being.

Key points

• Key points:
• Growth springs from investment and innovation: there can be no sustained growth without sustained technological progress.
• Innovation is forthcoming when entrepreneurs invest in response to incentives, which in turn depend on economic policies and institutions. Both are needed to expand the frontiers of production.
• Creative destruction: growth creates tension between new entrants and incumbents and innovation drives out obsolete tech. Competition is vital, especially when the sector approaches the innovation frontier.
• It would be a mistake to think the challenges of inequality or the fight against climate change can be addressed without innovation.

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