Innovation drives productivity and economic growth

In the information economy, innovation drives productivity and economic growth. Many companies and entrepreneurs have produced remarkable results over the last decade – particularly in the fields of ICT and telecommunications.

But innovation is a risky business and we need an overall environment that inspires, and rewards entrepreneurs.

In today’s world, cutting-edge technology is not enough for an IT start-up to succeed: companies also need a thorough knowledge of intellectual property rights, a network of like-minded experts and financial support. Venture capital provides a vital source of business expertise and funding for innovative start ups.  It is also an accepted fact that on average venture capital backed firms invest far more money and resources in R&D in support of innovation than their non venture capital counterparts.

Europe needs policies that supports entrepreneurship and innovation in order to ensure the broader benefits they generate for business, society and the economy.  We need to have an environment which continues to foster the growth of knowledge and the creation of new products and markets in order to support the process of economic recovery.  Venture capital will have an important role to play in this process.

Jonathan Zuck, President of the Association for Competitive Technology, ACT,  www.actonline.org