- Innovation Paradox:
- Increased innovation investments and outputs (like patents) don’t always lead to proportional productivity and economic growth.
- Observed in the US and the EU.
- Raises concerns about the impact of sustainable policies and environmental regulations on productivity.
- EU vs. US Productivity:
- EU experiences a more pronounced productivity slowdown due to the innovation paradox.
- Suggests reduced innovation in manufacturing sectors in both regions.
- Adoption of advanced digital technology and research & development investment is relatively low in both the EU and the US.
- Research & Development (R&D) Sensitivity:
- R&D investments are sensitive to economic cycles.
- Low GDP growth can affect efforts in science and technology.
- Alternative Budgetary Framework:
- Challenge to develop a non-GDP-based fiscal process to support ecological transition through scientific and technological efforts.
- Techno-Optimism and Green Growth:
- Relying solely on technological progress might delay necessary actions and overlook unintended consequences.
- Green growth aims for environmental goals while maintaining living standards and economic growth.
- Requires a comprehensive approach including innovation, changes in economic/societal systems, and lifestyle shifts.
