<Innovation by itself cannot achieve economic growth>

<Innovation by itself cannot achieve economic growth>

1. Innovation itself is not the only reason the U.S. is known as the world's most innovative country. Strong connections to the financial system are the key. Innovation alone cannot be a driving force for economic growth. The strength of the U.S. lies in having a virtuous cycle structure that turns innovation into economic growth.

2. For example, let's say that an innovative tech company has emerged in the United States. Thanks to its cutting-edge technology and growth potential, the company attracts large amounts of money from investors. In this process, founders and employees gain great wealth thanks to the company's high valuation, even when they are not yet making a profit.

The next step is going public. When a company is listed, it is highly valued in the stock market, and the stock price continues to rise, and more investors participate. In this process, major shareholders and early investors have enormous assets, and ordinary investors also accumulate wealth. This increases consumption, and the taxes they pay also have a positive impact on the economy as a whole.

This innovation → investment → listing → wealth creation → consumption growth → the cycle leading to increased tax revenues is the driving force behind the continuous growth of the U.S. economy. This shows that the combination of innovation and finance creates a strong growth structure.

3. On the other hand, Europe and Korea are not fully equipped with this virtuous cycle. Europe has a relatively conservative investment culture, and its financing system through corporate listing is not as active as the United States. In many cases, even though Korea has innovative companies, the financial system does not support them. As a result, the link between innovation and economic growth is weakened.

In conclusion, America's strength lies not only in innovation itself, but also in its strong financial system and culture that leads to economic growth. If the virtuous cycle of innovation and finance does not work, no matter how brilliant the ideas and technologies are, their impact on the economy as a whole will be limited.