Innovation Was the Single Greatest Contributor to American Economic Growth in the 20th Century

2022.12 ETree Chart of the Month 1

In the 20^th century innovation was the single greatest contributor to U.S. GDP growth.
At Evolutionary Tree, we believe innovation will play an even greater role in driving economic growth during the 21^st century.
In the short term, macroeconomic headwinds (i.e., inflation, Fed rate hikes, recession) have caused some investors to take their eye off the most important value/wealth creator — innovation — and many quality innovators have been “thrown out with the bathwater.”
Long-term investors such as us believe innovation remains a powerful force in the economy. It is important in every industry and not going away. In our view, leading innovators remain well positioned to take market share from the non-innovators.
While most investors seem hyper-focused on the near-term macro environment, we believe investors will eventually re-focus on fundamentals (i.e., businesses creating innovative new products and services and sustaining growth). Evolutionary Tree remains focused on the fundamentals, which continue to be healthy for leading innovators.

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