"Good for business" and "bad for business" look VERY different depending on your current scale and cash position.
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2/ A central fact of free-market capitalism is that capital does not care HOW it gains a return, and has no natural "time horizon"
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3/ Like evolution, capital-seeking-returns is a blind and means-agnostic process. The sole justification for what works is that it works
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Can you elaborate on prerequisites of an innovation-enabling environment/culture/economy/regulature?
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There aren't that many cases to learn from, but government funded R&D hubs were the catalyst last time around
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