Mature economies have witnessed steadily declining productivity growth since the late ‘90s. Greater efficiencies in major emerging economies have been an offsetting factor, but they, too, are now seeing productivity growth decelerate. The challenge we’re now faced with is not only putting capital to work, but accelerating the flow of capital to innovative, sustainable businesses that in aggregate will help reverse this alarming productivity trend. In pursuit of this goal, one field worth exploring is biomimicry, which is the study and imitation of nature’s best ideas to help solve human challenges. . Simply stated, the economy is not growing quickly enough to generate acceptable revenue growth so management teams must employ “efficiency innovations” to expand margins. The field of biomimicry is not a silver bullet, but it is an area that offers promise for the development of sustainable technology.
Michael Shavel, CFA is a Research & Business Analyst at Cornerstone Capital Inc. and a former Research Analyst on AllianceBernstein’s Global Growth & Thematic team.
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