Das Ende des Fortschritts

Technological progress is not inevitable and requires constant institutional adaptation to maintain economic dynamism. Economist and historian Professor Carl Frey, author of *How Progress Ends*, argues that while China has achieved significant growth by perfecting production processes and scaling existing technologies, it lacks the "zero-to-one" breakthrough innovation characteristic of decentralized systems. Conversely, the United States sustains its leadership through a large, homogeneous market and vigorous competition, though it faces threats from corporate consolidation. Europe lags behind both superpowers, hindered by market fragmentation, rigid labor laws, and high compliance costs that stifle startups. To reverse this decline, Europe must complete its single market, reduce barriers to service trade, and foster a more meritocratic environment for talent. Ultimately, sustainable innovation depends on creating incentives that reward risk-taking and allow for the organic emergence of new industries rather than relying solely on state-directed industrial policy.