WFII Senior Global Equity Strategist Scott Wren offers insights on how businesses seek innovation and drive productivity to foster growth which may provide opportunities for investors.
Fifteen years ago, this building was part of an old industrial complex, long abandoned and fallen into disrepair. Since then, it's become a business innovation community, generating over 4,000 tech-related jobs and attracting half a billion dollars in investment.
Here, state-of-the-art research labs and IT facilities are providing business development resources for new startup companies. Many of these startups are actually developing new technologies that bring efficiencies to old-line industries. This kind of innovative environment can be found all over the country and is just one of the many factors changing today's labor and manufacturing markets.
This is big news, because more than 28 million small businesses in the US employ more than half of the US workforce and are responsible for nearly 50% of the US gross domestic product. And today, small businesses create two out of every three new jobs.
And while larger, highly productive firms will still have a significant impact on the economy, many industrial cities around the country are rethinking and retooling for the future. Just like this facility. What does all this mean for investors?
Well, we expect technology-driven change to accelerate and the winners will be the companies and workers best prepared to adapt to this brave new world. So we think investors looking for growth opportunities in coming months should focus on industries in sectors most likely to incorporate innovation into their products and services, like Technology and Healthcare.
Want to know more about these trends and the investment opportunities they bring with them? Download our special Wells Fargo Investment Institute report "The Divided Recovery: How the Innovative and Efficient Adapt".
Compared to the rest of the developed world, the U.S. has enjoyed a vibrant post-recession recovery and job market, but pain points persist.
Wells Fargo Investment Institute's "The Divided Recovery" report examines these tensions and associated risks as well as the bright spots they see along the path forward for businesses and investors.
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