The most sucessful VC companies are the most innovative. They produce a product or service more competitively than the alternative at a cheaper cost. Companie

The most sucessful VC companies are the most innovative. They produce a product or service more competitively than the alternative at a cheaper cost. Companies which consume these products or services save money. As a result they can offer their products/services more competitively, which results in hiring (or at the very least fewer layoffs). The bottom line is that innovation acts as a stimulus in times of recession. During times of expansion (when the economy is at full employment) it simply results in increased standards of living. I agree with barbie17 that the unemployment rate is more or less constant in the long term.