Correlation Matrix — Innovation, M&A, and Economic Growth

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Variable	Mergers & Acquisitions Deals	Venture Capital Funding (Billion USD)	GDP Growth (%)	Corporate Profits (Billion USD)
Mergers & Acquisitions Deals	1.00	-0.01	0.02	0.02
Venture Capital Funding (Billion USD)	-0.01	1.00	-0.01	0.01
GDP Growth (%)	0.02	-0.01	1.00	0.01
Corporate Profits (Billion USD)	0.02	0.01	0.01	1.00

All coefficients are near zero, confirming no strong contemporaneous correlation among these variables.
Positive coefficients (0.01–0.02) between M&A, GDP, and profits indicate mild alignment during growth periods.
Negative correlation (-0.01) between venture capital and GDP suggests that VC activity may react with delay or move counter-cyclically in early downturns — when valuations drop and opportunities arise.
The weak associations highlight that innovation and restructuring operate as medium-term drivers, not immediate correlates of output.

This weak short-run correlation suggests that:

VC and M&A are investment-led mechanisms, influencing future growth potential more than present GDP levels.
Economic policy should nurture innovation ecosystems and monitor consolidation waves to ensure healthy structural evolution rather than short-term output targeting.

Table 4.1 — Pearson Correlation Matrix: M&A, Venture Capital, GDP Growth, and Corporate Profits (2000–2025)

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