Karp's Theorem states that if a problem can be solved in polynomial time by a non-deterministic Turing machine, then there is a polynomial-time many-one reduction from any NP problem to this problem. This theorem is pivotal in the study of computational complexity because it helps classify NP-complete problems, showing that if one NP-complete problem has a polynomial-time solution, then all problems in NP can be solved in polynomial time. Karp's work also establishes the importance of reductions, connecting the complexities of various decision problems.
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