Innovation drives productivity gains and economic growth from "summary" of Growth Theory by Robert M. Solow
The fundamental idea that underpins the relationship between innovation and economic growth is the concept of productivity gains. Innovation, in its various forms, plays a crucial role in driving productivity gains in an economy. When new technologies, processes, or ideas are introduced, they have the potential to increase the efficiency and output of existing resources. This increase in productivity leads to economic growth as more goods and services can be produced using the same amount of resources. Innovation is the key driver of productivity gains because it allows for the creation of new products, services, and ways of doing things that were previously not possible. This continuous cycle of innovation and productivity gains is what propels an economy forward and allows it to grow over time. Without innovation, productivity gains would stagnate, and economic grow...
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