Innovation 101 NEW
Growth Theories in Economies
Factors of Production and Limits of Growth
Growth is ultimately limited because there are just so many people you can hire or factories you can build.
Capital: FDI, Corporate Shares, Gilts/Govt Guarantees
Means of Production
Capital lets businesses invest in tangible, mundane things like factories and employ workers.
Labor - Human Capital, Education
Paul Romer (UCB, Stern School of Business of NYU, Nobel prize in Economics 2018) showed there's another way to grow - innovation and you can make innovation happen. Innovation is just like a factory you can build. All you have to do is, like, invest in science education, promote market competition and, most importantly, pass strong patent laws so that ideas can be protected and monetized. Just do these things, pass those laws, and innovation will follow.
- His PhD was on constructing mathematical representations of economies in which technological change is the result of the intentional actions of people, such as research and development.
- He is the founder of the economics endogenous growth theory.
Rule of Law, Equality, Fairness, Lack of Racism, Gender Bias - Boost
Lisa Cook theorized that violence against black people and the unequal enforcement of law - and whether those things stunted innovation. Eventually she got published after 10 years of peer review.