Innovation Succeeds where Capital and Labor Fails

A.I. and the Idea of Ideas

There is powerful synergy between an idea creating A.I. and A.I. creating ideas. It can shorten and sharpen the arrows of development that produce economic growth from new ideas viz. i  → D  → GDP But it leaves Economics stuck behind Capital-Labor growth models that do not work for A.I. That's because A.I. is always and everywhere innovation. And the 'measure of ignorance' all these models contain prevents them from measuring innovation and therefore A.I. Meanwhile innovators quietly succeed along a path of tacit knowledge as unseen as it is unexperienced on campuses. Even an august institution such as the Royal Swedish Academy struggles to understand how this could have happened, The 2025 Nobel Committee learns (too late) how much innovators already know  including key principles such as Competitive Pressure, Co-existence, Non-existence, New Existence, Origination, and Conveyance. They change the emphasis in economic growth from Capital and Labor to a novel and original mechanism of ideas that operate in markets and numerically convert i to GDP. This change in emphasis also captures, and can measure, the shortening and sharpening of innovation arrows by A.I. after 2 Deficiencies in Economic Science are Removed