Technology Matters Q2: Professor Peter Howells:  Just suppose that we take your measurements at face value, what are we told about the  contribution of innovation to economic growth?  Dr Chris Farrell:  I started calculating the innovation capacity of the whole economy and tried to fit it into a  Growth Accounting type of equation – by substituting the residual or making it a factor in  multi-factor productivity. It took me many frustrating months to realize that the innovation  component is so large that it must be close to the only factor!  Technology Matters Chicago  Technology Matters Chicago