Technology Matters
Q3: Professor Peter Howells:
That sounds as though innovation explains the whole of economic growth. That's
going to be a serious problem for economists who will point to the fact that growth
has self-evidently required additional resources.
Dr Chris Farrell:
Developmental knowledge, the D of R&D, is the primary input. And I have
established a four-link numeric chain between it and economic growth. Other
resources, such as capital and labor, are secondary. That insight came from looking at
an extensive five-decade database that tracks the annual economic fate of about a
hundred and fifty products in firms. Although DINTEC™ contains a small sample of
the economy, it possesses enough detail to discover, validate and calibrate the key
equation, later dubbed MELF – the Macroscopic Economic Lens Formula and named
after the new device I used ‘A Macroscope’.
Technology Matters
Chicago
Technology Matters
Chicago