Peer Review
Probing Questions
You infer economists still have much to learn on productivity and growth,  Macro-manipulation of Capital and Labor has persistently failed to describe the economy, while innovation data delivers a mechanism that spills upward to a complete explanation. Your measure of innovation. Isn't it just price divided by cost?  No. That would not capture the success of improved products and processes. Measuring the way they increase 'quality' is essential, but found nowhere in Economics. The answer requires quantity to be an independent variable, a capability that was abandoned by Economics almost a century ago, page 76. I have restored it to pages 11 to 13. Price plotted against quantity is a demand curve from which 'quality' can easily be enumerated. Why is it just performance (or 'quality') divided by unit cost then?  Because that captures the outcomes from all innovation practice, including mine, is consistent with the best knowledge available from product success studies, and explains the economics of the innovation funnel precisely. Although our profession is one of the least known, page 44, economists should recognize we actually inhabit the world they are trying to understand. What we know cannot be discerned from campuses. But you don't consider High-tech,  My data range is 1951-2001. There is plenty of high-tech. Supercomputing is considered on pages 59 & 72. Much has happened since then. The Smartphone is an entity at the forefront of today's digital economy. It requires these new methods, pages 32 to 33. National Accounting cannot be changed,  Its division by industry and commodity is excellent for tabulation but it's not how the economy works. The creation of new commodities and the destruction of incumbent ones occurs in markets. Innovation drives that. And National Accounting is incomplete without its measure. This was recognized in 2007 but overlooked since. Adjusting prices for changes in quality?  You are referring to hedonic methodology. Its limitations were already apparent in 1971 but have never been adequately addressed. Zvi Griliches used wheelbase as an auto attribute. No-one goes to a dealer to buy a length. Such proxies may or may not work. A contemporary deviation for the Smartphone highlights this deficiency. Traditional techniques aren't capable in the digital economy, adding to the litany of Economics' shortcomings recently listed in