Introduction MELF Equation Macro Metrics Micro Metrics Beyond GDP How To Access Acknowledgements About Us
With my responses - from innovation practice when translated into Economics,
Peer Reaction Innovation in Economics - Missing Pieces
Don't Paul Romer's growth theories already cover these?  His body of work completely bypasses them, page 66. Missing elements continue to baffle Economics. Completing the puzzle from neglected angles is what my book offers. Your innovation measure. Isn't it just price divided by unit cost?  If so it would be dimensionless - instead of having the actual dimension of physical quantity. That's a vital point because the independence of physical quantity was given up - to value divided by price - by Economics almost a century ago. Competitive pressure cannot be enumerated without physical quantity, pages 11 to 13. This provides a primary reason why Economics has struggled with innovation since. I don't understand how your framework extends to other sectors,  I treat the goods sector extensively for good reason. Not least; the service economy is supplied from it. That said, innovation in services can be separately enumerated when the necessary data is available. The methodology is the same - creative destruction is economically universal, but there are data deficits. This will require novel survey modifications to remedy. Details are available to Agencies, Appendix C.  Current National Accounting cannot be changed,  Nothing about current GDP needs to be changed. The new innovation metrics control future GDP. This opens a new reality in which it becomes possible to effect the future by rational planning in the present. Predictions can be checked, such as the one in Part VI. This capability leaves R&D capital at a loss - as it never can, pages 67 & 68.  Total Factor Productivity is widely used,  It must be measuring something, but what? It doesn't enumerate innovation - Figures 51 & 52 - nor technology. It's sub-optimal for both and may be transitional, like phlogiston was for oxygen in chemistry. Creative destruction delivers our oxygen from Part III onward, and as expressed by segment 6 (of 7), on pages 66 & 67.  But you don't consider high-tech,  My data range is 1951-2001. The upper limit was forced by the cessation of key data availability. Nevertheless computing figures very strongly in the eighteen SIC codes behind the innovation metrics shown in Figures A7, A8 and A9.  A complete list of reactions and responses will be made available to those interested.