Answers to Probing Questions
Q&A Innovation in Economics - Missing Pieces
You infer economists understand little about the causes of growth,  I am quoting 'The Economist' (link in final question, below). But they missed innovation. When enumerated - using the methodology I present - everything falls into place. Your measure. Isn't it just price divided by cost?  Not just price and unit cost. You are forgetting competition. That's why quantity is there too. And 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 growth since. Why is it just performance 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. Our profession is one of the least known about, page 44. Lack of access to what we know has held academia back (and now provides unique opportunity for early adapters to forge ahead). 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. 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' issues aired in