Introduction MELF Equation Macro Metrics Micro Metrics Beyond GDP How To Access Acknowledgements About Us
With 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?  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 innovation since. Farrell has developed the most original and unusual academic constructs,  This comment continues. 'He uses data widely available in everyday life but heretofore not collected academically in a coherent way. He uses S-curves to track technological change at the device level then proceeds with aggregation until the connections to GDP become decipherable. Future work on quantifying the impact of technology at different levels will be well rewarded by using the Farrell approach'. 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. One candidiate is posited in Part VI.  R&D treated as capital cannot provide such affirmations 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 'oxygen' from Part III onward, and is expressed by segment 6 (of 7), on pages 66 & 67.  Why now?  Industry operates on tacit knowledge rarely written down and usually proprietary. Enlightened leadership at the Bureau of Economic Analysis has been drawing it out - confidentially since 2014; now disclosed in Innovation in Economics: Missing Pieces.  A complete list of reactions and responses will be made available to those interested.