How Economic Performance in Firms leads to Economic Growth of a Nation |
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| 1 - 2. Development spending, D, in entrepreneurial or established firms innovatively increases the market performance, p, of the offering from them and their supply chain and, or, reduces its unit cost of delivery, c. 2. Firms with the highest ratio prosper in the face of competition (creative construction) while the weakest risk absorption or disappearance (creative destruction) leading to overall higher market performance. 2 - 3. Higher market performance leads to higher value in price. 2 - 4, 3 - 4. Profit from lower unit cost and, or, higher price allows firms to expand. 4 - 5. Expansion increases the number of higher prices (and therefore GDP) 4 - 5. Expansion promotes new development, D |
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Return to Parts I, II, III here |
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