We too often focus on the macroeconomic cycle. Of course, it is immediate, yet if you want to change the lives of many and a society, you need to focus on innovation, which leads to growth and productivity. The Nobel Prize winners in economics are three economists who concentrate on this critical issue. Moyr is an economic historian who closely studies the environment for innovation. Why did innovation occur at a particular time and place? The other two economists focused on endogenous growth through a Schumpeterian view of creative destruction.
Moyr is considered part of the idealist school of thinking on innovation. The culture matters when it comes to innovation. Aghion and Howitt are viewed as part of the materialist school, which focuses on modeling growth to explain how innovation drives it.
Innovation drives growth, and we need to always think about how to foster it to increase growth and productivity.
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