Long-Term Economic Growth

The purpose of this chapter is to contribute to the theory of growth by presenting a “simple” alternative growth model based on the concepts of creative mental labor and technological innovations. Technological innovations can be defined as either For example, producing a mobile phone or computer with the same features at a lower unit cost through a “new production method” falls into the first category. A mobile phone or computer with higher specifications falls into the “new product” category. Old product vs. new product The analysis encompassing the concept of “creative mental labor” is rather different from the economic analysis referring to mental activities in noncommercial sectors.