SIOC Post profile for "AI3:::Adaptive Information"
type: Document
description: A SIOC profile describes the structure and contents of a weblog in a machine readable form. For more information please refer to http://sioc-project.org/.
primary topic: Innovation, Information, Growth and Wealth
generator agent: http://rdfs.org/sioc/wp-sioc.php

Innovation, Information, Growth and Wealth
type: Post
has container: weblog
has creator: Mike Bergman
maker: Mike Bergman
created: 2014-06-16T04:24:48Z
content: Unpacking the Growth-producing Factors of Production Download PDF In my last article on artificial intelligence, I made the statement that ". . . innovation is the source of wealth creation." I made that unquestioned statement as part of my reflexive world view. But, when I re-read the article after its posting, I asked myself: What are the actual arguments and evidence for this innovation-to-wealth assertion? Surprisingly, there is not nearly the evidential basis for this assertion that I would have assumed. Since Adam Smith, the signal focus of economics has been its attempt to explain the basis of growth. This is not surprising since the birth of the field of economics also corresponded to an historically unprecedented inflection point in economic growth (see next). Smith ascribed this source to productivity resulting from the division of labor using his famous example of the pin factory. But it is really only within the past fifty years or so that economists have begun unpacking the growth function from the other factors of production. Growth is a percent increase from a prior state. In economic terms, growth compounded over a period of time has the virtuous reward of resulting in increased wealth. Economic growth is often measured through such means as revenues (for the individual firm) or GDP (for regions or countries). Net worth (for the firm) or GDP per capita or net worth (for individuals) measure the wealth associated with the current stock of economic goods at any given point in time. And, of course, wealth alone also masks the importance of changes in comfort, convenience, freedom, choice, leisure, mobility and other values that may accompany growth and transcend the material. Too, some "externalities" of economic growth may be negative, such as congestion or pollution, but it is also true that wealthier societies tend to regulate against these effects. Not only have we seen discontinuities in growth (and then wealth) throughout history, but we see them …
encoded: Unpacking the Growth-producing Factors of Production Download PDF In my last article on artificial intelligence, I made the statement that “. . . innovation is the source of wealth creation.” I made that unquestioned statement as part of my reflexive world view. But, when I re-read the article after its posting, I asked myself: What are the actual arguments and evidence for this innovation-to-wealth assertion? Surprisingly, there is not nearly the evidential basis for this assertion that I would have assumed. Since Adam Smith, the signal focus of economics has been its attempt to explain the basis of growth. This is not surprising since the birth of the field of economics also corresponded to an historically unprecedented inflection point in economic growth (see next). Smith ascribed this source to productivity resulting from the division of labor using his famous example of the pin factory. But it is really only within the past fifty years or so that economists have begun unpacking the growth function from the other factors of production. Growth is a percent increase from a prior state. In economic terms, growth compounded over a period of time has the virtuous reward of resulting in increased wealth. Economic growth is often measured through such means as revenues (for the individual firm) or GDP (for regions or countries). Net worth (for the firm) or GDP per capita or net worth (for individuals) measure the wealth associated with the current stock of economic goods at any given point in time. And, of course, wealth alone also masks the importance of changes in comfort, convenience, freedom, choice, leisure, mobility and other values that may accompany growth and transcend the material. Too, some “externalities” of economic growth may be negative, such as congestion or pollution, but it is also true that wealthier societies tend to regulate against these effects. Not only have we seen discontinuities in growth (and then wealth) throughout history, but we see them …
topic: Adaptive Information
topic: Adaptive Innovation
links to: Download PDF
links to: article on artificial intelligence
links to: Adam Smith
links to: division of labor
links to: pin factory
links to: externalities
links to: a rising tide lifts all boats
links to: diminishing returns
links to: Angus Maddison
links to: [1]
links to: William Nordhaus
links to: [2]
links to: [3]
links to: Joseph Schumpeter
links to: [4]
links to: "creative destruction"
links to: total factor productivity
links to: [5]
links to: Robert Solow
links to: exogenous growth model
links to: [6]
links to: [7]
links to: [8]
links to: Harrod–Domar model
links to: Kenneth Arrow
links to: "learning by doing
links to: learning curve.
links to: information economies
links to: knowledge workers
links to: Robert Lucas
links to: Knowledge and the Wealth of Nations: A Story of Economic Discovery
links to: Paul Romer
links to: "Endogenous Technological Change"
links to: [9]
links to: "rival" and "non-rival" goods
links to: [10]
links to: [11]
links to: [12]
links to: [13]
links to: [14]
links to: [15]
links to: [16]
links to: Michael Polanyi
links to: [17]
links to: www.ggdc.net
links to: c6064
links to: "Information is the Basis for Economic Growth"
links to: "Knowledge: Unravelling the X Factor in Growth and Wealth"
links to: "Historical Origins of the Knowledge Economy"
links to: Lazonick InnovativeEnterprise AIR-WP13.0501.pdf
links to: "The growth of growth theory,"
links to: "Robert Solow on Joseph Schumpeter,"
links to: Economist's View
links to: Trevor W. Swan
links to: doi
links to: 10.2307/1926047
links to: JSTOR
links to: 1926047
links to: The Gifts of Athena : Historical Origins of the Knowledge Economy
links to: htttp://www.cbo.gov/sites/default/files/cbofiles/attachments/44002_TFP_Growth_03-18-2013.pdf.
links to: ie data.xls
links to: http://www.multpl.com/united-states-population/table
links to: jorgenson ho samuels worldklems 2014 0519.pdf
links to: worldklems2014 Ho.pdf
links to: w15094

Mike Bergman
type: User

Mike Bergman
type: Person

total factor productivity
label: total-factor productivity

exogenous growth model
label: Solow-Swan model
label: Solow-Swan neo-classical growth model

[7]
label: [7