How Much Does Innovation Drive Economic Growth?

Productivity as defined in the article, How Much Does Innovation Drive Economic Growth? is the amount of value a company creates per dollar of investment or hour of worker labor. This has been seen to grow rapidly since the late 1800’s and has been positively reflected through the U.S economic growth. Workweeks and hours for employees are decreasing, while their wages are increasing. However, there is no clear reasoning as to why this productivity in the workforce has developed. Kellogg professor of finance Dimitris Papanikolaou was eager to find out. Innovation is usually measured through the study of patents but, Papanikolaou wanted to take this research a step further and look at the actual context as it compares to the quality of the patent. Through this research, Papanikolaou believes that it will not only help measure innovation but also help to answer a heavily debated question of whether or not this prolonged increase of productivity the U.S has maintained is now starting to slow down. Read More>>

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