Econmic Growth and Productive Knowledge
The relations between the riches of nations and the riches of Productive Knowledge (Technology) gains increasing acknowledgment among economists. Classical economists had assumed that the key to progress was the accumulation of homogenous capital goods. But, as P. Romer, among others, claims we cannot grow rich by accumulating more of the same capital goods. So the Classical growth theory falls short of expectations. Capitalism’s inherent feature is “destructive creation”, said Marx. Decades later, in a similar fashion, Schumpeter stated that “Capitalist system incessantly revolutionizes the economic structure FROM WITHIN”. What are those dynamic forces causing the incessant changes in an economy ? According to P. Drucker, A. Toffler, Baumol-McLennan and many others it is the productivity increases (growth) in general. P. Romer provides a more specific reply: technological change or the growth of new ideas. In this paper, H. Gürak goes deeper to the core and claims that all technological changes are produced by the intellectual labor of human mind. In other words, knowledge on production, i.e., technology or productive knowledge, gives occasion to a dynamic and uninterrupted growth process, but technology itself is the product of mental labor. In support of this assertion, a simple model of growth based on productive knowledge (creativity of mind) is introduced in the final section of full-text article titled "Creative Intelligence and Productive Knowledge".
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpge:0309010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.