Missing Pieces solve the productivity puzzle of Economic Growth
Innovation in Economics
For economic prosperity a nation needs a system of innovation. What its elements are, and how they interact, is known in general but is missing on details. This compromises its usefulness. Everyone agrees about innovation. Its importance is universally cited. But its measurement is completely absent from Economics, where anyone would expect to find it. Instead there is 'factor productivity', a residual, a proxy, for what is unknown in Economics about growth. The consequence is a contribution of innovation to growth that is grossly under-represented. In Economics a rise in growth of 35% is associated with a decline of 1% in the innovation proxy. That Economics accepts this signifies some kind of remoteness from industrial realities. But industry has access to commercial data and knowledge, the use of which, 1. Brings a Royal Economic Society promise made in 2008 to full realization today, 2. To establish a new system of innovation (Google Books review), 3. That's authenticated by Innovation in Economics: Missing Pieces's full research , Whose elements deliver a definition of innovation that directly connects its measure to underlying technology development and its consequent effect on GDP. To achieve what has stymied others, econometric methods are abandoned in favor of simple algebra and geometry; all exact, and which now satisfy, the originating Department of Commerce requirements for 'Measuring Innovation in the 21st Century Economy' with decisive impact on policy, improvement in National Accounting and in preparation for Big Data and for going Beyond GDP.