It is great to be back at Brookings, an institution I fondly called my home before joining the Obama Administration. and economic growth, accounting for as much as one-third of the contribution of ICT (information and communications technology) capital to GDP growth since 1995 in Denmark, France, the Netherlands, Sweden and the United States (OECD, 2007a). The economic growth model developed by Schumpeter argues competition through innovation and the importance of education in ensuring economic growth, these assumptions are supported also by empirical studies (Aghion et al., 2005, 2009). Although this argument is appealing, in fact economic theories explaining any such relationship are far from straightforward. Modern economic growth also came from organizational innovations in the military, transportation, … 463 Andreea Maria Pece et al. However, the long-term growth potential of the economy, which depends on innovation, also affects the ECB’s ability to achieve its mandate. Remarks by Jason Furman. Innovation and Economic Growth innovation and economic growth The long-term record of success of the US economy is inexorably linked to a growing and well-educated work force, ample research and development expenditures by both public and private sectors, the availability of capital to fund expansion, and access to markets. The famous portrait by German immigrant Christian Schussele, “Men of Progress” (1862, at the National Portrait Gallery, Washington, D.C.) can be a departure point for talking about changes over time in American history, at least in perceptions about the sources of innovation and … Innovation made the difference — modern chemistry, steam power applied to transportation, and interchangeable parts — but not just innovations in technology. The Brookings Institution . 1 Chairman, Council of Economic Advisers . / Procedia Economics and Finance 26 ( 2015 ) 461 â€“ 467 Furthermore, on the one hand, the financial literature … As prepared for delivery. Warming Up to Innovation. Economic history addresses the issue of the way in which the record of economic growth is related to historical developments. April 8, 2015 . As innovation has profound effects on the macroeconomic environment, the ECB monitors its development and researches the economic and social preconditions that enable and support innovation. Technological change is a very important part of economic change and growth. Trade, Innovation, and Economic Growth . This article argues that technological and organizational innovation are responsible for this lengthy period of gradually accelerating growth. INNOVATION AND ECONOMIC GROWTH by Nathan Rosenberg Professor of Economics (Emeritus), Stanford University Abstract This paper illustrates why technological innovation is considered as a major force in economic growth and focuses on some of the most distinctive features of innovation in the highly industrialized economies of the OECD area.