Why should we really care about technological innovation? My Mercatus Center colleague James Broughel and I have just published a paper answering that question. In “Technological Innovation and Economic Growth: A Brief Report on the Evidence,” we summarize the extensive body of evidence that discusses the relationship between innovation, growth, and human prosperity. We note that while economists, political scientists, and historians don’t agree on much, there exists widespread consensus among them that there is a symbiotic relationship between the pace of innovation and the progress of civilization. Our 27-page paper documenting the academic evidence on this issue can be downloaded on SSRN or from the Mercatus website. Here’s the abstract:
Technological innovation is a fundamental driver of economic growth and human progress. Yet some critics want to deny the vast benefits that innovation has bestowed and continues to bestow on mankind. To inform policy discussions and address the technology critics’ concerns, this paper summarizes relevant literature documenting the impact of technological innovation on economic growth and, more broadly, on living standards and human well-being. The historical record is unambiguous regarding how ongoing innovation has improved the way we live; however, the short-term disruptive aspects of technological change are real and deserve attention as well. The paper concludes with an extended discussion about the relevance of these findings for shaping cultural attitudes toward technology and the role that public policy can play in fostering innovation, growth, and ongoing improvements in the quality of life of citizens.
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