Monday, April 14, 2008

Economic Theory

Recently a Nobel Prize winning economist suggested that global trade is driving a long-term convergence of per-capita GDP by enabling the distribution of knowledge, (know-how) throughout the world. But that is an incomplete view. It isn’t knowledge and know-how that will drive the leveling; it is the ability to innovate - the ability to create new knowledge - that will drive the leveling of economic well-being. Without the ability to innovate at par with the best of them, you will always be playing catch-up. This ability to innovate is the key valuable asset in any enduring for-profit enterprise.
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