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The idea equation for economic growth
The idea equation for economic growth
Apr 11, 2025 2:29 PM

The key to creating economic flourishing is economic growth and the key to creating long-term economic growth is to create new ideas. But whatis the key to creating ideas that lead to innovation?

EconomistAlex Tabarrok says the idea equation goes like this:Ideas = Population x Incentives x Ideas/per hour

This equation is a useful way to lay out the factors affecting idea production, says Tabarrok in the video below. When we understand the factors behind production, then we can better predict how the future will go.

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