The theory establishes that long-term economic growth is a function of three abstract variables: population size (specifically idea creators), institutional incentives, and ideas per hour. This framework posits the ultimate resource as human intellect rather than natural capital, asserting that globalizing markets and improving institutions create positive externalities by expanding the pool of contributors to innovation. Consequently, the discipline identifies diminishing or increasing returns in idea production as contingent upon technological advancements such as digital connectivity and artificial intelligence within macroeconomic growth models.
The theory establishes that long-term economic growth is a function of three abstract variables: population size (specifically idea creators), institutional incentives, and ideas per hour. This frame…