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