“We also learned that absent innovation growth tails off right it just stops, so we needs a constant driver of innovation. And, the we also saw [inaudible] in this last lecture that’s not so easy. It’d be easy to say that all we need is innovation, well to maintain that innovation you need secure property rights. You need people who have incentives to invest in things like machines and also invest in new technologies. And so to get that you need a strong central government. But the central government can be so strong that it starts extracting stuff. But if it extracts stuff, that is essentially the same effect as lowering the technology. And at the third, and third, that government can’t necessarily protect industry. Now sometimes it can. There’s cases where it’s gonna make sense to protect industries, but. One of the things that’s going to drive growth to innovation is this process of creative destruction. So the model tells us that sometimes, we may have to, you know throw out our vinyl records and move to cassettes, and then throw out those cassettes and move to c.d.’s, and then throw out those c.d.’s and you just listen to digital music. There’s going to be these processes of creative destruction that drive the growth and they’re representative of innovation, of what makes us all better off. Okay. Thank you.”- Transcript from Scott Page Coursera
Source:
Scott Page Model Thinking MOOC Course
