Innovation Fosters Growth

While the time lags between particular inventions and their eventual broad diffusion can be long and change over time, technology has been key to productivity growth since the first industrial revolution, which in turn, has underpinned strong per-capita GDP growth. A series of significant innovations such as the steam engine, railway, electricity, and the combustion engine, as well as improvements in production methods, infrastructure, health outcomes, and educational attainment supported productivity growth throughout the 19th and 20th century, resulting in vast gains in living standards. The information and communications technology revolution boosted productivity again at the turn of the 21st century. 

- Adrian Peralta-Alva and Agustin Roitman. (2018) Technology and Future of Work. IMF Working Paper.