Mainstream innovation experts suggest that technological innovation in the R&D sector employing human capital and existing knowledge stock exerts a positive impact on per capita output in both emerging and advanced economies. Opinions are divided, however, on whether this can help explain sustained economic growth.
Economic growth today is driven not merely by capital accumulation but by creative capability. Hence, unlike the approach of neo-classical and Keynesian economics, innovation borne by tacit and codified knowledge applied in a positive, enabling environment is argued to be a key contributor to national, and sustainable, economic growth.
