Beyond the business cycle: The need for a technology-based growth strategy

This paper assesses the limitations of monetary and fiscal policies for establishing long-term growth trajectories and instead proposes a technology-based economic strategy targeted at long-term growth in productivity. The model expands the original Schumpeterian concept of technology as the long-term driver of economic growth where technology is characterized as a homogeneous entity developed and commercialized solely by industry. Instead, the new model defines technology as a multi-element asset that evolves over several phases of the R or a technology-driven investment strategy that increases the productivity of the economy, thereby increasing the capacity of an economy to grow without inflation.