The Innovation Enigma

From Project Syndicate

Joseph E. Stiglitz, a Nobel laureate in economics and university professor at Columbia University, was chairman of President Bill Clinton's Council of Economic Advisers and served as senior vice president and chief economist of the World Bank. His most recent book is "The Price of Inequality."

Around the world, there is enormous enthusiasm for the type of technological innovation symbolized by Silicon Valley, with many attempting to replicate the ingenuity that they regard as America's true comparative advantage. But there is a puzzle: it is difficult to detect the benefits of this innovation in GDP statistics.

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