Is there anyone here interested in explaining economic growth in terms of knowledge as per Debra Amidon's recent book The Innovation Highway?
Happy to form a readers club if there are any co-believers? Publicly we are starting an European Union debate on this around here http://www.knowledgeboard.com/cgi-bin/item.cgi?id=98621&d=1&h=417&f=56&datef ormat=%o%20%B%20%Y chris macrae [EMAIL PROTECTED] ----- Original Message ----- From: "Alypius Skinner" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: 11 December 2002 20:40 PM Subject: Fw: New theory explains economic growth in terms of evolutionary biology > > > > New theory explains economic growth in terms of evolutionary biology > > > > The struggle for survival that characterized most of human existence > > stimulated a process of natural selection that conferred an evolutionary > > advantage on humans who had a higher genetic predisposition for a careful > > rearing of the next generation. This evolutionary change permitted the > > Industrial Revolution to trigger a change from an epoch of stagnation to > an age > > of sustained economic growth, according to the first theory that > integrates the > > fields of evolutionary biology and economic growth. This research by Brown > > University economist Oded Galor and Omer Moav from the Hebrew University > is the > > lead article in the current Quarterly Journal of Economics. > > > > > > -------------------------------------------------------------------------- > > > > PROVIDENCE, R.I. - It took an evolutionary leap in the human species > to > > help trigger the change from centuries of economic stagnation to a state > of > > sustained economic growth, according to the first theory that integrates > > evolutionary biology and economics. > > > > "Until now, economic growth theory did not have implications for > > evolutionary biology, and evolutionary biology did not have implications > for > > economic growth," said lead theorist Oded Galor, professor of economics at > > Brown University. > > > > This new theory, the first of its kind ever proposed in the > economics > > literature, appears as the lead article in the current Quarterly Journal > of > > Economics. It is co-authored by Omer Moav of the Hebrew University of > > Jerusalem. > > > > "The struggle for survival that had characterized most of human > existence > > stimulated a process of natural selection and generated an evolutionary > > advantage to human traits that were complementary to the growth process, > > triggering the takeoff from an epoch of stagnation to sustained economic > > growth," the authors wrote in their study. > > > > The evolution of the human brain in the transition to Homo sapiens > > "increased the evolutionarily optimal investment in offspring's quality," > said > > Galor. "This was due to the complementary relationship between brain > capacity > > and the return to investment in human capital." > > > > The process gave an evolutionary advantage to people who had higher > > valuation toward offspring's quality, Galor said. "The subsequently > increased > > prevalence of this genetic trait in the population ultimately permitted > the > > Industrial Revolution to trigger a transition to a state of sustained > economic > > growth." > > > > The critical natural selection that occurred prior to the Industrial > > Revolution involved the fundamental tradeoff between child-caring and > > child-rearing. The "epoch of stagnation" gave an evolutionary advantage to > a > > higher-quality smaller family rather than to lower-quality larger > families, > > Galor said. > > > > "Valuation of quality, through better nourishment and education for > > children, fed back into technological progress. And as technology > advanced, it > > fed back into more education. Human capital took off. This leap in > evolution > > came to dominate the population as a whole, and centuries of economic > > stagnation ended." > > > > The authors attribute acceleration in this evolutionary process to > the > > emergence of the nuclear family that fostered intergenerational links. > Prior to > > the agricultural revolution, 10,000 years ago, people lived among > > hunter-gatherer tribes that tended to share resources more equally. > > > > "During this hunter-gatherer period, the absence of direct > > intergenerational links between parental resources and investment in their > > offspring delayed the evolutionary advantage of a preference for > high-quality > > children," said the authors. > > > > In fact, according to the theory, a switch back to a quantity > emphasis > > began to take place in the 20th century. > > > > "During the transition from stagnation to growth, once the economic > > environment improved sufficiently, the evolutionary pressure weakened and > the > > significance of quality for survival declined," said Galor. The inherent > > advantage in reproduction of people who highly value a large number of > children > > gradually dominated and their fertility rates ultimately overtook the > fertility > > rates of people who value high-quality children, he said. > > > > "Oded Galor's tendency to ask big, important questions, to be > tackled in > > ambitious and technically sophisticated models have earned him a > well-deserved > > reputation as one of the most ingenious and interesting growth-theorists > of our > > age," said Joel Mokyr, professor of economics and history, Northwestern > > University. Mokyr is a leading expert on the history of technological > progress > > and the Industrial Revolution. > > > > "Galor and Moav have opened a new and potentially very fruitful vein > of > > thinking about the history of economies in the very long run," said Mokyr. > > "This pioneering paper is a breakthrough in its use of population dynamics > in > > long-term historical change and in applying Darwinian logic to the history > of > > mankind." > > > > The predictions of the proposed theory are consistent with the time > path > > of population, technology and income since the emergence of Homo sapiens, > said > > Galor. > > > > "Once biologists identify the genes that control fertility behavior, > the > > predictions of the theory in the context of the evolution of the human > species > > could be tested as well, comparing genetic valuation for quality in > > hunter-gatherer tribes to those in societies that have experienced the > > Neolithic revolution," Galor said. > > > > According to the authors, earlier episodes of technological progress > did > > not generate a "takeoff" because the necessary human evolutionary change > had > > not yet completed its course. > > > > "The population did respond to higher return to education and > investment > > in human capital, but not aggressively enough to generate an acceleration > in > > the rate of technological progress and sustained economic growth," said > Galor. > > > > The theory generates an alternative intriguing prediction, he said. > > > > "It suggests that during the epoch of stagnation, men who were from > a > > physiological viewpoint moderately fertile (men with a moderate sperm > count), > > and who were therefore induced by nature to invest more in the quality of > their > > offspring had an evolutionary advantage over highly fertile individuals," > Galor > > said. This would suggest that sperm count has declined in the last > thousands of > > years, he said. > > > > The National Science Foundation supported Galor's research. > > > > http://www.brown.edu/Administration/News_Bureau/2002-03/02-040.html > > > > > > > > > > > > >
