Last week I wrote about innovation in the digital economy and some of the puzzling questions we are now wrestling with. Is innovation accelerating or slowing down? Have we stopped solving big problems or are we solving bigger problems than ever before? Is innovation in the digital economy fundamentally different from the industrial age innovation of the past two hundred years?
But, there is no more puzzling and important question than whether the link is now broken between innovation, productivity, jobs and the overall standard of living in the US and other advanced economies. Given the torrid pace of technology advances and new ideas, how come the US is continuing to experience slow economic growth, stagnant wages and high long-term unemployment? Are we now in an economy in which technology and innovation do not necessarily lead to a higher standard of living and quality of life?