New Growth Theory

New Growth Theory is an economic concept that emphasizes the role of knowledge, innovation, and human capital in driving economic growth. Unlike traditional theories that focus primarily on physical resources or labor, it argues that ideas and technology generate ongoing improvements in productivity. This theory suggests that investments in education, research, and development are crucial for fostering innovation, leading to sustainable economic expansion. Essentially, it highlights how creativity and the accumulation of knowledge can fuel wealth creation and improve living standards over time.