Re: economic growth from innovation vs capital + labor, a clear example is the Industrial Revolution. Innovations in the steam engine facilitated innovations in

Re: economic growth from innovation vs capital + labor, a clear example is the Industrial Revolution. Innovations in the steam engine facilitated innovations in manufacturing processes. Prior innovations in agricultural techniques enabled labor to move into the city to operate these new machines. The capital and labor followed the innovation. Without the innovation, there would not have been an extreme boost in growth, no matter how much capital and labor accumulation took place. Hanson, a brilliant economics professor (among other things), shouldn't need to justify or provide citations for every basic statement about economics. It is often useful to lay out assumptions up front to provide context for the body of the essay.