Sunday, January 6, 2013


 Innovation

The percolation modelof innovation.  With each coin flip each square has a chance of turning grey: % P.   Innovation occurs when there is a continuous path from top to bottom.   It is not until P > 59% that there is a tipping point and a huge increase in innovation.   This is why often there are several inventors competing to see who can be first.  To have innovation society needs to support the research that turns the squares grey.





 
The Solow growth  model based on labor and the use of machines shows that without innovation growth will level off




 Without innovation:


 
However the innovation multiplier  A makes labor more productive.   Government support that promotes innovation  includes government that is strong enough to protect property rights so people will invent,  Government that is weak enough not to take all the spoils,  and government and cultural support of cooperation. Trust varies in different cultures.





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