The Role of Innovation

Hat tip to my friend Brett who pointed me to a Globe and Mail article where it's argued that Bill Gates is wrong:

Neither is there evidence that more scientists and engineers would enhance future prosperity. Across developed economies, there is no relationship between the graduation of scientists and engineers and economic growth. Among the Group of Seven industrialized nations, America ranks seventh in natural science and engineering undergraduate degrees per capita, yet leads in innovation and prosperity.

I'm doubtful that the real driver of economic growth is business education. In fact it's been argued the critique encompasses all of education. Off the top of my head, India's historical level of development comes to mind. It's only recently that it has seen significant growth much of it given its largescale economic reforms despite a highly educated workforce. Education like microfinance like many other interventions are catalysts - they do little to spark the incentives for entrepreneurship and development.