Innovations key driving force of growth: Expert

February 19, 2013 - 2:59:24 am

DOHA: To take advantage of technological change, nations need investment in new capital, structures, equipment and its citizens, the recipient of 2004 Nobel Prize for Economics said here recently.

“Innovation and technology are the main driving forces for economic growth, ultimately leading to productivity,” said Finn Kydland (pictured), Carnegie Mellon alumnus and Nobel laureate.

He was speaking at the Richard M Cyert Distinguished Lecture Series in Business Management at Carnegie Mellon University in Qatar (CMU-Q). 

Kydland outlined variation in the predictability of economies across nations and regions in a lecture titled “Policy Consistency and the Growth of Nations,” 

“Progress depends on technology to convert capital and labour inputs into goods and services,” he said.

“Government policy may be a crucial factor in this respect. Smaller countries need to promote economic growth. To do this they need a skilful workforce. Encouraging people to gain the right skills is a way to solve the problem and the best way to do this is through the education system,” he said.

Kydland was the joint recipient of the 2004 Nobel Prize in Economic Sciences together with Edward C Prescott. They were recognised for their ‘contributions to dynamic macroeconomics: The time consistency of economic policy and the driving forces behind business cycles’.

As a global research university, Carnegie Mellon is an important contributor towards economic growth through its pioneering research and innovations by students and faculty. 

“I believe that Carnegie Mellon’s existence in Qatar is contributing towards the development of human potential and is therefore a key factor towards the growth of the nation,” said Batoul Khalifeh, CMU-Q alumna and a banking services specialist at Commercialbank.

“Even though I graduated from Carnegie Mellon last year, I try to attend as many university events as possible and I find that the Distinguished Lecture Series is always really thought-provoking,” she added. 

Kydland holds the Richard P Simmons Distinguished Professorship at Carnegie Mellon University, where he earned his PhD. He is also the Henley Professor of Economics at the University of California, Santa Barbara.

The Peninsula