This document discusses economic development and the factors that contribute to it. It introduces concepts like economic growth, gross national income, life expectancy, education, and theories of economic development. It emphasizes the importance of both economic growth and innovations in driving economic development. Innovations are defined as market-tested successful inventions, and entrepreneurs are seen as crucial in transforming inventions into innovations. The document presents a framework involving six types of capital including intellectual, financial, physical, human, cultural, and entrepreneurial capital that contribute to prosperity.

2. Economic
Development
Lecture 2
Introduction

3. Questions?

4. Homework
Quizzes
Exams

7. You can have
Economic Growth
But not
Economic
Development

8. You must have
Economic Growth
If you want
Economic
Development

9. Economic
Development
GNI
Life Expectancy
Education
Choices

10. As things get cheaper
People get richer
Buy more with same
income

11. Theories
Empirical

12. Observe
Why
Test Think
Theories
Empirical

13. Test Theories with
Empirical Evidence
Need both

14. Hans Rosling
gapminder.org

15. Ideas
Inventions
Innovations

16. Ideas - Everybody
Inventions - Inventors
Innovations - Entrepreneurs

17. Innovations
are market-tested
successful inventions

18. ideas
inventions
innovations
3%

19. Six Capitals
of Innovation
A framework for understanding
prosperity and poverty

20. Intellectual
Financial Physical
Human
Culture
Entrepreneur

21. Entrepreneurial
Capital
Make innovations
out of inventions

22. arbitrageurs
perceivers
synthesizers
value creators
converter
Entrepreneurial
Capital

24. Inventor Entrepreneur

25. What if
Steve Jobs
had been
born in
Syria like
his father?

26. Thomas
Edison
Inventor and
Entrepreneur
Very Rare

27. Human Capital
trust
health
trust
skills
knowledge
personality
relationships