The difference between the classical growth Model and the new growth theory is that the new growth theory emphasizes the role of technology rather than capital in the growth process. According to the new growth theory, creativity is the main driver for economic development. The new growth theory is based on the following golden rule:

FREEDOM- CREATIVITY-TECHNICAL PROGRESS- DEVELOPMENT

Technology and Creativity is today the most important factors of production because it improves labor and capital and extends resources. What is more, creativity increases the quantity of final goods and some of them in turn enlarge the creativity. Finally, creativity tends to aboundance

The Harvard Business School faculty member Clayton Christensen believed that a certain kind of lock-in eventually destroys event the most successful corporation. Clayton Christensen's book, The Innovator's Dilemma, described how CXOs are now concerned with the impact that disruptive technologies could have on their business and industry. Some CXOs are seeking ways to minimize their vulnerability to disruptive innovations, others are trying to identify opportunities to be disruptive, and some managers are attempting to do both. However, all CXOs face a common problem when it comes to spotting disruptive innovations; by the time the disruption is identified as such, it is too late to act strategically. The early warning signs are certain structural characteristics of products, firms, and industries that indicate a susceptibility to disruption. By making strategic use of these early indicators, firms can anticipate the disruption before it is too late.

The initial framework uses several key indicators to identify potential areas where a given firm or industry may be vulnerable to disruption. The importance of this framework to bottom-line profitability is that it aims directly at protecting the competitiv

Some topics in this essay:
Innovator's Dilemma, Technology Creativity, , Microsoft Windows, growth theory, Clayton Christensen, United Stated, growth model, growth process, classical growth, Business School, Clayton Christensen's, growth theory based, model growth theory, model growth, countries develop, theory emphasizes, emphasizes role technology, microsoft windows, growth theory emphasizes, emphasizes role, theory emphasizes role, role technology,