So how can creativity, best be harnessed for sustained economic growth? What powers economic growth? The answer lies in a formula call the 3 Ts of economic development : Technology, Talent and Tolerance.
Economists have long argued that technology is the key to growth. MIT’s Robert Solow won a Nobel Prize for his work in isolating technology as the driving force of such growth.
Talent is the second variable in this model. Leading economists, including Nobel Prize winner Robert Lucas, have argued that growth is a consequence of human capital, a view shared by Harvard’s Edward Glaser. Lucas and others have argued that more urbanized and denser urban areas realize a tremendous productivity advantage because they gain those economies of combining people’s creative energy.
Resources like technology, knowledge and human capital differ in a fundamental way from more traditional factors of production like land or raw materials, they are not stocks but flows. People are not forever wedded to one place ; they can and do move around. The technology and talent that people therefore equally bring with them are mobile factors, and thus flow into and out of places.
Some places are better than others at generating, attracting, and holding on to these critical factors of production. Truly successful socieites go out of their way to be open and inclusive. Courting divergent ideas and inputs isn’t about political correctness.