The Shift from Innovation to Diffusion

The conventional belief in technological advances often emphasizes innovation, highlighting heroic inventors and groundbreaking discoveries. However, the podcast argues that diffusion, the spread and adoption of technology, plays a crucial role in determining economic productivity. For general purpose technologies (GPTs), such as electricity and AI, it's not merely the invention that matters but how effectively a country can diffuse these technologies across industries. The real power lies in widening the base of engineering talent and ensuring effective integration of technologies into the economy.