The argument presented in this paper is based on three premises. The first is that
technological change—improvement in the instructions for mixing together raw materials—
lies at the heart of economic growth. As a result, the model presented here resembles the
Solow (1956) model with technological change. Technological change provides the
incentive for continued capital accumulation, and together, capital accumulation and
technological change account for much of the increase in output per hour worked.