The performance of an economy is a function of both the institutions and technology
developed in a society but the literature on productivity is devoid of any discussion
of the institutional foundations of the economy. Instead that literature and the
growth accounting quantitative foundations of that analysis focus on the significance
of the capital stock, technology, R&D, and savings in the rate of growth of productivity.
The new growth economics literature equally equates growth with human capital investment,
physical capital, savings and sometimes as a negative function of population growth.
The argument of this essay is that productivity increases result from both improvements
in human organization and from technological developments.
The article here