To stimulate and grow the nation's economy and improve our standard of living we need to increase Productivity and Consumer Demand. Federal Reserve Chairman Ben Bernanke has said that productivity growth is "perhaps the single most important determinant of average living standards".
This is readily apparent if you compare our standard of living and quality of life from the early 20th century to present day. Our quality of life was bolstered in the transportation industry by several Productivity enhancing innovations. In a little over a century we progressed from the horse and buggy to the automobile, jet airplane, and then rockets. Innovation in communication has taken us from the telegraph to the phone, satellites, cellular phone and the internet & world wide web. These innovations have significantly increased our Productivity and consequently our wealth, employment and improved our quality of life. There have been countless labor saving innovations that have increased our Productivity - washing machines, computers, robotics...simply put, Productivity allows us to do more with less.
Consumer Demand for a product obviously drives revenue and grows companies. More jobs are created to support company growth. A local economy is stimulated even more when they sell their products outside of their local markets to other states or countries.
To increase Productivity and Consumer Demand, we need Innovation - new, Innovative products, services, processes, and organizations. Innovation will either deliver increased Productivity and/or high Consumer Demand (ie. Telsa Automobile, CyberKnife®, etc.). Products can stimulate the economy by sales and/or by increasing Productivity.
The Product Development process - from idea generation through design, manufacturing, marketing and sales - is the process that produces Innovation. The majority of people in our nation are somehow involved with the Product Development process. Some are directly involved in the process - a research scientist, industrial designer, engineer, CNC programmer, or marketer. Other professions support the Product Development process such as business consultants, bankers, or commercial real estate brokers. The salaries of the aforementioned is then what drives the revenue of our service industry and workers (bartenders, retail salesmen, hotel managers).
The more efficient and Productive a company's Product Development Process is, the more Innovation (products, services, processes and organizations) they will produce. Innovation produces higher Productivity and Consumer Demand. High Productivity and Consumer demand drives American Prosperity. This cyclical process of Product Development, Innovation, Productivity & Consumer Demand, and Prosperity (P.I.P.P.) will help ensure American Prosperity.
The process from idea generation to product commercialization.
New products, services, processes, or organizations that provide value.
Productivity and Consumer Demand
Increase profitability and revenue.
Wealth, jobs, and a better quality of life.