A sophisticated understanding of economic growth is not an academic exercise; it is the bedrock of strategic policymaking. Without a formal theoretical framework, policymakers are left to navigate a sea of isolated facts, unable to reliably distinguish causal relationships from mere correlations. Formal growth theory provides the necessary toolkit to organize these facts, clarify causality, and design policies with predictable and positive impacts.

The study of economic growth seeks to answer some of the most critical questions facing societies today:

• How can nations grow their way out of poverty?
• Will poorer countries eventually catch up to the living standards of richer ones?
• What forces enabled the transition from centuries of economic stagnation to an era of sustained growth?
• How do factors like financial development, education, and competition shape a country’s economic destiny?

This briefing distills the core insights from major economic growth paradigms—from the Neoclassical benchmark to modern Schumpeterian models of innovation. Its purpose is to translate complex economic theory into a coherent and actionable framework for policy action in key areas such as competition, education, and institutional design, ultimately providing a guide for fostering sustainable, innovation-led growth.