Feedback loop between theory and practice drove modern growth

Researchers found that a feedback loop between theoretical and applied knowledge became positive by the mid-18th century.

The study provides the first quantitative test of a hypothesis by Joel Mokyr, who argued that the Industrial Enlightenment created self-sustained modern growth through this interaction. To test this, the authors developed new text-based measures to track the innovativeness of publications and knowledge spillovers. The team applied these measures to approximately 300,000 English publication titles and short patent descriptions from 1600 to 1800.

Their findings support Mokyr's idea that the exchange between propositional and prescriptive knowledge turned positive during this period, contributing to the development of modern economic growth.