How do economies grow? Through the competition of ideas and the application of knowledge and technology:
In 18th-century Europe, the interplay between pure science and the work of engineers and mechanics became progressively stronger. This interaction of propositional knowledge (knowledge of ‘what’) and prescriptive knowledge (knowledge of ‘how’) constituted a positive feedback or autocatalytic model. In such systems, once the process gets underway, it can become self-propelled. In that sense, knowledge-based growth is one of the most persistent of all historical phenomena – though the conditions of its persistence are complex and require above all a competitive and open market for ideas.