There are many connotations of Wealth. However, we need a workable definition to relate it to technology Innovation. It’s the measure of perceived value or Utility created by ideas, estimated by adding by consumer and producer surpluses. Consumer surplus (CS) is the difference between consumers’ perceived value and the actual price paid for. On the other hand, the Producer surplus (PS) is the profit; that is the difference between the cost of production and the price at which products are sold.
By adding ideas, we can increase the perceived value of products. We can also lower the cost of production by adding ideas too. Hence, ideas offer the opportunity of increasing both consumer and producer surpluses, consequently increasing wealth. As a matter of fact, ideas’ such a role in CS & PS has been at the core of increasing the volume of global wealth from depleting natural resources.
