The reason I mention this was at I my last class at the BPMInstitue I met Dr James P. McGee. He drew a link between economic forces and the technologies of business process management and the business rules approach.
Dr. James recommended I read: (which I am) "Knowledge and the Wealth of Nations", 2006, ISBN 13-978-0-393-05996-0.
He also sent me a very interesting, lucid email describing the forces and factors. I share these comments with you:
As I discussed with you during class, it has taken 50 years for the mainstream economic community to recognize, accept and formally reflect in their "economic models" that "knowledge" is the key factor of production for all modern economies. This includes the modern firms in these economies. The old models held the traditional factors of production were land, labor or capital. The traditional factors of production are still important. Yet individually, or collectively, they do not and cannot account for existing growth. They will not be able to account/predict future economic growth and profit.
The book was written by a mainstream economist. As a member of the American Economic Association (AEA), Dr. Warsh is a part of the mainstream economic community. I think the writings show bias for the historical economic ideas and works of the AEA community. Dr. Warsh outlines in his book the events and stages that led to the mainstream economic community's understanding and accepting of "knowledge" (in all its different forms) as the key factor of production. Unfortunately, he only uses and makes reference to evolving economic thinking, practices and work products of the mainstream economic community- That is folks who are members of the AEA.
The book starts with Robert Solow's 1956 paper “Theory of Economic Growth, which treated "knowledge" as an exogenous factor of production. Then most of the remaining text covers Paul Romer's 1990 paper, presented at the AEA, which treated "knowledge as an endogenous factor of production". AEA members finally accepted Romer's ideas only after he and other younger AEA members figured out a way to include and represent "existing knowledge" and the "growth of new knowledge" in the AEA member’s global and national economic models. These extended, knowledge-focused models show it is chiefly available "existing knowledge" (either proprietary or non-proprietary) and the "growth of new knowledge" that is responsible for worldwide and local economic growth (GDP). It is not land, labor or capital.