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What role does access to diverse ideas play in economic growth? New forms of geo-located communications and economic data allow measurement of human interaction patterns and prediction of economic outcomes for individuals, communities, and nations at a fine granularity, with the strongest predictors of income, productivity, and growth being measures of diversity and frequency of physical interaction between communities (clusters of interaction). This finding provides both new investment opportunities and new methods of risk assessment. Access and use of these data raise privacy and security risks, and the final section of the paper describes how these challenges can be controlled.


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Diversity of Idea Flows and Economic Growth

Show Author's information Alex Pentland( )
Massachusetts Institute of Technology (MIT), Cambridge, MA 02139-4307, USA.

Abstract

What role does access to diverse ideas play in economic growth? New forms of geo-located communications and economic data allow measurement of human interaction patterns and prediction of economic outcomes for individuals, communities, and nations at a fine granularity, with the strongest predictors of income, productivity, and growth being measures of diversity and frequency of physical interaction between communities (clusters of interaction). This finding provides both new investment opportunities and new methods of risk assessment. Access and use of these data raise privacy and security risks, and the final section of the paper describes how these challenges can be controlled.

Keywords:

idea flow, opportunity, wealth, inequality, segregation, foraging, privacy, policy
Received: 17 July 2020 Accepted: 17 August 2020 Published: 28 October 2020 Issue date: September 2020
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Publication history

Received: 17 July 2020
Accepted: 17 August 2020
Published: 28 October 2020
Issue date: September 2020

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© The author(s) 2020

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