Innovation drives economic growth. But what fuels innovation? At the heart of it, research and development (R&D) activities allow scientists and researchers to develop new knowledge, techniques, and technologies, writes John Wu in Innovation Files. As technology changes, people can produce more with either the same amount or fewer resources, thereby increasing productivity. As productivity grows, so does the economy. New research continues to show that investment in R&D spurs economic growth—where a 1 percent increase in R&D spending grows the economy by 0.61 percent.