New inventions are good for economic growth, but equally important are improvements in the way we make things - what's known as process innovation. Tim Leunig and Joachim Voth measure the impact of two such innovations - mechanical cotton spinning and the motorcar assembly line - on the world's material wellbeing.

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26 October 2011     Paper Number CEPCP347

Download PDF - In brief... Cotton and cars: the huge gains from process innovation

This CentrePiece article is published under the centre's Trade programme.