"As the new endogenous growth theory suggests, TFP growth is closely related to accumulation of the intangible capitals, such as human capital and research and development"

The quote by Toshihiko Fukui is describing the brand-new endogenous development theory, which recommends that Total Factor Productivity (TFP) development is carefully pertaining to the build-up of intangible resources, such as human resources and r & d. This theory suggests that financial growth is driven by the accumulation of intangible assets, such as understanding, skills, and also advancement. Human resources is the expertise as well as skills that people have, which can be used to create economic worth. Research and development is the process of developing new products, services, as well as procedures, which can additionally contribute to economic development. The brand-new endogenous growth concept suggests that financial development is driven by the buildup of intangible assets, such as human capital as well as r & d, which can cause increased TFP development.