Tools Variety, Technology and the Schumpeterian Cobb-Douglas Production Function

The development process and technological improvements since the industrial revolution are characterized by substantial increases in the quantity and variety of tools/machines/materials adopted in production. It is difficult to reject empirically that proliferation of tools variety is the necessary and sufficient condition for the technical progress. In this paper, we institute some insights that can be traced at least back to Schumpeter (1934) into the Cobb-Douglas Production Function. It makes the coexistence of sustained growth, decline and stagnation across countries and time obvious. The target of public policies for sustained growth also becomes clear and precise