Value Creation and the Pursuit of Multi Factor Productivity Improvement

Abstract

This paper links Value Management to macro-economics to explore transformational innovation. It borrows from economics and the relationship between technological progress and rising living standards for citizens. Central to this is seeing 'technology' in a wider sense than devices. What makes this paper different is it attempts to link Government spending on capital projects directly to economic growth in an economy. Whilst macroeconomists use historic data, this paper applies those theories to the conceptual stages of capital-projects to become part of a Government's investment appraisal process. As such, this paper outlines a 'how to' approach that will help Governments prefer Foreign Investments that lead to long-term economic growth. The hope is that this paper will stimulate other researchers to replicate the methodology and in so doing open a new direction for innovation methodologies such as Value Engineering and Value Management that link capital projects to growth in GDP.