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Research & Development for Sustainable Long-Term Growth in Economies
There are many factors of productivity that affect the output of nations. In the developing stage, capital growth and labour growth dramatically improve the GDP. As time passes, and the nations become richer, they run into a wall, or a state of equilibrium in which these factors no longer provide what is needed for continual growth.
When this happens, nations need to rely on other factors that will assist in continued growth in order to prevent a no-growth situation which leads to stagnation, and eventually a negative growth or decline in output.
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