ABSTRACT
The logical sequence behind economic development advanced herein is that technological advance in the form of prototype inventions foments investment opportunity. Prototype inventions come from a variety of origins, many of which are at best weakly related to strictly economic motivations. Growth, however, comes from innovation of prototypes, especially in the second stage of innovation. Therefore, public policy should aim toward maintaining conditions favorable to stage-two innovation. A group of prototype inventions can lead to a substantial impetus to economic growth through innovation and combinations of innovations. If the technology experience of the last two hundred years means anything, it is that such commitments are foolish public policy. In the nineteenth century, the role of the army contract was often of the nature of preparation for war, as in the contracts won by Whitney, Colt, Hall, and the prosecution of war during serious conflicts, especially the Civil War.
