Of course, if the sole objective is higher labor productivity, it can be achieved by investing a huge amount of capital and raising capital per worker. But, in this case, capital productivity and return on capital would decline. Furthermore, growth driven only by the huge investment of resources would eventually reach a limit.
For sustainable growth, we need to establish an indigenous mechanism that promotes growth by combining labor and capital in an optimal manner under given prices and which generates innovation in various fields. Under such circumstances, we have to deal with the following three agendas.