We introduce a model of technological advances as allowing for greater productivity at the cost of increased complexity. Complex goods and services require a large number of strongly complementary inputs. Innovation increases the probability that an input will be flawed, leading to a skewed...

Digital technologies are creating dramatically cheaper and more abundant substitutes for many types of ordinary labor and capital. If these inputs are becoming more abundant, what is constraining growth? We posit that most growth requires a third factor, ‘architecture’, that is indispensable...