Economic growth is the increase in gross domestic product (GDP) per capita. There is a distinction between nominal economic growth and real economic growth, the former being the growth rate including inflation, while the latter being the nominal rate adjusted for inflation. Additionally, economic theorists distinguish between short-term economic stabilization and long-term economic growth. The theme of economic growth is mainly linked to the long term. The short-term variation in economic growth is called the business cycle. The long-term path of economic growth is one of the central questions in economics. In 1377, the Arab economic thinker Ibn Khaldun provided one of the first descriptions of economic growth in his Muqaddimah (known as the Prolegomena in the Western world) (cited in Weiss, 1995): When civilization [population] increases, the available labor force increases again. In turn, luxury increases again according to the increase in profit, and the habits and needs of luxury increase. Crafting is created to obtain luxury goods. The value gained from it increases and, therefore, profits are multiplied again in the city. Production there is even more flourishing than before. And the same goes for the second and third increases. All additional work serves luxury and wealth, unlike the initial work which served the necessities of life. Economic growth is an important part of economic theory and one of the most important problems that economists have tried to explain concerns differences in the growth rates of countries. . Economic growth has been a topic of discussion since the days of the Physiocrats and Adam Smith. In his book “The Wealth of Nations” (1776), Adam Smith describes economic growth as the improvement and increase of capital. David Ricardo in “The Theory of Com...... middle of article......baldi et al. (2008) analyze the role of institutions and innovation in economic growth. The model examines how institutional constraints affect growth rates and establishes a framework for studying the interactions between institutions and human capital. Their work focuses on the effects of institutional quality on the allocation of human capital to research and development and, in the case of economies with poor institutions, on how human capital influences growth. Through their analysis, they were able to see that the long-term growth rate is influenced by the growth rate of innovation, which is also determined by the growth of institutions. On the other hand, in the short term, if institutions are not able to keep up with innovation on the path of change, thereby creating obstacles to growth, the growth rate of the economy will decline and hence innovation will also slow down..