Economic growth is transformative, yet only now are we beginning to understand it. Rising gross domestic product (GDP) can stem from an increase in population or hours worked. Rising GDP per capita can also be driven by more capital per worker or by growing markets with more specialization (sometimes called Smithian growth). But only technical change provides innovation and Schumpeterian growth, which gave us the Industrial Revolution and ever‐rising living standards. In a new brief, Terence Kealey and Martin Ricketts describe the seven stages of understanding of growth driven by innovation.