Why invention is important for today's economy?

Question

Why invention is important for today's economy?

Answer 1

Efficiency.

Answer 2

Inventions and innovation (to technology) help drive the costs of production downwards, thus helping to maximize a firm's profit and to improve efficiency in the very long run (variable technological changes).  New technology encourages firms to enter industries in which they can seek a profit, and with the lower costs of production because of the new technology, they'll make more profits (older companies, stuck with older tech, will have high costs and will only be able to produce until the cannot pay their average variable costs (day-to-day expenses) anymore -- new companies will work towards MES).

[Answer: see above]