transformed into modernized machinery that agricultural supply firms can sell to local farmers. Scientists will now study the best solution to this problem and respond by making the appropriate technical development such that producers can efficiently substitute the abundant inputs for the increasingly scarce factors. Ultimately this will lead to a reduction of farmer’s unit costs in the best way. See also Creativity techniques Frugal innovation International Innovation Index References The Theory of Wages, J. R. Hicks, Macmillan, London, 1932. Macroeconomic theories Innovation