Economic growth is the increase in gross domestic product (GDP) per capita. There is a distinction between nominal and real economic growth, where the former is the growth rate including inflation, while the latter is the nominal rate adjusted for inflation. Furthermore, economic theorists distinguish short-term economic stabilization and long-term economic growth. The topic of economic growth is mainly linked to the long term. The short-run variation in economic growth is called the business cycle. The long-run path of economic growth is one of the central questions of 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, available labor increases again. In turn, luxury increases again in correspondence with the increase in profit, and the customs and demands for luxury increase. Craftsmanship is created to obtain luxury products. The value gained from them increases and, consequently, the profits in the city are multiplied again. Production there is even more thriving than before. And so it goes with the second and third increases. All additional labor serves luxury and wealth, as opposed to the original labor that served the necessities of life. Economic growth is an important part of economic theory, and one of the most significant problems that economists have tried to explain are differences in countries' growth rates. . Economic growth has been discussed since the days of the Physiocrats and Adam Smith. In his book “The Wealth of Nations” (1776), Adam Smith mentioned economic growth as the improvement and increase of capital. David Ricardo in “The theory of Com......middle of the article......baldi et al. (2008) analyze the role of institutions and innovation in economic growth. The model examines how institutional constraints influence growth rates and establishes a framework for studying interactions between institutions and human capital. Their work highlights the effects of institutional quality on the allocation of human capital to research and development and, in the case of economies with poor institutions, how human capital influences growth. Through their analysis, they were able to find 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 unable to follow innovation in the path of change, thus placing barriers to growth, the growth rate of the economy will decrease and therefore innovation will also slow down..