Increasing Returns

Increasing returns to me is doing something better over time, due to an increase of some form of knowledge. I think the concept of increasing returns is based solely on increasing a work force's knowledge. When your organizations input cost stay the same, but your outputs continue to grow is an example for increasing returns. I think every business is trying to increase their returns without changing their input cost, and truly the only way to do that would be increase your knowledge assets. To produce more outputs without no more input cost is going to be the new standard in the industry, because of how bad our economy is right now. With businesses laying off, and enforced cut backs, with companies being put into position to figure out how to increase their outputs with less. Our economy problems has put a premium on knowledge, and the survival of all businesses during a tough economy is to be able to produce profits with same inputs. The law of increasing returns solely relies on knowledge assets.