His research is in evolutionary economics applied to historical technological change and sustainable long term economic growth and development. He and his co-authors Richard Lipsey and Clifford Bekar have written extensively on the concept general purpose technologies (GPTs) and how they sustain the process of growth in human well being through millennia. Professor Carlaw and his colleagues published a book on the subject titled Economic Transformations (2005) which was the co-winner of the 2006 Joseph Schumpeter Prize. He has also written extensively on productivity and economic policy related to innovation and technological change.