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Formative assessment is done as students are learning. Summative assessment is at the end (like a test).

Good teachers in every subject will adjust their teaching based upon what students know at each point. Good formative assessment removes the embarrassment of public hand raising and gives teachers feedback that impacts how they're teaching at that moment. Instant feedback.

Consider the same pattern in two other highly innovative countries, Sweden and Israel. Israel ranks first in the world in venture-capital investments as a percentage of GDP; the United States ranks second, and Sweden is sixth, ahead of Great Britain and Germany. These nations do well by most measures of innovation, such as research and development spending and the number of high-tech companies as a share of all public companies. Yet all three countries fare surprisingly poorly in the OECD test rankings. Sweden and Israel performed even worse than the United States on the 2012 assessment, landing overall at 28th and 29th, respectively, among the 34 most-developed economies.

“This country is a lot better at teaching self-esteem than it is at teaching math.” It’s a funny line, but there is actually something powerful in the plucky confidence of American, Swedish and Israeli students. It allows them to challenge their elders, start companies, persist when others think they are wrong and pick themselves up when they fail. Too much confidence runs the risk of self-delusion, but the trait is an essential ingredient for entrepreneurship.

technical chops are just one ingredient needed for innovation and economic success.