Productivity and Innovation

Philippe Aghion, Ufuk Akcigit, Antonin Bergeaud, Richard Blundell, David Hemous, 28 July 2015

In recent decades, there has been an accelerated increase in top income inequality, particularly in developed countries. This column argues that innovation partly accounts for the surge in top income inequality and fosters social mobility. In particular, the positive effect of innovation on social mobility is due to new innovators.

Sourafel Girma, Yundan Gong, Holger Görg, Sandra Lancheros, Christiane Krieger-Boden, 24 July 2015

In the run-up to WTO accession in 2001, China considerably liberalised its policy towards FDI. This column argues that foreign acquisitions contributed significantly to raising export activities and R&D activities, though rather through joint ventures than whole acquisitions.

Johan Hombert, Adrien Matray, 11 July 2015

The rise of China has been identified as a major source of disruption for the manufacturing sector in high-income economies. This column argues that innovation helps firms to escape import competition from low-wage countries. It uses variation in R&D tax credits across years and US states to show that firms' R&D capital stock has a causal effect on their resilience to trade shocks.

Stephen Cecchetti, Enisse Kharroubi, 07 July 2015

A booming financial sector means economic growth. Or does it? This column presents new evidence showing that when the financial sector grows more quickly, productivity tends to grow disproportionately slower in industries with either lower asset tangibility or in industries with higher research and development intensity. It turns out that financial booms are not, in general, growth-enhancing.

Yasuyuki Todo, Petr Matous, 26 June 2015

Firm networks affect innovation and growth through diffusion of knowledge and information. This column argues that promoting ties with firms outside of the region should be an important part of cluster policies. Such ties can bring new information to the region and can enhance innovation. Distant firm partners can also help in the short-run recovery after a disaster, as was the case following the 2011 earthquake in Japan.

Other Recent Articles: