Health insurance, innovation, and technology adoption
Joan Costa-i-Font, Alistair McGuire, Victoria Serra-Sastre 19 January 2013
Although healthcare innovation can make treatment cheaper, it can also make policy decisions more difficult by introducing new, better but more expensive technologies. This column argues that, unlike other technologies, healthcare technology is intermediated by insurance mechanisms, both private and public. Although health insurance coverage incentivises expenditure on innovation, it does not seem to heighten technology adoption, a challenge to the idea that innovation increases healthcare costs. Indeed, evidence suggests that technology diffusion is limited by other institutional barriers.
With government budgets under pressure in mature economies, burgeoning healthcare expenditures are under scrutiny. In this light, healthcare innovation can either help by developing new cheaper treatments or make healthcare policy decisions more difficult by introducing new, better but more expensive technologies.
health, technology, research and development
What happens to R&D in domestic multinationals after foreign acquisition?
Roger Bandick, Holger Görg, Patrik Karpaty 15 January 2011
With foreign ownership of domestic companies becoming increasingly common, questions are mounting as to the consequences. One area of concern is the effect on research and development. This column presents new evidence from Sweden, where flagship firms such as Volvo and Saab are now foreign owned, that it hopes will reassure policymakers.
The recent waves of cross-border mergers and acquisitions have raised the question as to what will happen to the domestic firms, and in particular the headquarter activities of domestic multinationals, once they are acquired by a foreign owner.
In Sweden – a nation with particularly good data on its multinationals – this is an important issue. Former flagship Swedish multinationals such as Volvo, Saab, Asea, and Astra have all been acquired by foreign owners and, therefore, are no longer Swedish. And of course similar events are observed or mooted in many other countries.
Global economy Productivity and Innovation
globalisation, multinational companies, research and development
You can raise productivity through R&D, but geography matters a lot
Sergey Lychagin, John Van Reenen, Margaret E Slade, Joris Pinkse 25 October 2010
Why do local policymakers fight so hard to attract research and development labs to their area? This column provides a possible explanation. Using patent data, it finds a strong link between R&D and growth caused by knowledge spillovers between firms.
President Obama recently proposed increasing the generosity of the US research and development (R&D) tax credit system and making it a permanent feature of the US tax code. This was justified by the idea that more R&D would lead to growth, not just worldwide but particularly in the US.
But such a bold statement raises some fundamental questions:
Productivity and Innovation
productivity and innovation, innovation, agglomeration, economic geography, research and development
Financial constraints and innovation: Why poor countries don't catch up
Yuriy Gorodnichenko, Monika Schnitzer 08 April 2010
How can poor countries stop playing catch up? The question continues to puzzle economists. This column argues that the innovative and productive activities of domestic firms in emerging markets are inhibited by financial frictions. Financial reforms will be most effective if they target the vulnerable small and young domestic firms and those in the service sector.
Does international assistance spur development? Dambisa Moyo’s critical evaluation of aid in Africa has once more caused us to question what we really know about growth and development (see for example Easterly 2009, Moyo 2009, Sachs 2009).
Development Productivity and Innovation
investment, financial frictions, research and development