Productivity and Innovation

Wouter den Haan, Martin Ellison, Ethan Ilzetzki, Michael McMahon, Ricardo Reis, 20 February 2017

A majority of UK-based macroeconomists welcome the government’s new industrial strategy, but doubt that the government can deliver. This column, which presents the results of the latest Centre for Macroeconomics and CEPR survey, shows a large majority of economist think that the UK needs a new regional strategy to tackle inequality across different parts of the country.

Martin Watzinger, Thomas Fackler, Markus Nagler, Monika Schnitzer, 19 February 2017

There is growing concern that dominant companies use patents strategically to keep competitors from entering their market. This column uses the landmark 1956 Consent Decree against Bell Labs to explore whether antitrust enforcement is an effective remedy to the problem. Results show that patents can indeed be used as an entry barrier for start-up firms, and that the compulsory licensing of patents can foster market entry and innovation. However, compulsory licensing is found to be ineffective in markets where dominant firms have other means of market foreclosure.

Joel Mokyr, 02 February 2017

Much has been written on why the process of modern economic growth, or ‘the Great Enrichment’, started in western Europe in the 18th century. This column, which first appeared as a chapter in a recent Vox eBook, argues that political fragmentation, coupled with an intellectual and cultural unity, a more or less integrated market for ideas, allowed Europe to benefit from the increasing return associated with intellectual activity.

Ufuk Akcigit, John Grigsby, Tom Nicholas, 02 February 2017

A pressing issue facing policymakers around the globe today is how to generate long-term economic growth through technological innovation. Using a new dataset that matches 19th and 20th century patent records with census data, this column attempts to shed some light on the ‘golden age’ of US innovation. Population density and financial development are found to be important determinants of state innovativeness, while education appears to be the critical input at the individual level. These findings have important implications for innovation policy today.

Sari Pekkala Kerr, William Kerr, Çağlar Özden, Christopher Parsons, 31 January 2017

The distribution of talent and human capital is highly skewed across the world. As high-income countries engage in a global race for talent, the resulting migration of high-skilled workers across countries tilts the deck even further. This column draws upon newly available data to outline the patterns and implications of global talent mobility. Key results include recent dramatic increases in high-skilled migration flows, particularly in certain occupations, in certain countries, among those with higher skill levels, and from a wider range of origins. 

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