Productivity and Innovation

Manuel Hermosilla, Jorge Lemus, 18 March 2018

There has been criticism that the ‘genetic revolution’ heralded by the completion of the Human Genome Project has failed to meet the more optimistic expectations of 15 years ago and that patient outcomes have not materially improved. This column analyses the extent to which basic genetic science has fuelled early-stage drug innovation. The results suggest that alleged ‘slower-than-expected’ progress has been partly caused by the amount of complexity in human biology, which was unexpected prior to the Project’s completion but has been progressively revealed since then.

Gianluca Benigno, Luca Fornaro, 15 March 2018

Existing research offers little guidance to policymakers who want to understand the interactions between economic fluctuations, growth, and stabilisation policies. This column introduces a Keynesian growth framework that provides a theory of long-run growth, built on a Keynesian approach to economic fluctuations. In the model, pessimistic expectations about future growth can give rise to stagnation traps. It suggests that monetary policy during a stagnation trap is hindered by credibility issues.

Vera Rocha, Mirjam van Praag, 10 March 2018

Women are substantially underrepresented in the areas of new venture creation and entrepreneurship. Using Danish data, this column examines an important social interaction that has been relatively overlooked as a possible influence on entrepreneurship choices – the relationship between bosses and employees in start-up firms. Working for a female founder has a strong positive effect on female employees’ likelihood of going on to found their own venture, pointing to the benefits of improving representation at the top.

Diego Comin, Georg Licht, Maikel Pellens, Torben Schubert, 08 March 2018

Governments invest in public applied research institutions in the hope of transferring scientific knowledge to industry and thus boost private innovation. But do these investments actually pay off? This column presents results from the Horizon 2020 FRAME project, in which the activities of Germany’s leading applied research organisation, the Fraunhofer-Gesellschaft, were analysed. When firms collaborate on research projects with Fraunhofer, they do significantly better in terms of growth, productivity, as well as innovation. Furthermore, the macroeconomic benefits of Fraunhofer appear to outweigh its costs.

Giorgio Barba Navaretti, Giacomo Calzolari, Alberto Pozzolo, 01 March 2018

Financial technology companies have spurred innovation in financial services while fostering competition amongst incumbent players. This column argues that although incumbents face rising competitive pressure, they are unlikely to be fully replaced by FinTechs in many of their key functions. Traditional banks will adapt to technological innovations, and the scope for regulatory arbitrage will decline.

Other Recent Articles:


CEPR Policy Research