Lucia Foster, Cheryl Grim, John Haltiwanger, Zoltan Wolf, 17 June 2018

Measuring innovative activity itself, rather than proxies such as R&D expenditures or patent volumes, is difficult. This column shows how patterns of economic activity can be used to measure increased innovative activity within firms. This ‘searching for black holes’ approach can be used to better understand the connection between innovation and productivity dispersion and growth.

Giulia Faggio , Kjell G. Salvanes, John Van Reenen, 25 November 2007

Much of the growing wage inequality stems from increased inequality between firms rather than within firms, suggesting inequality is driven by changes in firm-level productivity related to new technology rather than to international trade or institutions. Trade protectionism or re-energising unions may do relatively little to reverse the increase in inequality.

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