A toolkit of policies to promote innovation
By Nicholas Bloom, John Van Reenen, Heidi L. Williams. Voprosy Ekonomiki, 2019
414 citations recorded by the source corpus.
Economic theory suggests that market economies are likely to underprovide innovation because of the public good nature of knowledge. Empirical evidence from the United States and other advanced economies supports this idea. We summarize the pros and cons of different policy instruments for promoting innovation and provide a basic “toolkit” describing which policies are most effective according to our reading of the evidence. In the short run, R&D tax credits and direct public funding seem the most productive, but in the longer run, increasing the supply of human capital (for example, relaxing immigration rules or expanding university STEM admissions) is likely more effective.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/9e777c320f1b09e6322fa6b97d3c4673529a257f
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In Economics and Econometrics
Citations in the corpus
- The Labor Market Impacts of Technological Change: From Unbridled Enthusiasm to Qualified Optimism to Vast Uncertainty (2022, background): “Arguably, the U.S. has let those important R&D investments wither (Bloom et al. 2019).”
- Innovation, growth and the transition to net-zero emissions (2021, background): “Product market competition also shapes firm innovation, and while the impact is theoretically ambiguous (Bloom et al., 2019), the empirical evidence generally suggests that competition increases”
- Notching R&D Investment with Corporate Income Tax Cuts in China (2018, neutral): “This is a salient issue for policymakers in developed countries (GAO, 2009; Bloom et al., 2019) and is likely a more severe problem in developing economies (Bachas and Soto, 2019; Best et al., 2015).”