Template-Type: ReDIF-Paper 1.0
Title: Can Innovation Policy Restore Inclusive Prosperity in America?
Author-Name: John Van Reenen
Abstract: US productivity growth—the engine of long-run wage growth—has been
  lackluster for the past decade. Meanwhile, US public investment in
  research and development (R&D), is near historic lows. Although private
  sector R&D investment has increased over time private sector funding is
  insufficient to bring about desired gains in productivity growth and
  wages.  Van Reenen argues the U.S. should pursue a robust innovation
  policy composed of tax credits, direct subsidies, and human capital
  investments, which have been shown to spur innovation and wage growth.
  He proposes combining these approaches into a 10-year $1 trillion Grand
  Innovation Challenge, which would reinvigorate R&D investment, promote
  American technological leadership, and advance policy goals of inclusive
  growth. Van Reenen also recommends against policies that give
  preferential tax treatment for corporate revenues derived from patents
  (patent boxes), lower individual income taxes, and support trade
  protectionism, which are strategies that have thus far failed to promote
  innovation.
Creation-Date: 2019-11-01
Keywords: innovation, growth, inequality
File-URL: https://www.economicstrategygroup.org/wp-content/uploads/2026/06/Can-Innovation-Policy-Restore-Inclusive-Prosperity-in-America.pdf
File-Format: Application/PDF
Handle: RePEc:cxx:wpaper:can-innovation-policy-restore-inclusive-prosperity-in-america