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| Untangling innovation from industrial policy |
| 2020-09-04 |
| [AgglomerationsTech] Untangling innovation from industrial policy https://www.agglomerations.tech/untangling-innovation-from-industrial-policy/ Via: @MargRev "many of the bad. Things like science megaprojects, fostering agglomeration clusters, and basic science funding can all be justified using an innovation externality framework. Policies aimed at increasing the number of "good jobs," subsidizing a specific politically-connected industry, or changing the structure of corporate governance for fairness concerns would not fall into this category. Those things may or may not be desirable on their own merits, but they fall outside the realm of innovation. You could make a case that even some of the more controversial industrial policy proposals could constitute innovation policy if couched in the right terms. For example, Dan Wang and Brad DeLong have both argued the US should deliberately maintain an advanced industrial base, partially so that physical engineers have more overlap with product designers to preserve process knowledge and together make more progress on the technological frontier. But this is precisely the point. The framing of innovation policy changes the terrain of industrial policy discussions such that you have to lay out the specific innovation externality that is being missed in the current equilibrium and run some kind of rough cost-benefit calculation to prove that the intervention will be worth the cost within that framework. It doesn’t answer the question, but it forces the use of a measuring stick." |
| Posted by:newc |
| #3 Is this English? |
| Posted by: g(r)omgoru 2020-09-04 15:41 |
| #2 de Long Wang obAcademia don't intimidate no one |
| Posted by: Thruse Snaiter9189 2020-09-04 13:11 |
| #1 I guess the writer of this article isn't intimidated by DeLong/Wang. |
| Posted by: charger 2020-09-04 13:06 |