Found 316 article(s) in category 'Innovation'

The Elusive Promise of Structural Reform

The Elusive Promise of Structural Reform. Dani Rodrik, November 28, 2017, Book Chapter, “This Chapter reconsiders the notion of and rationale for ‘structural reforms.’ Structural reforms are changes in labor and product markets as well as wider institutional changes that aim to increase the efficiency with which labor and capital are allocated in the economy, ensuring that these resources go where their contribution to national income is largest. If successful, such changes promote productivity, investment, and growth. Structural reforms are often part of the conditionality accompanying financial assistance, and the assistance offered to Greece since 2010 is no exception…Link

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How Best to Promote Research and Development

How Best to Promote Research and Development. Ricardo Hausmann, November 24, 2017, Opinion, “Clearly, there is something appealing about a start-up-based innovation strategy: it feels democratic, accessible, and so California. But it is definitely not the only way to boost research and development, or even the main way, and it is certainly not the way most major innovations in the US came about during the twentieth century.Link

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The Real Exchange Rate, Innovation and Productivity

The Real Exchange Rate, Innovation and Productivity. Laura Alfaro, November 2017, Paper, “We evaluate manufacturing firms’ responses to changes in the real exchange rate (RER) using detailed firm-level data for a large set of countries for the period 2001-2010. We uncover the following stylized facts: In emerging Asia, real depreciations are associated with faster growth of firm-level TFP, sales and cash-flow, higher probabilities to engage in R&D and export. We find no significant effects for firms from industrialized economies and negative effects for firms in other emerging economies, which are less export-intensive and more import-intensive.Link

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The Board’s New Innovation Imperative

The Board’s New Innovation Imperative. Linda A. Hill, October/November 2017, Opinion, “As firms scramble for competitive advantage, boards—once the cautious voices urging management to mitigate risk—are now calling for breakthrough innovation. Indeed, avoiding risk is now seen as the riskiest proposition of all. In speaking with CEOs and board members from a range of industries, the authors identified four common obstacles most boards face in governing innovation: an outdated risk agenda, insufficient time, lack of expertise, and a relationship with management that needs retuning. Embracing innovation and its inherent risks requires that boards and senior management develop new ways of working together. To bolster out-of-the-box thinking at their companies, boards should promote diversity among members. They should foster “creative abrasion” to keep ideas flowing and rethink traditional methods of governing. And they must learn to embrace and encourage risk.Link

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Rethinking Macroeconomic Policy: International Economy Issues

Rethinking Macroeconomic Policy: International Economy Issues. Gita Gopinath, October 10, 2017, Paper, “In this paper I make the following ten remarks on the topics of exchange rate policy, capital flow management, protectionism, and global cooperation: 1) The gains to exchange rate flexibility are worse than you think; 2) The ‘Trilemma’ lives on; 3) The U.S. dollar exchange rate drives global trade prices and volumes; 4) Gross capital flows matter as much as net flows, and global banks have internationalized U.S. monetary policy. 5) Emerging markets tilt away from foreign currency to local currency debt reduces their exposure to global risk factors; 6) Low interest rate environments can lead to misallocation of resources and lower productivity; 7) The relationship between global imbalances, reserve accumulation, and currency manipulation is not well identified. 8) Uniform border taxes are not neutral; 9) Trade is not the main driver of earnings inequality, but at the same time policy has failed to address its redistributive consequences. 10) Global coordination of financial regulation is essential alongside country level macroprudential polices. Reserve accumulation and currency swap lines do not substitute for the lender of last resort role of the IMF.” Link

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Green Industrial Policy: Accelerating Structural Change towards Wealthy Green Economies

Green Industrial Policy: Accelerating Structural Change towards Wealthy Green Economies. Dani Rodrik, 2017, Paper, “There are two major reasons for governments and societies to accelerate structural change in their economies and proactively shape its direction. First, there is the challenge of creating wealth. Structural change, that is, the reallocation of capital and labour from low- to high-productivity activities, is a key driver of productivity growth and higher incomes. This is particularly important for developing countries where incomes are low and poverty is pervasive. According to the latest available estimates, 767 million people lived on less than $1.90 a day, and 1.9 billion people in the developing world still had less than US $ 3.10 a day in 20131 – a clear indication that the current structural composition of national economies does not provide a sufficient number of productive jobs.Link

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Should You Agitate, Innovate, or Orchestrate?

Should You Agitate, Innovate, or Orchestrate? Julie Battilana, September 18, 2017, Opinion, “When Marie Trellu-Kane observed increased fragmentation across social and economic lines in France, and increasing youth unemployment, she could not help but respond. In 1994, along with Lisbeth Shepherd and Anne-Claire Pache, she cofounded Unis-Cité, a nonprofit that launched France’s first youth service program, modeled after City Year in the United States. Still the president of Unis-Cité in 2017, Trellu-Kane recalled, “We were 23 [years old] at the time, so we created the organization that we wished would have existed to satisfy our own desires to act on the problems of exclusion and inequality.Link

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Why Competiition in the Politics Industry is Failing America

Why Competiition in the Politics Industry is Failing America. Michael Porter, September 2017, Book, “Many Americans are disgusted and concerned about the dysfunction and abysmal results from Washington, D.C., and so are we. However, this paper is not about adding to the depressing national dialog about politics, but about how to change the system by taking action that will work.Link

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Managing Our Hub Economy

Managing Our Hub Economy. Marco Iansiti, Karim Lakhani, September/October 2017, Opinion, “The global economy is coalescing around a few digital superpowers. We see unmistakable evidence that a winner-take-all world is emerging in which a small number of “hub firms”—including Alibaba, Alphabet/Google, Amazon, Apple, Baidu, Facebook, Microsoft, and Tencent—occupy central positions. While creating real value for users, these companies are also capturing a disproportionate and expanding share of the value, and that’s shaping our collective economic future. The very same technologies that promised to democratize business are now threatening to make it more monopolistic.Link

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