Government funding for innovation related to military uses represents a key channel through which governments all over the world shape innovation. In the US, for example, annual government defence-related research and development (R&D) expenditures were $78 billion in 2016, over 57% of all government-funded R&D (Congressional Research Service, 2018). While defence-related R&D is motivated by goals that are not […]
Christine Lagarde’s reign at the European Central Bank (ECB) has heralded a shift not in the monetary policy field, but mainly in terms of communication, at least judging from her first press conference in December. She is not Mario Draghi or Jean-Claude Trichet, her predecessors, and she wants to affirm her own different style as President. “Each and every […]
Innovative firms pay workers more than others do. This fact is well known from endogenous growth theories, which state that as technology advances, innovative firms should get more rents, which should translate into higher wages. Empirically in the UK over the period 2004-2016, an average worker in a non-innovative firm was paid about 20 per cent less than an […]
The Economist’s recent briefing “Measuring the 1%: Economists are Rethinking the Numbers on Inequality” has caused a stir amongst inequality scholars. The report, published at the end of November 2019, suggests that new US research has refuted the widely held view that economic inequality has been rising in recent decades. Researchers at LSE’s International Inequalities Institute disagreed with their take, so we […]
Technological advances have made it possible for everyone to know potentially everything about everyone else. Sci-fi shows such as Netflix’s Black Mirror imagine dystopian scenarios that could result from these new technologies. In the real world, social media is already allowing individuals to disclose details about their personal lives with strangers. This technological change has sparked a policy debate […]
In 1960, Cuba and Hong Kong had a similar level of GDP per capita at around $4,500 in today’s money. By 2018 Cuba’s GDP per capita had risen to around $9,000. By contrast, Hong Kong had reached $64,000 per capita, a similar level to the US and Switzerland. Over 60 years, Cuba had doubled its economic prosperity where Hong […]
How to improve social mobility. Merely tweaking existing policies won’t do, but four major changes have the potential to transform society.
To meet its ambitious ‘net zero’ target, the UK will need to ramp up climate change policies. Slower growth resulting from Brexit may reduce emissions in the short run, but less R&D investment will likely result in higher emissions […]
Ever since the United Kingdom decided to leave the European Union in June 2016, one question has been on the minds of many Europeans: which other member states could leave the EU in the years ahead? In fact, one argument among Brexiteers in the run-up to the referendum was that the UK needs to break free from the EU […]
In his recent Wilson Center speech, Vice-President Pence argued that US trade policy towards China must now be built upon the premise that China is a “strategic and economic rival”. This change in perspective has naturally led the US to rethink its current trade policy with China, and this rethinking has in turn put the US and China on […]
The reduction of greenhouse gas (GHG) emissions is an increasingly important policy objective for many governments, both in developed and developing economies. This is reflected, among other things, in the emergence of energy efficiency as a high-priority topic on the policy agenda.
In manufacturing – one of the key sectors from the point of view of GHG emissions and energy […]
When entrepreneurs start a new venture, they enter a demanding, changing and emotional process. To navigate through this process, they need to have their batteries fully charged, with positive feelings and emotions, as this will help ensure good health. Conversely, it seems plausible to think that, as chronic insomnia increases stress levels and negative emotions, this will have an adverse […]
The UK labour market, at first glance, seems to be playing at Dr Jekyll and Mr Hyde. Employment (in terms of both levels and rates) is at record highs, yet wage growth has been extraordinarily weak. One view is that these are opposite sides of the same coin. Another, more nuanced standpoint is that record employment is hiding a […]