Making innovation benefit all: Policies for inclusive growth”
07 March 2017
MIT Stata Center
Over the past three decades, income disparities within countries have risen to levels unseen for long, showing that growth does not necessarily improve welfare of all citizens. In shaping the compensation of labor and capital, innovation and new technology have impacts on the distribution of income. Schumpeter’s innovation-based model of economic growth predicts distributional consequences: entrepreneurs introducing new products are rewarded by monopoly rents, while those relying on now obsolete products fall from creative destruction. There is evidence that digital innovation has magnified these impacts.
At the same time new technology like mobile phone, accessible to most of the population including in developing countries, has contributed to making growth more inclusive. The presentation will discuss two questions that are critical to the innovation for inclusive growth policy agenda:
- What are the impacts of innovation and the emerging digital economy on inclusive growth?
- How can innovation policies support inclusive growth agendas?