Aligning executive incentives such as stock options with firms’ long-term growth objectives is crucial for promoting innovation. A new study examined the magnitude of this effect, focusing on a 2005 change in tax regulations that made providing stock options more expensive.
Innovation Files Blog
March 25, 2019
Fact of the Week: Firms that Significantly Reduce Executive Stock Options Have 66 Percent Lower R&D Investment Two Years Later
March 21, 2019
Over the years, there have been multiple congressional attempts to secure open Internet protections. Yet another bill, this one crafted by Democrats in both the House and the Senate, is known as the “Save the Internet Act of 2019.” On introduction, we at ITIF called this bill a non-starter because it returns broadband to a Title II classification.
March 18, 2019
Fact of the Week: Immigrant-Owned High-Tech Firms Outperform Native-Owned Firms Across 15 of 16 Measures of Innovation
Proponents of increased high-skilled immigration routinely cite research that measures the size and growth of firms created by immigrant entrepreneurs. A new study goes farther, examining the performance of immigrant-owned high-tech firms across 16 metrics of innovation, from the production of publishable findings to patent applications.
March 15, 2019
UK Digital Competition Study Misses the Mark by Assuming Large Internet Platforms Require Stricter Antitrust Scrutiny
A new study for the UK government calls for more aggressive antitrust enforcement against big Internet companies. It is likely to provide momentum to those who advocate for a fundamentally different approach to antitrust than the one pursued over the last 40 years, which would deter innovation, increase prices, and lower quality.
March 11, 2019
In the decades since 1980, there has been a global trend in which income inequality between countries has decreased while income inequality within countries has increased, and many have attributed the latter to technological innovation.
March 4, 2019
Between 1993 and 2003, Canada’s labor productivity grew at an average rate of 1.6 percent annually. The following decade, average labor productivity growth fell by more than a third to 1.0 percent, with comparable slowdowns occurring in most OECD countries, dampening economic growth globally. A new study examined the influence of ICT use and production on Canada’s labor productivity growth from 1993 to 2014, finding significant declines in ICT investment and ICT-driven growth.
February 25, 2019
A new study has sought to quantify this impact, tracking the availability of drugs released after 1981 that are designed to treat 66 diseases across 27 countries.
February 21, 2019
Proceed With Caution When Considering New, Flawed Study on the Economic Impact of Bonus Depreciation
A new study on the economic impact of bonus depreciation for investment in machinery and equipment has been getting attention because of its conclusion that the incentive is not only wasteful, but harmful. In reality, nothing could be further from the truth.
February 19, 2019
In the decade since the global financial crisis, the Chinese government has moved aggressively to stimulate capital investment that will strengthen its competitive position, both domestically and in global markets.
February 11, 2019
Both EDPS and CPDP have paid a lot of lip service to the importance of ethics. It is time to turn those words into actions and be clear about where it stands on an inappropriate and offensive recent statement by Giovanni Buttarelli.