Mission Innovation—a commitment by the world’s major powers to accelerate innovation in emissions-cutting technologies—has been virtually forgotten. Worse, its signatories are not living up to its terms.
Innovation Files Blog
November 27, 2019
November 25, 2019
Fact of the Week: A 40 Percent Reduction in U.S. Drug Prices Would Lead to as Much as 60 Percent Fewer Novel Compounds Reaching Clinical Testing
Proponents of capping drug prices often dismiss concerns about the impact on pharmaceutical R&D by pointing to the fact that drug prices are much lower internationally than in the United States. But this reasoning fails to consider that price restrictions in other countries have made pharmaceutical companies disproportionately reliant on revenue from the United States.
November 18, 2019
Fact of the Week: Every 10 Percent Increase in Broadband Access in China has Increased Productivity by 1.1 Percent and Wages by 4.2 Percent
Since 2011, the U.S. government has spent over $400 million to provide broadband Internet access to 1.6 million people. A recent study investigated the impact that policies like these can have by examining the construction of broadband infrastructure across China, finding that every 10 percent increase in a region’s infrastructure increased firms’ productivity by 1.1 percent and workers’ wages by 4.2 percent.
November 12, 2019
Fact of the Week: Ninety Percent of 8th Graders in the United States Were Judged to be Proficient in a Test of Computer and Information Literacy, Compared to an International Average of 82 Percent
Ensuring that students are not only capable of using technology, but also of integrating technology into their work is key to providing students with the skills they will need in the modern economy. In 2018, over 46,000 8th graders from 12 developed and developing countries participated in a study of computer and information literacy.
November 12, 2019
While most people agree lying is wrong, nobody seems to agree on what should happen to those lies when politicians publish them on social media.
November 4, 2019
Fact of the Week: Large, Profitable Firms in France Receive Tax Subsidies of 43 Percent on R&D They Perform, Which is More Than 8 Times Greater Than U.S. Subsidies
R&D tax incentives are key to fostering innovation, effectively providing needed public support for research without sacrificing private-sector market incentives. According to a new report by the OECD, the United States is well behind much of the rest of the world in this respect.
November 1, 2019
So, let’s all take a deep breath and say together: “Technological change is not accelerating, but it would sure be nice if it would.”
October 28, 2019
Fact of the Week: Sectors With High “Income Elasticity” Employ Fewer Medium-Skill Workers, Explaining 60 Percent of the Decline in Their Share of Wages Between 1980 and 2016
The U.S. economy has polarized since 1980, with widening gaps between high- and low-skilled wages driving increased inequality. One study has provided a partial explanation for this trend, identifying that sectors with high “income elasticity” (where demand is more sensitive to changes in income) are more likely to employ both high- and low-skilled workers, but less likely to employ medium-skilled workers.
October 23, 2019
Nearly 25 percent of all R&D expenditures in China come in the form of government subsidies to firms. It would be ideal if China dramatically reduced these innovation subsidies so American workers in innovation industries would face a level playing field, but the chances of that happening are slim to none. It is time for the federal government to step up its game and provide significantly more support for industrial R&D.
October 21, 2019
Fact of the Week: Artificial Price Controls Could Lower the Number of new Drugs by 3 to 5 Percent Over the Next Decade
In response to increased public pressure, both Congress and the Trump Administration have recently promoted efforts to reduce the price of prescription drugs in the United States. Several other countries have already imposed measures of their own.