ERC Advanced Grant · 2024
Break-Through Innovation - R D Misallocation, Green Innovation, and the AI Revolution
This research project will confront theory and data to analyze the underpinnings and the effects of breakthrough innovation. We explore three main questions. First question: How should we design R&D policy to induce breakthrough innovation? Why do we observe more incremental innovations in Europe than in the US? We shall address this question using an extension of the Schumpeterian growth paradigm where both the size and sources of markups differ across firms. Firms may be big as a result of breakthrough innovation, or for other reasons, including the lack of competition. In this part of the project, we shall provide new tools to empirically distinguish between these different sources of…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.