Skip navigation

The complex inequality-innovation-public investment nexus

The complex inequality-innovation-public investment nexus

Botta, Alberto (2015) The complex inequality-innovation-public investment nexus. [Working Paper]

[img]
Preview
PDF
GPERC13_BottaF.pdf - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (1MB)

Abstract

In this paper, we deal with the complex relationship connecting inequality to innovation, and the ways through which public investment can affect it. We first stress that inequality and innovation may interact in many different ways. The positive relation that part of the economic theory often assumes to exist between (initially) rising inequality and improving innovation performances emerges as only one among many other far less virtuous dynamic trajectories. We then analyze the specific case of the US. We put emphasis on the possible perverse effects that the financialization of the US economy may have on the inequality-innovation nexus. We note that the US developmental State - very often neglected by the economic literature - can effectively mitigate such undesirable outcomes. According to our interpretation of recent developments in the US economy, the widespread belief in the positive pro-innovation effects of fierce cutthroat remuneration systems may prove to be ungrounded.

Item Type: Working Paper
Uncontrolled Keywords: inequality; innovation; financialization; public investment; developmental state;
Subjects: H Social Sciences > H Social Sciences (General)
Faculty / Department / Research Group: Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Related URLs:
Last Modified: 19 Nov 2015 15:13
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/14064

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics