The Role of Innovation and Entrepreneurship in Economic Growth

by Michael J Andrews (Editor), Aaron Chatterji (Editor), Josh Lerner (Editor), Scott Stern (Editor)

Overview

This volume presents studies from experts in twelve industries, providing insights into the future role of innovation and entrepreneurship in driving economic growth across sectors.

We live in an era in which innovation and entrepreneurship seem ubiquitous, particularly in regions like Silicon Valley, Boston, and the Research Triangle Park. But many metrics of economic growth, such as productivity growth and business dynamism, have been at best modest in recent years. The resolution of this apparent paradox is dramatic heterogeneity across sectors, with some industries seeing robust innovation and entrepreneurship and others seeing stagnation. By construction, the impact of innovation and entrepreneurship on overall economic performance is the cumulative impact of their effects on individual sectors. Understanding the potential for growth in the aggregate economy depends, therefore, on understanding the sector-by-sector potential for growth. This insight motivates the twelve studies of different sectors that are presented in this volume. Each study identifies specific productivity improvements enabled by innovation and entrepreneurship, for example as a result of new production technologies, increased competition, or new organizational forms. These twelve studies, along with three synthetic chapters, provide new insights on the sectoral patterns and concentration of the contributions of innovation and entrepreneurship to economic growth.

Product Details

ISBN-13:	9780226810782
Publisher:	University of Chicago Press
Publication date:	03/17/2022
Series:	National Bureau of Economic Research Conference Report
Edition description:	First Edition
Pages:	648
Product dimensions:	6.00(w) x 9.00(h) x 1.70(d)

About the Author

Michael J. Andrews is assistant professor of economics at the University of Maryland, Baltimore County.


Aaron K. Chatterji is the Mark Burgess and Lisa Benson-Burgess Distinguished Professor at Duke University’s Fuqua School of Business, professor at the Sanford School of Public Policy, and a research associate of the National Bureau of Economic Research.


Josh Lerner is chair of the Entrepreneurial Management Unit and the Jacob H. Schiff Professor of Investment Banking at Harvard Business School. He is a research associate and codirector of the Productivity, Innovation, and Entrepreneurship Program at the National Bureau of Economic Research.


Scott Stern is the David Sarnoff Professor of Management and chair of the Technological Innovation, Entrepreneurship, and Strategic Management Group at MIT Sloan School of Management. He is a research associate and director of the Innovation Policy Working Group at the National Bureau of Economic Research.

Table of Contents

Acknowledgments xi

Introduction: Beyond 140 Characters Michael J. Andrews Aaron K. Chatterji Scott Stern 1

I Productivity Drivers

1 The "Weighty" Manufacturing Sector: Transforming Raw Materials into Physical Goods Erica R. H. Fuchs Christophe Combemale Kate S. Whitefoot Britta Glennon 31

2 Concentration and Agglomeration of IT Innovation and Entrepreneurship: Evidence from Patenting Chris Forman Avi Goldfarb 95

3 Innovation, Growth, and Structural Change in American Agriculture Julian M. Alston Philip G. Pardey Comment: Brian Davern Wright 123

4 Innovation and Entrepreneurship in the Energy Sector David Popp Jacquelyn Pless Ivan Hascic Nick Johnstone 175

II The On-Demand Economy

5 What's Driving Entrepreneurship and Innovation in the Transportation Sector? Derrick Choe Alexander Oettl Rob Seamans Comment: Gilles Duranton 251

6 The Recent Evolution of Physical Retail Markets: Online Retailing, Big Box Stores, and the Rise of Restaurants Francine Lafontaine Jagadeesh Sivadasan Comment: Emek Basker 291

7 The Servicification of the US Economy: The Role of Startups versus Incumbent Firms Mercedes Delgado J. Daniel Kim Karen G. Mills Comment: Sharat Ganapati 371

8 Digitization and Its Consequences for Creative-Industry Product and Labor Markets Joel Waldfogel Comment: Gustavo Manso 397

III The Cost Disease Sectors

9 Innovation in the US Government Joshua R. Bruce John M. de Figueiredo Comment: Manuel Trajtenberg 433

10 Venture Capital-Led Entrepreneurship in Health Care Amitabh Chandra Cirrus Foroughi Lauren Mostrom 475

11 Innovation and Entrepreneurship in Housing Edward Kung Comment: Jessie Handbury 499

12 Education and Innovation Barbara Biasi David Deming Petra Moser Comment: Eleanor Wiske Dillon 537

Panel Remarks: Creating "Smart" Policy to Promote Entrepreneurship and Innovation Karen G. Mills Annie V. Dang 559

Panel Remarks: Measuring Business Innovation Using a Multidimensional Approach Lucia Foster 569

13 Where Innovation Happens, and Where It Does Not Benjamin F. Jones 577

Contributors 603

Author Index 607

Subject Index 617

Editorial Reviews

"In a period when productivity growth and dynamism have slowed across the advanced economies and policy-makers and academics are left searching for answers, The Role of Innovation and Entrepreneurship in Economic Growth offers
in-depth, accessible and policy-relevant lessons to a wide audience. Whether you are interested in policy, innovation and growth research, are a business trying to understand the trends in your market, or just someone starting to think about
the above-mentioned topics, then this book will offer an intriguing read."

National Bureau of Economic Research Review