Here’s a quote from John K. Galbraith’s 1952 book American Capitalism: The Concept of Countervailing Power
The idea that we slowly run out of good ideas and, thus, innovation becomes harder and more expensive over time is very much en vogue again these days.
- Bloom, Jones, Van Reenen and Webb released a working paper this year with the title “Are Ideas Getting Harder To Find?”. They provide evidence from case studies and empirical estimates showing that R&D productivity in the private economy is declining, which has a negative effect on economic growth rates.
- I have argued here and here that a decline in research productivity could be a reason for increasing productivity differences within industries and the rise of superstar firms.
- In his book “The Rise and Fall of American Growth” Northwestern University economist Robert J. Gordon doubts whether the fast pace of economic and technical change that we…
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