The complex inequality-innovation-public investment nexus: what we (don’t) know, what we should know, and what we have to do

Content Provider	Semantic Scholar
Author	Botta, Alberto
Copyright Year	2017
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 analyse 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 cut-throat remuneration systems may prove to be ungrounded.
Starting Page	275
Ending Page	298
Page Count	24
File Format	PDF HTM / HTML
DOI	10.1080/07360932.2016.1150867
Volume Number	46
Alternate Webpage(s)	https://www.boeckler.de/pdf/v_2015_10_24_botta.pdf
Alternate Webpage(s)	http://www.postkeynesian.net/downloads/working-papers/PKWP1506_yvWexHV.pdf
Alternate Webpage(s)	https://doi.org/10.1080/07360932.2016.1150867
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article