A Dozen Economic Facts About Innovation

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Released: August 2011

Related Topics: Technology & Innovation

Authors:

Adam Looney • Policy Director, The Hamilton Project; Senior Fellow, The Brookings Institution
Michael Greenstone • Director, The Hamilton Project; 3M Professor of Environmental Economics, MIT; Senior Fellow, The Brookings Institution

During the past century, innovation in mechanics, computing technology, medicine, and business practices has driven economic growth, raised wages, and helped Americans lead longer and healthier lives. Since the 1970s, however, the pace of innovation has slowed, leading to lower overall wage growth for American workers. Moreover, those gains that have been made have not been shared equally across society.

Reinvigorating the momentum of innovation that benefits all Americans is imperative to create broad-based economic growth and higher living standards. To take on this challenge, The Hamilton Project held a forum titled "PhDs, Policies, and Patents: Innovation and America’s Future," on June 28, 2011. The discussion explored the evolving role of innovation in driving broad-based economic growth in the United States and in creating the policy environment necessary to foster new ideas in science, technology, and business. From that conference, The Hamilton Project identified the following facts about innovation: