The return of the Prince of Denmark: a survey on recent developments in the economics of innovation

It is well known that innovation is the engine that drives the growth machine of modern capitalist economies. Therefore, not surprisingly, substantial attention has been devoted by economists to the process behind the production of innovations. Three areas have recently emerged as relevant in the field. These are: the impact of spillovers on productivity; the different forms of R&D cooperation and the role of patents in fostering innovations when these are cumulative. In this paper I summarise the relevant literature in these three areas by discussing where the current literature stands and what are its future developments.

The economics behind the move to 'localism' in England

This paper explores the economic thinking behind the UK Coalition government’s new framework for achieving local growth and the creation of Local Enterprise Partnerships in England. It does so in the light of recent debates about ‘space-neutral’ and ‘place-based’ policymaking. While the British government states its ambition to achieve greater spatial and industrial balance across England (and by implication the UK), we argue that so far at least there is a mismatch between the ‘rhetoric’ and ‘policies’ of local growth and its limitations. These relate to inconsistencies in the way that the different competing economic ideas in circulation within government have been adopted in practice. As a result, the paper highlights six key disconnects and limitations of the economics behind the move in England to local growth.