Hot on Facebook

Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Our Economic Cure? Innovation

Innovation, and making it more efficient, can turn gray skies blue

By Wesley Oliver, Newser Staff

Posted Sep 14, 2008 1:37 PM CDT

(Newser) – Democrats and Republicans do have something in common: Both parties are wrong on how to resuscitate the flat-lining US economy, Michael Mandel argues in BusinessWeek. Tax cuts or increased government spending aren’t the cure. “Innovation is the best—and maybe the only—way the US can get out of its economic hole,” Mandel insists, adding that money alone isn’t enough.

He finds hope in the new field of innovation economics, which is looking for tangible ways to get results from investments in research and development. "One of the hottest areas in the field is the use of government aid to cultivate 'innovation clusters,' or collections of local companies and academic institutions working together to create new products and processes." If such ideas succeed, they will render partisan debates moot.

[Images (2)]

[Quotes (3)]

"95% of economists agree that innovation is the most important thing for long-run growth," said an MIT researcher. (Shutter Stock)

Some economists favor conducting more R&D overseas because scientists and engineers are cheaper elsewhere, and global collaboration can improve results by bringing in more diverse perspectives. (Shutter Stock)

« Prev« Prev | Next »Next » Slideshow

The main purpose of economic policy should be to spur innovation and growth. - Robert Atkinson, economist

America still is a leader in resources devoted to innovation. But it can't compete with China, India, and other developing countries on labor costs.
- Michael Mandel, BusinessWeek

Innovation is not just exerting effort and spending money. It's problem-solving.
- Karim Lakhani, Harvard Business School

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

R&D Dollars Flow Even as Revenues Slump

Firms see innovation as key to post- recession success

(NEWSER) - Revenues may be plummeting, but US companies spent as much on research and development in 2008’s fourth quarter as they did in 2007's, the Wall Street Journal reports. Analysts point to products like the iPod, introduced during the last recession, as proof that continued R&D outlay can lead to recovery triumph. Firms know cutting is “suicidal,” one analyst says. “It is the last shoe to drop.” More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Our Economic Cure? Innovation