Finance, Innovation and Equity

Driven by industrial innovation, in the last half of the 20th century, the populations of the advanced nations of North America and Europe attained, on average, very high standards of living. Yet, in the first decade of the 21st century, large numbers of people in these nations are economically insecure.

The project studies co-evolution of innovation and firm performance measures (such as growth rates, profits and stock prices) during different periods of the industry life-cycle and in different 'types' of industries.

Innovation is the fundamental engine of growth, employment and better quality of life. Yet, whether we look at it from the point of view of income distribution, welfare effects, quality of life, scientific advances, or sheer profitability, we observe that such advantages are unevenly distributed.

The Lisbon Agenda set out a new industrial policy for an enlarged European Union that aims to enhance long-term economic performance and improve the ability of European firms to generate innovation and growth. This will require improvements in the generation of new knowledge and better translation of new inventions into the commercial innovations that generate productivity improvements and economic growth.