innovation. We first establish a positive and significant correlation between various measures of innovativeness and top income … in the top 1% income share between 1975 and 2010. Finally, we show that innovation does not increase broader measures of … inequality which do not focus on top incomes, and that innovation is positively correlated with social mobility, but less so in …

Innovation and technological progress are the key determinants of long-run economic growth and welfare. Therefore, an … important question is, how can public policy encourage more innovation? In this chapter, I review some of the empirical findings … from various recent studies on innovation and firm dynamics that can shed light on the design of innovation policy. The …