Pressure on public finances has increased scrutiny of public support for innovation. We examine two particular issues. First, there have been many recent calls for the (relatively new) UK R&D subsidy to be extended to other “research” activities, such as software. Second, argument still...

We present a harmonized data set on intangible investment for a number of EU countries and an analysis of growth.

We (a) propose an implementable innovation index, (b) relate it to existing innovation definitions and (c) show whole-economy and industry-specific results for the UK market sector, 2000-2005. Our innovation measure starts by observing that we could get more GDP without innovation by simply...

This paper presents a new model of endogenous wage and capital dispersion where heterogeneity is driven by entrepreneurial incentives to pay higher wages in order to attract and retain workers. The main contribution of this model is to provide a framework with microeconomic foundations that give...

This paper contributes to the understanding of how compulsory schooling regulations affect educational attainment and subsequent labour market outcomes. It uses valuable information from a natural experiment driven by rules that allow for variation in legal dropout dates. Since the school...

Previous work by the authors suggested that during the 1970s and 1980s, a person?s early cognitive ability became a less important determinant of his or her eventual educational achievement. Furthermore, over the same time period, family background started to have a greater impact on a person?s...