Jonathan Skinner of Dartmouth University reviews “Why Not Better and Cheaper? Healthcare and Innovation” by James B. Rebitzer and Robert S. Rebitzer. The Econlit abstract of this book begins: “Considers why the US health-care system is becoming neither better nor more affordable over time, contending that the health sector generates the wrong kinds of innovation by making it easy to profit from low-value innovations and difficult to do the same from innovations that reduce care costs

Entrepreneurship is thought to be a key driver of economic growth. While there are myriad forms of entrepreneurship, ranging from self-employment to small and medium size enterprises to technology- and innovation-driven startups, recent research provides evidence that the relationship between entrepreneurship and economic growth is driven not by overall quantity of new firm entry, but rather by a small subset of high-growth startups that are primarily categorized as innovation-driven. This paper provides a survey of the growing literature on the economics of such innovation-driven entrepreneurship. We begin by distinguishing between the various forms of entrepreneurship, which are often confounded in both theory and empirical work. We lay out the current state of knowledge, and describe the challenges faced by researchers in the field, particularly around measurement, data and identification. We conclude with an overview of the major open questions and directions for future research in the area.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org

This paper reviews the extant empirical studies of financial innovation. Adopting broad criteria and spanning a long time horizon, we found surprisingly few studies (39), with most (23) having been conducted since 1998. Especially striking is that only two studies test hypotheses advanced in many descriptive articles as to the economic/environmental conditions that encourage financial innovation. We offer conjectures as to why empirical studies of financial innovation are comparatively rare, including as a culprit the absence of accessible data. We urge financial regulators to undertake more surveys of financial innovation and to make the resulting data available to researchers

This paper reviews the extant empirical studies of financial innovation. Adopting broad criteria, the authors found just two dozen studies, over half of which (fourteen) had been conducted since 2000. Since some financial innovations are examined by more than one study, only fourteen distinct phenomena have been covered. Especially striking is the fact that only two studies are directed at the hypotheses advanced in many broad descriptive articles concerning the environmental conditions (e.g., regulation, taxes, unstable macroeconomic conditions, and ripe technologies) spurring financial innovation. The authors offer some tentative conjectures as to why empirical studies of financial innovation are comparatively rare. Among their suggested culprits is an absence of accessible data. The authors urge financial regulators to undertake more surveys of financial innovation and to make the survey data more available to researchers

The book begins with a quote from J.H. Dales’ Pollution, Property, and Prices, "If it is feasible to establish a market to implement a policy, no policy-maker can afford to do without one." This book provides important evidence in support of Dales’ statement. The book is a thorough examination of the first several years of the U.S. Acid Rain Program. This innovative program uses a cap-and-trade approach, rather than the traditional command-and-control approach, to reduce sulfur dioxide (SO2) emissions. The book offers substantial evidence of the program’s success. The analysis is of both practical and scientific importance. From a practical viewpoint, the acid rain program is an ambitious effort to reduce a major pollutant. It is important for us to understand whether the program is successful and how it might be improved. From a scientific viewpoint, the authors’ analysis provides a framework and methodology for evaluating similar programs. There is much we can learn about effective regulation from the analysis

David Robinson of Duke University and NBER reviews “How Progress Ends: Technology, Innovation, and the Fate of Nations” by Carl Benedikt Frey. The Econlit abstract of this book begins: “Explores the dynamic interaction between technological change and economic progress, highlighting the fragility of progress by means of a historical analysis of autocracies and liberal democracies alike

David B. Audretsch of Max Planck Institute of Economics reviews “Prophet of Innovation: Joseph Schumpeter and Creative Destruction” by Thomas K. McCraw,. The EconLit Abstract of the reviewed work begins “Presents a biography of Joseph Alois Schumpeter (1883-1950), focusing on his relationship with capitalist innovation. Concentrates on l'enfant terrible, 1883-1926--innovation and economics; the adult, 1926-39--capitalism and society; and the sage, 1939-50--innovation, capitalism, and history. McCraw is Straus Professor of Business History Emeritus at Harvard Business School. Index

This book offers a radical thesis: Technological innovation often benefits elites while worsening conditions for workers, challenging the common view that technology always improves living standards. Through historical transitions like the Industrial Revolution, the authors illustrate how innovations have frequently led to worker exploitation. They argue that governance, rather than competition, determines whether technological advances benefit society. In the digital age, platforms exploit user data without fair compensation, causing harm through addictive services and poor regulation. The book calls for stronger regulations to protect consumers and ensure that innovation aligns with societal well-being, especially as artificial intelligence spreads

Victor Aguirregabiria of U of Toronto reviews “Entrepreneurship, Growth, and Innovation: The Dynamics of Firms and Industries” by Enrico Santarelli,. The EconLit Abstract of the reviewed work begins “Thirteen papers explore the factors that combine with entrepreneurship and innovation to influence firm and industry dynamics. Papers discuss a market model of perfect competition under uncertainty--heterogeneous firms and technologies; industry dynamics a la Stackelberg with stochastic capital accumulation; Gibrat's law--an overview of the empirical literature; entrepreneurship in the old and new Europe; new firm formation and the region--empirical results from the United States; research and development intensity and the relationship between firm size and growth in Germany; Gibrat's Law in a medium-technology industry--empirical evidence for Italy; entrepreneurship, innovation, and the evolution of industrial districts; innovation premium and the survival of entrepreneurial firms in the Netherlands; foreign presence, technical efficiency, and firm survival in Greece--a simultaneous equation model with latent variables approach; entrepreneurship, industrial restructuring, and unemployment in Portugal; transferring the risk of failure, entrepreneurship, and firm dynamics in Turkish manufacturing; and what is the best policy for innovative entrepreneurship. Santarelli is Professor of Economics at the University of Bologna and Research Professor at the Max Planck Institute of Economics. Author and subject indexes

Marc-Andreas Muendler of University of California, San Diego and CESifo reviews “Multinational Firms, Innovation and Productivity” by Davide Castellani, Antonello Zanfei,. The EconLit Abstract of the reviewed work begins “Explores how and why firms differ in internationalization, innovation, and productivity, and examines the implications of this diversity within industries. Discusses views on multinational firms and innovation; the double network structure of multinational firms--a review of the evidence; heterogeneity and international involvement; heterogeneity across and within multinational firms; multinational firms and spillovers--theoretical, methodological, and empirical issues; and the search for horizontal spillovers from multinationals--the role of firms' heterogeneity. Castellani is Professor of Applied Economics, and Zanfei is Professor of Industrial Economics, at the University of Urbino. Index