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Innovation and inequalities

Author

Listed:
  • Philippe Aghion

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance - CdF (institution) - Collège de France)

  • Rachel Griffith

    (University of Manchester [Manchester], Institute for Fiscal Studies - University of Manchester [Manchester])

Abstract

Innovation can affect inequalities in many ways – increasing some inequalities and decreasing others. An innovation can introduce a new good, improve the quality of existing goods, or lead to new ways of doing things. It can be produced by large firms, by small firms, by individuals working in their garden shed, by the public sector or by charities or non-governmental agencies. The impact of any particular innovation on inequalities will depend importantly on who controls the property rights to exploit the innovation and what they decide to do with it. The introduction of an innovation can affect the power of different actors in a market, the way markets work, and the returns to different attributes of actors in the market. All of these factors and more will influence how innovation affects inequalities.

Suggested Citation

  • Philippe Aghion & Rachel Griffith, 2021. "Innovation and inequalities," Post-Print halshs-03672094, HAL.
    • Handle: RePEc:hal:journl:halshs-03672094
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