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Technical progress and growth since the crisis

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  • Philippe Aghion

    (Harvard University)

  • Céline Antonin

    (Observatoire français des conjonctures économiques)

Abstract

The 2008 crisis revived doubts about growth and resuscitated the debate on secular stagnation initiated by Hansen in 1938. Particularly in a post-crisis context of zero or very low growth, Schumpeterian theory may seem to be outdated. Nevertheless, in this article, we show that it remains a valid conceptual framework. We begin by recalling the main highlights of Schumpeter's model of growth. We then argue that this conceptual framework remains relevant to many aspects of growth, notably secular stagnation, structural reforms and the debate on inequality. We show that because of creative destruction, the growth in productivity induced by innovation is underestimated. In addition, we explain why the Schumpeterian framework calls for a complementarity between structural reforms and macroeconomic policy. Finally, we show the positive impact of innovation and creative destruction on social mobility.

Suggested Citation

  • Philippe Aghion & Céline Antonin, 2018. "Technical progress and growth since the crisis," Sciences Po publications info:hdl:2441/6csh2j6uh89, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/6csh2j6uh895vahlrbkr4vbmgd
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    References listed on IDEAS

    as
    1. Philippe Aghion & Antonin Bergeaud & Timo Boppart & Peter J. Klenow & Huiyu Li, 2019. "Missing Growth from Creative Destruction," American Economic Review, American Economic Association, vol. 109(8), pages 2795-2822, August.
    2. Philippe Aghion, 2017. "Entrepreneurship and growth: lessons from an intellectual journey," Post-Print halshs-01599618, HAL.
    3. Philippe Aghion & Ufuk Akcigit & Antonin Bergeaud & Richard Blundell & David Hemous, 2019. "Innovation and Top Income Inequality," Review of Economic Studies, Oxford University Press, vol. 86(1), pages 1-45.
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    5. Salome Baslandze, 2016. "The Role of the IT Revolution in Knowledge Di ffusion, Innovation and Reallocation," 2016 Meeting Papers 1509, Society for Economic Dynamics.
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    8. Bergeaud, A. & Cette, G. & Lecat, R., 2015. "Productivity trends from 1890 to 2012 in advanced countries," Rue de la Banque, Banque de France, issue 07, June..
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    Keywords

    Technical progress; Growth; Schumpeter; Innovation; Secular stagnation; Inequality; Structural reforms;
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