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Productivity and innovation

At the heart of research in this area is the study of firm’s behaviour and the role of institutions and public policy. Research to date has covered several topics, including: the determinants of R&D, innovation and technology transfer; how firms are structured and why firms outsource or offshore activities; and what are the determinants and consequences of firms' location decisions. Work has included consideration of the role of the following on firms’ decisions and outcomes: corporate taxes; product and labour market regulation; planning regulations; the role of universities; agglomeration of activities; skills and wages.

Our work is mostly empirical, with a strong ground in economic theory and a focus on linking our empirical findings to practical policy issues. Our research is often used to help to better understand factors that underlie the UK's productivity performance and what determines differences in aggregate trends in productivity and innovation across industries and countries.

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Year: 190 publications
01 December 2002
W02/22
Rachel Griffith, Helen Simpson and Stephen Redding
This paper investigates whether there is a convergence in Total Factor Productivity towards the technological frontier at the establishment level.
01 November 2002
Michael P Devereux, Rachel Griffith and Helen Simpson
We investigate the geographic concentration and agglomeration of production activity in the UK at the four-digit industry level using a variety of measures.
25 August 2002
Nick Bloom, Rachel Griffith and John Van Reenen
This paper examines the impact of fiscal incentives on the level of R&D investment.
02 June 2002
W02/11
Andrew B Bernard, Stephen Redding, Peter K Schott and Helen Simpson
This paper develops a general test of factor price equalization that is robust to unobserved regional productivity differences, unobserved region-industry factor quality differences and variation in production technology across industries.
01 March 2002
BN23
Rachel Griffith, Mike Hawkins and Helen Simpson
The government intends to introduce a new research and development (R&D) tax credit, which will be open to larger firms, in Budget 2002. It has issued a second consultative note, Designs for Innovation, on the design of the new credit. This Briefing Note discusses which firms are likely to benefit from the new credit, and the likely costs and effectiveness of the designs under consideration.
01 March 2002
Nicholas Bloom and John Van Reenen
Analysing the new IFS-Leverhulme database on over 200 major British firms since 1968 we show that patents have an economically and statistically significant impact on firm-level productivity and market value.
01 March 2002
Michael P Devereux and Rachel Griffith
We consider the impact of taxation when investors face a discrete choice between two or more mutually exclusive projects.
09 February 2002
Rachel Griffith, Stephen Redding and Helen Simpson
This paper investigates whether there is convergence in Total Factor Productivity towards the technological frontier at the establishment level.
02 February 2002
W02/04
This paper investigates the relationship between product market competition (PMC) and innovation.
01 September 2001
Rachel Griffith, Stephen Redding and John Van Reenen
This paper investigates the economic impact of the government’s proposed new UK R&D tax credit.
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Impact on Society
IFS researchers helped make a case against proposed cuts to public spending on science.
IFS researchers used knowledge from past findings to analyse the potential impact of a proposed reduction in corporation tax to encourage innovation.
IFS researchers responded to a consultation on the design of a new policy to reduce corporation tax on some forms of income.