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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: 246 publications
01 August 2004
W04/31
Jérôme Vandenbussche, Philippe Aghion and Costas Meghir
We examine the contribution of human capital to economy-wide technological improvements through the two channels of innovation and imitation.
01 August 2004
Rachel Griffith and Rupert Harrison
This study analyses the macro-economic impact of product market reforms undertaken in the European Union over the 1980s and 1990s by examining a large number of regulations and reforms across EU countries.
01 July 2004
W04/24
Andrew B Bernard, Stephen Redding and Peter K Schott
This paper presents a model of international trade that features heterogeneous firms, relative endowment differences across countries, and consumer taste for variety.
01 April 2004
Alexander Klemm, Philippe Aghion, Steve Bond and Ioanna Marinescu
We use data on publicly traded U.K. firms to investigate whether financing choices differ systematically with R&D intensity.
01 April 2004
Rupert Harrison
Our current understanding of economic growth emphasises the role of new knowledge created by profit-seeking firms as a primary source of long-run growth in GDP and living standards.
01 April 2004
Alexander Klemm, Philippe Aghion, Steve Bond and Ioanna Marinescu
We use data on publicly traded U.K. firms to investigate whether financing choices differ systematically with R&D intensity.
01 March 2004
W04/06
Michael P Devereux, Rachel Griffith and Helen Simpson
We examine whether discretionary government grants influence the location of new plants, and how effective these incentives are in the presence of agglomeration and urbanisation externalities.
17 February 2004
Rupert Harrison
This lecture focuses on why there is a productivity gap between the UK and some other countries, notably the US, why we want to reward R & D and ways to do this through the tax system.
12 February 2004
3361
Rachel Griffith, Rupert Harrison, Jonathan Haskel and Mari Sako
The Chancellor, in his pre-budget report in December, re-emphsized the Government's commitment to close the productivity gap that exists between Britian and its competitor economies.
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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.