Labor Markets and the Supply of Innovators - Ina Ganguli University of Massachusetts Amherst

ifp_supply_ganguli Labor Markets and the Supply of Innovators Ina Ganguli University of Massachusetts Amherst Economics of Ideas, Science and Innovation December 13, 2022 Policies to encourage innovation? Policies to encourage innovation? • Patent laws: grant temporary monopolies to inventors of new products • Tax incentives for R&D • Grants to fund basic research at universities • Industrial poli. [...] Doing Empirical Research in Labor & Innovation The Supply of Innovators Recall from earlier in the course • In a simple version of the knowledge production function (Romer, 1990), ̇ is the number of new ideas produced, ? ! is the number of people searching for new ideas (effort), A is the current stock of ideas, ? ̅ is the rate at which new ideas are discovered: ̇ = ? ̅? ? ! • Today we will examin. [...] o People decide to become skilled workers by looking at conditions in the labor market at the time they enter school The Cobweb Model • A “cobweb” pattern forms around the equilibrium, which arises when people are misinformed • The model assumes naïve workers who do not form rational expectations - they do not correctly perceive the future and understand the economic forces at work The Cobweb Mode. [...] Immigration Policies • F-1 and M-1 visas are for students • H-1B visas for people working in a specialty occupation, and they require a higher education degree or its equivalent • J-1 visas are designed for work- and study-based exchange visitor programs • L-1 visas are granted to intracompany transferees in roles requiring specialized knowledge H-1Bs • H-1Bs are sponsored by firms • An H-1B visa. [...] Diversity in Science & Innovation Activities Diversity in Patenting • Growing acknowledgement that more diversity in innovation activities is beneficial: – Impacts what is – and what is not – invented – Greater participation of women and underrepresented groups could increase economic growth • But still large and persistent gender, racial/ethnic gaps among scientists and inventors Diversity in Pat.