The risk-reward nexus in the innovation-inequality relationship: who takes the risks? Who gets the rewards?

Lazonick, William; Mazzucato, Mariana

doi:10.1093/icc/dtt019

Cited by 205 publications

(162 citation statements)

References 31 publications

Supporting

Mentioning

153

Contrasting

Unclassified

Order By: Relevance

“…Kornai argues that such lobbying efforts by BC -organizations create inefficiencies that closely resemble those distortions associated with rent-seeking behaviour (Kornai, 1986A, p.7). More recent authors have warned about the dangers of distortions, such as rent-seeking (or 'value extraction'), which might arise from poorly designed industrial policy (Lazonick and Mazzucato, 2013). The observations of both Kornai and more recent authors have particular resonance in the DMCL case.…”

Section: Industrial Policy and The Sbc Approachmentioning

confidence: 99%

See 1 more Smart Citation

Soft budget constraints and regional industrial policy: reinterpreting the rise and fall of DeLorean

Brownlow¹

2015

CAMECO

View full text Add to dashboard Cite

The rise and fall of De Lorean Motor Cars Limited (DMCL) has been traditionally interpreted as either the result either of John De Lorean's psychological flaws or as confirming the supposed limitations of activist industrial policy. However, when the episode is examined in greater historical detail, neither of these interpretations are compelling. The reinterpretation outlined here draws on institutional analysis as well as a range of archival sources, much of it previously unreleased. The inefficiencies within the original contractual agreement are highlighted. The lack of credibility associated with this agreement was in turn traceable to the institutional environment (with its associated risk-reward implications) under which industrial policy operated. This environment had a political element -it had been distorted by the Troubles and the resulting fears policymakers had of a cumulative causation relationship between violence and unemployment. Officials in Belfast, against Treasury opposition, advocated state-led entrepreneurship as a policy response.

show abstract

Section: Industrial Policy and The Sbc Approachmentioning

confidence: 99%

“…De Lorean was far from unique in this ability to disconnect the linkage between risk and reward (Lazonick and Mazzucato, 2013). However, given the institutional environment, De Lorean proved adept at using the agreement to his negotiating advantage.…”

Section: Limitations Of Existing Interpretationsmentioning

confidence: 99%

Soft budget constraints and regional industrial policy: reinterpreting the rise and fall of DeLorean

Brownlow¹

2015

CAMECO

View full text Add to dashboard Cite

show abstract

“…There also has to be adequate knowledge of that innovation, and then once motivated to consider it, there has to be an ability to follow through and implement that change, and this across all four sectors to mitigate the risks associated with that change (Figure 2). These risk factors in turn have been categorized as those relating to technical development (Keizer & Halman, 2007), commercial implementation (Lutzenhiser, 1994) and financial commitment (Lazonick & Mazzucato, 2013) (Figure 4). Individual businesses, operating within their own disconnected sectors have their own spheres of influence where they can control the level of risk associated with the adoption of change from their perspective (Figure 6), but have little control or influence over the industry as a whole.…”

Section: Risk Reductionmentioning

confidence: 99%

Identifying the Barriers to Change in the UK Housebuilding Industry

Siebert

Rodrigues

Gillott

et al. 2018

Future Cities and Environment

View full text Add to dashboard Cite

In the UK, the sustainability agenda for housebuilding is now over ten years old, dating from the 2006 launch of the Code for Sustainable Homes as the benchmark for the reduction of carbon emissions in all new housing. The government's 2015 decision however, to dismantle the Code for Sustainable Homes and remove the 2016 Zero Carbon targets, has meant that with little warning, the sustainability industry has had to start fending for itself. Without the incentive of tariffs to focus the minds of the developers, the sustainability industry is now looking vulnerable, and the realities of having to be financially viable are coming home to roost. But our statutory requirement to reach an 80% carbon reduction by 2050 has not changed, and neither have the reasons for achieving it.During that time, the sustainability agenda was a key driver for innovation within the housebuilding industry. However, rather than focusing on the many benefits that innovation can bring, in this paper the authors look at the barriers to adoption of innovation and asks whether these barriers have been fully understood by those who are accusing the housing industry of complacency for its failure to reinvent itself. The main method used for investigating what these barriers might be was a series of industry interviews, carried out across all the sectors defined as being part of that decision-making process, in order to better understand how their motivations might differ, and if so whether this disconnect could be preventing the progress that all individually profess to want but none appear able to deliver. The findings suggest that a more informed approach to promoting or considering any innovative product within the housebuilding industry could avoid many of the barriers currently being confronted head on.

show abstract

“…The process has often resulted in the creation of billionaires among the founders and principal stockholders of these firms. It is somewhat paradoxical that, as innovation has become more collective and 'open', the rewards have become increasingly individualised (Mazzucato, 2013;Lazonick & Mazzucato, 2013). Moreover, the phenomenon is not confined to IT, being evident in other sectors such as pharmaceuticals, where a slightly better product becomes the next 'blockbuster' drug, generating sales and profits far in excess of those for the next best drug.…”

Section: From 'Winner Take All' To 'Fairness For All'?mentioning

confidence: 99%

“…It is not clear whether IS scholars will ultimately have anything significant to contribute to reducing the 'winner take all' phenomenon and ameliorating its economic and social consequences, although work by Lazonick and Mazzucato (2013) represents a promising start. Yet surely we have a duty at least to explore whether we can say something about how firms and others might generate innovations that, rather than turning a few fortunate individuals into billionaires, instead result in greater 'fairness for all '?…”

Section: From 'Winner Take All' To 'Fairness For All'?mentioning

confidence: 99%

Twenty Challenges for Innovation Studies

Martin

2015

SSRN Journal

View full text Add to dashboard Cite

With the field of innovation studies now half a century old, the occasion has been marked by several studies looking back to identify the main advances made over its lifetime. Starting from a list of 20 advances over the field's history, this discussion paper sets out 20 challenges for coming decades. At a conference in 1900, David Hilbert put forward a list of 23 unsolved mathematical problems that were to have a profound influence on the work of mathematicians during the 20 th Century. The intention here is to prompt a debate within the innovation studies community on what are, or should be, the key challenges for us to take up, and more generally on what sort of field we aspire to be. It is argued that the empirical focus of our studies has not kept pace with the fast changing world and economy, especially the shift from manufacturing to services and the growing need for sustainability. Moreover, the very way we conceptualise, define, operationalise and analyse 'innovation' seems rooted in the past, leaving us less able to grapple with other less visible or 'dark' forms of innovation.Keywords: innovation studies; science policy; challenges; achievements; dark innovation Acknowledgements A preliminary version of this paper was presented at the Lundvall symposium held at Aalborg University in February 2012. A short version (based on 15 challenges rather than 20) is being published, along with other contributions to that event, in a book on The Future of Innovation Studies (Fagerberg et al., 2013).

show abstract

The risk-reward nexus in the innovation-inequality relationship: who takes the risks? Who gets the rewards?

Cited by 205 publications

References 31 publications

Soft budget constraints and regional industrial policy: reinterpreting the rise and fall of DeLorean

Soft budget constraints and regional industrial policy: reinterpreting the rise and fall of DeLorean

Identifying the Barriers to Change in the UK Housebuilding Industry

Twenty Challenges for Innovation Studies

Contact Info

Product

Resources

About