Pathway to Economic Growth Series: Fostering Innovation

In last week’s “Pathway to Economic Growth,” we shared recent research by Mercatus Center scholars that explores how our nation can develop the talent that drives economic growth.
Innovation is another vital element in economic growth. This week, Mercatus Center scholars offer recommendations on how to create a policy environment that encourages innovation.
The Big Picture

  • Capitalize on the profoundly positive correlation between innovation and human prosperity: Adam Thierer describes the importance of creating a policy environment where moonshots are possible.
  • Understand the economic impact of regulations: Research by Patrick McLaughlin and Oliver Sherouse shows how states experience different economic effects from federal regulation based on their unique mix of private-sector industries. See your state’s ranking.
  • Use economic analysis to get better policy outcomes: The Federal Communications Commission raised the bar for policymaking by establishing the Office of Economics and Analytics. Read recommendations by Jerry Ellig and Rosemarie Fike to learn how every agency can improve policy outcomes by using better economic analysis.

Promising Areas for Innovation

  • Expanding internet access and freedom to all Americans: Brent Skorup outlines recommendations for deploying broadband, and explains why vague 'utility' regulations for Facebook and Twitter are a big mistake. James Broughel explains why our kids will thank us for rolling back Title II net neutrality regulations.
  • Charting new frontiers in healthcare: Washington has battled over health insurance for decades without any significant change in rising prices and problems accessing care. Robert Graboyes outlines how innovation could actually improve the healthcare system so that more people can get what they need, when they need it, at lower cost and higher quality.

Next up: Continuing Policies that Promote Economic Growth