The Economics of Crisis Innovation Policy: A Historical Perspective
AEA Papers and Proceedings
vol. 111,
May 2021
(pp. 346-50)
Abstract
Since the beginning of the COVID-19 pandemic, policymakers, researchers, and journalists have made comparisons to World War II. In 1940, a group of top US science administrators organized a major coordinated research effort to support the Allied war effort, including significant investments in medical research that yielded innovations like mass-produced penicillin, antimalarials, and a flu vaccine. We draw on this episode to discuss the economics of crisis innovation. Since the objectives of crisis R&D are different than ordinary R&D, we argue that appropriate R&D policy in a crisis requires going beyond the standard Nelson-Arrow framework for research policy.Citation
Gross, Daniel P., and Bhaven N. Sampat. 2021. "The Economics of Crisis Innovation Policy: A Historical Perspective." AEA Papers and Proceedings, 111: 346-50. DOI: 10.1257/pandp.20211106Additional Materials
JEL Classification
- O38 Technological Change: Government Policy
- O32 Management of Technological Innovation and R&D
- I11 Analysis of Health Care Markets
- I18 Health: Government Policy; Regulation; Public Health
- N32 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: 1913-
- N72 Economic History: Transport, Trade, Energy, Technology, and Other Services: U.S.; Canada: 1913-
- N42 Economic History: Government, War, Law, International Relations, and Regulation: U.S.; Canada: 1913-