Fixing Innovation Policy: A Structural Perspective

Innovation is central to economic growth and human welfare. Government officials and commentators have recognized this reality and have called for a variety of different substantive incentives for stimulating innovation. But the question of how an innovation regulator should be structured has received little attention. Such consideration is important not only because of the significance of innovation but also because current government innovation policy is so haphazard. There is no government entity that looks at innovation broadly, and the narrower agencies that regulate aspects of innovation policy not only fail to pay systematic attention to innovation goals but often act at cross-purposes with each other. In this article, Professors Benjamin and Rai analyze how government policy on innovation should be structured. Drawing on existing theoretical and empirical work, as well as their own original empirical research, they propose the creation of an entity in the executive branch that would both analyze pending agency action and offer regulatory suggestions of its own. This entity would introduce a new, trans-agency focus on innovation while drawing upon, and feeding into, existing executive branch processes that aim to rationalize the work of disparate federal agencies. This approach, Professors Benjamin and Rai contend, offers a great improvement over existing government institutions while avoiding a costly (and politically infeasible) remaking of the administrative state

Structural Policy Challenges in Slovakia

The paper presents possible approaches for measuring the quality of life together with their strengths and weaknesses. We identify 10 outcome indicators, which could help not only to set targets, but also as a quantitative benchmark for structural policy evaluation in Slovakia. In addition to that we present several case studies with best practices mainly from EU countries. Based on these we formulate 33 structural policy recommendations.Structural Policies, Outcome Indicators, Well-being, Economic Growth

Structural policy and economic convergence

EU-Regionalfonds,, Entwicklungskonvergenz, EU-Staaten, EU cohesion fund, Economic convergence, EU countries

Mind the gap? The persistence of pathological discourses in urban regeneration policy

Urban regeneration policy has historically framed policy problems using a discourse that pathologises areas and spatial communities. Since 2001 in England, and 2002 in Scotland a structural change in policy has occurred where citywide partnerships are now meant overcome structural spatial inequalities, countering pathological explanations. This paper uses historical and discourse analysis to evaluate one of the major community regeneration strategies developed by the Scottish Executive in 2002: Better Communities in Scotland: Closing the Gap. It seeks to ask whether structural change in policy was paralleled by discursive change; what discursive path dependence is evidenced? The text is placed in the historic context of UK urban renewal policies dating back to the launch of the Urban Programme in 1968 and particularly the policy discourse created by the influential Conservative government policy of 1988 New Life for Urban Scotland and the wider discourses of poverty and neighbourhood renewal policy created by Labour governments since 1997. The close textual analysis of the text shows that Better Communities in Scotland continues to pathologise spatial communities. Although this suggests a degree of historical path dependency, the historic breadth of the analysis also problematises simple historical determinism

Monetary Policy in the Euro Area - Lessons from the First Years

This paper investigates in a consistent semi-structural empirical framework three current issues of monetary policy in the euro area. First, regarding policy transmission we offer a three-stage procedure to combine the efficient estimation of economic structure prior to EMU with current ECB monetary policy. Second, we test whether the regime change leads - before or after - EMU to structural instability. Third, we investigate the stance of monetary policy in Europe. We compare a "counterfactual" ECB reaction function based on average interest rates prior to EMU with actual ECB policy. Furthermore, we compare actual ECB policy with interest rate projections using Bundesbank reaction functions and euroland data.European Monetary Union, Monetary policy, Semi-structural modelling, Reaction function, Taylor rule, Transmission mechanism

Structural Change, Economic Policy, and Development

This study is about the growth and development performance of non-industrialized regions in the latter part of the 20th century. We find that sustained per capita GDP growth was accompanied by structural change in terms of output and labor share shifts as well as productivity growth with (in some cases) strong reallocation effects due to movements of labor from low to high productivity sectors. Regions that did not enjoy per capita growth showed little structural evolution apart from a rising employment/population ratio in service sectors. On the demand side, we examine shifts in net borrowing by the private sector, government, and rest of the world. Mutually offsetting co-movements of government and foreign net borrowing occurred sporadically at most. In other words, the widely accepted “twin deficits” view of macro adjustment does not seem to apply. Macroeconomic flexibility, on the other hand, may be very important. The policy background for these findings is sketched out along with a critique of justifications provided by the World Bank. Proposals are advanced for policy changes.

Structural reforms in EMU and the role of monetary policy – a survey of the literature

The need for structural reforms in the euro area has often been advocated. These reforms would improve the welfare of euro area citizens and also, as a welcome side-effect, facilitate the conduct of monetary policy. Against this background, a particularly relevant question that can be posed is whether monetary policy should help implement structural reforms. The objective of this paper is to provide a review of the existing literature on structural reforms in Economic and Monetary Union (EMU) and to discuss the possible ways in which monetary policy could support the structural reform process. In the context of EMU, the main conclusions that emerge are that the monetary policy for the euro area is not the appropriate tool for mitigating the potential and uncertain short-term costs of reforms or for providing incentives for structural reforms at the national level. However, credible monetary policy aimed at price stability can improve the functioning of the supply side of the economy and contribute to an environment which is conducive to welfare-enhancing structural changes. In addition, the ECB’s contribution to the implementation of structural reforms takes the form of analysis, assessment and communication.