RESEARCH February 16, 2016

What do trends in economic inequality imply for innovation and entrepreneurship?

A framework for future research and policy


This paper develops a framework connecting rising economic inequality and declining levels of innovation and economic dynamism in the United States. The result is a set of research questions designed to stimulate a conversation about how the innovation channel may be a key mechanism through which increasing levels of inequality are affecting the U.S. economy. Briefly, this paper finds that economic growth and inequality, innovation, and entrepreneurship are inexorably linked, but in very different ways when examined across the wealth and income spectrum rather than through the usual lens of overall small business creation and direct investments in technology and innovation.

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Trends in economic inequality and innovation and entrepreneurship report

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