Spending on innovation makes up around 2.7 percent of the US gross domestic product (GDP). That money has fueled countless developments and breakthroughs that make the world a better place. The Northwestern Kellogg School of Management’s Benjamin F. Jones argues that isn’t nearly enough. And COVID-19 illustrates that point. During his January 26 virtual Dean’s Seminar Series lecture “A Calculation of the Social Returns to Innovation,” Jones recapped an academic paper he wrote with Lawrence Summers, who served as Secretary of the Treasury under President Bill Clinton, is a former president of Harvard University, and is currently a professor at Harvard. They contend that even under conservative assumptions, it is difficult to find an average return below $5 for every $1 spent on innovation. More moderate estimates suggest $1 brings back $10, and maybe much higher.
Image: Benjamin F. Jones argues that the 2.7 percent of the US GDP spent on innovation isn’t nearly enough. - https://www.mccormick.northwestern.edu
