Our new paper has an explanation for both slowing TFP growth and increasing R&D that is consistent with the Fort et al interpretation that the links between a firm’s R&D and *other* firms’ productivity has weakened.
Are ideas getting harder to find? Almost a decade ago, a banger of a study said YES. Over decades the US economy had been ploughing resources into R&D, with only slowing TFP growth to show for it. BUT newer evidence suggests more grounds for optimism 🧵 My latest column: as.ft.com/r/ee54d3c9-c...