- The authors discuss what they call“Innovation Economics.” What do Atkinson and Hackler mean by innovation economics? Describe their perspective.
The authors suggest that the predominant doctrines devalue innovations. This results in a 20th century perspective to address 21st century issues. The doctrine of innovative economics reconfigures previous models to recognize technology, entrepreneurship, innovation as primary factors as economic growth.
- What are the mainproblems the authors have with both the neoclassical and neo-Keynesian views about how to address the problem of climate change? What are the three arguments the authors cite as to why neither the neoclassical nor the neo-Keynesian views offer an suitable policy framework for addressing the climate challenges of the 21st century?
According to the authors, none of the predominant three doctrines (conservative neoclassical, liberal classical, and neo- Keynesian) offer a suitable approach to the climate change policy. They argue that this is largely due to three main factors. First, they suggest that each doctrine undervalues the importance of innovation and focuses to keep the economy stable and at equilibrium, promoting economical growth. Second, they undervalue other factors that drive growth such as institutional and technological-change factors and instead establish the importance on macroeconomics factors. Lastly, the above stated doctrines failed to recognize the complicated procedure of technological innovations.