Economics - Innovation - Inclusive Growth - Public Purpose

1ST Project-Workshop: Value Creation vs. Value Extraction: the Role of Finance in the Capital Development of the Economy

The 1st Financing Innovation Workshop will be held at the Levy Institute of Bard College (Annandale-on-Hudson, New York) from Thursday, May 30th to Saturday, June 1st, 2013. The Workshop is meant to be a place for new contacts and new research inspiration: a forum of discussion where Project members learn from (and critically engage with) each other, so as to contribute to and debate the Project’s mission and research to be furthered. It will centred around three interrelated ‘grand’ themes:

A) Rebalancing finance and reconstituting the financial sector to promote productive, nonfinancial innovation, value creation and the capital development of the economy.
B) Reforming the nonfinancial sectors away from financialization and predatory practices of value extraction, detrimental to innovation and other long term investments.
C) Recreating industrial policy and restructuring government to promote productive radical innovation, particularly in the green-tech sector.
The following (non-exhaustive list) list contains examples of more concrete issues to be addressed in the workshop:
  • Limitation of existing theoretical approaches, not only of mainstream economics but also e.g. neo-Schumpeterian theory and post-Keynesianism;
  • The implications of understanding money and credit—beyond greasing the wheels of commerce—for a Schumpeterian analysis of innovation in the financial sector.
  • The relationship between financial markets and the real economy, specifically the degree to which financial markets penalize innovation and value creation rather than reward it;
  • The relationship between national financial sectors and their institutional environments, investigating historical and contemporary examples of committed patient finance conducive to the promotion of radical innovations;
  • How different types of financial arrangements operate in promoting or stalling the innovative process, investigating the role played by e.g. venture capitalists, business angels, investment banks, pension funds, national and international development banks etc. We encourage the cross-country analysis of biotech and ‘green-tech’ sectors, including the micro- and macroeconomic settings, public policy and institutional structures in which they operate;
  • The relationship between new investment flows and the value and rate of profit of the existing capital stock, investigating its implications for the profitability of new technologies, and their investment-attractiveness to firms and financial institutions;
  • The possibilities – and policy requirements – for world-wide economic recovery around a new green, more inclusive growth trajectory, and new financial institutions and instruments geared to it.
Workshop-related (programme, papers, presentations etc.) material will soon be published here.