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The Positive Sum Strategy Harnessing Technology for Economic Growth (1986) / Chapter Skim
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The Effect of Recent Macroeconomic Policies on Innovation and Productivity
Pages 89-92

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From page 89...
... An examination of these developments will not produce a true theory of innovation based on macroeconomic policy, but it should improve our understanding of the process particularly the way in which market forces often produce unintended results. The point at which my analysis begins is Be recent changes in government economic policies designed to stimulate saving and investment and simultaneously curb inflation (Reaganomics)
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From page 90...
... manufacturers felt the pressure of this competition from abroad. Economists tend to focus on the macroeconomic results of macroeconomic policies, i.e., how tax cuts create large deficits, how large deficits cause interest rates to rise, how high interest rates attract foreign capital to finance We deficits, how the inflow of capital raises the value of the dollar, and so on.
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From page 91...
... These results were among those desired at the time new macroeconomic policies were undertaken, but the architects of those policies did not expect Rat the path from cause to effect would be so roundabout from tax cuts and high interest rates to large deficits, a strong dollar, soanug imports, and Be resulting actions of individual firms as Hey struggled to meet the competition from abroad. These results could not have been achieved without earlier R&D efforts by entrepreneurs and large organizations, but the funding and encouraging of R&D - either by government or private sources was not Be driving force.
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