4 Comments
Nov 8Liked by Pieter Garicano

Excellent post. I would like to share my experience regarding the innovation deficit in Europe, which, according to the post, is due to the private sector and not to public spending. I believe that in Europe there is a lot of "bad" money (subsidies) and a lack of "good" money (purchases of innovation by public administrations). In the Basque Country, the main program to help technology-based innovation is nothing more than a means to pay Technology Centers and subsidize current expenses of companies for projects that are of little interest to anyone. Within my work with the EIC, technology-based companies in the Health industry usually look for their first clients in the United States, since European public health is very slow in adopting innovative solutions. I have seen more than one project "flee" to the United States because there the impact is much easier to foresee and act accordingly. Technology and market must be aligned much better, and this includes innovative public purchasing. (Good and Bad money is a concept from professor Christensen, "The Innovators solution").

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Nov 6Liked by Pieter Garicano

I really liked this entry. The "luxury rules" concept is one that I wasn't able to express so neatly, but perfectly describes the situation. Basically, the EU is strangled by regulations and unwilling to accept that growth and prosperity is something that should achieved by hard working individuals and public policies that foster innovation. We have taken this privileged situation for granted, and to that only the decline could follow.

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I agree. Europe needs to get rid of a lot of its luxury rules. Likewise the US needs to get rid of a lot of its luxury beliefs: We don't need migrants; High tariffs will benefit our economy; Weapons available for all protect us; Our Clown-in-chief will MAGA; ...

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Bang on. However, awakening from all this will be slow and contentious.Probably only when Russia reaches Poland,or, maybe Germany.

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