Entrepreneurship and Innovation Policy and the Economy

Rigorous nonpartisan research on the effects of economic forces and public policy on entrepreneurship and innovation.Entrepreneurship and innovation are widely recognized as drivers of economic dynamics and long-term prosperity. This series communicates key findings about the implications of entrepreneurial and innovative activity across the economy.Entrepreneurship and Innovation Policy and the Economy, Volume 4, synthesizes key findings about entrepreneurial and innovative activity in many sectors of the economy, conveying insights on contemporary challenges and seeking to inform policy. Several research papers address issues related to artificial intelligence (AI). In the first paper, Pierre Azoulay, Joshua Krieger, and Abhishek Nagaraj examine the future evolution of AI and its potential effects on market structure and competition. Next, Gaétan de Rassenfosse, Adam B. Jaffe, and Joel Waldfogel focus on how generative AI may influence creative activities and the intellectual property system. Martin Beraja, Wenwei Peng, David Y. Yang, and Noam Yuchtman examine Chinese government investment in the AI sector. Turning to research funding models, Arielle D’Souza, Kendall Hoyt, Christopher M. Snyder, and Alec Stapp elucidate the key features of Operation Warp Speed, which delivered effective vaccines in record time, and consider other settings in which this approach to research support might be applicable. Next, Christoph Carnehl, Marco Ottaviani, and Justus Preusser study the design of scientific research grants more broadly, analyzing existing grant systems and identifying key tradeoffs as well as open research issues. Finally, Amy Nice highlights the role of the science, technology, engineering, and mathematics (STEM) workforce in supporting the US defense sector and examines US workforce needs and immigration policy through this lens.