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Investing for prosperity: skills, infrastructure and innovation

Besley, Timothy, Coelho, M. and Van Reenen, John (2013) Investing for prosperity: skills, infrastructure and innovation. National Institute Economic Review, 224 (1). R1-R13. ISSN 0027-9501

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What policies and institutions are needed to sustain long-run growth in the UK? We describe an optimistic story of the UK economy over the past 30 years. From the late 1970s, the UK reversed a century of relative decline in terms of per capita GDP with our main counterparts in the US, France and Germany. A key factor behind this improvement was an array of policy changes including an expansion of higher education and greater competition in product and labour markets. However, major weaknesses with respect to long-run investment in human capital, infrastructure and innovation remain. These are hampered by problems of short-termism and policy risk. We propose a series of radical reforms to address these problems: such as more flexibility in schooling with a new focus on disadvantage; a new architecture for national infrastructure decisions and more competition in banking.

Item Type: Article
Official URL:
Additional Information: © 2013 National Institute of Economic and Social Research
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
Journal of Economic Literature Classification System: J - Labor and Demographic Economics > J0 - General
Sets: Departments > Economics
Research centres and groups > Centre for Economic Performance (CEP)
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Funders: Economic and Social Research Council, Higher Education Innovation Fund
Date Deposited: 19 May 2013 10:44

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