Fostering green and inclusive productivity growth

Aghion, Philippe ORCID: 0000-0002-9019-1677 and Van Reenen, John ORCID: 0000-0001-9153-2907 (2025) Fostering green and inclusive productivity growth. In: Besley, Tim, Bucelli, Irene and Velasco, Andrés, (eds.) The London Consensus: Economic Principles for the 21st Century. LSE Press, London, UK, 41 - 76. ISBN 9781911712435

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Abstract

This chapter explains the main ideas underpinning the Schumpeterian growth paradigm and how it provides a new lens to look at the determinants and effects of the growth process. Schumpeter was pessimistic about the future of capitalism. Indeed, his belief was that capitalism was doomed because in his view it was impossible to prevent incumbent firms from barring new innovations, either directly or by exploiting political connections with government authorities. The chapter uses the lenses of the Schumpeterian paradigm to revisit growth policy debates and also to rethink capitalism and its ability to reconcile the promise of sustained prosperity with the quest for greener and more inclusive growth. We argue that the proper functioning of an economy of innovation and creative destruction rests on the triangle between firms that innovate, the state, which is meant to regulate and invest, and civil society, which serves as a watchdog to induce firms and the state to do the right things.

Item Type:	Book Section
Additional Information:	© The Authors 2025
Divisions:	Economics
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HB Economic Theory
JEL classification:	O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity
Date Deposited:	20 Oct 2025 14:36
Last Modified:	10 Nov 2025 15:42
URI:	http://eprints.lse.ac.uk/id/eprint/129862

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