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Michael Kremer on Innovation
Manage episode 352334085 series 3310600
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Innovation is often associated with developments in information and communication technologies, but for economists, innovation is also about developing new business models and new ways for governments to deliver public services like health and education. Michael Kremer is a professor of economics at the University of Chicago and the founder of the Development Innovation Lab. His work on poverty reduction with colleagues Esther Duflo and Abhijit Banerjee won them the Nobel Prize in economics in 2019. In the early 2000s, Kremer helped develop the design of Advance Market Commitment models used to incentivize the private sector to work on issues of relevance for the developing world. Michael Kremer was invited to deliver the IMF Richard Goode Lecture, an annual event to discuss policy issues and debates. In his talk, Kremer says commercial incentives for innovation are not always aligned with social needs, which results in underinvestment in some types of innovation and creates a role for public investment.
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