In some cases, the ability of a company or sector to innovate depends on its suppliers. A good example can be found in the auto industry, where progress toward all-electric cars hinged on the creation of the lithium-ion battery, with its high energy density, high efficiency, and rechargeability, as a replacement to low-energy-density predecessors. Innovation bottlenecks could explain why US productivity growth has been disappointing since the 1970s, according to research by MIT’s Daron Acemoglu and David Autor and Chicago Booth’s Christina Patterson. In their model, an industry’s technological progress (measured by total factor productivity growth) depends partly on its suppliers’ simultaneous advancements. If some suppliers are innovating at a much faster pace than others, this uneven development across sectors could hinder an industry’s growth. To learn more, read “Lopsided Innovation Causes Productivity Slowdowns.”
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Research explores a dynamic that encourages nonprofits to divert resources from core needs.
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Chicago Booth’s Sam Peltzman discusses his research on the factors associated with greater happiness.
Is Money or Marriage the Key to Happiness?
An expert panel discusses some of the most important risks and trends facing investors, executives, and policy makers.
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The prestigious award from the American Finance Association recognizes top academics whose research has made a lasting impact on the finance field.
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At the Kilts Center’s annual Case Competition, a student team leveraged LLMs to create innovative product solutions for Microsoft.
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The Booth dean and professor (1939–2024) was an expert in microeconomics, strategy, and industrial organization and served in the US government.
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