Windows of Opportunity: how nations create wealth [Audio]

Speaker(s): Lord Sainsbury | Is neoclassical growth theory dead? Why have the biggest industrial economies stagnated since the financial crisis? Is the idea of a competitive threat from China due to a lack of understanding of economic theory or is it a genuine danger to our standard of living? At this event David Sainsbury will set out a new theory of economic growth which explains why the G7 countries have experienced slowing rates of labour productivity over the last twenty five years, the so-called ‘productivity puzzle’, and put forward policies which governments can adapt to innovate and restore their rates of economic growth. In his new book which he will be talking about at this event David puts forward a new theory of economic growth, placing individual firms' investment decisions in the central role. He argues that economic growth comes not as a steady process, but as a series of jumps, based on investment in high value-added firms. He suggests a new theory of growth and development, with a role for government in 'picking winners' at the level of technologies and industries rather than individual firms. With the role of industrial policy at the centre of the Brexit debate, but a significant intellectual gap in setting out what that policy should be, this talk could not be more timely. David Sainsbury was Finance Director of J. Sainsbury plc from 1973 – 1990 and Chairman from 1992 – 1998. He became Lord Sainsbury of Turville in October, 1997 and was appointed Minister of Science and Innovation from July 1998 until November 2006. He is the founder of the Gatsby Charitable Foundation, and founded and chairs the Institute for Government. He was elected Chancellor of the University of Cambridge in October 2011. This event marks the publication of David's new book, Windows of Opportunity: How Nations Create Wealth. Minouche Shafik is Director of the London School of Economics and Political Science. Prior to this she was Deputy Governor of the Bank of England. The LSE School of Public Policy (@LSEPublicPolicy) is an international community where ideas and practice meet. Our approach creates professionals with the ability to analyse, understand and resolve the challenges of contemporary governance. Twitter Hashtag for this event: #LSEWealth