Skip to main content
Go to the home page of the European Commission (opens in new window)
English English
CORDIS - EU research results
CORDIS

Break-Through Innovation - R D Misallocation, Green Innovation, and the AI Revolution

Objective

This research project will confront theory and data to analyze the underpinnings and the effects of breakthrough innovation. We explore three main questions.
First question: How should we design R&D policy to induce breakthrough innovation? Why do we observe more incremental innovations in Europe than in the US? We shall address this question using an extension of the Schumpeterian growth paradigm where both the size and sources of markups differ across firms. Firms may be big as a result of breakthrough innovation, or for other reasons, including the lack of competition. In this part of the project, we shall provide new tools to empirically distinguish between these different sources of rents, with implications for the optimal design of R&D policy and competition (e.g. M&A) policy.
Second question: How can we further stimulate radical green innovation to help solve climate change? It has been shown in previous work that firms whose innovation has focused on polluting technologies in the past prefer to innovate in polluting technologies in the future. Here we will extend the literature on green innovation in three directions: first, by analyzing green technological transition along a supply chain, second by looking at the relationship between green innovation and credit access, and third, by looking at the implications for the green transition process, of consumers’ non-homothetic preferences for quality goods that are more reliant on service labor, and therefore exhibit a comparatively lower environmental footprint.
Third question: What are the growth and employment effects of the AI revolution, and which policies – if any – can maximize the growth and employment potential of AI? Our analysis will rely on an extended growth model where AI can automate tasks both, in the production of goods and services and in the production of ideas.

Fields of science (EuroSciVoc)

CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.

You need to log in or register to use this function

Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

HORIZON-ERC - HORIZON ERC Grants

See all projects funded under this funding scheme

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2024-ADG

See all projects funded under this call

Host institution

COLLEGE DE FRANCE
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 2 438 750,00
Address
PLACE MARCELIN BERTHELOT 11
75005 Paris
France

See on map

Region
Ile-de-France Ile-de-France Paris
Activity type
Higher or Secondary Education Establishments
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

No data

Beneficiaries (1)

My booklet 0 0