What the failure of a superstar student reveals about economics
When the economics department at the Massachusetts Institute of Technology issues a statement, it is often to celebrate a Nobel Prize. In the past decade, six of its professors have won the award—as many as the next two universities combined. But on May 16th it issued a different sort of press release: one disavowing research by a high-flying graduate student.
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The Herald Scotland
a day ago
- The Herald Scotland
Lord Sainsbury: Give Glasgow greater devolved powers
"A major challenge which government faces if it wants to increase Scotland's rate of growth is a way to find and support such clusters," he said. "All the evidence from other countries suggests that the only way to effectively support clusters is to do so at a city region level. Read more: "I appreciate in Scotland, unlike in England, metro mayors have not yet been introduced, but if you want to support high-tech clusters, this is something I think you should seriously consider, with Greater Glasgow being given powers similar to those devolved to Greater Manchester and the West Midlands." Lord Sainsbury was speaking at the Creating the Jobs of Tomorrow conference organised by Glasgow Chamber of Commerce, where he was introduced to the stage by former Labour chancellor and prime minister Gordon Brown. Mr Brown said growth and productivity have been perennial problems in the UK and Scotland, with innovation the key to boosting performance. A new study by economist Dan Turner, head of research at the Centre for Progressive Policy, has suggested this could unlock the creation of hundreds of thousands of high-value jobs. "There are huge sources of innovation and inventiveness in Scotland, just as has been traditional in our history," he said. "The question is can we turn that into scalable companies that stay in Scotland, invest in Scotland, create jobs in Scotland, and Dan's study suggests we could create 300,000 jobs in the next 10 years. "That's 300,000 well-paying jobs, 120,000 in the new industries, the spin-offs in terms of the service sector another 180,000 - that is a possibility if we invest in the infrastructure, the skills, and the development necessary to achieve that." Lord David Sainsbury (Image: Nate Cleary) Lord Sainsbury is a Labour peer and served as minister for science and innovation under Mr Brown and his prime ministerial predecessor, Tony Blair, between 1998 and 2006. He was appointed a life peer in 1997. Lord Sainsbury said there are new opportunities for employment and growth in sectors such as quantum computing, artificial intelligence and biotechnology. "There are economists that will argue that it is investment that is the engine of economic growth, but we have to realise today that capital flows easily around the world, and it flows as it has always done, to where the best investment opportunities are created by innovation," Lord Sainsbury said. "You can sit in London today and you can invest in Silicon Valley, you can invest in practically any country - until recently you could even invest in Chinese venture capital - because that is what modern communication enables you to do. That is why investment is not the real driver of the economy, it's innovation." Among the other speakers was Michael Spence, who won the Nobel Prize in Economics in 2001 for his work in the analysis of markets with information imbalances. Read more: "There are two things that [people] associate with Adam Smith correctly," Mr Spence said. "One the 'invisible hand', which is the market system is a reasonably efficient tool for decentralising and allocating resources. "That actually is not the most important thing that Adam Smith said, but it's the one that neo-conservatives remember because they elevate market systems to the status of a religion, rather than a way of accomplishing economic and social goals. The most important one for our purposes is specialisation. "Adam Smith meant specialisation within an economy, when of course everything that David Sainsbury talked about in the global economy is just the Adam Smith insight writ large, and of course it is the ultimate source of growth. "Without specialisation you don't get scale of spread your activity over too much territory, and you don't get innovation. You get nothing if everybody has to do everything. "The fundamental message I want to deliver today is that's still true, and that growth is fundamentally about specialisation and structural change."
NBC News
3 days ago
- NBC News
Sickle cell patient meets scientist behind technology that saved her life
Victoria Gray is the first person in the world to receive CRISPR, a gene-editing therapy for sickle cell disease created by Dr. Jennifer Doudna who won the Nobel Prize for the life saving technology. NBC News' Zinhle Essamuah sits down with Gray and Doudna as they meet for the first time. June 5, 2025
The Herald Scotland
4 days ago
- The Herald Scotland
Gordon Brown: Here is how to create 300,000 Scots jobs in 10 years
A new report to be published this week by the think tank Our Scottish Future lays bare this challenge. We could create 300,000 good jobs over the next ten years – and be in the lead in areas as advanced as precision medicine, quantum computing, carbon capture and storage, and even video games. Go to Dundee and you'll find the most advanced video games technologies that rival Grand Theft Auto and which had their origins in the city. Read more Go to Aberdeen and you'll find them developing wind and wave power and hydrogen to complement the world leadership we enjoyed in North Sea oil and gas. Come to Glasgow and the city that was once home to shipbuilding and steel is now at the centre of the world life science industry, with academic, clinical and commercial expertise from drug discovery to the most up-to-date personalised medicine based on DNA, and remarkable advanced manufacturing. And look at Edinburgh, where not only is fintech moving forward, but the city has had for 60 years a lead in artificial intelligence and is home to some of the most advanced computers in the world. But to convert our ideas and innovations into jobs, we have to invest in the future – in research, in education, and most of all, in people. For every £1 we spend on research in our world-class universities, we get back just £1.46 in business investment. That's half what the UK delivers. Across the OECD, it's more than triple. And look at the skills gap. We turn out a higher share of graduates than in most countries in the world – but too many well qualified Scottish university leavers end up working in non graduate jobs. This is not just a shortfall hurting our economic growth. It's indicative of the fact that we in Scotland are squandering our potential. The report, Innovation Nation, pulls no punches. It says what many of us already know: the system isn't working. We have the talent, the research, and the ambition. We have the capability - and the need - to deliver inclusive economic growth, creating hundreds of thousands of new jobs through exciting growth sectors such as life sciences, advanced manufacturing, and green energy. What we don't have is the leadership and joined-up thinking to make it count. Former Prime Minister Gordon Brown (Image: free) That's why this week in Glasgow Our Scottish future is bringing together some of the brightest minds in the world of innovation and technology. With us is Kate Bingham who pioneered the vaccine task force that saved thousands of job of lives. Kasim Kutay who heads one of most Europe's most innovative bioscience groups, Novo Nordisk. Michael Spence, the Nobel Prize winner who's the expert on AI. Jim Rowan who has headed not only Volvo but BlackBerry and Dyson in his time, pioneering the development of manufacturing from his Scottish engineering genius. And we have David Sainsbury the author of Windows of Opportunity and Britain's most successful science minister who has spent a lifetime arguing for the importance of innovate clusters to growth. We have Chris van der Kyl who has himself set up a large number of innovative companies from his base in Dundee. And we will have key investors from the public and private sectors and other economic experts. What's more we will have trade minister Douglas Alexander and Scottish labour leader and Anas Sarwar at an event to be introduced by the SNP Lord Provost of Glasgow. Read more For as we will show late in the week it is not too late to steer a new direction. A real industrial strategy. Innovation hubs in our great cities. Local authorities, UK and Scottish governments working together to drive real change in local areas across Scotland. And support for the businesses that want to grow, scale, and stay in Scotland. These recommendations represent a win-win for Scotland, where we raise the roof and lift the floor – creating good jobs, tackling poverty, and building a fairer, greener, more dynamic Scotland. We have a choice. Stick with the status quo, with patchy growth and missed opportunities. Or take bold action, seize the initiative, and once again lead the world in science, in enterprise, and in building a better society. Let's take that chance. Let's build Scotland's future together – and become the innovation nation we were always meant to be. Gordon Brown was Britain's Labour Prime Minster from 2007-2010
