Evidence of slowing productivity growth has led some to argue that the era of rapid technological advance is ending. Critics contend that scientific research has become too incremental and detached from practical needs, no longer delivering the transformative ideas that once drove productivity and economic prosperity.

In his lecture, professor Arora argues that this interpretation is flawed. Private returns to R&D have grown, and science now contributes more, not less, to innovation. The difficulty lies elsewhere. In many technology fields, the translation of new scientific knowledge into commercial products has become harder.

Drawing on his extensive research of the U.S. innovation ecosystem, Arora demonstrates how this bottleneck arises from increasing fragmentation between the activities of universities, startups and corporations. He concludes by offering policy prescriptions for revitalizing the innovative our economies.