SFS Cavalcade North America 2026
Darden Graduate School of Business Administration, University of Virginia
May 18-21, 2026
Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 18th Apr 2026, 05:19:23am EDT
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Agenda Overview |
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Track W1-1: Government Policies and Financial Markets
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Innovation Policy and Inventors’ Productivity: Evidence from Global AI Initiatives 1University of Technology Sydney, UTS Business School, Sydney, Australia; 2University of New South Wales, UNSW Business School, Sydney, Australia; 3University of Texas at Dallas, Naveen Jindal School of Business, Richardson, USA We construct novel datasets on AI innovation policies across 42 countries and global AI patents to examine the impact of these policies on the productivity of AI scientists. We find that scientists experience a decrease in productivity after their country initiates AI-supporting policies. We argue this decline could be driven by a shift in the nature of innovation being conducted; government support incentivizes scientists to pursue more novel and exploratory inventions. While these projects hold the potential to foster long-term growth, they are inherently characterized by longer development timelines and a greater risk of failure, resulting in a temporary decline in the average quantity and quality of innovations. This effect is potentially compounded by the government’s inability to perfectly identify and fund the most promising radical innovations, leading to a misallocation of resources. We develop a general equilibrium framework that formalizes these dynamics. Our results highlight the transitional risks associated with government support for innovation, particularly as an economy navigates a new technological paradigm.
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