Category: Research

Accounting for Rising Corporate Profits: Intangibles or Regulatory Rents?

James Bessen

Since 1980, US corporate valuations have risen relative to assets and operating margins have grown. The possibility of sustained economic rents has raised concerns about economic dynamism and inequality. But rising profits could come from political rents or, instead, from returns to investments in intangibles. This paper explores these factors using new data on Federal regulation and data on lobbying, campaign spending, R&D, and organizational capital.

Management Practices, Relational Contracts, and the Decline of General Motors

Susan Helper with Rebecca Henderson

General Motors was once regarded as the best-managed and most successful firm in the world. However, between 1980 and 2009, GM’s US market share fell from 46 to 20 percent, and in 2009 the firm went bankrupt. We suggest that GM’s experience may have important implications for our understanding of the role of management in the modern, knowledge-based firm.