Faculty News | Economist | 16
The role of government: Let 50 flowers bloom
Re: Michael Porter & Jan Rivkin
To see how firms decide on where to locate their manufacturing or research, Michael Porter and Jan Rivkin, two professors at Harvard Business School, surveyed alumni who had been involved in such decisions. Cutting the wage bill was by far the most common reason for moving abroad; escaping red tape came in at number eight. Three of the five leading reasons for staying put—less corruption, greater security and stronger intellectual-property rights—constitute a vote of confidence of sorts in American regulation.