Panelist John Van Reenen

John Van Reenen

Department of Economics

London School of Economics and Political Science

United Kingdom

Website

John Van Reenen, OBE, is Ronald Coase School Professor at the London School of Economics and a Digital Fellow of Initiative for the Digital Economy at MIT. Until 2020 he was Gordon Billard Professor MIT Economics Department and Sloan Management School. He won the 2009 Jahnsson Award (European equivalent of Clark Medal).

Voting History

Statement	Response
Online education and specialized degrees will supplant the traditional two-year full-time MBA. Disagree	“Face to face will remain important (although there are increasingly more hybrid options).”
Starbucks’s plans to increase wages for nonunionized workers is a shortsighted strategy. Disagree	“Lots of evidence that raising wages can be beneficial for morale, retention, attracting better workers, etc. (efficiency wage theory).”
Sanctions against Russia will cause multinational companies to consider human rights protections in supply chains more broadly. Agree	“Effect will likely be rather minor.”
Blockchain is more likely to be a sustaining innovation than a disruptive innovation in the financial sector. Disagree	“It is likely to be disruptive in a broadly negative way from a welfare perspective.”
The field of strategic management has overlooked the role of corporate purpose in driving business performance. Disagree	“Unclear if purpose is really so important.”
Socially responsible mutual funds are more of a marketing tool than a solution to environmental and social problems. Agree	“To tackle climate change, we need a carbon tax, tougher regulation, and higher green R&D subsidies. For more, see my recent research, “Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence From the Auto Industry.””
When hackers take data hostage, companies should pay the ransom. Strongly agree	“Creates a terrible moral hazard.”
Relaxing the rules around physical presence in the office will improve employee productivity and firm performance. Agree	“It will add to flexibility for workers and reduce turnover, thus saving firms money. Frees up expensive office space. ”
The COVID-19 pandemic has permanently changed how companies should think about business strategy. Agree	“It has changed technology strategy — see my piece here www.economicsobservatory.com/how-covid-19-affecting-firms-adoption-new-technologies. ”
The COVID-19 pandemic will lead companies to relocate infrastructure and employees away from dense urban locations. Agree
The California Consumer Privacy Act will undermine the targeted advertising market by giving consumers the right to opt out of allowing companies to sell personal data to third parties. Agree	“It would be a good thing to reduce personalized targeted ads.”
In the wake of recent climate-related disasters and related events, such as the bankruptcy of PG&E, corporations are now planning for the increased operational risks and potential liabilities caused by climate change. Agree
Antitrust policy should intervene more decisively to limit the scope of large technology platforms. Agree
U.S. regulations have been rolled back in a number of areas, including emissions standards and clean water. Companies will decide to voluntarily adhere to rules that closely resemble the original standards. Disagree	“Many firms will save money by (rationally) not keeping to the previously tougher regulations.”
The Business Roundtable’s new Statement on the Purpose of a Corporation indicates a shift away from shareholder value maximization as the sole purpose of the corporation and toward a broader view of value creation. This shift will have material impact on the well-being of U.S. workers. Neither agree nor disagree	“The statement by itself does not do anything, I think. But if there was an economy-wide shift away from a near total focus on shareholder value, this would have some positive effects on workers.”
In the next decade, we will see the first sustainably profitable private commercial activities in space. Neither agree nor disagree
Introducing 5G networks 3-5 years ahead of other countries will give Chinese firms an advantage. Agree	“First-mover advantages are often exaggerated.”
The increase in stock market volatility that began in 2018 will last for another three to five years. Agree	“Trade wars, end of tax cut sugar high, China slowdown, and Brexit all contribute to volatility.”
A hard Brexit will have a significant negative impact on many businesses, even if they do not have a U.K. or European presence. Strongly agree	“I have several papers showing this, for example: http://cep.lse.ac.uk/pubs/download/brexit02_technical_paper.pdf. More recent reports include: http://cep.lse.ac.uk/pubs/download/brexit12.pdf.”
China is no longer the most attractive growth opportunity for Western multinationals. Disagree	“Even at a reduced rate of growth and institutional problems, China is still relatively wealthy and a huge market.”