Last November, the Questrom School of Business hosted the panel, “Redirecting Innovation: Can We? Should We?” featuring James Rebitzer, Peter and Deborah Wexler Professor in Markets, Public Policy & Law; Bob Rebitzer, Strategic Healthcare Consultant; and newly awarded Nobel laureate Daron Acemoglu, Institute Professor of Economics at MIT. Moderated by Tim Simcoe, Professor of Strategy and Innovation, the conversation focused around the critical question: In an age of many incredible innovations, are these advances delivering what they should? And can (or should) we shape the future direction of technology?

Daron Acemoglu, who recently received the Nobel Prize for his co-authored work, Why Nations Fail: The Origins of Power, Prosperity, and Poverty, brought a unique perspective on the intersection of innovation and societal outcomes. His research, which has advanced the understanding of global disparities in prosperity, provided a compelling backdrop to the discussion on whether innovation always leads to positive outcomes—and whether it is possible or even desirable to steer the course of technological progress.
In an era of constant innovation and the growing use of artificial intelligence, healthy innovation systems are becoming increasingly complex to navigate. Drawing from their book, Why Not Better and Cheaper? Healthcare and Innovation, the Rebitzer brothers opened the discussion by highlighting the paradox that healthcare doesn’t seem to improve and become more affordable the way other industries, like consumer electronics, do. They argued that while the healthcare system often focuses on cost, quality of care, and access, a fourth factor—innovations to reduce costs for patients while delivering high value—is often neglected.
The panel explored how financial incentives don’t always align with the best outcomes, and stressed the importance of non-financial motivators in driving innovation in the right direction. According to the Rebitzers and Acemoglu, innovation is frequently hailed as the solution to societal challenges, but this view can be problematic. Innovation, they argued, can sometimes exacerbate existing issues, particularly when social norms and powerful narratives become difficult to control.
The conversation covered the factors driving our evolving technology landscape, as well as the opportunities and challenges it presents. A key takeaway from the panel was the necessity of understanding how influential actors disproportionately shape the direction of technological progress, and how these forces will impact the future of both innovation and society at large.