PT - JOURNAL ARTICLE AU - Cutler, David M. AU - Meara, Ellen AU - Richards-Shubik, Seth TI - Induced Innovation and Social Inequality AID - 10.3368/jhr.47.2.456 DP - 2012 Mar 31 TA - Journal of Human Resources PG - 456--492 VI - 47 IP - 2 4099 - http://jhr.uwpress.org/content/47/2/456.short 4100 - http://jhr.uwpress.org/content/47/2/456.full SO - J Hum Resour2012 Mar 31; 47 AB - We develop a model of induced innovation that applies to medical research. Our model yields three empirical predictions. First, initial death rates and subsequent research effort should be positively correlated. Second, research effort should be associated with more rapid mortality declines. Third, as a byproduct of targeting the most common conditions in the population as a whole, induced innovation leads to growth in mortality disparities between minority and majority groups. Using information on infant deaths in the United States between 1983 and 1998, we find support for all three empirical predictions.