Graphene: effective supply side policy

We have been talking about supply side policies a lot, at the AS and A2 Macro Revision Conferences around the country for the last week or so. The objectives of those policies is to boost the level of productive capacity, moving the aggregate supply curve rightwards - and governments use fiscal policy to achieve this in a variety of ways. One regular, but under-reported, aspect of the Budget tends to be grants to universities to fund research into new technologies, which can help to create more opportunities for investment from within and outside the economy, and jobs, exports and - if they really work well - new areas of Comparative Advantage for the economy.