The Innovation and Diffusion Podcast S3 E3: The Great Reversal, Europe and the US with Thomas Philippon from NYU Stern
Jan 21, 2026
Join Thomas Philippon, a finance professor at NYU Stern and author of The Great Reversal, as he dives into the nuances of market dynamics. He discusses his academic journey from physics to economics and the impact of rising corporate concentration on labor shares. Thomas debates whether high profits spur innovation or signal weakened competition, especially in tech. He analyzes the contrasting productivity trends between the US and Europe and shares insights on the future of regulation and research in economics.
AI Snips
Chapters
Books
Transcript
Episode notes
From Physics To Economics Over Social Concerns
- Thomas Philippon switched from physics to economics late in his undergraduate career driven by social concerns.
- He focused on unemployment and wrote his master's dissertation on minimum wages and unemployment.
Superstars Are Historic, COVID Boosted Valuations
- Superstar firms are not new; large, innovative firms have existed since the 19th century.
- What changed recently is valuation concentration post-COVID, especially in stock-market shares.
COVID Created A Perfect Storm For Tech Giants
- COVID advantaged dominant tech firms because they could shift online and stay resilient.
- Markets now price persistence of that advantage, implying expectations of long-lived dominance.
