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Innovation and Economic Growth

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  • G Cameron

Abstract

This paper surveys the empirical evidence on the link between innovation and economic growth. It considers a number of different measures of innovation, such as R&D spending, patenting, and innovation counts, as well as the pervasive effect of technological spillovers between firms, industries, and countries. There are three main conclusions. The first is that innovation makes a significant contribution to growth. The second is there are significant spillovers between countries, firms and industries, and to a lesser extent from government-funded research. Third, that these spillovers tend to be localized, wit foreign economies gaining significantly less from domestic innovation than other domestic firms. This suggests that although technological 'catch-up' may act to equalize productivity across countries, the process is likely to be slow and uncertain, and require substantial domestic innovation effort.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0277.

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Date of creation: Feb 1996
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Handle: RePEc:cep:cepdps:dp0277

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Cited by:
  1. Wang, David Han-Min & Yu, Tiffany Hui-Kuang & Liu, Hong-Quan, 2013. "Heterogeneous effect of high-tech industrial R&D spending on economic growth," Journal of Business Research, Elsevier, vol. 66(10), pages 1990-1993.
  2. Michael J. Orlando, 2000. "On the importance of geographic and technological proximity for R&D spillovers : an empirical investigation," Research Working Paper RWP 00-02, Federal Reserve Bank of Kansas City.
  3. MUSOLESI, Antonio, 2006. "Recherche, productivité et externalités internationales : une analyse économétrique sur données de panel pour un groupe de pays de l'OCDE," LEG - Document de travail - Economie 2006-07, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
  4. Emerson Marinho & Maurício Benegas & Flávio Ataliba, 2005. "Vantagem Comparativa Dinâmica E Crescimento Endógeno Numa Economia Com Dois Setores: Agrícola E Industrial," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 141, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  5. Rachel Griffith & Stephen Redding & John Van Reenen, 2001. "Measuring the cost effectiveness of an R&D tax credit for the UK," LSE Research Online Documents on Economics 782, London School of Economics and Political Science, LSE Library.
  6. Barot, Bharat, 2002. "Growth and Business Cycles for the Swedish Economy 1963-1999," Working Paper 79, National Institute of Economic Research.
  7. Rensman, Marieke & Kuper, Gerard H., 1999. "The role of R&D and patent activity in economic growth: some empirical evidence," Research Report 99C03, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  8. Gavin Cameron, 1998. "Catch-Up and Leapfrog between the USA and Japan," Economics Series Working Papers 1998-W16, University of Oxford, Department of Economics.
  9. Eberhardt, Markus & Helmers, Christian & Strauss, Hubert, 2010. "Do spillovers matter when estimating private returns to R&D?," Economic and Financial Reports 2010/1, European Investment Bank, Economics Department.
  10. Gavin Cameron & James Proudman & Stephen Redding, 1997. "Deconstructing Growth in UK Manufacturing," Bank of England working papers 73, Bank of England.
  11. repec:dgr:uvatin:2007079 is not listed on IDEAS
  12. Stephen Redding & James Proudman, 1998. "Productivity convergence and international openness," Bank of England working papers 77, Bank of England.
  13. Michael J. Orlando, 2002. "Measuring R & D spillovers : on the importance of geographic and technological proximity," Research Working Paper RWP 02-06, Federal Reserve Bank of Kansas City.
  14. Jacob, J. & Meister, C., 2004. "Productivity gains, intersectoral linkages, and trade: Indonesian manufacturing, 1980-1996," Eindhoven Center for Innovation Studies (ECIS) working paper series 04.14, Eindhoven Center for Innovation Studies (ECIS).
  15. Jojo Jacob & Christoph Meister, 2005. "Productivity gains, technology spillovers and trade: Indonesian manufacturing, 1980-96," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 37-56.
  16. Gavin Cameron & James Proudman & Stephen Redding, 1999. "Openness and its association with productivity growth in UK manufacturing industry," Bank of England working papers 104, Bank of England.
  17. Laura Diaconu, 2011. "The Role of Innovation for the Economic Growth and Development of the States. The Case of the Emerging Countries," ERSA conference papers ersa11p391, European Regional Science Association.
  18. Guglielmo Caporale & Mohammad Haq, 2002. "Manufacturing Wage Differentials and Employment in Some Scandinavian Countries, the U.S. and the U.K.: An Analysis of Variance Approach," Empirica, Springer, vol. 29(4), pages 289-304, December.

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