The Dynamics of Innovation and Investment, with application to Australia 1984 - 1998
AbstractEver since the start of the Industrial Revolution in Britain in the 1760s, innovation and investment have been crucial elements in economic explanations of the dynamics of capitalism. Classical economics recognises that innovation embodied in the form of new machines through fixed capital investment is the essential process for realising economic development. This study sets up a theoretical linkage between innovation and investment in historical time, without reference to any static equilibrium model. In this way, the relationship between instability of cycles and trend growth can be clearly identified. A theoretical framework and specific model of innovation and investment are developed. This is followed by an empirical investigation in support of this analysis to show plausibility in the important linkages between innovation and investment that have been missed when examined through static analysis of these relations. The statistical analysis is based on recent Australian industry sector data (1984-98) on R&D and capital expenditure in panel data form and in evolutionary industry life-cycle form. Conclusions from this work indicate the need to re-examine the way strategies are formed and developed in both the private and public sectors for more effective appropriation of innovation into the investment planning process.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 003.
Date of creation: 2000
Date of revision:
Contact details of provider:
Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
economics of technology ;
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charles Bollen).
If references are entirely missing, you can add them using this form.