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Macroeconomic Conditions and Successful Commercialization

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Author Info
Elizabeth Webster () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
Paul H. Jensen () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

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Abstract

The commercialization of inventions is an investment, similar to spending on plant and equipment, and accordingly we would expect it to be affected by macroeconomic conditions. Using data on the commercialization activity from over 4000 inventors, we find evidence that macroeconomic conditions have a pro-cyclical affect on commercialization activities. However, the magnitude of the supply-side effects – the cost of finance and level of public sector research – are estimated to be larger than the growth in aggregate or industry demand.

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Publisher Info
Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2009n09.

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Length: 20 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:iae:iaewps:wp2009n09

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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
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Web page: http://www.melbourneinstitute.com/
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Related research
Keywords: Innovation; Commercialization; Invention; Appropriation;

Other versions of this item:

Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights

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References listed on IDEAS
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    Other versions:
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  4. repec:fth:harver:1473 is not listed on IDEAS
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  7. Patrick Francois & Huw Lloyd-Ellis, 2003. "Animal Spirits Through Creative Destruction," American Economic Review, American Economic Association, vol. 93(3), pages 530-550, June. [Downloadable!]
  8. Geroski, P A & Walters, C F, 1995. "Innovative Activity over the Business Cycle," Economic Journal, Royal Economic Society, vol. 105(431), pages 916-28, July. [Downloadable!] (restricted)
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