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Macroeconomic Conditions and Successful Commercialization

Author

Listed:
  • 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)

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.

Suggested Citation

  • Elizabeth Webster & Paul H. Jensen, 2009. "Macroeconomic Conditions and Successful Commercialization," Melbourne Institute Working Paper Series wp2009n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2009n09
    as

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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2009n09.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; Commercialization; Invention; Appropriation;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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