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Ideas driven growth: the OECD evidence

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  • Argentino Pessoa

    () (Faculdade de Economia da Universidade do Porto)

Abstract

This paper estimates the parameters of the ideas production function crucial to recent ideas-driven growth models. Using U. S. patents granted to residents in OECD countries in order to construct the stock of commercially used ideas, we provide evidence for two main findings. First, at the level of the production of ideas, we find evidence of increasing returns to scale in the stock of ideas and number of researchers, but marginal decreasing returns in each one of these factors. Second, we provide evidence of the association between ideas growth and economic growth, for the OECD as a whole, in the long run.

Suggested Citation

  • Argentino Pessoa, 2003. "Ideas driven growth: the OECD evidence," FEP Working Papers 136, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:136
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    References listed on IDEAS

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    12. Kopf, Dennis A., 2007. "Endogenous growth theory applied: Strategies for university R&D," Journal of Business Research, Elsevier, vol. 60(9), pages 975-978, September.
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    Cited by:

    1. Tiago Sequeira, 2012. "Facts and distortions in an endogenous growth model with physical capital, human capital and varieties," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 11(3), pages 171-188, December.
    2. Janos Varga & Werner Roeger & Jan in’t Veld, 2014. "Growth effects of structural reforms in Southern Europe: the case of Greece, Italy, Spain and Portugal," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(2), pages 323-363, May.
    3. Gómez, Manuel A. & Sequeira, Tiago N., 2014. "Should the US streamline its tax system? Analysis on an endogenous growth model," Economic Modelling, Elsevier, vol. 37(C), pages 113-119.
    4. Growiec, Jakub & McAdam, Peter & Mućk, Jakub, 2018. "Endogenous labor share cycles: Theory and evidence," Journal of Economic Dynamics and Control, Elsevier, vol. 87(C), pages 74-93.
    5. Tobias Kronenberg, 2010. "Energy conservation, unemployment and the direction of technical change," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 9(1), pages 1-17, April.
    6. Francesca D'Auria & Andrea Pagano & Marco Ratto & Janos Varga, 2009. "A comparison of structural reform scenarios across the EU member states - Simulation-based analysis using the QUEST model with endogenous growth," European Economy - Economic Papers 2008 - 2015 392, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. Pedro Neves & Tiago Sequeira, 2017. "The Production of Knowledge: A Meta-Regression Analysis," CEFAGE-UE Working Papers 2017_03, University of Evora, CEFAGE-UE (Portugal).
    8. Janos Varga & Jan in 't Veld, 2009. "A model-based assessment of the macroeconomic impact of EU structural funds on the new Member States," European Economy - Economic Papers 2008 - 2015 371, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    9. Werner Roeger & Janos Varga & Jan in 't Veld, 2008. "Structural Reforms in the EU: A simulation-based analysis using the QUEST model with endogenous growth," European Economy - Economic Papers 2008 - 2015 351, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    10. Pedro Mazeda Gil & Oscar Afonso, 2011. "Technological-knowledge dynamics in lab-equipment models of quality ladders," Applied Economics Letters, Taylor & Francis Journals, vol. 18(4), pages 333-336.
    11. Argentino Pessoa & Mario Silva, 2006. "Patterns of R&D and Growth Performance: Can a Technological Follower Be Converted Into an Economic Leader?," ERSA conference papers ersa06p710, European Regional Science Association.
    12. Samira Hasanzadeh, 2017. "Dissemination of Two Faces of Knowledge: Do Liberal-Democracy and Income-Level Matter?," Carleton Economic Papers 17-09, Carleton University, Department of Economics.
    13. La Torre, Davide & Marsiglio, Simone, 2010. "Endogenous technological progress in a multi-sector growth model," Economic Modelling, Elsevier, vol. 27(5), pages 1017-1028, September.
    14. Kopf, Dennis A., 2007. "Endogenous growth theory applied: Strategies for university R&D," Journal of Business Research, Elsevier, vol. 60(9), pages 975-978, September.
    15. Argentino Pessoa, 2013. "Competitiveness, Clusters And Policy At The Regional Level: Rhetoric Vs. Practice In Designing Policy For Depressed Regions," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 101-116, June.
    16. Pierre-Richard Agénor & King Yoong Lim, 2017. "Unemployment, Growth and Welfare Effects of Labor Market Reforms," Centre for Growth and Business Cycle Research Discussion Paper Series 232, Economics, The Univeristy of Manchester.
    17. Jakub Growiec & Peter McAdam & Jakub Muck, 2018. "On the Optimal Labor Income Share," Working Papers 2018-031, Warsaw School of Economics, Collegium of Economic Analysis.
    18. Werner Roeger & Janos Varga & Jan in 't Veld, 2010. "How to close the productivity gap between the US and Europe: A quantitative assessment using a semi-endogenous growth model," European Economy - Economic Papers 2008 - 2015 399, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    19. Gómez, Manuel A. & Sequeira, Tiago N., 2013. "Optimal R&D subsidies in a model with physical capital, human capital and varieties," Economic Modelling, Elsevier, vol. 30(C), pages 217-224.

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    Keywords

    Innovation; spillovers; ideas-driven growth; patents; public intervention;

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