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A Historical Perspective on Patents and Industry Growth in Finland - Connections and Lags

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  • Nikulainen, Tuomo

Abstract

This paper aims to establish how the innovative activity in Finland has changed over time in the transition from a resource-driven economy to a knowledge-driven economy. The paper first takes a historical perspective on innovation and industrial activity in Finland through a descriptive analysis. The aim is to identify technological trends in both specific technological areas as well as in different industries. Patent data provides a long time-series of innovative activity from 1842 to 2005 covering 164 years overall. This data is complemented with industry data from 1948 to 2007. The industry data allows a comparative descriptive analysis between the main industries and their respective technological development. The descriptive analysis is complemented with a statistical analysis, in which the interaction between growth in industrial volumes and growth in patent stock is empirically examined taking into account the industry specificities and lag-structures. This approach reveals whether patenting activity, used to approximate innovative activities, can be used to predict the growth of industrial activity. This aspect has received surprisingly little attention in prior research. The regression analyses show that there is a positive connection between industry growth and patent growth. In addition, the patent growth lags, both backward and forward in time, are positively connected to the industrial growth. This finding suggests that there might exist a positive cycle where innovation induces industry growth, which in turn induces innovative activities. Furthermore, patent growth seems to have a weak positive impact on industry growth with a lag of 13 years. This indicates that patent growth might provide weak signals of future industry growth

Suggested Citation

  • Nikulainen, Tuomo, 2008. "A Historical Perspective on Patents and Industry Growth in Finland - Connections and Lags," Discussion Papers 1159, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1159
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    Cited by:

    1. Dutt Pawan & Ferraro Simona & Chochia Archil & Muljar Ramona, 2018. "Using Patent Development, Education Policy and Research and Development Expenditure Policy to Understand Differences between Countries: The Case of Estonia and Finland," TalTech Journal of European Studies, Sciendo, vol. 8(1), pages 123-153, June.
    2. Tuomo Nikulainen, 2012. "R&D Collaboration And Nanotechnology — An Opportunity For Traditional Industries," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-16.
    3. Dutt Pawan Kumar & Nyman-Metcalf Katrin, 2021. "The Legal Implications of Public Support Policies Targeting Research, Development and Innovation in the European Union," TalTech Journal of European Studies, Sciendo, vol. 11(2), pages 102-129, September.

    More about this item

    Keywords

    patents; industry growth; lags; technological change;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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