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Innovation and development around the world, 1960-2000

  • Lederman, Daniel
  • Saenz, Laura

The authors present a database of indicators of innovative activity around the world since the early 1960s. The data include measures of innovation outcomes as well as variables related to innovation effort. The main indicator of innovation outputs is patents. The main variables related to innovation inputs are investment in research and development (R&D) and technical personnel (engineers, scientists) working in R&D activities. The sources of these data are publicly available (OECD, UNESCO, etc.), yet there have been few attempts at double checking the consistency of these data and digitizing observations dating back to the 1960s. After discussing the sources and definitions of the data, the authors examine trends and patterns of innovation outputs and inputs by looking at the over-time behavior of the relevant series and comparing the performance of developing and high-income countries. They also provide cross-regional comparisons and a detailed examination of trends in selected countries. In turn, the authors provide estimates of the impact of innovation on long-run development by following an emerging empirical literature on the determinants of levels of GDP per capita. The econometric results suggest that innovation might indeed have strong positive effects on long-run development, which might be stronger than the direct effects of institutions. The analysis pays close attention to issues related to the potential endogeneity of innovation (and institutions) with respect to the level of development.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3774.

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Date of creation: 01 Nov 2005
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Handle: RePEc:wbk:wbrwps:3774
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  1. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
  2. William Easterly & Ross Levine, 2002. "Tropics, Germs, and Crops: How Endowments Influence Economic Development," NBER Working Papers 9106, National Bureau of Economic Research, Inc.
  3. William F. Maloney & Daniel Lederman, 2004. "R&D and Development," Econometric Society 2004 Latin American Meetings 216, Econometric Society.
  4. Acemoglu, Daron & Zilibotti, Fabrizio, 2000. "Productivity Differences," CEPR Discussion Papers 2498, C.E.P.R. Discussion Papers.
  5. Keith E. Maskus, 1993. "Intellectual property rights and the Uruguay Round," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 10-25.
  6. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
  7. Dani Rodrick, 2003. "Growth Strategies," Economics working papers 2003-17, Department of Economics, Johannes Kepler University Linz, Austria.
  8. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
  9. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  10. Bosch, Mariano & Lederman, Daniel & Maloney, William F., 2005. "Patenting and research and development : a global view," Policy Research Working Paper Series 3739, The World Bank.
  11. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
  12. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
  13. Klenow, Peter J. & Rodriguez-Clare, Andres, 1997. "Economic growth: A review essay," Journal of Monetary Economics, Elsevier, vol. 40(3), pages 597-617, December.
  14. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. "Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
  15. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
  16. Peter J. Klenow & Andres Rodriguez-Clare, 2004. "Externalities and Growth," NBER Working Papers 11009, National Bureau of Economic Research, Inc.
  17. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-38, July.
  18. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
  19. repec:fth:harver:1473 is not listed on IDEAS
  20. Lederman, Daniel & Maloney, William F., 2003. "Research and development (R&D) and development," Policy Research Working Paper Series 3024, The World Bank.
  21. Dollar, David & Kraay, Aart, 2003. "Institutions, trade, and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 133-162, January.
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  1. Socio-Economics of Innovation

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