Does anyone know of a "good" and detailed source of information on the contribution of innovation (along the lines of what is measured by R&D spending) to economic growth? Looking for a something that differentiates between basic and applied R&D too.
Much thanks to anyone that has knowledge to share about this.
I have what you need:
Aghion and Howitt's textbook on endogenous growth theory is very interesting (if dense) read.
They discuss theoretical models and empirical evidence.
Ambition is a dream with a V8 engine - Elvis Presley
Some of those things are mentioned in here:
The Myth of Science as a Public Good (by Terence Kealey)
I remember Jeffrey Tucker talking about how the Wright brothers made a small adjustment to their plane and then went and patented it. After that went suing a bunch of people for many years. He also talked about the Cotton Gin and Eli Whitney and how the Gin was invented way before him; all he did was patent it. Are there any books on patents, copyrights, and trademarks, that lay out this type of information? Specifically the history of it all.
Thanks. I will look into endogenous growth theory.
Has anyone tried to place R&D / innovation into the Austrian framework? I am not talking about IP. I am interested in the outputs of R&D spending and how does R&D contribute to economic growth.
Well, the best Austrian work on innovation probably goes back to Schumpeter (The Theory of Economic Development is a good place to start).
I am not sure if there are any Austrians currently working on this topic. Someone else might be able to point you toward any if they exist.
"Are Internal Capital Markets Good for Innovation?" by Peter Klein
Abstract: Which type of firm is more innovative: the decentralized, diversified corporation or the smaller, more narrowly focused “entrepreneurial” firm? According to one argument, diversi- fied corporations can do more R&D because their operating units have access to an internal capi- tal market. Other writers argue that decentralized, diversified firms over-rely on financial ac- counting criteria to evaluate the performance of their operating units, discouraging divisional managers from investing in projects like R&D with long-term, uncertain payoffs. This paper uses a comprehensive sample of diversified and nondiversified firms from 1980 to 1999 to study the relationship between diversification and innovation. I find a robust negative correlation between diversification and R&D intensity, even when controlling for firm scale, cash flow, and invest- ment opportunities. Industry-adjusted R&D—the difference between the R&D intensity of a di- versified firm and the R&D intensity it would most likely have if its divisions were standalone firms—is negative, consistent with the hypothesis that diversification reduces innovation by dis- couraging R&D investment. However, other evidence suggests that internal-capital-market inef- ficiencies, rather than managerial myopia, are driving the negative relationship between diversi- fication and innovation.