“Ideas” driven growth: the OECD evidence

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 to generate 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. Copyright Springer-Verlag Berlin/Heidelberg 2005Innovation, spillovers, ideas-driven growth, patents, public intervention,

Using Patent Development, Education Policy and Research and Development Expenditure Policy to Increase Technological Competitiveness of Small European Union Member States

“…States must go further and subsidise R&D, especially in public universities and university spin-offs (Pessoa 2005). This would be the only way for member states such as Estonia to become proficient in high technology applications and ICT services, thereby avoiding becoming economically irrelevant.…”

Knowledge spillovers and R&D subsidies to new, emerging technologies

“…There are some studies that estimate the parameters in the aggregate R&D production function. Both Porter and Stern (2000) and Pessoa (2005) …nd a scale elasticity larger than one. In another study, Gong et al (2004) …nd a scale elasticity smaller than one, though the results are not signi…cant.…”

Benefitting from bibliometry

“…environment, health, development) are so complex that simple solutions will not do (e.g. Lubchenco 1998) and (3) significant investment is necessary to compete in terms of innovation, and in the case of new industries (Pessoa 2005, Madsen 2007). …”