Skip to main content
Article thumbnail
Location of Repository

Innovation and economic growth

By G. Cameron


This paper surveys the empirical evidence on the link between innovation and economic growth. It considers a number of different measures of innovation, such as R&D spending, patenting, and innovation counts, as well as the pervasive effect of technological spillovers between firms, industries, and countries. There are three main conclusions. The first is that innovation makes a significant contribution to growth. The second is there are significant spillovers between countries, firms and industries, and to a lesser extent from government-funded research. Third, that these spillovers tend to be localized, wit foreign economies gaining significantly less from domestic innovation than other domestic firms. This suggests that although technological ''catch-up'' may act to equalize productivity across countries, the process is likely to be slow and uncertain, and require substantial domestic innovation effort

Topics: HB Economic Theory
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Year: 1996
OAI identifier:
Provided by: LSE Research Online

Suggested articles


  1. (1992). A Contribution to the Empirics of Growth’, doi
  2. (1928). A Mathematical Theory of Saving’, doi
  3. (1969). A Neoclassical Growth Model with Endogenously Positioned Technical Change Frontier’, doi
  4. (1992). A Sensitivity Analysis of Cross-Country Growth Regressions’,
  5. (1986). A Test of Static Equilibrium Models and Rates of Return to Quasi-Fixed Factors, with an Application to the Bell System’, doi
  6. (1984). Aggregate Production Functions and Productivity Measurement: A New Look’, doi
  7. (1994). Barriers to Technology Adoption and Development’, doi
  8. (1980). Basic Research and Productivity Increase in doi
  9. (1982). British Economic Growth 1856-1973 doi
  10. (1983). Canadian Productivity Growth: An Alternative (InputOutput) Analysis. Study prepared for the Economic Council of Canada, Ministry of Supply and Services,
  11. (1994). Changing Fortune: An Industry Study of British and German Productivity Growth over Three Decades’, forthcoming
  12. (1985). Clio and the Economics of QWERTY’,
  13. (1983). Comparing Productivity Growth: an Exploration of French and doi
  14. (1989). Competing Technologies, Increasing Returns, and Lock-in by Historical Events’, doi
  15. (1980). Contributions and determinants of research and development expenditures in the US manufacturing industries’, doi
  16. (1991). Convergence across states and regions’, doi
  17. (1988). Costs of Production, Intra- and Interindustry R&D Spillovers: Canadian Evidence’, doi
  18. (1987). Crazy explanations for the productivity slowdown’,
  19. (1992). Defence Innovation Stock and Total Factor Productivity’, doi
  20. (1974). Die Produktivitat von Forschung und Entwicklung, Verlag Anton Hain, Meisenheim am Glan.
  21. (1980). Direct and indirect effects of industrial research and development on the productivity Goth of industries’,
  22. (1992). Double Deflation and the Measurement of Output and Productivity in UK Manufacturing 1979-1989’, doi
  23. (1995). Dynamic Count Data Models doi
  24. (1995). Education and Production in the United Kingdom’, Paper presented at the Royal Economic Society Conference,
  25. (1989). Effects directs et indirects de la R-D sur la productivite: une analyse de l’industrie manufaturiere belge’, paper presented at 5th Journees de Microeconomie Appliquée,
  26. (1974). Effects of R&D on the Productivity Growth of Industries: An Exploratory Study (Washington DC:National Planning Association).
  27. (1993). Empirical Cross-Section Dynamics in Economic Growth’, doi
  28. (1990). Endogenous Technological Change’, doi
  29. (1989). Entry, Innovation and Productivity Growth’, doi
  30. (1986). Estimates of the Value of Patent Rights doi
  31. (1994). Exploring the Black Box: Technology, Economics, and History doi
  32. (1991). Externalities and Growth Accounting’, doi
  33. (1990). Fundamental Stocks of Knowledge and Productivity Growth’, doi
  34. (1993). Galton’s Fallacy and Tests of the Convergence Hypothesis’, doi
  35. (1993). Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations’, doi
  36. (1991). Geography and Trade (London: doi
  37. (1990). Government Spending in a Simple Model of Endogenous Growth’, doi
  38. (1994). Growth and Indeterminacy in Dynamic Models with Externalities’, doi
  39. (1987). Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment’,
  40. (1992). High-Technology exports of EEC countries: Persistence and Diversity of Specialization Patterns’, doi
  41. (1991). History Versus Expectations’, doi
  42. (1995). How Localized are Networks
  43. (1985). How Rapidly Does Industrial Technology Leak Out?’, doi
  44. (1981). Imitation Costs and Patents: An Empirical Study’, doi
  45. (1991). Increasing Returns and Economic Geography’, doi
  46. (1986). Increasing Returns and Long Run Growth’, doi
  47. (1988). Industrial R&D in Japan and the United States: doi
  48. (1995). Innovation, Spillovers, and Growth: Evidence from a Panel of UK Manufacturing Industries’, Paper presented at the Royal Economic Society Conference,
  49. (1993). Innovations and Technological Spillovers’, doi
  50. (1983). Inter-Firm Technology Flows and Productivity Growth’, doi
  51. (1982). Inter-industry technology flows and productivity growth’, doi
  52. (1988). Interindustry R&D Spillovers, Rate of Return and Production in High-Tech Industries’, doi
  53. (1984). Interindustry technology flows and productivity growth: A re-examination’, doi
  54. (1979). Issues in Assessing the Contribution of R&D to Productivity Growth’, doi
  55. (1995). Knowledge, Increasing Returns, and the UK Production Function’, forthcoming
  56. (1988). L'évaluation des effets économiques de la technologie’,
  57. (1988). L’effet des depenses en R&D sur la Productivite de travail au Quebec’, doi
  58. (1993). Making a Miracle’, Econometrica, doi
  59. (1989). OECD Comparative Economic Growth 1950-85: CatchUp and Convergence’,
  60. (1983). On Gross and Net Measures of Sectoral R&D Intensity for the Canadian Economy’, Queen’s University Discussion Paper No.
  61. (1988). On the Mechanics of Economic Development’, doi
  62. (1965). Optimum Technical Change in an Aggregative Model of Economic Growth’, doi
  63. (1989). Patents: Recent Trends and Puzzles’, doi
  64. (1988). Payments for Technology as a Factor of Production’, Université du Québec à Montreal, Cahier no.
  65. (1986). Post-Innovation Performance (London:Macmillan).
  66. (1991). Product Demand, Cost of Production, Spillovers, and the Social Rate of Return to R&D’, doi
  67. (1990). Productivity and Economic Growth’, Harvard Institute of Economic Research discussion paper no.
  68. (1992). Productivity and Human Capital Formation
  69. (1984). Productivity and R&D at the Firm Level in French Manufacturing’, doi
  70. (1984). Productivity and R&D at the Firm Level’, doi
  71. (1988). Productivity Growth, Convergence, and Welfare: doi
  72. (1988). Productivity Puzzles and R&D: Another Non-explanation’, doi
  73. (1956). Productivity Trends: Capital and Labor’, doi
  74. (1986). Productivity, R&D and Basic Research at the Firm Level in the 1970s’, doi
  75. (1984). R&D and Productivity Growth at the Industry Level: Is There Still a Relationship?’, doi
  76. (1990). R&D and Productivity Growth: A Survey of the Literature’, Université du Québec à Montreal, CERPE, Cahier de Recherche no.
  77. (1991). R&D and Productivity: A Survey of Econometric Studies at the Firm Level’, doi
  78. (1980). R&D and the productivity slowdown’, doi
  79. (1989). R&D Capital, rate of return on R&D investment and spillover of R&D doi
  80. (1983). R&D Expenditures, Royalty Payments, and Sales Growth in Japanese Manufacturing Corporations’, doi
  81. (1993). R&D Spillovers and technology transfer among and within vertical keiretsu groups: Evidence from the Japanese electrical machinery industry’, doi
  82. (1989). R&D, innovations, and total factor productivity growth in British manufacturing’, doi
  83. (1989). Real Effect of Academic Research’,
  84. (1994). Reassessing the Social Returns to Equipment Investment - Comment on De Long and Summers’, doi
  85. (1985). Recherche-developpement et performances des entreprises: une etude econometrique sur donees individuelles’, doi
  86. (1994). Regional Cohesion: evidence and theories of regional growth and convergence’, doi
  87. (1985). Research Activity, Output Growth, and Productivity Increase in Japanese Manufacturing Industries’, doi
  88. (1989). Research and Development and intra-industry spillovers: An Empirical Application of Dynamic Duality’, doi
  89. (1980). Research and Development Expenditures and Labor Productivity at the Firm Level’,
  90. (1973). Research expenditures and Growth Accounting’,
  91. (1988). Reserche-Developpement et Productivite dans les Enterprises Japonaises: une Etude Econometrique sur Donnees de Panel. Thèse pour le doctorat de l'Ecole des Hautes Etudes en Science Sociales,
  92. (1956). Resources and Output Trends in the United States since 1870’, doi
  93. (1993). Returns to Research and Development Spending doi
  94. (1980). Sectoral productivity slowdown’, doi
  95. (1992). Solow and the States: Capital Accumulation, Productivity, and Economic Growth’, doi
  96. (1992). Some observations on the location of employment in high-technology manufacturing in Great Britain’, doi
  97. (1987). Spillover Effects, Linkage Structure, doi
  98. (1957). Technical Change and the Aggregate Production Function’, doi
  99. (1958). Technical Progress and Production Functions’, doi
  100. (1986). Technological opportunity and spillovers of R&D: Evidence from firms’ patents, profits and market value’, doi
  101. (1981). Technology Inputs and Multifactor Productivity Growth’,
  102. (1994). Testing the Convergence Hypothesis’, doi
  103. (1970). The case for regional policies’, doi
  104. (1991). The Competitive Advantage of Nations (London:Macmillan). doi
  105. (1990). The economic impact of industry-funded university doi
  106. (1962). The economic implications of learning by doing’, doi
  107. (1981). The Effects of Double-Counting and Expensing on the Measured Returns to R&D’, doi
  108. (1972). The Empirical Relationship Between doi
  109. (1967). The Explanation of Productivity Change’, doi
  110. (1991). The impact of R&D Investment on Productivity - New Evidence Using R&D - doi
  111. (1990). The International Agglomeration of Technological Activity’,
  112. (1994). The Location of High-Technology Manufacturing doi
  113. (1995). The Low-Skill, Low-Quality Trap’, Paper presented at the Royal Economic Society Conference,
  114. (1993). The profitability of innovating firms’, doi
  115. (1991). The Search for R&D Spillovers’, doi
  116. (1987). The Size Distribution of Innovating Firms in the UK, 1945-83’, doi
  117. (1962). The Sources of Economic growth in the States and the Alternatives Before Us (New York: Committee for Economic Development). doi
  118. (1989). The structure of Canadian interindustry R&D Spillovers, and the Rates of Return to R&D’, doi
  119. (1986). The Technological Balance of Payments in Perspective’,
  120. (1988). Total Factor Productivity: Macroeconomic and Structural Aspects of the Slowdown’,
  121. (1991). Trade, Knowledge Spillovers, and Growth’, doi
  122. (1984). Using Linked Patent and R&D Data to Measure Interindustry Technology Flows’,
  123. (1942). Zur Theorie des Langfristigen Wirtschaftsentwicklung’ reprinted in Tinbergen,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.