Last Updated on Monday, 19 September 2011 02:26 Written by dbhalling Monday, 19 September 2011 02:26

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This empirical study investigates the dynamic link between patent growth and GDP growth in G7 economies by Josheski, Dushko and Koteski, CaneGoce Delcev University-Stip, Goce Delcev University-Stip.  Here are some interesting quotes from the paper.

Technological change has been regarded as a major source of long-run productivity growth (Romer, 1990, Grossman and Helpman, 1991), with innovation no longer being treated as an exogenous process.

Johansen’s procedure for cointegration showed that long run multipliers are positive between the patent growth and GDP growth in G7 economies.  Granger causality test showed that patent growth Granger cause GDP growth in G7 countries.  Unrestricted VAR showed that there exists positive relationship between patent growth and GDP growth at two or three lags.