Patents, foreign direct investment and economic growth in Australia, 1860–2010

2023/10/01 by Grant Fleming, Zhangxin Liu, David Merrett +1 · 1 voice
Business, Management and Accounting · Economics, Econometrics and Finance · #Economic Growth and Productivity #Entrepreneurship Studies and Influences #Firm Innovation and Growth

paper · pdf · doi:10.1111/aehr.12275

openalex publication_date 2023/10/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31

Abstract

Abstract We examine the long run relationship between innovation and economic development in Australia, using 150 years of data on patenting activity, and aggregate and sectoral economic indicators. Our initial results point to several important causal relationships, particularly the effects of patents on real GDP and of private capital formation on patents. We delve deeper at the sector level and find important causal relationships of patents with real foreign direct investment (FDI) since World War II. Australia's dependence on FDI for private capital formation served as an important stimulus for knowledge creation in key sectors including manufacturing, agriculture and mining.

Citations

• Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity
• Natural Resources: Curse or Blessing?
• The growth of patenting in New Zealand, 1860–99

Discussions

• Innovation (patents) drove economic growth rather than the reverse in 20th century Australia, according to Grant Fleming, Frank Liu, David Merrett & Simon Ville. The relationship exists separately in [bsky, 2 points, 1 comments]

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