Patents,foreign direct investment and economic growth in Australia, 1860–2010 |
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| Authors: | Grant Fleming Zhangxin |
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| Institution: | 1. Continuity Capital Partners, Canberra, Australian Capital Territory, Australia;2. School of Accounting and Finance, University of Western Australia, Perth, Western Australia, Australia;3. School of Management and Marketing, University of Melbourne, Melbourne, Victoria, Australia;4. School of Business, University of Wollongong, Wollongong, New South Wales, Australia |
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| 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. |
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| Keywords: | Australia economic growth foreign direct investment innovation patents |
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