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Innovation and the Business Cycle: A Comparison of the U.S. Semiconductor and Automobile Industries

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  • Daniel Giedeman
  • Paul Isely
  • Gerald Simons

Abstract

This paper examines data for U.S. automotive and semiconductor firms from 1976 to 2000 to analyze the cyclical nature of innovation, and to find if it is the same across the two industries. Although previous studies have used aggregate data, it does not follow that distinct industries respond to economic fluctuations in the same way. Using patenting as a proxy for innovation, this study finds that there is evidence that innovation is procyclical in the semiconductor industry, but there does not appear to be a similar cyclical pattern in the automobile industry. This has implications for government policy aimed at increasing private sector innovation, particularly at the regional level. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • Daniel Giedeman & Paul Isely & Gerald Simons, 2006. "Innovation and the Business Cycle: A Comparison of the U.S. Semiconductor and Automobile Industries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(2), pages 277-286, May.
    • Handle: RePEc:kap:iaecre:v:12:y:2006:i:2:p:277-286:10.1007/s11294-006-9009-3
    DOI: 10.1007/s11294-006-9009-3
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    References listed on IDEAS

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    Cited by:

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    2. Neil Thompson & Erik Stam, 2010. "Macroeconomic Dynamics and Innovation: SME innovation in the Netherlands, 1999-2009," Innovation Studies Utrecht (ISU) working paper series 10-03, Utrecht University, Department of Innovation Studies, revised May 2010.
    3. Anna Wziątek-Kubiak & Marek Pęczkowski, 2021. "Strengthening the Innovation Resilience of Polish Manufacturing Firms in Unstable Environments," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 716-739, June.

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    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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