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Patents, Foreign Direct Investment and Economic Growth in Australia, 1860-2010

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  • Grant Fleming
  • Frank Liu
  • David Merrett
  • Simon Ville

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 Two. Australia’s dependence on FDI for private capital formation served as an important stimulus for knowledge creation in key sectors including agriculture and mining.

Suggested Citation

  • Grant Fleming & Frank Liu & David Merrett & Simon Ville, 2022. "Patents, Foreign Direct Investment and Economic Growth in Australia, 1860-2010," CEH Discussion Papers 08, Centre for Economic History, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:hpaper:107
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    File URL: https://cbe.anu.edu.au/researchpapers/CEH/WP202208.pdf
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