The Mutual Relation between Patents and R&D

Because of the lack of long time series on r&d and patents, few studies have examined the causal link in the granger sense between these two innovation indicators. The existing evidence gathered by griliches (1981), pakes (1985), hall et al. (1986) and griliches et al. (1991) points to an almost instantaneous relationship, and, to the extent that any lag effects can be established, causality seems to run from r&d to patents. The dutch innovation surveys which contain questions on patent applications allow us to re-examine this issue using information of four-year lagged amounts of r&d expenditures and numbers of patent applications for a sample of 460 firms from the 1992 survey that also responded to the 1988 survey. Section 3.2 discusses the model which relates r&d expenditures and patent count mutually. Section 3.3 introduces the data, and the estimation results are presented in section 3.4. Section 3.5 concludes.keywordspatent applicationnegative binomialmutual relationzero countpatent countthese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.