Invites you to a

School seminar presented by

Elvira Sojli

(University of New South Wales)

Measuring Advanced Manufacturing and Process Innovation: Applications to Productivity and Growth

Co-authors:

Leo Liu (University of Technology Sydney)

Wing Wah Tham (University of New South Wales)

Thursday 20 October 2022

2.30pm – 4.00pm

Via Zoom: Meeting Link

Abstract: We propose new time-varying measures of advanced manufacturing and process innovations based on patent invention claims and titles from 1850 to 2019 across 51 countries. Using this measure, we provide evidence that these innovations are important for firm and aggregate economic growth through technological spillover to product innovations and increased profitability. We find that product patents that cite and build on advanced processes have higher forward citations and economic value than product patents of the same technology class and cohort, creating a new avenue for theoretical research. Further, firms with higher quality process innovation are associated with higher profits, sales, capital, employment, and total factor productivity in the short run, while product innovation plays a larger role in the longer run. In cross-country analysis, we find that product innovation is more important than process innovation for emerging countries with low labor costs for growth convergence towards the US economy, but the opposite holds for productivity.

For further information contact: School seminar series coordinators Dr Ye Lu (ye.lu1@sydney.edu.au) & Dr Alastair Fraser (alastair.fraser@sydney.edu.au)

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