Abstract

http://ssrn.com/abstract=2193068
 
 

References (56)



 
 

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Technological Innovation, Resource Allocation, and Growth


Leonid Kogan


Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Dimitris Papanikolaou


Northwestern University - Kellogg School of Management - Department of Finance; National Bureau of Economic Research (NBER)

Amit Seru


University of Chicago - Booth School of Business

Noah Stoffman


Indiana University - Kelley School of Business - Department of Finance

July 11, 2012


Abstract:     
We explore the role of technological innovation as a source of economic growth by constructing direct measures of innovation at the firm level. We combine patent data for US firms from 1926 to 2010 with the stock market response to news about patents to assess the economic importance of each innovation. Our innovation measure predicts productivity and output at the firm, industry and aggregate level. Furthermore, capital and labor flow away from non-innovating firms towards innovating firms within an industry. There exists a similar, though weaker, pattern across industries. Cross-industry differences in technological innovation are strongly related to subsequent differences in industry output growth.

Number of Pages in PDF File: 94

Keywords: Innovation, patents, growth, reallocation

JEL Classification: G14, E32, O3, O4

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Date posted: December 22, 2012  

Suggested Citation

Kogan, Leonid and Papanikolaou, Dimitris and Seru, Amit and Stoffman, Noah, Technological Innovation, Resource Allocation, and Growth (July 11, 2012). Available at SSRN: http://ssrn.com/abstract=2193068 or http://dx.doi.org/10.2139/ssrn.2193068

Contact Information

Leonid Kogan (Contact Author)
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
50 Memorial Drive
Cambridge, MA 02142
United States
617-253-2289 (Phone)
617-258-6855 (Fax)
HOME PAGE: http://web.mit.edu/lkogan2/www/
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Dimitris Papanikolaou
Northwestern University - Kellogg School of Management - Department of Finance ( email )
Evanston, IL 60208
United States
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Amit Seru
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Chicago Booth School of Business Logo

Noah Stoffman
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States
(812) 856-5664 (Phone)
HOME PAGE: http://kelley.iu.edu/nstoffma/

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References:  56
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