Fueling the Innovative Process: Oil Prices and Induced Innovation in Automotive Energy-Efficient Technology
Colorado College Working Paper No. 2007-04
18 Pages Posted: 6 Jun 2007
Date Written: May 2007
This paper tests the induced innovation hypothesis that higher oil prices will lead to increased innovation in energy-efficient automotive technology. We find robust empirical support for the hypothesis, while using various measures of oil and gas prices and controlling for other factors including constructed knowledge stocks and macroeconomic variables.
Keywords: induced innovation, patent, oil, gas, automobile, energy,
JEL Classification: O3, Q4, Q55
Suggested Citation: Suggested Citation