Fueling the Innovative Process: Oil Prices and Induced Innovation in Automotive Energy-Efficient Technology

Johnson, Daniel K. N.; Crabb, Joseph M.

doi:10.2139/ssrn.991411

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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

See all articles by Daniel K. N. Johnson

Daniel K. N. Johnson

Colorado College - Department of Economics and Business; NAACP Legal Defense and Educational Fund

Joseph M. Crabb

Colorado College - Department of Economics and Business

Date Written: May 2007

Abstract

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

Johnson, Daniel Kent Neil and Crabb, Joseph M., Fueling the Innovative Process: Oil Prices and Induced Innovation in Automotive Energy-Efficient Technology (May 2007). Colorado College Working Paper No. 2007-04, Available at SSRN: https://ssrn.com/abstract=991411 or http://dx.doi.org/10.2139/ssrn.991411