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R&D Subsidization and Innovation: Searching for Causality in the Concentrating Solar Power Industry Using Vector Autoregressions and Impulse-Response Functions

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dc.contributor.advisor Ball, Richard J.
dc.contributor.author Rizvi, Jari
dc.date.accessioned 2013-09-13T19:41:24Z
dc.date.available 2013-09-13T19:41:24Z
dc.date.issued 2013
dc.identifier.uri http://hdl.handle.net/10066/11808
dc.description.abstract In this paper, we seek to confirm whether or not changes in growth of research and development (R&D) subsidies to the Concentrating Solar Power (CSP) industry cause increases in growth of patents in that industry. Using time series data for 24 countries across 38 years, we use vector auto-regressions and orthogonalized impulse-response functions to isolate causal effects. These econometric techniques have been used in isolating cause-and-effect relationships in macroeconomics, but it has yet to be applied to the innovation/patent literature. We detail changes in the growth of R&D subsidies, GDP, and patent counts to find that there is an ambiguous causal effect from increases in R&D growth to changes in growth of patents, indicating that either there is no cause- and-effect relationship for the CSP industry, or that the data is not complete enough to establish this relationship. However, the data does show a statistically significant and robust causal effect from increases in GDP growth to increases in patent growth in CSP. Our treatment allows us to confirm a causal link, something that none of the past literature has succeeded at doing. Our research significantly contributes to the literature by successfully introducing an effective econometric technique that can be applied to the field of innovation research, and from here further research can be done to establish cause-and-effect relationships in broader industries.
dc.description.sponsorship Haverford College. Department of Economics
dc.language.iso eng
dc.rights.uri http://creativecommons.org/licenses/by-nc/3.0/us/
dc.subject.lcsh Solar energy industries -- United States -- Finance -- Econometric models
dc.subject.lcsh Research and development contracts, Government -- United States -- Econometric models
dc.subject.lcsh Solar energy -- Research -- United States -- Econometric models
dc.title R&D Subsidization and Innovation: Searching for Causality in the Concentrating Solar Power Industry Using Vector Autoregressions and Impulse-Response Functions
dc.type Thesis
dc.rights.access Open Access


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http://creativecommons.org/licenses/by-nc/3.0/us/ Except where otherwise noted, this item's license is described as http://creativecommons.org/licenses/by-nc/3.0/us/

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