Innovation and growth in the Norwegian economy

NORIG (NORwegian Innovation and Growth) Virtually all of the economic models based on endogenous growth theory rely on R&D, patent and/or education statistics. These studies only measure the inputs that go into the innovation process and economic growth . This project goes beyond these simple measures, and searches for better indicators and ways to use them. The first part links the construction of survey data to economic theory and econometric modelling. The analysis traces the development of the Oslo Manual and the Community Innovation Survey (CIS), and discusses some problems and challenges faced when developing the questionnaire, including differences across countries and across time. It would parallel the third revision of the Oslo Manual, which c ould provide important feedback for the development of further innovation surveys. Part two develops economic models that make use of the results of previous innovation surveys. It will also integrate CIS-2, CIS-3, and CIS-4 (if available) with several years of the annual financial data from the business register to analyze the sources of knowledge in the innovation process and their impact on productivity growth. This requires exploring different economic models and econometric methods that can analyze innovation survey data. It proposes to write two academic papers: one that focus on the knowledge sources that drive the innovation process and one that analyses the links between this innovation process and productivity growth. Finally, the project wi ll provide a primer on how to analyse and evaluate innovation survey data. Since there are so few studies that use this kind of data, such a paper would provide an easier way of disseminating the results of the study to end users, including practitioners, economists and policymakers.