The Long-run Relationships between Number of Patents and Economic Growth

Janusz Myszczyszyn
European Research Studies Journal, Volume XXIII, Issue 3, 548-563, 2020
DOI: 10.35808/ersj/1654


Purpose: The aim of the article was to determine whether there was a long-term relationship between the level of economic growth and development of Germany and the number of granted patents and the so-called valuable patents. The empirical analysis was based on available statistical data for the period of 1872–1913. Econometric methods were used, including stationary test using ADF and KPSS tests, Johansen cointegration test. Findings: The research results showed that all analysed time series were non-stationary, and were integrated of order I(1). The Johansen’s test results excluded any long-term relationship between the growth and economic development of Germany, and the number of granted patents, including valuable patents. Practical Implications: The adoption of the patent law by the Reichstag (1877) was an important step in the protection of intellectual property of the united Germany, so it was reasonable to determine whether there was a correlation between the analysed variables. The hypotheses about long-term interdependence could not be confirmed, which may have an impact on further studies of the factors of economic growth in the Second German Reich. Originality/Value: It was particularly important to examine whether the number of granted patents (including valuable patents) had a positive effect on Germany’s long-term economic growth and development (and the other way around). The obtained results are an extension of the author’s research to date, in this respect by providing some contribution to the development of cliometrics (not very popular in Europe). The research results will allow, in the next stage, to further search for determinants of Germany’s economic growth, including determining interdependence in the short term, using the impulse response function.

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