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Household Innovation and R&D: Bigger than You Think.
- Source :
- Review of Income & Wealth; Sep2021, Vol. 67 Issue 3, p639-658, 20p
- Publication Year :
- 2021
-
Abstract
- Despite recent interest in measuring household activities, investment in household R&D (or household innovation), has not been considered in any of the literatures on national‐accounts‐style measurement. Household R&D is the dedication of household resources to creating a product or process that will generate a service flow in the future; that is a household intangible asset. This paper takes a step toward valuing household innovation in the U.S. by developing time series of nominal and real investment and capital stocks for household R&D. We find that household investment in R&D was more than 11 percent of R&D funded by the private business sector in 2017 and about half of what businesses spent on R&D to develop new products for consumers. If household R&D were judged to be in scope for GDP, GDP would have been 0.2 percent higher in 2017. We conclude that household R&D is important and warrants closer attention. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00346586
- Volume :
- 67
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Review of Income & Wealth
- Publication Type :
- Academic Journal
- Accession number :
- 152442506
- Full Text :
- https://doi.org/10.1111/roiw.12477