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Do Technology Shocks Lead to Productivity Slowdowns? Evidence from Patent Data

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  • Lone Engbo Christiansen
Abstract
This paper provides empirical evidence on the response of labor productivity to the arrival of new inventions. The benchmark measure of technological progress is given by data on patent applications in the U.S. over the period 1889-2002. The analysis shows that labor productivity may temporarily fall below trend after technological progress. However, the effects on productivity differ between the pre- and post-World War II periods. The pre-war period shows evidence of a productivity slowdown as a result of the arrival of new technology, whereas the post-World War II period does not. Positive effects of technology shocks tend to show up sooner in the productivity data in the later period.

Suggested Citation

  • Lone Engbo Christiansen, 2008. "Do Technology Shocks Lead to Productivity Slowdowns? Evidence from Patent Data," IMF Working Papers 2008/024, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/024
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    References listed on IDEAS

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    Cited by:

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    2. Michelle Alexopoulos, 2011. "Read All about It!! What Happens Following a Technology Shock?," American Economic Review, American Economic Association, vol. 101(4), pages 1144-1179, June.
    3. Michelle Alexopoulos and Jon Cohen, 2018. "Canadian Productivity Growth, Secular Stagnation, and Technological Change," International Productivity Monitor, Centre for the Study of Living Standards, vol. 35, pages 113-137, Fall.
    4. Ingrid Ott & Christian Papilloud & Torben Zülsdorf, 2009. "What Drives Innovation? Causes of and Consequences for Nanotechnologies," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(1), pages 5-26.
    5. Hufbauer, Gary Clyde, 2008. "Global governance: old and new issues," Kiel Working Papers 1460, Kiel Institute for the World Economy (IfW Kiel).
    6. Alexopoulos, Michelle & Cohen, Jon, 2019. "Will the new technologies turn the page on U.S. productivity growth?," Economics Letters, Elsevier, vol. 175(C), pages 19-23.
    7. Ott, Ingrid & Papilloud, Christian & Zülsdorf, Torben, 2008. "What drives innovation? Causes of and consequences for nanotechnologies," HWWI Research Papers 1-17, Hamburg Institute of International Economics (HWWI).

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