Household Innovation, R&D, and New Measures of Intangible Capital / Daniel Sichel, Eric von Hippel.

Format:

Book

Author/Creator:

Sichel, Daniel E.

Contributor:

Hippel, Eric von.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25599.

NBER working paper series no. w25599

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

Household R&D (or household innovation) is an important source of innovation that has to date been largely overlooked in research related to national accounts. Indeed, it is not currently counted as investment in the literatures on household production and human capital. This paper develops time series estimates of nominal investment, real investment, and real capital stocks for household R&D for product innovations in the United States. (We focus on product innovations because survey data on services innovations in the household sector are not yet available.) In the U.S., we find that household product R&D is significant. Our estimate of real investment in 2017 is $41 billion (2012 dollars). This is about half of what producers spend in R&D to develop new products for consumers - a sizable fraction. Our estimate of the real capital stock of household product R&D in 2017 is $233 billion. We conclude that household R&D is an important feature of household activity and, more generally, of the overall landscape of innovation.

Notes:

February 2019.

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