Eric von Hippel
Massachusetts Institute of Technology
Sloan School of Management.
Cambridge, MA 02142
Institutional Affiliation: Massachusetts Institute of Technology
NBER Working Papers and Publications
|February 2019||Household Innovation, R&D, and New Measures of Intangible Capital|
with Daniel Sichel: w25599
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 sizabl...