Innovation and growth in Germany in the past 150 years

This contribution starts from today’s definitions of innovation indicators and completes these 150 years backwards. It is divided into a descriptive and an econometric part. The German innovation system was very stable although it witnessed several political system changes in the past century. This allows for a comparison of 1850 – 1913 with 1951 – 1999. In the first period the overall empirical results point to a linear innovation relation from human capital to technical growth and welfare, whereas for the second period a different logic in the innovation process is suggested: science and technology seem to be intertwined; private expenditures matter.