INNOVATIVE ACTIVITY OVER THE BUSINESS-CYCLE

This paper examines cyclical patterns of innovative activity in the Un ited Kingdom over the period I948-83 Innovative activity turns out to have many of the properties of a random walk, but does show a tendency to cluster during booms. There is clear evidence of a long-term secul ar relation between the level of innovative activity and the level of economic activity, although this may have changed in the I980s. Finall y, the data provide no reason for thinking that these clusters of inno vation cause cyclic variations in economic activity, but variations in economic activity do Granger cause changes in innovative activity.