nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2006‒12‒04
thirteen papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Intellectual property and the development of cultural discticts national examles By Saha Homai
  2. The trade-of intellectual property rights reconsidered: technological knowledge as an essential facility By Antonelli Cristiano
  3. Innovating routines and routinizing invention: a study on the diffusion of patent applications in italian regions, 1981-2001 By Quatraro Francesco
  4. The economics of new information and communucation technology By Antonelli Cristiano; Patrucco Pier Paolo; Quatraro Francesco
  5. Static inefficiency of compulsory licensing: Quantity vs. price competition. By Cugno, Franco; Ottoz, Elisabetta
  6. On R&D Investment By Khazabi, Massoud
  7. Globalization, national innovation systems and response of public policy By Singh, Lakhwinder
  8. The production of scientific knowledge in Italy: evidence in theoretical applied and technical sciences By Patrucco Pier Paolo
  9. Information Theory and Knowledge-Gathering By Murphy, Roy E
  10. The governance of localized knowledge: An information economics approach for the economics of knowledge By Antonelli Cristiano
  11. The economics of universtity : a knowledge governance approach By Antonelli Cristiano
  12. Innovation creation and diffusion in a social network: an agent based approach By Lamieri, Marco; Ietri, Daniele
  13. Open Innovation Clusters: The Case of Cova da Beira Region (Portugal) By Leitao, Joao

  1. By: Saha Homai
    Date: 2005–01
  2. By: Antonelli Cristiano (University of Turin)
    Abstract: Intellectual property rights have a twin effect on the economic system. On the one hand they favor the introdution of new technological knowledge. On the other they reduce competition and eventually may limit the rate of introduction of new knowledge. A trade-off takes place between such positive and negative effects. The application to the economics of knowledge of the notions of essential facility and liability rule can correct the balance of the trade-off and contribute the rate of advance of technological knowledge and its effective use in the economic system. The tuning of exc1usive property rights makes it possible to minimize knowledge rents and favor the dissemination and use of knowledge in the economic system taking advantage of its intrinsic cumulability and complementarity.
    Date: 2005–09
  3. By: Quatraro Francesco (University of Turin)
    Abstract: In this paper we investigate the patterns of diffusion of industrialized R&D activities within fmns' organizational routines, as signalled by the diffusion of patents applications per capita. Innovation and routines afe hence viewed as two opposite, bui yet c1osely intertwined aspects crucial to fmns' expansiono The analysis is contrasted against the specific features of the Italian production system, characterized by two distinct models of capitalismo The adoption of the new routine follows the logistic time path, and North-eastern and Adriatic regions show up faster diffusion speed than North-western regions. In a fÌ"amework in which physical and social technologies co-evolve with the institutional setting, the hypothesis of a catching up driven by the shift fÌ"om the Schumpeter Mark I to Mark II models found support, in which innovation and R&D carried out within universities and public labs played a crucial role.
    Date: 2006–06
  4. By: Antonelli Cristiano (University of Turin); Patrucco Pier Paolo (University of Turin); Quatraro Francesco (University of Turin)
    Date: 2006–09
  5. By: Cugno, Franco; Ottoz, Elisabetta
    Abstract: A common argument against compulsory licensing of intellectual property maintains that it facilitates the entry of inefficient producers, which may reduce social welfare independently of any effects on R&D incentives. We study the issue in a model where the innovative firm, under the threat of compulsory licensing, react strategically by choosing between quantity and price competition. We show that the risk of a reduction in static welfare due to the entry of highly inefficient firms is avoided if licensing entails a royalty per unit of output and zero fixed fee. The rationale behind this result lies in the fact that compulsory licensing threat works as a disciplining device to improve static social welfare, even when the applicant is a high cost inefficient firm.
    Keywords: compulsory licensing, essential facilities, entry, welfare
    JEL: L49 O34
    Date: 2006–11
  6. By: Khazabi, Massoud
    Abstract: The paper presents a theoretical model of R&D investment and extensively studies the capitalization policy of development-related costs. It is shown that a firm’s R&D investment policy and capitalizing related costs are influenced by a set of variables such as stock market effects and corporate income tax rates. These results are sharper when spill-over effects are introduced. Interest rates, tax rates, production’s marginal cost, stock market indices and speed of development benefits’ revelation would alter the firm’s disclosure and innovation policies conspicuously.
    Keywords: R&D; Development; Innovation; Capitalization; Expensing; Corporate Income Tax; Disclosure
    JEL: L12 L13 L51
    Date: 2006–08
  7. By: Singh, Lakhwinder
    Abstract: Abstract This paper attempts to set the significance of public innovation policies in contemporary developing countries in the context of the fast pace of globalization. It is fairly well established both in theory and practice that investment expenditure on innovation projects is likely to be low if left in the hands of private economic agents as they have a tendency to under-invest due to the ‘public good’ nature of the outcomes of R&D. However, policy in developing economies seldom takes seriously the importance of investment in innovation projects. This has not been without far-reaching implications for the growth and development performance of developing countries in general. The paper explores the role of international institutions and national governments in the task of strengthening national innovation systems through innovative interventions at national and international levels.
    Keywords: globalization of technology role of state knowledge gaps global public good innovative strategy developing countries international institutions intellectual property rights innovation policy
    JEL: O38 O34 O3
    Date: 2006–11–01
  8. By: Patrucco Pier Paolo (University of Turin)
    Abstract: The paper presents preliminary empirical evidence on the production of scientific knowledge in I ta1y, in theoretical sciences (physics), applied sciences (chemistry) and technical sciences (engineering and petrology). It elaborates on an originaI dataset of publications and citations for 2,673 Italian researchers, distributed across 61 universities, covering the years between 1990 and 2004. According to a well-established tradition of studies in the economics of science, the results show that individuaI distribution is quite asymmetric, with very few researchers accounting for a great amount of scientific output. More interestingly, the paper also shows that there afe important differences in terms of asymmetric distribution when the different disciplines, universities and academic positions of the researchers afe compared. These differences open the way to interpretation in terms of two main factors. Firstty, the various disciplines can be characterised by specific knowledge bases, learning practices, organisation of scientific labour, and communication norms. Secondly, specific weaknesses in the hiring, incentive and monitoring schemes at discipline and university level can explain different degrees of asymmetry. Both these factors bave important implications for a research agenda on the governance of science. Finally, the paper shows that, at the aggregate level, scientific productivity benefit from a concentration of R&D expenditures only to a minor extent, and subject 10 decreasing returns. The effect of extemalities stemming from R&D investments is limited. The scope of the concentration of R&D resources can therefore be questioned.
    Date: 2006–01
  9. By: Murphy, Roy E
    Abstract: It is assumed that human knowledge-building depends on a discrete sequential decision-making process subjected to a stochastic information transmitting environment. This environment randomly transmits Shannon type information-packets to the decision-maker, who examines each of them for relevancy and then determines his optimal choices. Using this set of relevant information-packets, the decision-maker adapts, over time, to the stochastic nature of his environment, and optimizes the subjective expected rate-of-growth of knowledge. The decision-maker’s optimal actions, lead to a decision function that involves his view of the subjective entropy of the environmental process and other important parameters at each stage of the process. Using this model of human behavior, one could create psychometric experiments using computer simulation and real decision-makers, to play programmed games to measure the resulting human performance.
    Keywords: decision-making; dynamic programming; entropy; epistemology; information theory; knowledge; sequential processes; subjective probability
    JEL: C61
    Date: 2006
  10. By: Antonelli Cristiano (University of Turin)
    Abstract: Information economics provides important tools to articulate an economics analysis of the generation and exploitation of localized technological knowledge. Localized technological knowledge is an emerging property of a system of learning and interacting agents where internal and external knowledge, inductive learning and deductive research afe essential, complementary and non-disposable inputs. As a result, localized technological knowledge is a highly heterogeneous dynamic process characterized by varying levels of appropriability, tacitness, and indivisibility, which take the fonns of complementarity and modularity, cumulability, compositeness, fungeability and organized with a variety of knowledge governance mechanisms. Infonnation economics provides basic guidance to elaborate an integrated framework able to understand the matching between types of knowledge and governance mechanisms bothi in generation and exploitation.
    Date: 2005–02
  11. By: Antonelli Cristiano (University of Turin)
    Abstract: University is becoming the beam of the new emerging mode of governance of the generation and dissemination of knowledge as it reveals remarkable institutional advantages both to provide a solution to the knowledge trade-off and to reduce agency costs. The typical academic labor relation emerges as an appropriate institutional device to handle the principal-agent problems when creative talents are required. The unique institutional setup of the academic system creates the supply of certified skills that are ready to operate on a professional base. Such academic consultants can be paid on an ex-post per job base matching their variable costs only. This supply leads to the creation of a specific market for research services where the demand is provided by the knowledge outsourcing of corporations.
    Date: 2006–02
  12. By: Lamieri, Marco; Ietri, Daniele
    Abstract: Market is not only the result of the behaviour of agents, as we can find other forms of contact and communication. Many of them are determined by proximity conditions in some kind of space: in this paper we pay a particular attention to relational space, that is the space determined by the relationships between individuals. The paper starts from a brief account on theoretical and empirical literature on social networks. Social networks represent people and their relationships as networks, in which individuals are nodes and the relationships between them are ties. In particular, graph theory is used in literature in order to demonstrate some properties of social networks summarised in the concept of Small Worlds. The concept may be used to explain how some phenomena involving relations among agents have effects on multiple different geographical scales, involving both the local and the global scale. The empirical section of the paper is introduced by a brief summary of simulation techniques in social science and economics as a way to investigate complexity. The model investigates the dynamics of a population of firms (potential innovators) and consumers interacting in a space defined as a social network. Consumers are represented in the model in order to create a competitive environment pushing enterprises into innovative process (we refer to Schumpeter’s definition): from interaction between consumers and firms innovation emerges as a relational good.
    Keywords: Innovation; small world; computational economics; network; complexity
    JEL: L20 L10 C63 O33 D24
    Date: 2004–04–27
  13. By: Leitao, Joao
    Abstract: This paper aims to reveal the role played by open innovation schemes in the development of new competitive advantages. Furthermore, it aims to present a normative model for networking knowledge clusters, that is, traditional clusters that are applied to the case of the Cova da Beira region (Portugal) such as Agro-Food, Textile, and Public Sector; and a set of emergent clusters that include Bioscience, Biotechnology, Multimedia, Tourism, Health, and Knowledge. In this paper, the basic framework about clusters was expanded, taking as reference the studies of Porter (1985, 1990, 1998, 2005), Feldman (1994), Porter and Stern (2001), and Furman, Porter and Stern (2002). The problematic related to open innovation schemes is integrated in this framework in order to reveal the importance of building new kinds of open innovation networks that don’t involve the geographic concentration of the enterprises. After making a literature review in order to present the analytical framework that includes the clusters theory, a normative model is presented through the development of a case study applied to the Cova da Beira region (Portugal). This option is due to the existence of a local University that has historically interfaced the launching of open-innovation spin-offs into local and international clusters networks. The present paper reveals a high degree of originality, since it contributes to the introduction of the concept of open innovation into the literature about clusters. The main point is that open innovation provides two main implications to build up and leverage both internal and external knowledge into international clusters networks. First, this study presents a basic implication for several agents such as, entrepreneurs, researchers, and policy makers; that is, universities are principals in interfacing the sources of open innovation and the transfer of processes of knowledge into the international clusters networks. Second, it promotes the inclusion of the issue related to the creation of international and institutional networks in the short agenda of the referred agents in order to promote the introduction of new open innovation schemes.
    Keywords: Clusters; Entrepreneurship; Institutional Networks; Open Innovation.
    JEL: R3 M13 R11 M20
    Date: 2006–10–16

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